I'm not even so sure that Chinese regulation is the issue. While money exiting the chinese economy is a current concern the chinese governance system is very very strategic. They appreciate that they can't stop all the money and the big whales will always find a way. The blackswan event may be the opposite in action of what people think. What if the chinese voluntarily kept their money in china and not overseas, what would a government have to do to allow this ? hmmmm maybe something like the following currently being undertaken in china.
Aggressive climate change policy - de smogging the cities, banning fossil fuel cars and beautification projects occuring on an unprecendented scale.
Enormous and expanding middle class - the emergence of massive consumer markets and increase in materialism within the lower societal groups providing more buyers of everything from houses to hello kitty dolls.
US financial debasement - Shanghai futures exchange, Beijing gold and silver fix, the exchange of oil in Yuan, a fully backed currency by gold and oil.
What if there was a sudden rush of money back into china to gain exposure to these evolutions and at the same time a massive exit from the west.
