Economics

China's Capital Controls Keep a Bad Year From Getting Worse

  • Outflows have remained subdued even as yuan, stocks tumble
  • A reason for optimism in a rough year for Chinese markets

The financial district of Pudong in Shanghai.

Photographer: Fred Dufour/AFP via Getty Images

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In many ways, it looks like the perfect environment for Chinese capital outflows: economic growth is slowing, U.S. interest rates are rising, and the yuan is trading near its weakest level in more than a decade.

Yet signs of an exodus from the world’s biggest emerging market are hard to find. What gives?