Another start to a new year another bout of anxiety over China, although I concede that the collateral damage on other markets have so far been far modest compared with the panic in Q1 last year. The bogey man is the same as in 2016. Capital outflows are accelerating, currency volatility has surged and the once bulging FX reserve coffers are leaking fast. These are ominous signs in a traditional emerging market macro-style framework, but I am not sure that this is the correct prism through which to look at China.
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