Bloomberg have a quick piece up on China's foreign reserves data due Sunday (7 February)
- Reserves are at a 3-year low
- We are likely to see a second consecutive drop this month
(ps - I posted the 'expected' earlier: $3215.5bn, prior was $3330.0bn)
Policy makers are burning through billions of dollars to hold up a weakening currency amid flagging growth and $1 trillion in capital outflows last year
The yuan sank to a five-year low last month
"China is facing a significant capital outflow problem," said Krishna Memani, who helps oversee $217 billion as chief investment officer at Oppenheimer Funds Inc. in New York. "It's an astounding reduction in their capital account position. This is an issue they've been aware of, and they have to find a way of managing it. The economy itself cannot turn this around."
- Foreign-exchange reserves surged almost 200-fold from $21.2 billion in 1993 to a peak of almost $4 trillion in 2014
- Even after falling 17 percent since then, the reserves remain the world's largest and are almost triple the level held by No. 2 Japan
