Analysts have recently warned about China's currency risks, but Stratton Street Capital fund manager and partner Andy Seaman offers a contrarian view.
Around $108bn in capital fled China in December, further depleting foreign reserves that the government has been using to prop up the RMB.
London-based Seaman, however, believes the capital flight danger is exaggerated.
"There is some capital flight, but the authorities have [taken measures to] clamp down," Seaman told Fund Selector Asia.
He believes capital flight was only temporary and pointed to China's foreign currency reserves at the end of March, which rose for the first time in five months. Reserves were up slightly by $10.3bn to $3.2trn at the end of March, according to data from the People’s Bank of China.
Source:http://www.fundselectorasia.com/news/1028712/stratton-street-china-capital-flight-overplayed