China wants lower asset prices. It wants fewer reserves. It wants less inflows. The only way to do this is to accelerate capital outflows and encourage international leverage.  This is happening now. How 1) The CNY volatility is intentionally being encouraged. 2) Important new rules have been promulgated to encourage PRC nationals to use domestic asset prices as collateral for FX borrowing. 3) Offshore RMB issuance is being ramped up in a big way.  (Take a [...]