United States to raise interest rates to start running, injuries in China

United States Federal Reserve announced to raise interest rates after a yard, market started to worry that the United States gradually higher interest rates policy in the future will make more serious capital flight of China and emerging markets, particularly China, I am afraid, will become the biggest victims.



United States financial network CNBC reported, head of emerging markets at Morgan Stanley and Chief Global Strategist Ruchir Sharma believes that China's reliance on loans to ensure growth reached 6%, but persistent problems of capital outflow, making China's massive debt even more difficult.

He is more alert, China is unique, creditors and debtors together sooner or later, China must "pay".　

According to United States data released Thursday by the end of October, Japan held $1.13 trillion in United States Treasury bonds and China's holdings of $1.12 trillion in government bonds, Japan overtook China the United States the largest foreign creditor, this is the first time in two years, it also is continuing to reduce United States treasuries.

The other hand, the United States to raise interest rates, probably will make China's foreign exchange reserves more sharply.

According to the latest data showed China's reserves, at the end of November, has dropped to $3.05 trillion, close to below 3 trillion yuan mark, for 5 years and 8 months to the lowest level in the United States the end of raising interest rates in anticipation of a drop by $69.1 billion in just one month in 2014, representing a peak close to $4 trillion, but was cut by nearly $1 trillion.

The reduction in China's foreign exchange reserves, also means the diminution of foreign exchange intervention, selling Yuan in the market pressure to increase, according to the latest quote currency USD this year came to 6.9443, widely expected, may see 7 characters in the near future.

Analysis of Sharma, China no longer borrowing capacity, United States after the rate hikes, capital flight, the situation may be more serious. In the United States announced rate hikes after a code, the Commerce Ministry announced foreign direct investment US $15.74 billion in November this year, soared from a year earlier to 76.5%; new signed contract value $26.95 billion, annual growth rate is as high as 91%. The data came out, can be seen more cases of capital flight in China, is accelerating significantly.