
As I have written earlier, a decent chunk of the recent ‘millionaire exodus’ from China to the US and points beyond might unleash a badly-timed wave of capital flight out of China. Talk about ill-timed. While the Chinese GDP is still growing, it is doing so at a much lower rate than before. Indeed, if China’s GDP meets global analysts’ expectations, last quarter’s GDP numbers will the lowest rate of growth for the Chinese economy in 24 years. It is unthinkable to assume that such lower than normal economic performance wasn’t affected by the chaos, confusion, and uncertainty triggered by the current corruption crackdowns happening in China. Considering the fact that China has always been one of the most reliable ‘confidence anchors’ in the global economy as more developed countries stagger, China’s softness gives investors a lot to worry about when it is becoming apparently clear that there are less and less solid places to invest due to economic softness everywhere else-except maybe the already overvalued US markets.