Economics
Why Markets Stopped Worrying About China's Dwindling Foreign Cash Pile
The flood of yuan out of the country inspires little more than a yawn.
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At the dawn of 2016, the dwindling of China's massive hoard of foreign reserves sparked turmoil on global financial markets. Now, signs of accelerating capital outflows inspire little more than a yawn.
Figures published Wednesday showed the value of the People's Bank of China's foreign exchange reserves fell by $69.1 billion to $3.05 trillion in November, the largest drop since January. S&P 500 futures, however, showed no immediate reaction and benchmark U.S. indexes then rallied to all-time highs, a stark contrast to 10 months prior, when a similar drawdown was cited as the proximate cause of carnage in global equities.