Home / Business / Macro

Inflow of 'hot money' tackled, expert says

By Li Jiabao | | Updated: 2013-07-10 19:05

The inflow of speculative money disguised as payment for trade between the mainland and the Hong Kong Special Administrative Region was tackled in May, Zheng Yuesheng, spokesman for the General Administration of Customs, told a news conference on Wednesday.

Data concerning export trade to the region was more reflective in June, he said.

Trade data in the first four months was inflated by speculative funds, or "hot money", covered as trade payments, to avoid capital controls and take advantage of currency appreciation, Zheng said.

The State Administration of Foreign Exchange, China's foreign exchange regulator, boosted its scrutiny of export invoices, and imposed tougher penalties on companies giving fake data since late April.

The mainland's trade with Hong Kong in June declined 7 percent from a year earlier, compared with the 5.7 percent increase in May and the 57 percent surge in April, said Chen Hufei, a researcher from the Bank of Communications.

It registered a 92 percent jump in March.

Most Viewed in 24 Hours
Copyright 1995 - . All rights reserved. The content (including but not limited to text, photo, multimedia information, etc) published in this site belongs to China Daily Information Co (CDIC). Without written authorization from CDIC, such content shall not be republished or used in any form. Note: Browsers with 1024*768 or higher resolution are suggested for this site.
License for publishing multimedia online 0108263

Registration Number: 130349