Tens of billions of dollars of hot money pushing up property prices

In the deflationary tunnels, China's share price rises, property prices rise, and even prices rise overnight. The spectre of hot money has crept into Hong Kong and is hovering over the mainland of China. A rough estimate is that there may be tens of billions of dollars of hot money pouring in recently. CICC said the US, Japan and other developed countries in the crisis in the sharp interest rate cut, has reached or close to 0 interest rates, and India and other emerging markets, such as spreads have further increased.　　China's asset bubble repeats risk. "The recent influx of capital has led to ample liquidity in the banking system in Hong Kong." The Hong Kong Monetary Authority has made it clear that. Hong Kong has intervened 9 times in the last one months and has invested more than $22 billion trillion in the market this year. In Tuesday, an additional HK $46.1 billion Exchange fund paper was issued to recover liquidity from the market. Related reports see C08 version of hot money to stir up prices, property prices rise, prices rise "the recent a-share market may be a big increase in hot money again into Hong Kong."　　"National Yuan securities researcher Liu Yan said. Since the middle of March this year, Hong Kong's Hang Seng index has been surging from 11,300 points to a daily average of HK $62 billion from April to May daily trading of HK $90 billion, or even a breakthrough of the Hong Kong Hang Seng Index at the end of May by a 18,000-point integer pass,　　Emergence of the real economy and the virtual economy deviated from the operating pattern.　　And the A-share market is also a new record, Prev close from the bottom of 1600 strong climb 1000多 points, once stood 2,800 points. The latest data from the fund tracker, Lobal G, show that over the past four weeks, 12 billion of billions of dollars have been poured into emerging-market equity funds, representing 3.5% of emerging-market funds ' total assets. Emerging market equities have had only such a huge inflow in February 2006 since 2001.　　This pushed the M SC I (MSCI index) emerging market index to a record high of 61% per cent since February this year. Then look at the hot money like the property market, from the beginning of the "small spring" market began, the national property prices in the rising state, in China's economic recovery is not solid foundation of the situation, the property price has been overdrawn in the future.　　In terms of prices, commodity prices, represented by oil and gold, have been on the high side, and CPI growth has shrunk, as if deflation had been thrown out of the window overnight.　　CICC believes that international capital flows and emerging market asset prices have emerged in recent months: The window ——— the Hong Kong market since March, when money has clearly flowed into China, and emerging market shares, represented by the BRICS, have also seen significantly higher recent gains than developed countries. Tens of billions of hot money border Hong Kong 9-degree shot to intercept border hot money in the end how many?　　From the data speculated that one or two. In March this year, China's foreign exchange reserves increased by as much as 41.675 billion U.S. dollars, while the foreign trade surplus of only 18.53 billion U.S. dollars, foreign direct investment increased to 8.403 billion U.S. dollars, that is, there are still 14.742 billion dollars notKnow what projects come from.　　These 14.742 billion dollars are also considered hot money by some people. The recent tens of billions of dollars in the size of hot money into China, and the relevant departments to the market injection of hedge funds more fit. The Hong Kong HKMA website shows that Hong Kong has intervened 9 times since May to inject liquidity into the market.　　The 3-4-month focus was on 11 billion dollars to keep the dollar pegged.　　According to the data, Hong Kong has already invested more than $22 billion trillion in HK $ in the market since this year, and it has been on the increase for more than 2004 years. In Tuesday, Hong Kong announced that it would issue a total of HK $46.1 billion in Exchange fund bills.　　The HKMA said that the increase in the supply of short-term Exchange fund bills was to cope with the huge demand for Exchange fund bills by banks in terms of liquidity management. Why hot money Favors China: the expansion of economic growth, spreads, the dollar depreciation of hot money Why choose China, CICC, chief economist, said that the economic growth gap is the first reason hot money chooses China.　　China, India's 1-quarter g DP growth of 6.1% and 5.8%, much higher than the same period of the United States-2.6%, Japan-9.7% and Germany-6.7%, the two sides of the economic growth gap has widened recently. The pursuit of spreads is also the cause of hot money.　　The US, Japan and other developed countries slashed interest rates in the current crisis, reaching or near 0 per cent, and increasing spreads in emerging markets such as China and India. Third, the US dollar deficit, quantitative easing, printing money to buy debt, and other measures to bring depreciation pressure.　　And the market expects the Fed to expand its quantitative easing, perhaps $1.15 trillion trillion, and the dollar will still face downward pressure. Finally, Japan's 1990-year sharp interest rate cut to 0 interest rates, the world does not follow, and the financial crisis in the United States monetary policy easing, it led to global synchronization relaxation.　　At present, the United States, Japan and other countries, the growth of money supply faster than the nominal G D P, providing investors with more abundant liquidity ammunition. "If global liquidity were to be likened to a bowl of water, the water level in the early 90 was not much higher, but it was tilted towards emerging Asian markets, but now it is a big increase in water levels and a tendency for emerging markets to push up the risk of asset price bubbles in the latter."　　"said Ha. Liu Yan that China's economy may be one of the first countries to recover, naturally raising the attractiveness of Hong Kong's renminbi assets, H shares and red chips.　　With the introduction of the Hong Kong Link system, international capital flows to Hong Kong not only enjoy the fruits of our economic recovery, but also avoid exchange rate risks. After a round of shocks, Citigroup's latest report noted a decrease in new inflows of funds from the mainland last week.　　The bank quoted data from EPFR G Lobal that the new inflows of funds from the mainland fell to $19 million trillion last week, well below the average weekly inflow of $484 million trillion in the previous four weeks. This reporter Jongming The intern siao related reports to history as a reference to the Asian gold flightThe crisis lesson "the current situation is similar to the history of the early 1990, and the likelihood of a recurrence of emerging market bubbles increases." Global capital flows pushed up Asian asset price bubbles in the early 1990.　　"Ha said that at that time the United States and Japan also adopted a loose monetary policy, the U.S. federal funds rate from 1990 to 8.25% sharply reduced to 1993 years of 3%, Japan also slashed interest rates by nearly 500 basis points, prompting the rise of the yen carry trade, to provide investors with liquid ammunition. In the meantime, Asia's emerging market economies, represented by South Korea, Malaysia, Indonesia and Thailand, are growing faster, with higher interest rates and widening spreads with developed countries. The dollar also entered a devalued channel, so international capital flowed out of the United States.　　The share of portfolio outflow accounted for its G D p from 0 in the 1980 's. 1% rose to 1993 2.2%. Capital inflows into Asia, the share of private capital inflows from emerging markets in Asia accounted for G D p from 1% in 1980 to 4% in 1996, pushing up asset price bubbles in emerging Asian markets. In this process, the Asian financial crisis in these countries before the stock market in a few years recorded a stunning increase: Indonesia 193%, Malaysia 169%, Thailand 142%, South Korea 104%. Until the middle of the 1990, the United States began raising interest rates for inflation, 1 9 9, 4-1997 Years a total rate hike of 250 basis points.　　At the same time its IT revolution to become a new bright spot in the global economy, the acceleration of the U.S. economy, 1996-2000-year growth of 4.2%, which led to the United States dollar in 1996 to rebound, a large number of capital from Asia to return to the United States, leading to Asian countries bubble burst and financial crisis. Ha said that China should learn from the lesson and control the bubble in advance. More fully develop the capital market financing function, early resumption of IPO issuance, which helps to reduce the pressure to rely on bank lending alone. In addition, to prevent excessive monetary easing triggered asset price bubbles. Encourage the outflow of capital, including encouraging companies to go out and allow listings in foreign enterprises.