While the mainland's inflow of short-term capital is increasing, the outflow of long-term capital continues to accelerate

Unlike the declining inflow of long-term capital, the flow of short-term capital into China has shown signs of increasing, especially after the adoption of a loose monetary policy in the United States and Europe.

In September, the funds outstanding for foreign exchange held by domestic financial institutions increased by 130.6 billion yuan ($20 billion). This reversed the decline in China's funds outstanding for foreign exchange over the previous two months, an indication that overseas capital has started coming to China again. At a time when the return ratio of US Treasury bonds is at a low level and the recovery of its real economy is proceeding at a snail's pace, there is a greater possibility of overseas capital, driven by the pursuit of higher profits, to flow to the global bulk commodity market and emerging nations.