February 2016

[admin]

Maybe these Chinese capital outflows are not all bad news:

While estimates of the sources of the hard-currency outflows differ, much of the total is thought to be pay-downs of foreign debt. A much bigger threat -- "the dam that the PBOC must make sure doesn’t break," according to Frederic Neumann at HSBC Holdings Plc -- would be an exodus of funds from domestic investors. "The worst fears of cascading capital flight have not come to pass," Tom Orlik, a Bloomberg Intelligence economist, wrote after the reserves report on Sunday, noting that the drop was less than some had anticipated. "Households are not maxing out their $50,000 annual quota for FX purchases." That puts a premium on maintaining confidence in the outlook

Holding Back China's Capital Flight ‘Dam’ Is Key - Bloomberg Business