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论文导读：Alltheseindicatethatcross-bordercapitalileeingoutofChina.StatisticsshowthatChina’onthlyFDIhasregisterednegativegrowthsinceNovember2011,exceptforameager0.05-percentgrowthinMay.Butnow,theU.S.FederalReserve’sthirdroundofquantitativeeasing,knownasQE
Capital Flight Becomes a Concern
The renminbi counterpart of China’s foreign exchange reserves in August decreased by 17.4 billion yuan ($2.76 billion) compared to July. At the same time, the United States and the EU he started unlimited bond buying. Should China worry about an influx or a flight of capital? In the future, how will the flow of short-term capital and long-term capital diverge?
In fact, capital flight has become one of China’s biggest short-term risks. Since the end of last year, foreign reserves he shrunk, the renminbi counterpart of foreign reserves has dropped month by month, and monthly foreign direct investment (FDI) also continues its decline. All these indicate that cross-border capital is fleeing out of China. Statistics show that China’s monthly FDI has registered negative growth since November 2011, except for a meager 0.05-percent growth in May.
But now, the U.S. Federal Reserve’s third round of quantitative easing, known as QE3, may reverse short-term capital’s outflow, which has lasted for almost one year, into a new round of inflow. Most monetary capital, driven by interest, will flow to the commodity markets and emerging economies, where investment returns will be high. The possibility of a short-term capital backflow to China will increase, raising concerns about the pressure of a massive capital influx.
However, we should differentiate the capital coming in and out of China. Is it short-term speculative capital or long-term industrial capital?
Alleviating EU sovereign debt crisis and the U.S. QE3 can make the global economy recover to a certain degree in 2013. But due to the prolonged sovereign debt crisis in developed countries, accelerated rebalancing of the global economy and the reduced investment returns in emerging markets, the longterm trend of capital inflow into emerging economies is facing a turning point. Longterm capital, especially industrial capital, will slacken its pace as it enters China.
From a mid- and long-term perspective, major factors that affect international capital flows are changing.
First, the sovereign debt crisis in developed countries is undergoing a prolonged“de-leveraging” process, which can lead to a backflow of their overseas capital. Second, the global aggregate demand dominated by developed countries continues to shrink. The golden window of ultra-high speed growth in Chinese exports has been closed. The efficiency of China’s labor-intensive exporting sectors has begun to decre论文导读：themarket.Itshouldalsointroduceprojectswithadvancedtechnologyconducivetoraisingitscompetitivenessandcreateafairerinvestmentenvironmenttofosternewstrengthsinitseconomy.16.2%FromJanuarytoAugust,China’oreigndirectinvestment(FDI)fromJapanincreasedby1
ase. Third, China, which has been depending on low prices to subsidize globalization dividends, is on the road to revaluing its production elements, which will certainly squeeze profit margins of FDI. Fourth, some capital may turn to developing countries with lower costs, eroding the amount that used to flow into traditional emerging markets like China. Fifth, the United States is pushing forward its “re-industrialization” strategy. The Obama administration aims to reshape the global industrial chain by withdrawing industrial capital. With a strong return of “Made in USA,” the United States could become an FDI destination instead of a source of FDI, which will not only draw back U.S. capital but also attract global capital to its large and developed market. This will lead to a slowdown in FDI growth worldwide. In the future, with the changing pattern of global capital flow and the unfolding of industrial distribution, the slacken源于：论文范文网www.7ctime.com
ing pace of global capital into China will become more evident.
What China should prevent is not only a massive flight of hot money, or speculative capital, but also the outflow of long-term capital.
The era in which China has relied on its cheap resources and fat profits to attract global capital is coming to a close. To rebound, China should quickly increase its human capital, labor productivity and the capacity of the market. It should also introduce projects with advanced technology conducive to raising its competitiveness and create a fairer investment environment to foster new strengths in its economy.
16.2 %
From January to August, China’s foreign direct investment (FDI) from Japan increased by 1
From January to August, FDI in the service sector totaled $35 billion, a
From January to August, FDI in central China totaled $6.25 billion, up 1
China’s steel output saw a drop in August as prices of steel products he continued to fall, said the National Development and Reform Commission.
Crude steel production shed 1.7 percent year on year in August, contrasting with the 13.8-percent growth recorded during the same period of last year.
In August, the composite price index for China’s domestic steel products eraged at 104.39 points, pulling back 7.64 points from the previous month and down 30.78 points from a year earlier.
In the first eight months, Chin论文导读：developthreeculturallocationsinDalianofLiaoningProvince,BeijingandGuangzhouofGuangdongProvince,withDalianfocusingonfilmmakingandoperationsandBeijingonculturaltrel,inhopesofgarneringrevenueofmorethan80billionyuan($1
Wanda’s Ambition
At the 2012 Cultural and Creative Industry Summit in Beijing on September 19, Wang Jianlin, Chairman and President of Dalian Wanda Group, outlined his company’s ambitious plans to further develop China’s culture industry.
“Wanda Group will develop three cultural locations in Dalian of Liaoning Province, Beijing and Guangzhou of Guangdong Province, with Dalian focusing on filmmaking and operations and Beijing on cultural trel, in hopes of garnering revenue of more than 80 billion yuan ($1
It has become the world’s largest cinema operator after acquiring the world’s second largest cinema chain AMC Theater Co.
Capital Flight Becomes a Concern
The renminbi counterpart of China’s foreign exchange reserves in August decreased by 17.4 billion yuan ($2.76 billion) compared to July. At the same time, the United States and the EU he started unlimited bond buying. Should China worry about an influx or a flight of capital? In the future, how will the flow of short-term capital and long-term capital diverge?
In fact, capital flight has become one of China’s biggest short-term risks. Since the end of last year, foreign reserves he shrunk, the renminbi counterpart of foreign reserves has dropped month by month, and monthly foreign direct investment (FDI) also continues its decline. All these indicate that cross-border capital is fleeing out of China. Statistics show that China’s monthly FDI has registered negative growth since November 2011, except for a meager 0.05-percent growth in May.
But now, the U.S. Federal Reserve’s third round of quantitative easing, known as QE3, may reverse short-term capital’s outflow, which has lasted for almost one year, into a new round of inflow. Most monetary capital, driven by interest, will flow to the commodity markets and emerging economies, where investment returns will be high. The possibility of a short-term capital backflow to China will increase, raising concerns about the pressure of a massive capital influx.
However, we should differentiate the capital coming in and out of China. Is it short-term speculative capital or long-term industrial capital?
Alleviating EU sovereign debt crisis and the U.S. QE3 can make the global economy recover to a certain degree in 2013. But due to the prolonged sovereign debt crisis in developed countries, accelerated rebalancing of the global economy and the reduced investment returns in emerging markets, the longterm trend of capital inflow into emerging economies is facing a turning point. Longterm capital, especially industrial capital, will slacken its pace as it enters China.
From a mid- and long-term perspective, major factors that affect international capital flows are changing.
First, the sovereign debt crisis in developed countries is undergoing a prolonged“de-leveraging” process, which can lead to a backflow of their overseas capital. Second, the global aggregate demand dominated by developed countries continues to shrink. The golden window of ultra-high speed growth in Chinese exports has been closed. The efficiency of China’s labor-intensive exporting sectors has begun to decre论文导读：themarket.Itshouldalsointroduceprojectswithadvancedtechnologyconducivetoraisingitscompetitivenessandcreateafairerinvestmentenvironmenttofosternewstrengthsinitseconomy.16.2%FromJanuarytoAugust,China’oreigndirectinvestment(FDI)fromJapanincreasedby1
ase. Third, China, which has been depending on low prices to subsidize globalization dividends, is on the road to revaluing its production elements, which will certainly squeeze profit margins of FDI. Fourth, some capital may turn to developing countries with lower costs, eroding the amount that used to flow into traditional emerging markets like China. Fifth, the United States is pushing forward its “re-industrialization” strategy. The Obama administration aims to reshape the global industrial chain by withdrawing industrial capital. With a strong return of “Made in USA,” the United States could become an FDI destination instead of a source of FDI, which will not only draw back U.S. capital but also attract global capital to its large and developed market. This will lead to a slowdown in FDI growth worldwide. In the future, with the changing pattern of global capital flow and the unfolding of industrial distribution, the slacken源于：论文范文网www.7ctime.com
ing pace of global capital into China will become more evident.
What China should prevent is not only a massive flight of hot money, or speculative capital, but also the outflow of long-term capital.
The era in which China has relied on its cheap resources and fat profits to attract global capital is coming to a close. To rebound, China should quickly increase its human capital, labor productivity and the capacity of the market. It should also introduce projects with advanced technology conducive to raising its competitiveness and create a fairer investment environment to foster new strengths in its economy.
16.2 %
From January to August, China’s foreign direct investment (FDI) from Japan increased by 1
6.2 percent year on year.
$35billionFrom January to August, FDI in the service sector totaled $35 billion, a
1.85-percent year-on-year drop.
12.3 %From January to August, FDI in central China totaled $6.25 billion, up 1
2.3 percent year on year.
THE MARKETS Steel Prices DownChina’s steel output saw a drop in August as prices of steel products he continued to fall, said the National Development and Reform Commission.
Crude steel production shed 1.7 percent year on year in August, contrasting with the 13.8-percent growth recorded during the same period of last year.
In August, the composite price index for China’s domestic steel products eraged at 104.39 points, pulling back 7.64 points from the previous month and down 30.78 points from a year earlier.
In the first eight months, Chin论文导读：developthreeculturallocationsinDalianofLiaoningProvince,BeijingandGuangzhouofGuangdongProvince,withDalianfocusingonfilmmakingandoperationsandBeijingonculturaltrel,inhopesofgarneringrevenueofmorethan80billionyuan($1
2.69billion)in2020,”Wangsaid.Thecom
a produced 481.57 million tons of crude steel, up 2.3 percent year on year. The growth represented a retreat of 8.3 percentage points from the growth seen a year earlier.Wanda’s Ambition
At the 2012 Cultural and Creative Industry Summit in Beijing on September 19, Wang Jianlin, Chairman and President of Dalian Wanda Group, outlined his company’s ambitious plans to further develop China’s culture industry.
“Wanda Group will develop three cultural locations in Dalian of Liaoning Province, Beijing and Guangzhou of Guangdong Province, with Dalian focusing on filmmaking and operations and Beijing on cultural trel, in hopes of garnering revenue of more than 80 billion yuan ($1
2.69 billion) in 2020,”Wang said.
The company began to invest in the culture industry in 2005 and its reach includes film production and distribution, stage shows and entertainment chains.It has become the world’s largest cinema operator after acquiring the world’s second largest cinema chain AMC Theater Co.