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Hot Money and Inflation Risks Still Being Downplayed in China

Posted on July 24, 2008

In the first half of 2008, according to a Ministry of Commerce release Thursday, investment flows from Hong Kong to the mainland rose by 95% over the same period last year, to $23.4 billion. Interestingly enough, the number of projects declined by 8.2%, to 6,900. I suppose it is possible that the average size of each project has more than doubled, but given the large number of projects, I think this is extremely unlikely. So why the discrepancy? According to an article in Thursday s Xinhua: ...

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china , hong kong , xinhua