This fall in investments is attributable to Beijing's clampdown on capital outflows
, investigation of companies like HNA Group and Anbang Insurance Group which expanded quickly abroad.
Global Banking News-February 8, 2018--Central bank governor says Philippines has enough buffers to withstand capital outflows
The Philippines has drawn kudos and inflows as one of Asia's fastest growing economies, but some economic indicators raise a question of whether it could be a soft spot if US interest rate hikes spur capital outflows
from Asia this year.
These moves will make it easier for legal entities to perform foreign trade activities while preventing unproductive capital outflows
in Hong Kong, came Monday, just days after Goldman Sachs Group warned China's capital outflows
are accelerating, with $69.
Taking these two together, major capital outflows
from emerging markets back to the US is highly expected in the coming months,' the brokerage said.
Park Hyung-min, an economist at Shinhan Investment, said that the rate hikes would further fuel capital outflows
and currency volatility, which would negatively affect the economy.
8232;Net capital outflows
, measured by portfolio and other investments flows, were down to US$ 2.
We believe the authorities can live with capital outflows
as long as foreign reserves stay above $3 trillion, which implies monthly declines of around $20 billion," ING said in a report.
Worries flared over China's currency valuation, credit risks and capital outflows
, contributing to the MSCI World Index dropping as much as 10 percent in January, while Brent crude oil plunged as much as 25 percent at one point during the month.
The real worry, however, is not just falling commodity prices, but also massive capital outflows
China, for example, used nearly $500bn of its reserves in 2015 to fight capital outflows
and prevent the renminbi's sharp depreciation; but it still has more than $3tn in reserves.