Reserve Bank governor Glenn Stevens predicts capital flows in and out of China could reach $US400 billion a year.
"(That) is the size of the proportion actually of global capital flows of the portfolio in Asia," he told the Boao Forum for Asia Financial Cooperation Conference on Thursday.
The central banker said if such flows did happen, it's going to be very important that the depth and the quality of financial markets in China and Asia continue to develop.
"That's a big challenge, but one worth meeting," he said.
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