What do China’s capital outflows tell?

What do China’s capital outflows tell?

China’s capital outflows have reached $500bn in the first eight months of this year. Developed countries are more likely to have huge capital outflows, compared with developing countries. From GDP per capita, China is not a developed country yet. However, excluding Hong Kong and Macao, there are three metropolises and six provinces, with GDP over 10000 dollars per capita. We can say that some areas of China have already achieved the developed country standard. It is sensible to say that the $500bn outflows mainly come from the more developed area in China. The capital is attracted to the overseas, because people see the returns abroad are more secure or higher than investment in China, especially in those less developed area in China. In the future, the more developed area could enjoy the returns from abroad, but the less developed area will have limited development and the gap between the rich area and the poor area will become wider. I am not saying that the Chinese government should limit the capital outflows, but I think the government needs to make the inland areas, usually the less developed areas, more attractive to investment. Maybe the government is already making such policies, just I do not know yet.