$1 Trillion Flows Out Of China As Yuan Weakens
Last year wealthy Chinese companies and families moved a staggering $1 trillion out of the country and into more stable investments, underscoring recent government concerns about capital flight.
The exodus was spurred by the sinking yuan, as China’s elite stashed their money in the US, using both legal methods and illegal routes like “smurfing,” The Real Deal reports.
China's government recently took steps to counteract downward pressure on their currency and is taking steps to block cash from leaving the country, such as banning yuan-based funds for foreign investment.
If China can't stop the cash hemorrhaging soon it could undermine confidence in the entire Chinese economy, which could cause a trickle-down effect on the rest of the global economy. [TRD]
