Investing in China’s domestic markets has become easier over the past year, with a range of new initiatives gradually opening the capital account, at this stage, primarily by allowing more portfolio flows between Hong Kong and the mainland.
Confirming these results, Medel, Pedersen and Pincheira (2014), using a sample of 31 OECD countries, report that the global inflation factor improves the inflation forecast for 50% of the countries in the case of headline inflation and for 40% in that of core inflation.