Why Capital Outflows From China May Be No Cause for Alarm

Massive capital outflows from China over the past four quarters have been viewed as a symptom of the moderation in growth prospects for the world’s second-largest economy and a possible cause of further weakness.

According to JPMorgan chief China economist Zhu Haibin, capital outflows—the net amount of assets leaving China—totaled $450 billion in the past four quarters, after adjusting for changes in the valuation of foreign exchange reserves.