China needs "transformers" to cool hot money

Liu Junhong, director of the Institute of Globalization Studies at the China Institute of Contemporary International Relations, told the “World News” reporter that hot money is not a “flood and beast”, and the increase in the number of participating parties is conducive to China’s improvement in the construction of the financial market.

Liu Junhong pointed out that the reason why we now talk about "hot" changes is mainly because our financial market lacks "transformers" and turns hot money into "cold". "Finally, China's financial market is not sound enough and there is no mature set of rules. And the regulatory system.” He also said that to prevent hot money can not rely on "blocking" alone, but also to learn to "sparse", and even let all the funds "for my use." For example, let all types of companies listed on the domestic and foreign financing, as much as possible around these hot money from overseas.

Professor Guo Tianyong of the School of Finance at Central University of Finance and Economics also pointed out to the media that the prevention of hot money needs to be blocked and combined. On the one hand, since China’s capital account has not yet been opened, it can increase the intensity of supervision and investigation through cross-border exchanges of trade items, underground money houses and other channels; on the other hand, We must continue to adhere to real estate regulation and control, reduce the opportunities for speculative profits of hot money in the asset market, and at the same time, increase the structural adjustment and development strategy of emerging industries, thereby guiding hot money into the real economy and cooling it.

Zhou Xiaochuan, governor of the People's Bank of China, used a metaphor to illustrate the rationality of treating hot money. “You cannot stop the train from running because of the traffickers who prevent and control the long-distance traffic. Otherwise, the price paid by the entire national economy will be much greater than the cost of rectifying the two traffickers.”