Why you shouldn’t believe the horror stories about China’s economy

BEIJING: Everyone loves a horror story, and there are a number of real chillers doing the rounds just now about China, the yuan, and the looming risk of a financial collapse. These stories differ in detail, but generally they share a similar plot. It goes something like this: rich Chinese are losing faith in their economy and the yuan.

As growth slows and debt mounts, Chinese fearful of an impending crisis are shifting their wealth offshore and into foreign currencies. These outflows are putting pressure on the yuan, which is weakening in response.