Hot money/speculative capital, also known as hot money or speculative short-term capital, is a short-term speculative capital that flows rapidly in the international financial market only for the pursuit of the highest return and the lowest risk. The speculative movement of international short-term funds is mainly to escape political risks and pursue the interests of exchange rate changes, important commodity price changes or international securities price changes. Hot money is the speculative behavior of pursuing the interests of exchange rate changes. When speculators expect the price of a currency to fall, they will sell the forward foreign exchange of that currency in order to buy foreign exchange at a lower spot price after the futures expire, thus earning interest on the exchange difference. Because this is pure short-selling speculation, which is different from arbitrage. In the foreign exchange market, this speculative capital often changes from a currency with a tendency to depreciate to a currency with a tendency to appreciate, which increases the instability of the foreign exchange market. Therefore, as long as the expectation psychology exists, this speculative capital flow can only be stopped if the appreciating currency fluctuates greatly or foreign exchange control is implemented. Because the reason why hot money goes in and out is to obtain speculative profits, the current pressure of RMB appreciation is huge, which has caused the continuous inflow of foreign speculative hot money, which will lead to the loss of money in China and trigger a financial crisis.