China reserves: going (a bit) down

As I predicted in my speech in CBD (17 October), hot money is likely to leave China. This is now confirmed.
Cai Qiusheng, an official with the capital account management department of the State Administration of Foreign Exchange, says that China’s foreign exchange reserves had fallen from their peak of over US$1.9 trillion but did not give details on when or by how much they had fallen. Foreign exchange reserves have already fallen from the first time since December 2003. Calculated on a month-on-month basis, their highest level was over US $1.9 trillion, but they are now definitely lower than that figure.” According to the data from China’s central bank, China’s foreign trade surplus was US$35.24b in Oct., and US$40.09b in Nov., respectively. Meanwhile, the actual FDI was US$6.72b in October, and US$5.32b in November, respectively. That means, based on rough calculations, a capital of more than US$80b flew out of mainland China in Oct. and Nov. [source: Hexun]
Liu Mingkang, chairman of China Banking Regulatory Commission said that China may start seeing capital outflows after years of being on the receiving end of huge inflows. He says that China’s economic recovery will be a U-shape rather than a V-shape. He adds that the possibility of inflation becoming deflation is increasing in China. [source: Eastday]


And this how some companies might change their logo in 2009. It’s all in the recession!
(I selected the best from a long series I got…)

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