Date
19 November 2017

Hot money rush ‘distorts’ China export figures, Reuters says

China is seeing a resurgence of “hot money” seeking to cash in on the rallying yuan and record-high interest rates, contributing to distortions in its trade data as speculators move money through regulatory loopholes, Reuters reported Wednesday. November exports rose 12.7 percent on year, well above a Reuters poll that predicted 7.1 percent growth, but many analysts suspect the performance was inflated by speculators moving money into the country through fake trade transactions, the report said. Nomura economist Zhang Zhiwei said China’s export growth far exceeded that of its Asian neighbors in November, which is unusual. Imports also grew less than expected and factory output slightly underperformed expectations, results analysts find highly suspicious, the report said.

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CG/SK

 

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