Tuesday, July 6, 2010

BT : Hot money flowing into stocks, property

Business Times - 06 Jul 2010

Hot money flowing into stocks, property

(BEIJING) China's high economic growth and expectations of a stronger yuan are luring global speculative funds into its stock and property markets, a senior foreign exchange regulator said in remarks published yesterday.

Deng Xianhong, vice-head of the State Administration of Foreign Exchange, said China must step up efforts to reform exchange rate policies and let the market play a fundamental role in deciding the value of the yuan.

'Against the backdrop of the global financial crisis, China's good economic fundamentals, a strengthening currency as well as a positive gap in interest rates between home and abroad have been the main reasons attracting a continuous inflow of foreign capital,' Mr Deng told the official People's Daily.

Since February, the administration had detected 190 illegal foreign exchange transactions involving a total sum of US$7.4 billion, he said\. \-- Reuters

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