As the financial giants Lehman Brothers, AIG, Merrill Lynch, and Morgan Stanley have started to sell out their business and real estate investments in China, experts are concerned about its impact on China’s financial order. The latest statistics released by China Bank suggest that China’s funds outstanding for foreign exchange were down 50 percent in August compared with the first seven months of 2008, which is an obvious indication that foreign investments have started to back out of China. The experts warned that the real estate downturn and the large swing on the stock market have pushed the yuan to go up. If foreign investors and companies started to cash out their investments, it will have immeasurable impact on China’s financial order.
Source: Wenweipo, September 21,2008