As economy slips, China’s wealthy move money out
HONG KONG: As the Chinese economy stumbles, wealthy families are increasingly trying to move large sums of money out of the country, worried that the value of the currency will fall and their savings will be worth less.
To get around the country’s cash controls, individuals are asking friends or family members to carry or transfer out $50,000 apiece, the annual legal limit in China. A group of 100 people can move $5 million overseas.
This was bound to happen after frequent devaluations. Just to join the IMF bucket of currencies they can’t do anything. They destroyed the steel sector of major and developing economies by providing lowest prices on steel with very minimal profit margin and caused thousands of job losses. That’s why Dr Rajan aptly commented by saying thy neighbour poor policy
This is what Rich will do to any country … India and Make in India team must learn from this ..
Half of China’s wealth is already invested abroad, especially in the US. It seems both the countries will go down together. They have got a common recipe for disaster.
Ravi K Gupta
if they sell USD in the market, liquidity will be big problem and ultimately lead to economic crisis deepening.
Will hit hard economically to its growth.
Blood suckers. Rich are becoming rich. Poor poorer and middle class struggling
what about devaluation of rupee??? Indian wealthy have already out of country . If Modi can change the alter the devaluation rupee. Indians themselves will invest in India. When rupee is continuously devaluing foreigners will never invest in India this thing must know by Modi
decline of China started…God forbid the rest of the world
Chinese bubble is set to burst soon and the impact on the world economy could be huge.