China Seen Losing Another $300 Billion in FX Reserves This Year.

"The biggest puzzle is how China could achieve its goal of FX liberalization and yuan internationalization while containing risks and volatility at a manageable level". Reserves will never fall to a level that threatens stability of the currency because "China will strengthen regulations over capital outflows before FX drops to that amount", said Zhao Yang, the Hong Kong-based chief China economist at Nomura Holdings Inc. [Extracted from the article]