Study: Flood of money leaving China - 13 WTHR Indianapolis

Study: Flood of money leaving China

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BEIJING -

A study by a U.S.-based monitoring group says Chinese investors evaded government controls to move more than $600 billion out of the country last year, fueling economic and political risks as communist leaders prepare for a handover of power.

The report by Global Financial Integrity adds to signs of a huge outflow of money from China driven by government controls that distort business and by public frustration with state banks that pay low deposit rates.

The group said it was unclear how much of the money came from corruption or other crimes but it said the illicit outflow could aggravate political strains by aiding tax evasion and widening China's sensitive wealth gap.

(Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

 

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