Hot money flows could threaten the yuan’s stability. Photo: AFP
Hot money flows could threaten the yuan’s stability. Photo: AFP

China ‘must prevent reversal’ of hot money flows as US kicks off monetary tapering, former official warns

  • Beijing says it has the policy tools to handle the effects of the Fed’s gradual removal of the monetary stimulus it has been providing for the US economy
  • But there are concerns among investors that this could result in a more unstable yuan, with large amounts of cash rushing into and out of the Chinese market

Hot money flows could threaten the yuan’s stability. Photo: AFP
Hot money flows could threaten the yuan’s stability. Photo: AFP
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