China's Banking Sector To Be Propped-Up By Its SWF

Since the beginning of the year, CFW has reported on numerous foreign investors selling their stakes in China's three-largest banks, adding fuel to the fire of concerns regarding capital flight from the country. Indeed, less than one year ago, hot money inflows were among Beijing's biggest headaches as the economy continued to steam ahead, but as economic boom turns to bust, the opposite problem is now plaguing policymakers. As lock-up periods continue to expire, CFW expects foreign investors, mainly Western banks, to cash in their shares in order to shore up their balance sheets at home.

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