Closer Look: Repeated Liquidity Crunches Beg a Question: Where'd the Money Go?

(Beijing) – Judging by statistics alone, the amount of liquidity the central bank has released was significant, but the market seems to be suffering an increasingly severe liquidity crunch.

This type of discrepancy has been a recurring theme over the past few years, raising a question: Where has all the money gone?

Some analysts say capital has left the country in anticipation of the U.S. Federal Reserve ending its policy of so-called quantitative easing, while others say interest rates have risen as reform deepens. Still others say the money that has been released was looped in a cycle formed by the property sector and the financial market instead of flowing into the real economy.