First, because China has $3 trillion in foreign exchange reserves, the foreign exchange reserves have intensified the trading volume of RMB in China, resulting in excess liquidity.

Second, the expectation of RMB appreciation led to the influx of international hot money, which entered the financial and real estate markets and aggravated inflation.

Third, the depreciation of the US dollar and its new round of quantitative easing have led to the corresponding increase in the prices of commodities, raw materials and agricultural products in the international market, thus further pushing up the prices of related products in China and boosting inflation in China.

Fourth, China's 4 trillion stimulus plan and the positive response of local governments have caused the flood of liquidity.

Fifth, the Bank of China issued RMB 4.3 trillion, which aggravated the market flooding.

Sixth, natural disasters failed and prices rose.