High systemic risk
New York University’s Volatility Lab using a market-based measure of the expected capital shortfall in China’s financial system puts China, in June 2017 at the top of global systemic risk rankings.
Slower growth
China’s yield curve remains flat and even inverted temporarily last month. Is it an early warning sign for slower growth?
Chinese households seem to be nervous
Anna Wang finds that there is an anomaly in China’s current account: travel expenditures are large and rapidly growing, a trend that cannot be explained neither by accounting factors nor economic fundamentals. Her research shows that Chinese households use travel to channel their savings outside China and invest in private foreign assets at an ever growing pace.
China’s Current Account: External Rebalancing or Capital Flight?
Author: Anna Wong
From: Federal Reserve Board
