World Bank experts advise China to divert hot money to private companies

On the morning of October 19, the World Bank economist, in an interview at the East Asia economic semi-annual video conference, said China could consider using credit to divert these economies to private companies and individuals in response to the liquidity pressures caused by foreign capital inflows. According to the East Asian economic half-year, capital inflows have risen sharply this year, driven by a raft of global liquidity-chasing benefits and higher expectations for growth in East Asia than in other regions.　　China's foreign exchange reserves are up to $2.648 trillion trillion this September, according to data from the PBoC. The World Bank's East Asia and Pacific economists believe that China's capital projects are largely closed, and that Chinese companies are investing overseas and many of the existing mechanisms can ease liquidity pressures, but the government should consider using credit to make inflows into private companies and individuals. (Sho Yu from Beijing)