financially than the Chinese economy, but China seems to be catching up with India in the wake of the global financial crisis … Chinese money markets, in contrast to the consensus projection that China is likely to experience net private capital outflows …

In this paper we study the determinants of gross capital flows, project the size of China's international investment … recent proposals by the People's Bank of China. Our analysis shows that China's gross international investment positions … of official foreign reserves, China would be able to earn higher net investment incomes from abroad. Overall, China would …