Goldman Sachs/Gao Hua Securities is looking for renewed capital outflow pressure to emerge from China
They cite divergent monetary policy:
– The US poised to raise interest rates
"There are more pressures for China’s foreign reserves to drop further, but as the yuan basket has fallen meaningfully this year and the exchange rate is closer to its fair level, the downward pressures won’t be as significant as last year"
Goldman Sachs Gao Hua says yuan ‘sweet spot’ over – look for accelerated capital outflows
