Monday, February 29, 2016
DEUTSCHE BANK: $328 Billion Has Been Moved Out Of China In Secret
Via Business Insider: A lot more money is leaving China than it should be. According to Deutsche Bank analysts led by Zhiwei Zhang, about $328 billion left China in secret between August 2015 and January this year. This is a huge number – about 78% of total capital outflows. Despite China running a trade surplus of about $60 billion a month, the country's FX reserves fell $420 billion in the last few months of 2015 as policymakers spent dollars to replace the missing yuan. It's a puzzle, but it's explained by the way Chinese importers overpay for imports to skirt around controls on capital flight.