The Measure Of Hot Money Flows Into China And Its Supervision

China has witnessed a steadily increasing trend in hot money inflow due to thefollowing factors: The strong growth of the Chinese economy, along with theimprovement of China’s capital account liberalization, the increased openness of thedomestic financial market.Hot money started to inflow into China at the beginning of the21st century, and it has shown a large scale since2004, Inereasing by anticipating thatwith the fact that RMB appreciates to our country，a large number of international hotmoney inflows potential threat to the economic stability of China, causing widespreadconcern across the country.This article describes the ways of hot money inflows into China, Furthermore, itestimates the scale of hot money flow into China based on monthly data from July2002toDecember2011. Finally, this paper makes a systematic study on the experience ofinternational supervision of hot money flow and Chinese regulatory policy changes inrecent years, which contributes to improve the control efficiency of hot money inflow intoChina.