KC denies Hong Kong is hot money inflow to mainland

On the afternoon of November 25, the Secretary for Financial services and the Treasury of the Hong Kong Special Administrative Region (KC) said he did not agree with CCTV's report that hot money had been hoarded to the mainland.　　He thinks that many of the overseas funds flowing into Hong Kong are the funds for new shares, and that if the funds are to enter the mainland, they will be regulated by the regulator. China Central Television, "Economic Information Network" reported two consecutive days, it is estimated that up to HK $650 billion of hot money hoarding in Hong Kong, the plan through bank transfers, trade channels and other channels into the mainland.　　Speaking at the event today, the Secretary for Financial services and the Treasury, KC, said that the mainland's capital markets and renminbi exchange were still not open and that Hong Kong and overseas funds would have to go through specific channels and be regulated by the regulatory authorities if they were to flow into the mainland. KC that although the recent IPO plan, but does not represent the new stock market cooling signs, because the IPO is still very active listing. He pointed out that the inflow of overseas funds into Hong Kong was mainly financed by the subscription of new shares, including many of the funds raised by mainland enterprises in Hong Kong.　　KC said that the funds were not considered "hot money" and did not agree that Hong Kong had become a transit point for overseas hot money inflows to the mainland.　　KC also pointed out that the market is still worried about the European debt crisis, North and South Korea artillery, as well as the U.S. second round of quantitative easing to hot money inflows and other factors, Hong Kong shares will also be affected. The Deputy secretary for Financial services and the Treasury, Ms Leung, said recently that Hong Kong would not introduce measures to control capital inflows, given the free port of Hong Kong. On the sidelines of the meeting yesterday, she said the mainland was countering the speculative activities of capital flows through both market and administrative means, which helped Hong Kong curb cross-border hot money. The financial services and the Treasury Bureau said that in view of the asset bubble crisis, Hong Kong is currently trying to introduce measures against the market, such as the Financial Secretary's Friday announcement of a number of measures to curb property speculation, including 5% to 15% additional stamp duty, and requiring banks to increase their down-payment ratios. Ms Leung said that the measures are effective and the SAR government will consider the need to introduce further measures after the market is stabilized. (Peng Lin from Hong Kong)