Hundreds of millions of hot money hoarding troops Hong Kong close to the mainland

All indications are that hoarding in Hong Kong from the United States and Europe on the scale of hot money, gambling on the appreciation of the renminbi, opportunistic through bank exchange, trade and investment three ways to enter the mainland, and eventually entered the property market and the stock market speculation. The large increase in the size of Hong Kong's hot money November 23, the Bank of China, Hong Kong and many other mainland financial institutions analysts in the economic reference newspaper reporter interviewed, said the past inflow to the mainland to Hong Kong, Macao savings funds or speculative funds, but now both from Europe and the United States funds, there are hot money from "It is possible that other countries in South-east Asia, with low interest rates, are in a bad position with the mainland.　　BOC Hong Kong analyst Huangminggao said. A spokesman for the Hong Kong HKMA said the 8 billion yuan exchange rate in Hong Kong this year remained at half the end of September, but was exhausted in late October. In other words, within one months of the use of 4 billion yuan exchange rate.　　According to the relevant departments, some 650 billion Hong Kong dollar hot money has been hoarding the territory to enter the mainland, and the change of funds to renminbi is more clear. Hong Kong's Fortune Securities analyst Liu Ya told reporters: "Hong Kong is a free trade port, foreign exchange is not regulated, basically a day to 100 billion dollars or tens of billions of dollars, is not able to stop." Wintenna, a professional member of the Hong Kong Securities Institute, described the world's capital in Hong Kong as free as water, flowing into the stock market, the property market and flowing back to the west.　　And these funds to enter the mainland, Hong Kong has become a transit point, the channel is the banks and foreign exchange points. The influx of hot money to the relevant financial institutions in Hong Kong told reporters that in the bank exchange and remittance two links, hot money in Hong Kong have an opportunity.　　Although the banks of Hong Kong basically strictly enforce the SAR government's requirement that each local resident can only exchange RMB 20,000 yuan and remit 80,000 yuan to the mainland every day, it can still use the way of opening an account in each bank and moving the ants to the mainland through the banks. Another way in which Hong Kong's hot money is openly entered the mainland is through trade channels and foreign investment channels. According to Hong Kong regulations, trade and investment funds are not limited by the amount of exchange and remittance. A lot of hot money under foreign investment is related to "false foreign capital".　　Although some foreign-funded enterprises have real projects, but there is no real "foreign capital", and some simply "shell enterprises", the need for foreign exchange usually through intermediaries between the intermediary and underground banks, capital settlement after the return of the underground banks or domestic and overseas investors. "Hot money into the important goal is the stock market, the property market to obtain asset price gains."　　Bai, deputy director of international market research at the Institute of Trade and Economic Cooperation, Ministry of Commerce. Mainland Hong Kong to prevent hot money "the mainland and Hong Kong need to have information on the fight against hot money and establish a mechanism for monitoring and restricting external hot money." Said officials at the International Monetary Fund's representative office in Beijing. "As an international financial centre, Hong Kong's linked exchange rate system against the dollar is clearly inadequate to reject hot money, so it can only stop speculation and prevent asset bubblesThe direction of risk deterioration is to contain hot money inflows.　　"said Liu Yuanchun, vice president of the Economics Institute of Renmin University.　　On the issue of hot money inflows, China's Ministry of Commerce spokesman Yao Jian said the government would tighten liquidity controls to prevent hot money inflows, particularly in sensitive areas such as real estate, in the context of some countries adopting quantitative easing policies. Related news hot money into the mainland a year presumed profits 5.5% of hot money are profit-making, then these hot money came to the mainland, in the end is how to make money? From the direction of hot money inflow, one is the mainland's capital market, that is, after the gray channel to buy equity or already listed stocks, the former often precipitate down, the latter is often required to become a good short-term funds; the other direction is the land and commercial housing market,　　Participation in the land market is often reflected in the real estate company's equity investment, the latter is easy to participate in a few months of property speculation, art and other professional investment market is often high threshold, and liquidity is poor, hot money participation is not much, and these investments themselves contain risks. Wintenna, a professional member of the Hong Kong Securities Institute, assumes that the renminbi's appreciation against the dollar is expected to be 3% to 5%, plus a 2.5% increase in the one-year deposit rate after the rate hike, and that a year of inflows of hot money into the mainland is expected to be 5.5% to 7.5%. That is to say, even if the Hong Kong dollar is exchanged for renminbi and interest is paid in the mainland's bank account, a handsome return can be obtained.