US Rake Hike Won’t Drain Capital from China: Daily

China won’t see capital outflow even as the U.S. Federal Reserve is more likely to raise interest rate starting in March, the Economic Information Daily said citing analyst Liang Si with Bank of China. The yuan has stayed strong and the higher interest rate offered by China will prevent an exodus of foreign capital, Liang was cited saying. Yuan assets are still attractive as they are more independent from other global markets, offering investors an option to diversify risks, the newspaper said. China’s higher economic growth and supply chain advantage as well as financial market opening will help keep capital movement stable, the daily said citing spokeswoman Wang Chunying of the State Administration of Foreign Exchange.