Regulator plays down hot money fears

Central bank effects yet another hike in benchmark 1-yr bill yield

The $453 billion increase in China's foreign exchange reserves last year partly reflected currency valuation effects and was not solely due to inflows of "hot money", the State Administration of Foreign Exchange (SAFE) said yesterday.

The foreign exchange regulator also refuted media reports that there could have been hot money inflows of nearly $167 billion into the country last year.