Capital outflows likely to grow in H2: experts  

中国社科院专家：中国下半年或面临热钱流出压力

(ECNS) – China may see more capital outflows in the second half of 2014 as developed economies pick up, stressing the need for measures to ensure liquidity, the Economic Information Daily reported on Monday, citing two experts at the Chinese Academy of Social Sciences.

The US has reported improving employment, real estate and consumption in the second quarter. Its GDP growth is likely to edge higher in H2 while that of China is estimated to remain flat, according to professors Yan Kun and Liu Chenjie. The interest rate differentiation of the two countries is narrowing, causing money flows to slow down.

Meanwhile, the Fed announced recently that its bond buying program will likely end in October, likely to create a stronger dollar.

And Japan and Europe continue their easing tactics to stabilize their economies.

China experienced capital inflows in the first half of 2014. But with uncertainty about the country's economic situation, a tighter US monetary policy and a weak euro, capital inflows are unlikely in the coming months.