How much worse will it get in China? How much worse can it get? According to the International Institute of Finance, $753bn in capital flowed out of emerging markets in 2015. All but $59bn of that was money leaving China. Ouch.
That’s a massive reversal from the last few years. It begs several questions. First, how much of it is Chinese money that knows how bad China’s debt problems really are? How much of it is foreign money that’s no longer betting on yuan appreciation? And how much is normal?
I’m sorry to say that those questions are beyond the scope of today’s Capital and Conflict. But I’m pleased to report answering questions like that and then making a corresponding investment recommendation you can act on is exactly the reason I was keen to bring Charlie Morris in as the investment director of the new Fleet Street Letter. You’ll hear more about that project this weekend. A lot more.
Category: Economics