Large amount of hot money flows into China

时间：2007-08-09 00:32:42

（单词翻译:单击）

Chinanews, Beijing, Aug 8 - The State Administration of Foreign Exchange (SAFE) recently warned that a large amount of hot money is flowing into China. In checking the foreign currency flow and foreign exchange settlement in ten coastal1 cities and provinces in China, SAFE found that large sums of foreign currency had come into China in the form of foreign trade and investment. Information shows that during the first half of this year, over 100 billion US dollars of hot money flowed into China, a situation that has aroused great concern of the government, the International Finance News reported.

 

During the first quarter of this year, Chinese foreign exchange reserves increased substantially. During the first three months of the year, Chinese foreign exchange reserves increased by 135.7 billion US dollars. At the same time, China's trade surplus reached only 46.4 billion US dollars and FDI (foreign direct investment) reached only 15.9 billion US dollars. The difference between the two figures reached 73.4 billion US dollars, or over half of the newly increased foreign exchange reserves. Information from the China Customs Office and the Ministry2 of Commerce shows that during the first half of this year, the source location of about 120.9 billion US dollars of foreign exchange couldn't be identified. Analysts3 say the 120.9 billion US dollars of foreign exchange are the hot money flowing into China.

 

As hot money flows to China at a rapid speed, China is put under more pressure to increase its Renminbi basic money supply, which is further worsening the excessive liquidity4 problem. In addition, as hot money always is after short-term gains, the scale of hot money will fluctuate largely. This will seriously affect the central bank’s monetary5 policy. Lastly, the large flow of hot money can usually threaten the financial security of a country. In the financial crisis happening in Mexico in 1994 and the Asian financial crisis in 1997, the abnormal flow of hot money both played an important role.

 

It might be unrealistic to get rid of hot money completely as the problem was caused by excessive liquidity in the international market. In order to solve the problem, the central banks in all countries concerned should work together. At the same time, we should realize that the government's monetary policy to tackle the problem can not take effect overnight. It might take a long time before regulating measures can work, said Mei Xinyu, a researcher at the Foreign Trade and Economics Research Department under the Ministry of Commerce Research Institute.

 
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1 coastal WWiyh     
adj.海岸的，沿海的，沿岸的
参考例句：
  • The ocean waves are slowly eating away the coastal rocks.大海的波浪慢慢地侵蚀着岸边的岩石。
  • This country will fortify the coastal areas.该国将加强沿海地区的防御。
2 ministry kD5x2     
n.(政府的)部；牧师
参考例句：
  • They sent a deputation to the ministry to complain.他们派了一个代表团到部里投诉。
  • We probed the Air Ministry statements.我们调查了空军部的记录。
3 analysts 167ff30c5034ca70abe2d60a6e760448     
分析家，化验员( analyst的名词复数 )
参考例句：
  • City analysts forecast huge profits this year. 伦敦金融分析家预测今年的利润非常丰厚。
  • I was impressed by the high calibre of the researchers and analysts. 研究人员和分析人员的高素质给我留下了深刻印象。
4 liquidity VRXzb     
n.流动性，偿债能力，流动资产
参考例句：
  • The bank has progressively increased its liquidity.银行逐渐地增加其流动资产。
  • The demand for and the supply of credit is closely linked to changes in liquidity.信用的供求和流动资金的变化有密切关系。
5 monetary pEkxb     
adj.货币的，钱的；通货的；金融的；财政的
参考例句：
  • The monetary system of some countries used to be based on gold.过去有些国家的货币制度是金本位制的。
  • Education in the wilderness is not a matter of monetary means.荒凉地区的教育不是钱财问题。

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