China Reports $75.5 Billion in ‘Hot Money’ Inflows – WSJ.com

BY AARON BACK

BEIJING—China released new data on Thursday that offered a more accurate picture of the huge volumes of liquidity surging through the economy, highlighting the difficulties that the government faces in reining in mounting inflation.

The central bank unveiled a new measure of the total supply of credit to the economy, effectively acknowledging that its existing data on bank lending severely undercounts the supply of credit in the world’s second-largest economy.

And the State Administration of Foreign Exchange gave a rare comprehensive analysis of flows of speculative “hot money” into the economy, showing they rose last year, adding to liquidity pressures.

via China Reports $75.5 Billion in ‘Hot Money’ Inflows – WSJ.com.

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