2 thoughts on “What is hot money?”

  1. The new vocabulary created by hot money
    . In the past two years, because the domestic hot money cannot obtain enough profits in the property market and the stock market, it has begun to make crazy speculation of agricultural products, which has caused a variety of agricultural products to increase the price of abnormal prices. Netizens have also created related vocabulary to vent their emotions. Vocabulary generated by price. Over time, more new words may be produced.
    The hot money, also known as Refugeecapital or speculative short -term capital, only short -term speculative funds that quickly flow in the international financial market for the pursuit of the highest risk.
    The speculative movement of short -term funds internationally is to avoid political wind and hot money trend
    insurance, pursuit of exchange rate changes, the benefits of changes in important commodity prices or changes in international price securities prices, and hot money is the pursuit of changes in exchange rate changes. Switching behavior of interests. When speculators expect a certain currency price to fall, they will sell the long -term foreign exchange of this currency, so that after the expiration of future expirations, the interests that can be bought at a lower period of time to earn this exchange difference. Because this is purely short -selling speculation, it is different from the set of exchange. In the foreign exchange market, because such speculative funds often have their own devaluation tendency to transform the currency to currency with appreciation currency, which increases the instability of the foreign exchange market. Wise or implement foreign exchange control can prevent the flow of speculative funds.
    The determination of the screening and numbers of hot money
    Codicing hot money and determining the number of hot money, but it is not easy. Because hot money is not static, some long -term capital can also be converted into short -term capital under certain circumstances, and short -term capital can be converted into hot money. The key is whether the economic and financial environment will cause funds to move from investment to speculative and from speculative to flee. The current fixed exchange rate system in my country and the external financial environment of the continued depreciation of the US dollar has created a arbitrage opportunity for hot money to enter and exit. The first is the false prosperity that caused the economy to help the economy. Judging from the current situation in my country, while the hot money is expected to be appreciated by the RMB, the opportunity to continue to find arbitrage opportunities such as the real estate market, the bond market, the stock market, and other markets in other markets. The most obvious is the real estate market. In the past two years, my country's real estate prices have risen straight, and the national real estate prices have risen above 12%, far exceeding the consumer price index, especially in Beijing, Shanghai, Hangzhou, Nanjing and other large cities, real estate prices have risen by more than 20%, and even even Reach 50%. Even though the severe macro regulation in 2004 did not suppress the sharp rise in house prices. Therefore, some arbitrage capital cannot be ruled out in my country's real estate market. One of the important reasons why many real estate developers are unwilling to reduce prices and house prices is that they have fantasies about international hot money, and an important reason to attract international hot money to enter the Chinese property market is the significant appreciation of the RMB. Secondly, a large number of hot money enters, increase the scale of foreign exchange funds, affects the normal operation of monetary policy, disrupts the normal operation of the financial system, and exacerbates the inflation of domestic inflation
    pressure. In 2004, the basis of basic currencies reached more than 660 billion yuan. According to the calculation of about 100 billion US dollars of hot money, there were more than 800 billion yuan. Therefore, the inflow of the hot money exceeded the annual basic currency investment. This forced the central bank to use the central bank's bills to forcibly sell it in the open market. In 2004 alone, the central bank issued nearly 1.5 trillion yuan of bills, which greatly increased the operating costs of the central bank. The effect is greatly reduced, increasing the pressure of inflation. According to the calculations of relevant experts, as of the end of 2005, the "hot money" in my country exceeded $ 320 billion, and at the end of 2006 and at the end of 2007, it was $ 400 billion and $ 500 billion, respectively. On June 24, 2008, experts of the Institute of World Political and Economic Research, the Academy of Social Sciences published a report on the website of the Social Sciences that under the hypothesis of a certain economic model, the amount of hot money in China's capital market was amazing, which was as high as 1.75 trillion yuan The US dollar, this number is about 104%of the Chinese foreign exchange reserve stock as of the end of March 2008. The inflow of "hot money" to China is driven by various factors: it can not only achieve the risk of international financial turmoil, but also benefit the RMB sets of foreign exchange, and speculation on the domestic stock market and property market. The pressure of renminbi appreciation. The current exchange rate system in China and the continuous depreciation of the US dollar can attract hot money. Therefore, as long as the RMB appreciation is expected, the pressure of RMB appreciation will be greater. The outflow will also fluctuate the economy violently. As the Fed increases interest rates 7 times, the US dollar interest rate increases the attraction of the dollar, and the uncertainty of the expected uncertainty of the appreciation of the renminbi will increase. The market price with a large atmosphere will fluctuate sharply, such as the rapid decline in real estate prices, bond prices, and sharp fluctuations in the stock market. For a long time, developing countries often flow out of accidents due to domestic capital shortages. Former high interest rate policy, a large number of "hot money" poured in; after the devaluation of the Thai baht, the "hot money" quickly escaped, causing the Thai economic building to collapse.
    R n1. High returns and risk. Pursuing high returns is the ultimate goal of hot money in the global financial market movement. Of course, high returns are often accompanied by high risk, so hot money earns high risk profits. They may earn in this market to earn in this market. And when the market loses, or earning money at this time, it will make it a sense of consciousness and ability to bear high risk. 2. High informationization and sensitivity. Hot money is the darling of the information era. Or the current status and trend of the world's economic and financial situation, highly sensitivity to various financial markets, spreads, and various price differences, and highly sensitive to relevant national economic policies, and can quickly reflect the hot money and the stock market, the property market
    .3.3. High liquidity and short -term. Based on high information and high sensitivity, if you have money, you can enter quickly, and the risk is increasing instantly. It shows great short -term and even ultra -short -term. Quickly enter and exit. 4. The high virtuality and speculation of investment. Saying hot money is an investment fund, which mainly refers to the securities market and the currency market that they invest worldwide in order to from the securities and currencies daily, every hour, and every minute. Obtaining profits in the price fluctuations, that is, "money with money", has a certain lubrication effect on the financial market. If the financial market does not have hot money such as those such as hot money, it is impossible for those who hate it. Create employment and does not provide services. It has great virtuality, speculation, and destructiveness.
    In emerging markets should have a large amount of hot money inflow
    . In terms of China, capital inflows, especially short -term speculative Capital management and supervision; second, to maintain the stability of the macroeconomic and the relative continuity of the policy to make the capital flow sustainable, which is also the most fundamental factor to prevent capital flow reversal;
    The method of resisting foreign investment
    1. Fully inflation to make the price rising comprehensively, but Lao Bai The surname cannot afford it;
    2. Increases the reserve rate, but this trick has limited impact on the Chinese stock market;
    3, find another place to divide and flood ;
    4, the pace of accelerating the appreciation of the renminbi, quickly in place, announced that it will not appreciate within a few years, but foreign trade enterprises will go bankrupt in a large number, and the unemployment problem cannot be resolved;
    5. The expansion of the securities market in my country will expand capacity Essence The measures adopted include encouraging high -quality state -owned enterprises on the market to organize and publicize, or accelerate the return of red -chip stocks, as well as allowing foreign companies to issue A shares.
    The editor's hot money flow and flow
    The international hot money flow
    1, short -term interest rate is at the high point height, or is still rising.
    2, the exchange rate during a short period of time is ready to go, it is about to appreciate. As long as China meets the above two conditions, it flows in.
    The general developing countries, the economy is taking off, the market's income is growing, and the market where the stock market is rising. As long as it meets the above elements in other countries, it can attract the hot money in Bayang. The most loyalty to prepare hot money is also the most loyalty. They will always stay in the country's relative to other countries:
    1, short -term interest rates have fallen back to the decline
    2, the exchange rate in the short period is to be degraded
    Hot money will flow out again.
    The so -called hot money flow is to sell its currency valuation assets, such as stocks, national debt, and speculative land owned by foreign capital, which will be sold in large quantities. If the above is short, if the time is short and the traffic is large, it will cause the housing market in the country's stock market and bond market to fall.
    The status quo of our country
    The current fixed exchange rate system in my country and the external financial environment of the continued depreciation of the US dollar has created arbitrage opportunities for hot money in and out. But hot money is not necessarily the flood beast. If it can be guided by potential, knows that it is righteous, and the system is standardized, it can also make it feel at ease in China. As long as it feels favorable, there is no need to bump to the world, and the hot money is not all hidden.
    In the new vocabulary created by the hot money of this paragraph
    In the past two years, because the domestic hot money cannot obtain enough profits in the property market and the stock market, it has begun to make crazy hype of agricultural products, which has caused a variety of agricultural products to increase the price. The general public feels helpless about this, and netizens have also created related words to vent their emotions. The vocabulary generated when price increases such as mung beans, ginger, and apples. Over time, more new words may be produced.
    This flowing channels
    The hot money enters more than ten types, the main channels are: first, false trade. In this channel, domestic enterprises and foreign investors can join forces to introduce overseas funds into domestic methods through virtual high quotation, pre -collection of payment, and falsification of supply contracts. Second, increase capital and shareholding. That is, on the basis of the original registered capital, some foreign investment companies apply for capital increases on the grounds of "expanding production scale" and "increasing investment projects". It is necessary to find an excuse to withdraw the original project contract, so it is easy to enter and exit with hot money. Third, currency circulation and conversion. There is a section of the market in the market to explain the way of flowing in this hot money: "Hong Kong dollars cannot be convertible, the renminbi can be exchanged, and the two places are first -class and can be exchanged." In the inspection, the State Administration of Foreign Exchange found that through this method of currency conversion and cross -regional operations, it also made a lot of hot money "in and out of freely." Underground Capital Villa
    Wen four, underground money house. Underground Qianzhuang is the fastest way to enter and exit foreign investment. Many underground money houses are operating like this: Suppose you hit the money to a specified account in the local area in Hong Kong or outside somewhere. After being confirmed, the underground bank in the Mainland will naturally help you open a household and convert your foreign currency to Renminbi. There is no need to come in at all. Fifth, the container truck with cash. This approach is mainly concentrated in the ingredients processing enterprise in the Pearl River Delta. In the name of employee salary, the enterprise will bring Hong Kong dollars in and out of Guangdong and Hong Kong through the container truck. If a company has ten and eight container vehicles, it is common for a car to run for one or two times. Each trip with 500,000 Hong Kong dollars is well explained even if it is checked by the customs. Since 2006, as the demand for funds has increased, some similar companies have slowly expanded their business to become a "underground money house" in disguise, and help others with cash in large quantities. Six, the family money. Overseas Chinese remittances to domestic relatives are called albums, and this number has increased significantly in recent years. The money that is really used in the "family" here is suspicious. Quite a lot of hot money is to come in and buy a house through this channel.
    The rough calculation of hot money
    If foreign reserve increases in countries-FDI (foreign direct investment) -This surplus = hot money

  2. Hot Money, also known as Refugee Capital or speculative short -term capital, only to pursue short -term speculative funds that quickly flow in the international financial market with the lowest risk.

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