Hot money refers to the inflow of funds from overseas, with the purpose of chasing short-term profit goals. Many experts believe that the rise in asset prices in the mainland is directly related to hot money, although I think the domestic currency is over-exploited. It is an internal reason and the main reason, but the influx of hot money is also a very important factor. 1. The reasons for the entry of hot money: 1. The expected appreciation of the RMB and the depreciation of the US dollar; 2. The interest rate difference between mainland China and overseas deposits; 2. The channels for the entry of hot money: 1. Fake trade. Short-term international capital enters the country through false trade, mainly using false import and export declarations; 2. Foreign direct investment (FDI). Mainland China's rapid economic growth, preferential investment policies, and stable political environment have made my country one of the preferred destinations for foreign direct investment; 3. Underground banks. The main ways for underground banks to transfer funds include: transferring funds through overseas investment institutions, remitting funds through multiple accounts in overseas banks, and carrying cash privately through entry-exit dual-plate cars. 3. Areas where hot money enters: 1. If you deposit it directly in a bank, you can get higher interest rates than overseas. At the same time, due to expected changes in exchange rates, you can still make a profit on the exchange rate when you transfer it back at maturity; 2. Enter A-shares. market, the current stock market level is still lower than in 2007, and because the stock market is the easiest area to cash out, it is the first choice for hot money to enter. This is also the root of the current bullish trend in the A stock market; 3. Entering the field of art , the recent popularity of the Tianjin Art Exchange, I think highlights this point, art investment high investment, high returns; 4. Enter the field of commodity spot and futures, hoard spot goods, speculate on futures, and after raising the price, high Sell ??the spot at a certain point and lock up the position at a high position in the futures. It is not known whether it will be shorted or not; 5. In the property market, because the country has recently introduced restrictive policies, it is estimated that hot money will not enter in a large scale. 4. The impact of the inflow of hot money on our lives: 1. Rising prices. Although the over-issuance of domestic currency is the main reason, the influx of hot money is also a force that cannot be ignored; 2. The increase in investment hot news will not be long after , it is estimated that there will be many successful investment wealth stories around; 3. There is an inexplicable shortage of certain materials, which is partly caused by the accumulation of funds and the reluctance to sell, resulting in "false shortages"; 4. When you come, you are a guest, when you go, you are a devil, and hot money is bound to happen They will flee at high levels or even go short in the stock index futures or commodity futures market, which may lead to a severe economic recession.