China Warns ‘Hot Money’ Inflows Possible on Easing From Abroad

China’s foreign-exchange regulator renewed concerns that the nation will see fresh speculative inflows of money after the U.S. and Japanese central banks said they would pump more funds into their financial systems.

“The policies in major economies of monetary easing and low interest rates will boost global liquidity, increase risk preferences in the market and drive speculative funds into China,” the State Administration of Foreign Exchange said in a statement on its website today. A large amount of so-called “hot money” inflows is possible, “but there are many uncertain factors,” SAFE said.