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The flight of capital out of China offers a stark demonstration of how confidence in the country's growth miracle is declining.

A report released Thursday from the Washington-based research group Global Financial Integrity estimates that capital outflows from China since 2008 have accelerated "from 10.4 per cent [of total GDP] to 13.9 per cent." It adds that "outflows that exceed 10 per cent of the world's second largest GDP are indeed worrisome."

The study attributes a portion of the outflow to tax evasion. However, the exodus of funds also appears to reflect declining faith in the future of China's economy, which has seen GDP growth slow from over 12 per cent in 2010 to 7.4 per cent now.

Foreign direct investment (FDI) in China provides another yardstick of falling confidence. Foreign investment inflows to China grew at an 18-per-cent rate in 2010. In 2012, FDI expansion has declined by 3.5 per cent year over year.

The rush of capital out of China offers support for those who believe the country's economic model is under stress. For instance, Peking University economics professor Michael Pettis has long argued that investment in China has proceeded at such an unprecedented rate over the past decade that profitable new investment opportunities are now becoming scarce.

Hedge fund manager Jim Chanos, another prominent skeptic, has raised concerns about the country's rising bad debt and manipulated economic statistics. China faces a long road back before global investors regain their faith.

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