The paper, using a newly proposed ARDL - ECM model, examines the long - term co - integrated relationship between domestic savings and investment rates in three selected regions, and calculates associated saving retention coefficients. Authors, based on the saving-investment correlations, analyze the inter-regional capital flows in China. The empirical results prove in agreement with the conclusions drawn from the analysis of the regional capital flows through different channels. Namely, China' s east section represents a net capital inflow, while the west section marks a net outflow, with the central section in a basically balanced status. The empirical finding confirms a general trend indicating the east bound regional capital flows.