Satoshi

Bitcoin

Arthur

Bulk

<div class="watcher-guru"> 
 <p>According to data compiled by Bloomberg, China saw its most significant capital flight in the last 8 years in the month of August. The world’s second-largest economy saw outflows of $49 billion last month, the highest since December 2015. The development could spark trouble for the Chinese yuan (CNY). The USD/CNY exchange rate is trading at a 17-year high.</p> 
 <figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
  <div class="wp-block-embed__wrapper"> 
   <blockquote class="twitter-tweet" data-width="550" data-dnt="true"> 
    <p lang="en" dir="ltr">China just experienced a capital outflow of $49 billion last month, the largest outflow in more than 7 years 🚨 pic.twitter.com/X4Or9k3Oiu</p>— Barchart (@Barchart) September 19, 2023 
   </blockquote> 
  </div> 
 </figure> 
 <p>Markus Thielen, head of research and strategy at Matrixport, said, <strong>“The U.S. economy is strongly expanding while the Chinese economy appears to have weak growth momentum.”</strong></p> 
 <div class="quads-location quads-ad33739 " id="quads-ad33739" style="float:none;margin:0px 3px 3px 3px;padding:0px 0px 0px 0px;"> 
  <div class="publift-ad add"> 
   <div data-fuse="22560828227"></div> 
  </div> 
 </div> 
 <p><strong>Also Read: BRICS: China Targets Firms Making Bulk US Dollar Purchases</strong></p> 
 <p>Thielen further added that China’s post-Covid rebound was underwhelming. He stated, <strong>“Authorities have not implemented enough countercyclical measures to support the economy. Chinese companies are suffering from weak margins in the absence of growth. “</strong></p> 
 <div class="quads-location quads-ad15192 " id="quads-ad15192" style="float:none;margin:0px 3px 3px 3px;padding:0px 0px 0px 0px;"> 
  <div id="primisContainer" class="add"></div> 
 </div> 
 <p>If the current trend continues, Thielen believes Chinese firms could look overseas for better investment opportunities. However, given the country’s strict capital controls, this option might not prove lucrative.</p> 
 <h3 class="wp-block-heading" id="h-where-is-china-s-capital-flowing-to">Where is China’s capital flowing to?</h3> 
 <figure class="wp-block-image size-large"> 
  <img decoding="async" width="1024" height="576" src="data:image/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==" alt class="wp-image-83955 ewww_webp" sizes="(max-width: 1024px) 100vw, 1024px" data-src-img="https://cdn.thebittimes.com/images/2023/09/22/7cb92fa670394a47525a5238c6a6a2e6.webp" data-src-webp="https://cdn.thebittimes.com/images/2023/09/22/7cb92fa670394a47525a5238c6a6a2e6.webp.webp" data-srcset-webp="https://cdn.thebittimes.com/images/2023/09/22/7cb92fa670394a47525a5238c6a6a2e6.webp.webp 1024w, https://cdn.thebittimes.com/images/2023/09/22/7cb92fa670394a47525a5238c6a6a2e6.webp.webp 300w, https://cdn.thebittimes.com/images/2023/09/22/7cb92fa670394a47525a5238c6a6a2e6.webp.webp 768w, https://cdn.thebittimes.com/images/2023/09/22/7cb92fa670394a47525a5238c6a6a2e6.webp.webp 380w, https://cdn.thebittimes.com/images/2023/09/22/7cb92fa670394a47525a5238c6a6a2e6.webp.webp 550w, https://cdn.thebittimes.com/images/2023/09/22/7cb92fa670394a47525a5238c6a6a2e6.webp.webp 800w, https://cdn.thebittimes.com/images/2023/09/22/7cb92fa670394a47525a5238c6a6a2e6.webp.webp 1160w, https://cdn.thebittimes.com/images/2023/09/22/7cb92fa670394a47525a5238c6a6a2e6.webp.webp 1200w" data-srcset-img="https://cdn.thebittimes.com/images/2023/09/22/7cb92fa670394a47525a5238c6a6a2e6.webp 1024w, https://cdn.thebittimes.com/images/2023/09/22/7cb92fa670394a47525a5238c6a6a2e6.webp 300w, https://cdn.thebittimes.com/images/2023/09/22/7cb92fa670394a47525a5238c6a6a2e6.webp 768w, https://cdn.thebittimes.com/images/2023/09/22/7cb92fa670394a47525a5238c6a6a2e6.webp 380w, https://cdn.thebittimes.com/images/2023/09/22/7cb92fa670394a47525a5238c6a6a2e6.webp 550w, https://cdn.thebittimes.com/images/2023/09/22/7cb92fa670394a47525a5238c6a6a2e6.webp 800w, https://cdn.thebittimes.com/images/2023/09/22/7cb92fa670394a47525a5238c6a6a2e6.webp 1160w, https://cdn.thebittimes.com/images/2023/09/22/7cb92fa670394a47525a5238c6a6a2e6.webp 1200w" data-eio="j"> 
  <noscript> 
   <img decoding="async" width="1024" height="576" src="https://cdn.thebittimes.com/images/2023/09/22/7cb92fa670394a47525a5238c6a6a2e6.webp" alt="" class="wp-image-83955" srcset="https://cdn.thebittimes.com/images/2023/09/22/7cb92fa670394a47525a5238c6a6a2e6.webp 1024w, https://cdn.thebittimes.com/images/2023/09/22/7cb92fa670394a47525a5238c6a6a2e6.webp 300w, https://cdn.thebittimes.com/images/2023/09/22/7cb92fa670394a47525a5238c6a6a2e6.webp 768w, https://cdn.thebittimes.com/images/2023/09/22/7cb92fa670394a47525a5238c6a6a2e6.webp 380w, https://cdn.thebittimes.com/images/2023/09/22/7cb92fa670394a47525a5238c6a6a2e6.webp 550w, https://cdn.thebittimes.com/images/2023/09/22/7cb92fa670394a47525a5238c6a6a2e6.webp 800w, https://cdn.thebittimes.com/images/2023/09/22/7cb92fa670394a47525a5238c6a6a2e6.webp 1160w, https://cdn.thebittimes.com/images/2023/09/22/7cb92fa670394a47525a5238c6a6a2e6.webp 1200w" sizes="(max-width: 1024px) 100vw, 1024px"> 
  </noscript> 
  <figcaption class="wp-element-caption">
    Source: China Briefing 
  </figcaption> 
 </figure> 
 <p>According to some experts, Bitcoin (BTC) could see a significant inflow of Chinese wealth, as overseas investment might not be an option for Chinese businessmen. Thielen noted that <strong>“The familiarity of Bitcoin by Chinese investors in times of a weakening domestic economy could see substantial inflows into Bitcoin over the next few months.”</strong></p> 
 <p>BitMEX co-founder Arthur Hayes also shares a similar sentiment about outflowing Chinese wealth. He believed Chinese wealth might be flowing into gold and paying U.S. dollar offshore debt. Hayes mentioned that as long as the Japanese yen weakens, the Chinese yuan must weaken. This is to keep exports competitive. However, he does hope some of the capital flows into Bitcoin (BTC).</p> 
 <figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
  <div class="wp-block-embed__wrapper"> 
   <blockquote class="twitter-tweet" data-width="550" data-dnt="true"> 
    <p lang="en" dir="ltr">As long as the $JPY weakens, the $CNY must weaken so that Chinese exports remain competitive vs. Japan.<br><br>Wherever the Chinese capital is going, it will keep going in SIZE. <br><br>I hope some finds its way to Lord Satoshi and $BTC</p> 
    <div class="quads-location quads-ad33742 " id="quads-ad33742" style="float:none;margin:0px 3px 3px 3px;padding:0px 0px 0px 0px;"> 
     <div class="publift-ad add"> 
      <div data-fuse="22560828233"></div> 
     </div> 
    </div> — Arthur Hayes (@CryptoHayes) September 20, 2023 
   </blockquote> 
  </div> 
 </figure> 
 <p><strong>Also Read: BRICS: China’s Economy Echoing 2008 Financial Crisis of the U.S.</strong></p> 
 <p>A similar narrative played out in 2016 when Chinese investors began buying Bitcoin (BTC) to push wealth out of China. On the other hand, Singular Research’s crypto analyst Edward Engel believed that Chinese capital would not flow into Bitcoin (BTC). Engel stated, <strong>“China’s gotten pretty savvy when it comes to stopping outflows so I’d be surprised if people were using older ways.”</strong></p> 
</div> 
<div class="cs-entry__tags"> 
 <ul> 
  <li>china</li> 
 </ul> 
</div> 
<p>Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/china-sees-biggest-capital-outflux-in-8-years-where-is-it-heading-tbt63627.html">https://thebittimes.com/china-sees-biggest-capital-outflux-in-8-years-where-is-it-heading-tbt63627.html</a></p>

China Sees Biggest Capital Outflux in 8 Years, Where is it Heading?

Table of Contents

TheBitTimes

Other articles published on Sep 22, 2023

FTX ramps up asset recovery ahead of Bankman-Fried’s trial

LUSD Plummets 100% as XRP-Supporting Linear Finance Suffers Major Attack

Binance Wallet Spends Over $1 Million In Gas Fees In One Day

Transformative Alliance Forges the Future: Telos and Elixir Games Unveil Revolutionary Web3 Gamin...

Crypto Sponsors in F1 Drop by 25% as Teams Reconsider Deals

Breaking: Binance Exchange and CZ File Motion to Dismiss SEC Lawsuit

Join our free newsletter for daily crypto updates!