Capital controls are working
Top business and technology news for January 20, 2017. Part of the daily SupChina news roundup "The Trump-Xi era begins."
- China’s yuan outflows plummet, showing capital controls pay off / Bloomberg
Data from the State Administration of Foreign Exchange (SAFE) shows that “the equivalent of a net $309.4 billion left China via yuan payments in 2016.” Partly as a result of these outflows, the yuan dropped in value against the dollar “the most in more than two decades,” and China’s foreign reserves fell “near the psychologically relevant $3 trillion level.” This prompted regulators to take a variety of steps to slow down capital outflows, which Bloomberg says are now starting to show results.
- China extends Hollywood push with $1 billion Paramount investment / Reuters
- China cuts reserve ratios for five big banks temporarily amid cash squeeze / Reuters
- China GDP beats expectations but debt risks loom / Reuters
- China’s questionable GDP numbers: Why does it even bother? / Australian Broadcasting Corporation
- Alibaba backs Olympics through 2028 / CNN
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