| JP Morgan Chase: China capable of handling "hot money" |
| Tuesday,July 22,2008 Posted: 21:24 BJT(24 GMT) |
| From:xinhuanet Article type:Reproduced |
JP Morgan Chase & Co. said in a report released on Monday that China can tackle global speculative funds, often called "hot money", despite increasing domestic concerns about floods of overseas capital into the country. Foreign exchange reserves stood at 1.809 trillion U.S. dollars at the end of June, up 35.73 percent year-on-year, and foreign direct investment rose 45.6 percent to 52.4 billion U.S. dollars in the first half, statistics from China's central bank show. The economic research group at JP Morgan Chase said that it foresaw no serious financial risk for China in the face of "hot money" since China has an abundant international payment surplus, a current account surplus and foreign net assets in hand. The current account surplus was equivalent to nearly 12 percent of gross domestic product last year. An adequate current account meant that China would be much less affected by changes in capital flows, compared with countries like India and Myanmar that had current account deficits, the report said. |
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