Tuesday, September 1, 2009

Hot money inflow eyes China

According to a report released by the Guangdong branch of the academy - on the issue of underground money flow - the hot money inflow to Hong Kong was at a faster pace in July when compared with a month ago.
That indicates overseas investors are becoming more optimistic on the Chinese economy and want to use Hong Kong as the platform to get in for the short term.
"There is limited cost for overseas money to park in Hong Kong as the city is an open market," Zhang said. "Those investors at the same time can benefit from China's economic growth with the city's close ties with the mainland."
According to the academy, China witnessed a similar situation in the first six months as more than US$170 billion in foreign exchange reserves was added during the second quarter - almost 23 times what was added in the first quarter. When excluding money inflows from trade surplus and foreign direct investment, there was as much as several hundred billion US dollars unaccounted for.
Sun Lijian, a Fudan University economics professor, estimates it would amount to up to US$122 billion.

No comments:

Post a Comment