BEIJING'S economic measures has benefitted Shaanxi by putting a stop to the flight of capital from the inland province to coastal cities.
Provincial vice-governor Liu Chunmao told Sunday Money that an estimated three billion yuan (about HK$4 billion) had been taken out of Shaanxi in the second half of last year.
The capital flight, mostly speculation-driven, was facilitated by interbank lending among mainland institutitions in Shaanxi and the coastal cities, he said.
Mr Liu said that other channels used to siphon money out include the setting up of enterprises by Shaanxi-based companies in cities outside the province and firms from elsewhere raising capital in Shaanxi by issuing bonds and shares.
Of the three billion yuan, about 500 million was estimated to have been channelled outside of the province through the issue of things such as bonds and shares, he said.
''It is not a healthy trend as the capital flight has been aimed mostly at higher speculative gains and has stripped Shaanxi of development funds.'' Mr Liu said the trend had, however, been arrested with the central government's implementation of austerity measures.