Studies On Internationai Hot Money Flowing Into China’s Market In Post-financial-cirsis Era

With advanced economies and emerging economies getting better, the panic offinancial crisis is fading away. The term “post-financial-crisis era” comes intopeople’s view. To cope with the globally involved financial crisis, governments indifferent countries have all resorted to positive fiscal policies and moderate monetarypolicies in order to control the spread of financial crisis and stimulate economicrecovery. Due to the slowness of investment property’s economic returns, plentifulcurrency in the market becomes Hot Money, which, in the new economic environment,is bound to ask for other opportunities to make profits in the world market. Under thecircumstance where the domestic macrosituation is optimistic while the foreignadvanced economies are too weak to recover, Hot Money in the world market tends toflow into China. The thesis, considering China’s economic conditions, probes into theissue that Hot Money flows into the market of China under the background of“post-financial-crisis era”.The thesis starts with the defination of “post-financial-crisis era”, explicits itsbegin time and points out that this era has three features, that is, lack of power andbalance in economic growth, appearance of sovereign debts crisis and excess ofmoney liquidity. Afterwards, the thesis systematically analyzes the concept of HotMoney, and then indicates the relation between post-financial-crisis era and NotMoney flowing into China’s market. Finally the thesis analyzes the dominant factors,causes, channels, scale and fields of the inflow of Hot Money. While analyzing thecauses, the thesis states that the inflow of Hot Money is actually a “currency war”which has strategic significance in stablizing the United State’s dominant position inworld economy. It also rearranges the related formula used to evaluate the inflowscale of Hot Money.The thesis combining China’s economic conditions in recent years, illustrates theinfluence of Hot Money inflow to China’s price level, capital market and exchangerate. In the end, based on the analysis, the thesis puts forward some countermeasuresto prevent and control Hot Money, including to strengthen the supervision of capitalmarket and currency market, to make an overall control of exchange rate and interestrate, to intensify the regulation of foreign currency notes, to reinforce the managementof Hot Money inflow channels, to construct the mechanism of coordination andsupervision and to seize the right to speak on sovereign credit rating, etc.