To predict the situation of the Chinese economy, we should look at capital flows to or from China
Capital flows to China or out of China are a very good leading indicator of the situation of the Chinese economy. The reason is that capital flows react to investment opportunities in China, and to the optimism or pessimism of Chinese companies and rich Chinese. In the most recent period, the end of capital outflows from China is therefore a positive development.
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Natixis
Natixis
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