Following the hot money

At the end of June, China’s foreign reserves reached $2,130bn (Rmb 14,549bn, €1,459bn, £1,290bn). The increase in the world’s largest reserves in 1H was $185.6bn, of which $177.8bn was added in Q2 alone. However, the trade surplus and inflow of foreign direct investment in 1H were $96.93bn and $43bn respectively – considerably short of the total build-up in reserves. This seems to imply large hot money inflows, but will the money now stay in China or flee overseas once more?

China Confidential Funds

China Confidential Funds, a new research service launched by FT China Confidential, is dedicated to illuminating the mainland fund industry. Our team of fund industry experts in Shanghai search out the interesting trends in fund performance, strategy, interactions with overseas funds, regulatory changes, distribution and management. We also use a proprietary system to track the emerging flows of Chinese money. Click here to find out more.

Other Articles on this Issue

• Funds Data

  China back in vogue

• Macro View

  Talking bubbles, but spending more

• The Big Call

  Domestic brand cars to ramp up market share

• Capital Intensive China

  Real Estate – Bubble, what Bubble?

• Postcard From No 528

  International board: a Barmecidal feast?

• Consumer China

  Internet ads – Search and Rescue

  Sohu – Buoyed by games

  Sina – Behind the curve

  Baidu – Search Successful

• Financial China

  Banks’ Net Interest Margin rebounding

  Bank regulator blinks on credit tightening

• Guest Column

  Banks, property and large caps to shine

• Forbidden City

  Renminbi internationalisation – The master plan

• The Best of Chinese Commentators

  How sustainable is the economic rebound?

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