The return of funds is to resell what you have bought, and the funds obtained are the return of funds. Enterprise funds return quickly so as to make better use of funds to develop new projects.

capital return can improve credit conditions; Collection of accounts receivable and so on. The interest rate hike by the US dollar has indeed had a lot of impact on global capital flows. Emerging economies, including China, and most developed and developing countries are faced with the pressure of the return of US dollars to the United States.

in this process, we think that some backflow is a correction to the large inflow in the past. For example, after the international financial crisis in 28, relevant countries implemented quantitative easing policies, and a large number of cheap dollars flowed to emerging market economies, including China.

After p>28, the pressure of foreign exchange inflow in China was quite great for some time. Now the US dollar has implemented the interest rate hike policy, and the related funds have returned, which is also a normal cyclical reaction. Since the second half of 214, we have observed that the capital outflow pressure generated in the process of raising interest rates in the US dollar is generally tolerable and bearable.

In this process, some institutions have paid off the relevant foreign debts in US dollars in advance, and even made some structural arrangements for some trade financing products in advance. These operations are conducive to reducing the leverage ratio of enterprises and preventing risks. From June 214 to now, the reserves of nearly $79 billion have declined, which should be affordable.

Extended information:

Common reasons for needing capital return:

(1) The cash flow of enterprises is too small;

(2) There will be great pressure to repay the principal and interest in the future;

(3) national policies and so on.

Reference: Baidu Encyclopedia-Capital Return