Reasons for capital flight in China key

News that China’s foreign exchange reserves rose by $10bn (€8.85bn) in March, rather than declining, has quieted doomsayers.

Worries that the reserves could dip to dangerous levels as soon as this summer — after shrinking by an estimated $1tr last year — appear to have been premature.

Still, questions linger over exactly how much money is leaving China and why. The true picture may not be as rosy as the headline numbers suggest.