As economy slips, China’s wealthy move money out - Times of India

As economy slips, China’s wealthy move money out - Times of India: "For years, China soaked up much of the world's investment money, as the economy grew at annual rates in the double digits. A largely closed financial system kept China's own money corralled inside the country.
Now, with growth slowing, money is gushing out of the country. And the government has a looser grip on the spigot, because China dismantled some currency restrictions to open up its economy in recent years.
"Companies don't want renminbi and individuals don't want renminbi," said Shaun Rein, the founder of the China Market Research Group. "The renminbi was a sure bet for a long time, but now that it's not, a lot of people want to get out."
The Chinese central bank is fighting the downward pressure by purchasing large sums of renminbi, selling dollars from its currency reserves to do so. China's reserves sank by $108 billion in December and an additional $99 billion in January, to $3.23 trillion. A year and a half ago, they stood at $4 trillion."



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