US EUROPE AFRICA ASIA 中文
    Business / View

    China must watch out for risk of capital outflows

    By He Jun (China Daily) Updated: 2015-06-08 07:27

    Emerging markets are likely to see large amounts of money leaving, given changes in the global economic climate. Since last year, developed countries and emerging market economies have had to face a reversal of the economic climate that followed the worldwide financial crisis.

    Especially in the wake of the United States' retreat from quantitative easing and the appreciation of the dollar, emerging market economies have been subject to serious net capital outflows - more serious, in fact, than during the crisis.

    The net capital outflow in the 15 largest emerging economies amounted to $600 billion during the three quarters before the end of March, according to estimates by NN Investment Partners. The net capital outflow was only $545 billion during the three quarters before the end of March 2009, which were also the worst months of the financial crisis. This shows that the market's confidence in some of the largest developing countries is very weak.

    The US has followed a loose monetary policy for many years since the crisis, which has facilitated the large capital waves rushing into the emerging market. From July of 2009 to the end of last June, the net capital inflow added up to $2.2 trillion in these 15 emerging economies. However, the current capital outflow has reversed this trend to some extent.

    This situation is playing out against the background that economic growth is slowing in emerging economies. From our point of view, the fundamental cause of capital outflow is the slowing economies in these emerging markets. It is estimated by Capital Economics that the average GDP growth rate of the whole emerging markets will drop from 4.1 percent in January to 3.9 percent in February. It is the second time the rate has gone below 4 percent since the Argentine crisis of 2001 and 2002.

    Capital outflow may hinder the development of emerging markets, and what's worse, their foreign exchange reserves have shrunk sharply since last December. In March, the overall foreign exchange reserves of emerging economies decreased by the quite large amount of $374.4 billion.

    It is noteworthy that China is likely to suffer most from this capital outflow. Last year, China had a double surplus in trade and capital. The situation has not improved this year as the national and international economic and financial environments continue to be complicated.

    Economic development faces more pressure, and the renminbi exchange rate has undergone obvious two-way fluctuation. Given this, the cross-border capital flow becomes more unstable in China, resulting in higher potential for capital outflows.

    Previous Page 1 2 Next Page

    Hot Topics

    Editor's Picks
    ...
    中文字幕乱码免费视频| 久久亚洲AV无码精品色午夜麻豆| 无码国产精品一区二区免费| 精品成在人线AV无码免费看 | 久久有码中文字幕| AAA级久久久精品无码区| 久久久久久精品无码人妻| 亚洲一区无码中文字幕| 国模吧无码一区二区三区| 日韩精品无码中文字幕一区二区| 最新中文字幕在线视频| 国产成人一区二区三中文| AV无码久久久久不卡网站下载| 亚洲精品无码久久一线| 最近中文字幕免费完整| 亚洲中文字幕在线观看| 亚洲成A∨人片天堂网无码| 人妻丰满熟妇无码区免费| 亚洲熟妇无码AV在线播放| 无码精品国产dvd在线观看9久| 在线免费中文字幕| 精品999久久久久久中文字幕| 亚欧无码精品无码有性视频| 97无码免费人妻超级碰碰夜夜| 日韩AV无码久久一区二区| 亚洲国产a∨无码中文777| 成人无码WWW免费视频| 久久精品亚洲AV久久久无码| 久久亚洲精品无码aⅴ大香| 中文字幕av日韩精品一区二区| 日韩欧美中文字幕一字不卡| (愛妃視頻)国产无码中文字幕| 久久综合中文字幕| 精品久久久久久久久久中文字幕 | 无码av最新无码av专区| 亚洲综合av永久无码精品一区二区| 中文字幕av日韩精品一区二区| 亚洲中文字幕无码一去台湾| 一本色道久久HEZYO无码| 亚洲av无码一区二区三区在线播放 | 久久精品天天中文字幕人妻|