BEIJING: China’s should extend its crackdown on “hot money” entering the nation to speculate on yuan gains to include the services industry, a government researcher said.
Speculators are sending funds into China this year under the pretext of paying for design or consultancy work, said Li Youhuan, a researcher at the Chinese Academy of Social Sciences in Guangzhou, Guangdong, who estimates there’s about US$500bil of speculative money invested in China. The nation’s currency regulator yesterday tightened controls on exporters of goods by requiring them to register foreign-currency income on a central electronic database.