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Access point: How hot money enters China
HOME > PAST ISSUE > REPORTS [Premium content]June 2008
Tricks of the hot money trade
Sketchy invoicing
By over- or under-charging for exports or imports, say, US$5 million for a shipment actually worth US$4 million, the foreign party can park extra cash in China. This has the benefit of providing a legitimate-looking paper trail.
FDI channels
A foreign investor sends in more money than needed for an approved project. The money grows as the yuan appreciates.
Informal networks
Informal business networks raise money abroad, ...
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