At a morning session entitled Emerging Markets: the Cheap Money Trap, guests talked about challenges facing emerging markets -- one of which is capital flight due to the downward pressure being forced on currencies and stock markets following the tightening of expansionary monetary policies by central banks.  

LI YANG, CHAIRMAN NATIONAL INSTITUTION FOR FINANCE AND DEVELOPMENT "For both developed and developing countries, if the savings rate is high, their liquidity and capital flows won't make that much of a difference to these countries; but if the savings rate is low, there might be a greater chance of a financial crisis. China's capital outflow is not very risky because China has a pretty high savings rate."