Wednesday, October 21, 2015

Flight of Capital From China

News
Capital flows from China exceed $500 in the first eight months of the year. While China might be selling some it's US long-term US debt, their sales are dwarfed by staggering outflows. This mismatch represents the driving force behind renminbi's devaluation.





Headline: China’s capital outflows top $500bn

Capital outflows from China topped $500bn in the first eight months of this year, according to new calculations by the US Treasury that highlight the shifting fortunes in the global economy.

Capital outflows from China topped $500bn in the first eight months of this year, according to new calculations by the US Treasury that highlight the shifting fortunes in the global economy. The outflows, which peaked at about $200bn during the market turmoil in August according to the estimates released on Monday, have also contributed to a shift by Washington in its assessment of the valuation of China’s currency, the renminbi.


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