The Institute of International Finance (IIF) said in its report on Wednesday that capital outflows from emerging economies were larger than previously expected. Emerging markets faced net capital outflows of $735 billion in 2015, up from $111 billion in 2014 and up from the previously estimate of $540 billion.

The institute expects total net outflows including errors and omissions of $448 billion in 2016.

China faced the highest outflows, which totalled $676 billion in 2015, according to the IIF.

"The 2015 outflows largely reflected efforts by Chinese corporates to reduce dollar exposure after years of heavy dollar borrowing, as expectations of persistent renminbi appreciation were replaced by rising concerns about a weakening currency," the institute noted.