China’s Capital Flight Worries Experts: Arthur Hayes Weighs In
The potential outflow of capital from China is a significant development worth monitoring, as highlighted by Arthur Hayes, the controversial BitMEX founder and experienced figure in the cryptocurrency arena.
As per Google Finance data, the Chinese yuan (CNY) has experienced a decline of over 5% against the US dollar since the outset of 2023.
Hayes shared with his substantial social media following on X that he engaged in a discussion with Andrew Collier, an analyst specializing in China and the managing director at Orient Capital Research, regarding the potential phenomenon of Chinese capital flight.
Collier purportedly suggested that the most effective way to gauge this trend is by examining the discrepancy between China’s net export earnings (the difference between export revenues and import expenses) and the foreign exchange reserves held by China’s central bank.
Based on data from Bloomberg, China’s foreign exchange reserves have seen an uptick of approximately $32 billion since the beginning of 2023. Information from Trading Economics indicates that China’s year-to-date trade surplus stands at around $553 billion.
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Hayes deduced from this data that approximately $520 billion has exited China for various purposes, while notably avoiding increasing its holdings of US Treasuries.
Furthermore, Hayes underscored that, in light of the weakening Japanese yen (JPY), the Chinese yuan (CNY) must also depreciate to maintain the competitiveness of Chinese exports vis-à-vis Japan, signifying a trend of substantial magnitude. Hayes expressed his hope that some of these funds find their way into the realm of Lord Satoshi and Bitcoin (BTC).
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
