China

CHINA'S increasingly aggressive measures to clamp down on capital outflows will not have gone unnoticed by US hedge-fund manager Kyle Bass.

Mr Bass is famed for his successful bet against the US housing market in the global financial crisis, so markets monitor his comments closely. He has long argued that the yuan, or renminbi, is set to fall 30 per cent against the dollar and he sees capital outflows as backing his view. "China's capital outflows are worse than they appear, which is why the government has allowed the RMB to depreciate over the last two months," Mr Bass said. "We believe this pressure will continue with the prospect for higher interest rates in the US."