Nation feels pressure from inflow of capital

But senior economist says that this is not necessarily "hot money"

BEIJING - China is facing increasing pressure from capital inflows due to increasing foreign direct investment and capital brought in by commercial banks, its foreign exchange regulator said on Friday.

But a senior economist from the Chinese Academy of Social Sciences (CASS) argued that such capital inflows are not necessarily "hot money" as many people have suspected; instead, most of them are the result of rising demand from domestic enterprises for foreign currencies.