The Analysis Of International Hot Money's Impact On China's Economy

Increasing by anticipating that with the fact that RMB appreciates to China, And, assets Price rise high in China. More and more hot money flows into our country through various channels, which had brought about grate effect for economic growth of our country. The research mainly on the international transmission mechanism of risk capital, international capital in China's status, the reasons and channels of international hot money into China, and China's capital controls, concrete analysis of how the international floating capital for risk transfer and diffusion, and analyze the impact and risks of international capital on China's economy and finance; Finally, according with previous analysis of international capital flows of China's potential risks, we propose effective regulatory measures to guard against the risks associated with international capital so as to maintain the health of our economy, stable financial operations.Through the destructive and the possibility of adverse impact on developing countries'economy and finance of hot money and combined with the actual situation of our country, we get the main points in this article are as follows:1,Based on the analysis of current situation of international hot money flowing into China, this paper argues that there are huge amounts of hot money inflows in China in recent years, and have a growing trend;2,The factors of international hot money inflows in China is mainly as follows: the expected appreciation of the RMB, the earnings from rising of the Chinese market and real estate market with RMB appreciation, and international currency factors;3,The large inflows of international hot money to China will have a significant impact on China'economic and financial markets.The main conclusions of this paper are those:In the face of the potential impact of international hot money, China's fundamental way to eliminate risk is to promoting the development of domestic financial markets and improve risk-resisting ability of the financial sector; E establishing the domestic money market to improve and strengthening open market operations; Adjusting mechanism of foreign exchange management and exchange rate policy-making mechanism; Strengthening the supervision of international capital flows and prudent capital projects; Developing China's Financial Security strategic planning, improving the financial security system.