International capital bullish on China's net inflow pressure

Tao Tao 15th, the director of the International Revenue and expenditure Department of the State Administration of foreign exchange, warned that the current China's capital inflow pressure to increase, should focus on.　　According to the data released by the Bureau, the first quarter of China's regular projects, capital and financial projects presented a "double surplus" trend. According to Tao Tao's explanation, the main factors that lead to net capital inflow include four aspects.　　The first is a sharp increase in the direct investment surplus, which reached $17.5 billion this quarter, due to a sharp rise in foreign direct investment and a decrease in foreign direct investment. Secondly, the change in the manipulation of foreign exchange assets inside and outside the commercial banks also affected the net inflow of capital. The first quarter commercial banks from overseas net repatriate foreign exchange 15.3 billion US dollars, mainly uses in the domestic foreign exchange loan, but last year net exchange 1 billion US dollars.　　Analysts said that because the foreign exchange lending rate is lower than the RMB lending rate and the existence of the value of the water expectations, higher expectations of high arbitrage, arbitrage space, corporate lending impulse increased.　　Third, last year, companies listed abroad to finance its fund-raising has not been recalled, and this year will be recalled. In addition, initial estimates suggested that the current quarter registered external debt may be a net increase of about 13 billion U.S. dollars, and this data in the same period last year was reduced, which also affected the capital inflow.　　Also, trade credits in the first quarter of this year have shifted from net outflows to net inflows from a year earlier. Tao Tao bluntly, many enterprises to trade financing methods carried out arbitrage transactions, the actual banking operations. At present, some bank headquarters has issued a notice to the branch to tighten the foreign currency loans, the scale of foreign exchange loans are also stringent requirements. (Ding)