China’s Capital Outflows Forecast to Hit USD538 Billion

The Institute of International Finance (IFF) has forecast a possible capital exodus of US$538 billion in China this year as global investors continue to worry about the country’s slowing economy.

The IFF, however, said the pull out is expected to drop this year compared to the US$674 billion that global investors withdrew last year.

It warned though that amount could go up if there is a disorderly drop of the Chinese currency.

Among the factors that the IIF cited for the slowing outflows is the Chinese authorities’ efforts to ease worries about the yuan’s direction. –