"Hot money", the financial menace to China's economy！

"Hot money", the financial menace to China's economy！
Jun 30, 2008 04:44
YVONNE Points: Join Date: Nov 29, 2004 Status: offline	It is reported that the quantity of "hot money" has exceeded that of China's foreign exchanges, reaching 1.75 trillion yuan. Meanwhile, it has become a decisive factor in China's economy. According to Zhang Ming from the Chinese Academy of Social Sciences, hot money inflows in China had been increasing since 2003, both in quantity and in speed. By his estimate, between 2003 and the first quarter of 2008, a total of 561.8 billion dollars flowed into the Chinese market. Among that, a record high of 85.1 billion came in during the first quarter of this year. Really horrible! How did it flow into the Chinese market? Where is it flowing into? What kind of impact will it cause? What can we do to cope with such a great deal of hot money? All these questions should be considered carefully.

Jun 30, 2008 04:44

YVONNE
Points:
Join Date: Nov 29, 2004
Status: offline

It is reported that the quantity of "hot money" has exceeded that of China's foreign exchanges, reaching 1.75 trillion yuan. Meanwhile, it has become a decisive factor in China's economy.

According to Zhang Ming from the Chinese Academy of Social Sciences, hot money inflows in China had been increasing since 2003, both in quantity and in speed. By his estimate, between 2003 and the first quarter of 2008, a total of 561.8 billion dollars flowed into the Chinese market. Among that, a record high of 85.1 billion came in during the first quarter of this year. Really horrible!

How did it flow into the Chinese market? Where is it flowing into? What kind of impact will it cause? What can we do to cope with such a great deal of hot money? All these questions should be considered carefully.

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