mccoury pointed out in an investor note that investors are fleeing at the first sign of trouble, but lot of that is foreign money, not domestic. paul: that is right, and that is domestic company switching into dollars. alix: tell me about that. paul: there's not a lot of capital mobility in china. they will bring it back in exchange for rmb. but if you are worried that the depreciate, what might you do? some of that outflow being registered is really just local firms. alix: what is the contagion fear here? if there is a bubble bursting for chinese stocks, how does it radiate? paul: you'll see a lot more chinese money trying to leave the country. there are ways to manipulate the rules for that to happen. the second thing, chinese economic activity would slow. we would see more bankruptcies in china. more concern about the local have seriousat debt problems and that will trickle into south asia and china's trade partners, and from there into the rest of the world. right, thank you so much, paul. great to have you. paul christopher, wells fargo, chief international strategist. coming up

mccoury pointed out that outflow are fleeing ats the first sign of trouble, but a lot of that is foreignoney, not domestic. isis: a portion of it foreign company switching from renminbi into dollars. there is not a lot of capital accountability in china. you bring dollars into the country, they will end up at the people's bank in exchange for renminbi taking his place within the economy. if you are local, and you are worried that the renminbi might depreciate, you might take some of the deposits and confer -- conver them to dollars. alix: it is not like it is changing sentiment. what is the contagion fear? if we do have a bubble burst for chinese stocks? chris: i think what happens in the first place, you will see more chinese money trying to leave the country. there are different ways people tried to many relate the -- manipulate the rules. the second thing would happen would be that china's economic activity would slow. we would see more bankruptcies and more concerned about the local governments which have serious debt problems. and that will trigger into south asia and china's trade