China: Reserves tumbling - BBH

Research Team at BBH, notes that China's reserves have fallen by about $134 bln in the first nine months of the year. 

Key Quotes

“This understates the capital outflow as China also recorded a $134 bln current account surplus in H1 16 and a trade surplus of $146 bln in Q3. Brad Sester of the Council on Foreign Relations, estimates that China may have experienced outflows of $95-$100 bln in Q3. As China sells reserves, it is selling US Treasuries.  The latest country breakdown covers the month of August.  US data, which is not necessarily comprehensive, estimates that China sold $33.7 bln of Treasury Securities in August after selling a combined $25.2 bln in June and July.”