Hot money, also known as hot money, or speculative short-term funds, aims to spend as little time as possible in Qian Shengqian, which is a kind of short-term speculative funds that flow rapidly in the market only for the pursuit of high returns. The purpose of hot money is purely speculative profit, not to create jobs, goods or services.

When foreign investors judge that the RMB will appreciate, they can exchange foreign currency into RMB in advance. After the RMB appreciates, they can exchange less RMB for more dollars and earn the benefit of RMB appreciation-exchange difference.

In addition, at present, domestic inflation pressure is relatively high, and American interest rates are expected to rise. At the same time, the interest rate in the United States is low, and foreign currencies can be converted into RMB deposits to earn spreads.

Under the background of global market turmoil, the income from exchange rate difference and spread is low-risk income, so foreign capital enters the mainland through various channels.

Extended data:

Currency appreciation is also called "currency appreciation". It means that the currency value of a country has increased or risen relative to other countries. This appreciation is often a measure that a country is forced to take during the world financial crisis in order to prevent the inflow of foreign currency and avoid the accelerated depreciation of its own currency at home. The increase in commodity value is usually a good thing (money itself is a commodity), but the increase in the value of a country's currency is not a good thing for that country. Because the appreciation of a country's currency will directly affect its macro-economy.

For industries that mainly rely on foreign procurement of raw materials or equipment or have highly liquid RMB assets, RMB appreciation will be a long-term positive; It will generate a one-time exchange gain for industries with a large amount of foreign debts in US dollars; However, it has a great impact on export-oriented industries and industries with international pricing.

1. The import of raw materials and the appreciation of industries with high foreign currency liabilities are conducive to industries where raw materials or equipment mainly rely on foreign procurement or foreign debts, such as aviation, paper making, electric power and construction machinery.

Capital inflows are good for the real estate and financial industries.

In the process of appreciation, the real estate and financial industries will attract a lot of international hot money because of their good liquidity and liquidity, which will obviously benefit the relevant listed companies.

2. The export and international pricing industries are greatly affected, which weakens the competitiveness of export-oriented industries. For export-oriented industries and listed companies, the appreciation of RMB will greatly weaken the competitive advantage of products and have a great impact on company performance. Such as foreign trade, textiles and clothing, home appliances and other industries.

3. The international pricing industry is greatly influenced by the petrochemical industry, and the appreciation has different effects on the industries in different positions in the petrochemical product chain.

Baidu Encyclopedia: Currency appreciation.