Hot money, that is, hot money, refers to short-term assets that flow between financial markets in pursuit of high profits. It has the characteristics of strong speculation, fast liquidity and obvious tendency. Because of its frequent transfer around the world, it is also called hot money, just like hot money. During the great crisis in 1930s, it existed in large quantities, which did great harm to the financial stability of some countries.

Is the massive inflow of foreign exchange into China good or bad for China? Hot money is not good for the national economy, because they are chasing high profits. Short-term assets flowing between financial markets are short-term assets. Speculative hot money is not the same as foreign investment in China. Foreign capital coming to China for industrial investment is a long-term asset, which is good for the country's economy.

For example, did house prices skyrocket before the first half of the year? That's because there are these hot money speculating in it. When the price is high, they take the money and leave, just like people say that the economy is in the desert.