-
Why fears of mass capital flight from China are overblown
“China’s currency outflows may be bigger than they look,” warned a report in the South China Morning Post earlier this month. The article played into the narrative that has prevailed in financial markets since August last year, when the authorities in Beijing sprung a surprise 2 per cent devaluation of the yuan against the US dollar. According to this narrative, a crisis of confidence in China’s future growth and stability has triggered mass capital flight – capital flight that left unchecked will threaten to precipitate the very Chinese meltdown that financial markets so dread.It’s a scenario ... (full story)