Fears of capital flight heighten with falling yuan
Policymakers are watching outflows closely and are also stepping up scrutiny of major outbound deals
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."
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Banking & Finance
Digital bank Monzo reports first annual profit in run-up to IPO
Bank of Singapore names former GIC executive for newly created role
ECB to start rate cuts but sticky inflation clouds path ahead
KKR weighs entering private credit in Japan to challenge banks
RBA seen as the only other major central bank at risk of hiking
DBS mobile app customers face intermittent access on Saturday