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Why Capital Outflows From China May Be no Cause for Alarm
Massive capital outflows from China over the past four quarters have been viewed as a symptom of the moderation in growth prospects for the world’s second-largest economy and a possible cause of further weakness. According to JPMorgan chief China economist Zhu Haibin, capital outflows—the net amount of assets leaving China—totaled $450 billion in the past four quarters, after adjusting for changes in the valuation of foreign exchange reserves. “The magnitude and the duration of capital outflows are unseen in China,” the economist writes. The simple inference that can be made from these headline figures is ... (full story)