China’s central bank has flagged the tightening by the US Federal Reserve as a source of risk, warning that “the risks of global cross-border capital flows and financial market adjustments have risen”. Photo: Bloomberg
China hot money inflows maintain pace, but risks ahead as US edges towards rate increase
- Foreign holdings of interbank bonds reached 4.07 trillion yuan (US$640 billion) at the end of January
- But a test is looming as the US Federal Reserve is poised to respond to record inflation with more aggressive rate increases, while China is easing its monetary stance
China’s central bank has flagged the tightening by the US Federal Reserve as a source of risk, warning that “the risks of global cross-border capital flows and financial market adjustments have risen”. Photo: Bloomberg
