China stocks drop over 8%

Re:China stocks drop over 8% by sharetea on Monday July 27, 2015 @10:39AM (#9955421)

Agreed, and actually part of that storyline is the fact that there is a massive outflow of capital from China, estimated $1 Trillion cash flowing out of China last year (http://bit.ly/1CP8Oj3), no doubt to due the people's inability to trust the government. China reported having foreign exchange reserve of $3.6 Trillion, which means that it will run down the reserve to 50% in two years, and even faster if panic helps accelerate the outflow. This places serious doubts on the chinese government to contain any massive deflation to either its stock market, real estate, local government debt, or black market lending using its reserve.

EDIT: meant to say 'next year', not 'last year'

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Re:China stocks drop over 8% by blei on Monday July 27, 2015 @11:59AM (#9955927)

It's still a serious problem, but it seems like the $1 trillion outflow number is the authors' projection for the next year, based on their estimate of accelerating Q2 outflows.

Regarding the past year, the article simply says that "the cumulative capital outflow over the past five quarters [is] $520bn."

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Re:China stocks drop over 8% by nazgulnarsil on Monday July 27, 2015 @04:30PM (#9957800)

foreign exchange reserve and capital outflow are not additive like that AFAIK.

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