The speed at which money is flowing out of China is increasing, according to one of Asia’s top stock market analysts.
Christopher Wood, who writes the respected Greed and Fear note for brokerage CLSA, notes that capital fleeing China is “a real phenomenon.”
Wood estimates that capital outflows increased from $US96 billion (£62 billion) to $US155 billion (£99 billion) between the last quarter of 2014 and the first quarter of this year.
Here’s the chart:
The outflows here represent the change in foreign reserves, adjusting for currency variations and stripping out the current account surplus.
The numbers do sound huge, but, as Wood points out in the July 31 note, they barely make a dent in China’s total foreign reserves of $US3.69 trillion (£2.36 trillion). Still, it’s a trend.