WSJ: China capital outflows unrelenting

According to The Wall Street Journal, the leakage of China’s capital is unrelenting, even if it’s no longer at the top of investors’ minds. Chinese banks’ foreign-exchange data shows that capital continued to leave the economy in August – the 24th straight month of outflows, according to Goldman Sachs. And while at first glance the pace slowed from July, Standard Chartered said that when changes in foreign-exchange reserves are netted off against trade and investment flows, August turns out to have been the worst month since January. Sliced in different ways, China’s outflows this year are north of $400 billion, which is reflected both in a $190 billion decline in the country’s foreign-exchange reserves and a weaker yuan, down about 3% this year against the dollar.