Capital outflows coupled with growing depreciation pressure on the yuan are stoking concern in Beijing about the stability of the domestic financial market. Illustration: Lau Ka-kuen
Capital outflows coupled with growing depreciation pressure on the yuan are stoking concern in Beijing about the stability of the domestic financial market. Illustration: Lau Ka-kuen

China capital outflows: as US battles inflation, Beijing goes on alert for ‘spillover effects’ from rate hikes

  • Foreign investors have dumped Chinese equities and bonds at a rapid pace over the past two months, while the yuan has come under strong depreciation pressure
  • The last time China experienced such severe capital flight came between 2015-17 and it was only halted by heavy capital controls and the release of forex reserves

Capital outflows coupled with growing depreciation pressure on the yuan are stoking concern in Beijing about the stability of the domestic financial market. Illustration: Lau Ka-kuen
Capital outflows coupled with growing depreciation pressure on the yuan are stoking concern in Beijing about the stability of the domestic financial market. Illustration: Lau Ka-kuen
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