Overall, the whole world is facing the changes in capital flows, and China is facing considerable pressure from capital outflows.
ANBOUND's research team points out that in light of the changes in capital flows worldwide, it is impossible for the situation of net capital outflows in China to continue.
China should adjust its policy and transform itself to the prime destination for global capital flows.
China is capable of doing this and the possibility of China succeeding in doing this is real.
First and foremost, there are capital surplus worldwide and the scale of the liquidity is large and hence there is ample liquidity.
Secondly, China has a huge domestic market.
Thirdly, the economic growth in China is relatively higher when compared to the other major economy in the world.
Fourthly, the appreciation of RMB is higher when compared to currency other than USD.