Hot Money Poured Into &Nbsp In Many Ways, And Increased Risk In The Coming Months.

"At present, due to the territory

The voice of "hot money" has risen again.

Central Bank of Shanghai headquarters issued a document recently said that this year will strengthen the abnormal cross-border.

Tighten up "hot" money

The signs of foreign capital entering the real estate business are more and more obvious.

According to the data, in the 1-4 month of this year, the real estate enterprises utilized foreign capital 22 billion 200 million yuan, an increase of 62.3%.

Foreign capital inflows into the property market are gaining momentum.

Xi Junyang, deputy director of the modern financial research center of Shanghai University of Finance and Economics, said in an interview with reporters: "as long as China's economic development is faster than other countries, as long as the market has expectations of RMB appreciation, there will be hot money inflow.

But the so-called hot money flowing into China is different from the traditional hot money.

In the traditional sense, hot money often flows into China in pursuit of arbitrage space.

"At present, because of the tightening of domestic monetary policy, the main body of enterprises in the territory actively seek foreign capital input because they need to solve the problem of shortage of funds.

Because the direction of cross-border capital flows is consistent with the traditional hot money, and a large part of it flows through non compliant channels, it can also be seen as hot money.

Xi Junyang pointed out that "in the future, this type of hot money may continue to accelerate inflow, not just real estate enterprises, but may enter more other enterprises."

Hot money poured in

Recently, more and more Chinese enterprises are seeking overseas IPO.

At the same time, this year, the international community has basically sought to set up a joint venture RMB fund to invest in domestic enterprises.

"This trend is more or less providing some room for hot money to flow into China."

A market analyst told reporters.

In addition, with the construction and development of the offshore RMB market in Hongkong, the risk of hot money flowing into the mainland through Hongkong will be increasing.

RMB deposits in Hongkong have seen explosive growth since the second half of 2010.

According to the Hongkong monetary authority data, as of the end of March this year, the total amount of RMB deposits in Hongkong amounted to 451 billion 419 million yuan, up 6.4 times over the same period last year.

Xi Junyang said: "Hongkong has become a distributing center for overseas RMB, and there are many associated enterprises between Hongkong and the mainland. Therefore, the substantial increase in the stock of Hongkong does pose a risk to the increase of hot money in the mainland."

The analysts also believe that the risk of hot money inflows in the coming months is increasing.

"In April, China's import and export trade surplus exceeded the expected size of US $11 billion 430 million, and it is widely expected that the trade surplus in May will be above billions of dollars.

To a certain extent, this has brought pressure on the further appreciation of the renminbi. It is estimated that the trend of RMB appreciation will continue in the next period of time, so the risk of accelerating the influx of hot money is considerable.