Explain record China capital outflows, i.e. why is money flowing out of China?

  • International investor concerns about slowing China economy, so China stock-market looks less attractive.
  • Strong US$ has been a big and obvious trade, i.e. since the rest of the world is still cutting interest rates, but the US is poised to raise them, the US$ has surged.
  • Interest rates have been falling fast in China, hence making their currency less attractive.
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