China8217;s foreign debts reach 392 bn

The outstanding medium and long-term foreign debt reached USD 155.86 billion, a rise of USD 2.33 billion from the end of last year, it said, adding, during the same period, short-term foreign debt stood at USD 236.73 billion, a rise of USD 16.64 billion from the previous quarter.

In a move to curb rampant 8220;hot money8221; flow from investors speculating on appreciating currency and asset prices that would exacerbate excessive liquidity and worsen inflation, SAFE has said it would tighten oversight of the cross-border money flow, specifically the outstanding short-term foreign debt.

The Chinese Academy of Social Sciences said in a report last month that about 1.75 trillion USD speculative funds flowed into China over the past five years, a sum equal to 104 per cent of China8217;s foreign reserves by the end of March.