China Capital Outflows Reach $500 Billion


The capital outflows from China have reached record levels of $500 billion in the first eight months of the current year. Following the devaluation of the yuan in August, this is putting more flesh on the bones of the reality of the Chinese devaluation. The Chinese intensified their capital outflows post-devaluation. So while some only want to focus on China selling U.S. long-term debt, they ignore the fact that the outflows far exceed the sales of dollar debt.