The Impact Of Hot Money On China’ Seconomy

With the continuous development of the global economic integration, production factors, such as goods, services, labor, capital and so on, are becoming more and more frequent and smooth. Especially the short-term speculative capital that hot money is in the global financial market development to promote a wanton transfer, the global financial market integration, on the other hand will inevitably accelerate the cross-border spread of financial risk, the security and stability of the financial market impact.Therefore, the monitoring and management of hot money flow is increasingly important.The "net errors and omissions" in the international balance of payments are usually used as a measurement index for the flow of hot money. From the project’s data changes, in 2002 before the project is negative, then to a positive, the recent re turn negative. Such a numerical shift suggests that hot money is a net inflow of hot money since 2002. And recently turned into a net outflow of state. The changes of hot money flow and the flow state of the Chinese economy and financial markets will constitute a certain impact. So it is significant to study the flow state of hot money and its influence.This paper is divided into six chapters: the first chapter introduces the background and significance of this paper, summarizes domestic and foreign scholars’ research results,. The second chapter discusses the definition of hot money and its high income, high liquidity, and introduces the theoretical relationship between hot money and monetary policy, market turbulence. The third chapter is mainly about the FDI and the trade surplus in the hot money,and It is concluded that the scale of hot money in China is 126601.02.In the fourth chapter, the impact of hot money on the economy;The fifth chapter is based on the theoretical research, for the capital market and the real estate market, the impact of empirical research, the hot money is not caused by the two major market changes, but as a form of booster. The last chapter, according to the research results, the author believes that we should strengthen the supervision and control of hot money circulation channels and the two major market trends, improve the financial system, and strengthen international cooperation in order to ensure the stability of the international financial markets.