I am a China skeptic in that I just don't believe all the hype about how successful China is as an economic power. Maybe - I say, maybe - they used to be but they are on the ropes, even if quietly.

These types of articles are hard to read for me. I'm only a amateur economist, even if I do manage to contribute a significant portion of the family income from active investing. So I'll just grab some of the easier to understand portions of the article:

Those fearing a ‘hard landing’ for the mainland economy are likely to interpret these vanishing reserves as the latest sign of economic distress.......

it appears capital may be losing confidence in the China growth story as it heads for the exits.......

reverse in “hot money.” It is not going into the domestic stock market which been more or less in decline since 2008, and fell a further 22% last year.......

report last November by Hurun that said more than half of China’s super-rich (assets over 10 million yuan, or $1.59 million) are considering emigrating or have already taken steps to do so........

with bank deposit rates just 3.5% and inflation running at 4.1%, real interest rates remain negative.


http://www.marketwatch.com/story/chi...all-2012-01-15

The upshot is that China has done well in the past, but is not likely to do so in the future. People have made money there, but are now looking to take their money out of China and go someplace else to make money.