The market for initial coin offerings (ICOs) reached a new peak in the first quarter, although signs of a slowdown have begun to emerge amid fears of upcoming regulation and a general
outflow of capital from the cryptocurrency space.
As a result, there was a huge
outflow of capital from emerging markets — investors saw a better reward - to - risk opportunity at home.
Indications that the US Federal Reserve is inclined to take a more aggressive stance in raising interest rates have triggered
an outflow of capital from Hong Kong to the US to minimize foreign - exchange risks.
The market for initial coin offerings (ICOs) reached a new peak in the first quarter, although signs of a slowdown have begun to emerge amid fears of upcoming regulation and a general
outflow of capital from the cryptocurrency space.
Cryptocurrencies have provided the potential for unregulated
outflows of capital from the mainland, so it seems that the cryptocurrency facilitators in China may face a different fate than their internet counterparts.
Not exact matches
Capital outflows from China in the first 10 months
of 2016 rocketed to an estimated $ 530 billion, while the country's stash
of foreign reserves has fallen nearly 25 %
from a peak
of just under $ 4 trillion in early 2014.
«At the same time, there are clear downside risks: political uncertainty, including in Europe; the sword
of protectionism hanging over global trade; and tighter global financial conditions that could trigger disruptive
capital outflows from emerging and developing economies,» the former French finance minister said.
China's central bank likely spent about $ 90 billion worth
of reserves in currency interventions in January, leading to net
capital outflows of about $ 113 billion
from China during the month, the Institute for International Finance said on Tuesday.
The IIF said a reversal
of non-resident
capital inflows prompted largely by repayment
of dollar debt by Chinese companies also had combined with increased
capital outflows from residents.
In the past few weeks, though, the focus
of the worry has quickly turned
from domestic to international, with countries
from India and Indonesia to Brazil hit by massive
capital outflows and rapid currency depreciation.
As long China pegs its currency, it's net
capital account
outflow is unlikely to change, because changes in reserves are simply a function
of the net flows arising
from the combination
of the current account and the non-PBoC part
of the
capital account.
If net
capital outflows from the rest
of the world to the United States are unchanged (in fact, they would probably rise, as the Mexican contagion spread to other Latin American countries), the automatic consequence would be a bigger U.S.
capital account surplus.
In addition, the Fed's delay has eased pressure on China, and we're encouraged by the slowing
of capital outflows from the country.
Thoughts
of a rate rise in the United States have contributed to the selloff in a range
of currencies and to
capital outflows from emerging markets.
China,
of course, remains concerned about the
capital outflows from the country that originate in Macau.
«In most cases they're coming
from much more expensive markets, and in some cases are just trying to get money out
of the country to a safe haven,» he said, adding that China's stepped - up restrictions on the
outflow of capital has probably had a bigger impact.
Capital outflows from the mainland hit new highs in May and, as we have mentioned countless times in prior reports, the Chinese are increasingly using bitcoin as a means
of getting money out
of the mainland.
A lot
of that seems to have coincided with Venezuelans in Venezuela and also Chinese in China looking to get money out
of their countries — you know
capital outflows and then
from there, it seemed to have critical mass taking off to where it is today slightly over $ 10000 as we speak.
The repeated enforcements by the regulators were meant to protect its citizens
from the financial risk
of cryptocurrencies and limit
capital outflow.»
If we think back to prior historical periods
of capital outflows from emerging and developing economies, precedent was set that US interest intervened to stabilize currencies, and ultimately economies.
I have also noted that the latest data out
of the BEA shows that foreign
capital has moved
from inflows (throughout the period
of 2009 - 2016) to
outflows this year, which means that any increases in equity prices will have to come
from domestic investors.
Property prices around the world have benefited
from the demand
of foreign buyers, a.k.a. China's
capital outflows.
to stem
capital outflows from the country (and the government has ordered a crackdown
of VPN usage starting next month).
Further muddying the waters was a concession by Deputy Minister Moiseev that the December 2017 Belarusian adoption
of the «Digital Economy Development Ordinance» could cause
capital outflows from Russia to neighboring Belarus if heavy crypto - regulation occurred in the Russian Federation.
of the «Digital Economy Development Ordinance» could cause
capital outflows from Russia to neighboring Belarus if heavy crypto - regulation occurred in the Russian Federation.
The reason for the further devaluation
of bitcoin was the reports that Chinese regulators were going to further tighten control over the use
of cryptocurrencies in order to cease
capital outflows from China.
Among Chinese buyers, the share
of non-resident buyers declined somewhat, possibly because
of tighter regulations on
capital outflows from China.
Research
from Hoya
Capital Real Estate indicates that REITs are overexposed to regions that will be most negatively affected by «the
outflow of high - income individuals that will see their incomes drop 3 - 5 %
from the cap on SALT at $ 10,000.
After record levels
of U.S. investment
from China in 2016, new controls on
capital outflow and investors» changing attitudes have slowed inflows, while domestic development in China has also shifted.