%0 Journal Article
%T Valuation Channel and Losses of Chinese External Wealth
%A Zefang Liao
%A Jianpeng Zhang
%A Bing Li
%J iBusiness
%P 21-25
%@ 2150-4083
%D 2013
%I Scientific Research Publishing
%R 10.4236/ib.2013.53B005
%X <p class=\"MsoNormal\">
	<span lang=\"EN-US\">Based on the intertemporal theoretical
framework of Gourinchas and Rey</span><span lang=\"EN-US\"> </span><span lang=\"EN-US\">( 2005), using Vector Error Correction Model and time-varying Space State
Model, the paper estimates the return and factors of <st1:place w:st=\"on\"><st1:country-region w:st=\"on\">China</st1:country-region></st1:place>¡¯s net foreign assets. The
results show that significant negative valuation effects in the change of net
foreign assets and its sub-category, ¡°risk assets¡±, especially at short and
medium horizons. The fluctuation of assets prices arising from international
financial crisis and appreciation of RMB contribute to the losses of external
wealth, implying much wealth outflow to other economies.</span><span lang=\"EN-US\"><o:p></o:p></span>
</p>
%K Capital Flows
%K Net Foreign Assets
%K Valuation Effects
%U http://www.scirp.org/journal/PaperInformation.aspx?PaperID=39214