Why China’s Capital-Account Liberalization Has Stalled
Last year, the People's Bank of China abruptly hit the brakes on capital-account liberalization, tightening controls to a degree not seen since the Asian financial crisis of the late 1990s. Yet large-scale capital flight continues – and neither economists nor officials in China seem sufficiently concerned about it.
https://prosyn.org/IefxP3v
BEIJING – In early 2012, the People’s Bank of China (PBOC) took advantage of what it viewed as a “strategic opportunity” to accelerate capital-account liberalization, which has been underway since 2009. The renminbi, it was expected, would be “basically” convertible by the end of 2015, and fully convertible by the end of 2020. But things haven’t worked out as expected.