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35 billion hotmoney brought to China: official

An investigation into this year's speculative "hot money" inflows uncovered 190 cases involving 7.35 billion US dollars of funds, a senior official of the State Administration of Foreign Exchange (SAFE) has said.

world Updated: Jul 05, 2010 12:51 IST

An investigation into this year's speculative "hot money" inflows uncovered 190 cases involving 7.35 billion US dollars of funds, a senior official of the State Administration of Foreign Exchange (SAFE) has said.

Deng Xianhong, deputy director of the SAFE, said the foreign exchange regulator did not find evidence of large amounts of hot money flowing into China.

The SAFE investigation began in February and the latest figure was unchanged from the May 25 figure.

Most of the speculative and arbitrage capital from overseas wound up in the equity and property markets, Deng told 'Peoples Daily', the official newspaper of China's ruling Communist Party.

Disguised as funds for trade and investment, an unknown amount of hot money enters China every year.

The capital is betting on an appreciation of the yuan, China's currency, and a hike in asset prices.

Capital flows into and out of China for purposes other than payment for imports and exports are strictly controlled by the SAFE.

The SAFE manages China's 2.45 trillion US dollars in foreign exchange reserves, regarded as the highest in the world.