-
Pressure On China Heightens As Capital Outflow Chokes Liquidity
The latest money data from China shows its capital-outflow problem is worsening, pressuring policymakers to allow a further weakening in the currency. China released money and inflation data over the weekend. CPI and PPI were not great reading, but money supply data was even more downbeat: M2’s growth disappointed, while M1 growth is moldering, falling 1.4% year-on-year versus +1.2% expected. Real M1 growth is now also contracting, which is ominous for China’s thus far gingerly-improving growth. chart hina has a capital-outflow problem that is putting pressure on liquidity. It has a nominally closed capital ... (full story)