The uncertainty of the Hong Kong dollar and the economy of Hong Kong is another concern for the RMB stability. In the long run, the exchange rate of RMB will have to be adjusted. The Chinese leaders have repeatedly promised that there will be no devaluation for RMB, but the market has reacted with suspicion. Running current account deficits for a long period of time. Accumulating a large amount of external liability that was due shortly.
Mechanism allowing easy flow of financial capital China is quite different.
The above conditions do not exist in China, and the mechanism on which a capital flight relies does not exist either. The current Chinese problems in the banking and financial sectors would not directly cause the currency crisis. Foreign financial capital cannot freely flow across the border. It is not possible for foreign speculators to sell short on RMB, or sell the Chinese securities in China and deliver dollars overseas. China has continuously run large trade and current account surpluses since 1994.