China recorded a net cross-border capital outflow of $60 billion in the fourth quarter, reports China Securities Journal, citing the State Administration of Foreign Exchange (SAFE).

According to the SAFE, net cross-border capital inflows may decrease over the next few years, and there will be greater volatility.

The decrease in the central bank's funds outstanding for foreign exchange did not indicate that hot money was leaving the country. Instead, it reflects the increasing willingness of domestic enterprises and residents to hold foreign currency, according to the report.

The inflow of funds by Qualified Foreign Institutional Investors (QFIIs) fell 32 percent from 2010 to $2.2 billion, while the outflow of QFII funds totaled $1.4 billion, an increase of 142 percent.

This resulted in a net inflow of $800 million, down 70 percent year-on-year.