July 5, 2010: The major targets for hot money inflows into China are the stock and real-estate markets, said Deng Xianhong, deputy director of the State Administration of Foreign Exchange (SAFE).
Deng was reported by the People’s Daily as saying that expectation for the RMB appreciation is the major stimulus for hot money inflows.
The senior official said that China would continue to improve the formation mechanism of the RMB exchange rate.
Hot money flows into China mainly through trade, investment and underground banks, said Deng.
According to Deng, the SAFE did not find that hot money has flown into China in an organized way and in large scale, and most of China’s cross-border capital flows are legal and in compliance with the law.
The SAFE has verified 7.35 billion US dollars of hot money inflow since its investigation on speculative capital flows in February.
China’s forex reserves stood at 2.45 trillion US dollars by the end of May, an increase of 25.25 percent year on year.
SOURCE SAFE
This is a blog post for Real Estate Professionals, Investors, Landlord, Property Manager, and Property Management Companies. Hot money flows into China for stock, real-estate investment, SAFE is brought to you by SimplifyEm Pay Rent Online and Property Management Software
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