China estimate of the day

…it appears that there was roughly $750 billion of capital outflow in 2015

The Aaron Back WSJ story is here, or try through here.  And here is a Victor Shih paper (pdf) on the fragility of China’s reserves, from 2011 but still of relevance.  One key point is that high wealth inequality in China makes capital flight easier to accomplish.

By the way, here is a profound Andrew Batson post on why China is not specializing much in its exports.  That is the good news, the bad news is that Chinese leveraging does not seem to be slowing down at all.


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