The first is to use "underground money houses" to enter the stock market. This is the most important and complicated channel for foreign speculative capital to enter China stock market, and it is also considered as the most professional and fastest channel. Its specific operation means is to find companies willing to cooperate with it in China to do "fake trade (that is, fake exports and fake imports)"; Look for bank branches and sub-branches that can handle "foreign capital (speculative capital)" leniently; Look for economic development zones that are lax in reviewing foreign investment and can even cover up "fake investment". In the past, most overseas funds entered China through Hongkong, but now most of them enter the mainland through Taiwan Province Province. At present, there are about 2,000 "underground banks" in Taiwan Province Province.
The second is to use foreign direct investment to enter the stock market. Under the guise of foreign investment, speculative capital enters domestic affiliated enterprises or directly enters the stock market by means of capital injection in advance, capital increase or false investment.
The third is to use short-term foreign debt to enter the stock market. Overseas affiliated enterprises of multinational corporations provide financing support for domestic affiliated enterprises in the form of advances, internal exchange and accounts received in advance. Due to the lack of supervision measures for the flow of RMB funds in foreign debt settlement, some foreign debts changed their use and entered the stock market after settlement.
The fourth is to use advance payment and deferred payment to enter the stock market. Prepayment and deferred payment belong to the category of trade financing, and have the dual characteristics of current account and capital account. In practice, due to the mismatch between capital flow and logistics, and the current foreign exchange management regulations are lax about prepayment and deferred payment, many overseas speculative funds are remitted back to China in batches in the form of prepayment through false trade. The main manifestations are: enterprises have no or less exports, but the advance payment has increased significantly; Long-term turnover after the advance payment of the enterprise is received and settled; Delaying, underpaying or not paying foreign exchange; Underreport the import price and over-report the export price.
The fifth is to use non-trade channels to enter the stock market. In recent years, with the substantial increase of private foreign exchange income under individual residents and non-resident individuals, some speculative capital has flowed into China and entered the stock market in the name of personal foreign exchange. First of all, foreign exchange funds flowing in the name of individuals, such as free transfer and various types of funds returning, have grown rapidly. In 2006, China's personal net settlement of foreign exchange accounted for 20% of new foreign exchange reserves, and many operating funds under trade and capital also entered the domestic stock market under personal accounts. Secondly, after some non-resident individuals settle foreign exchange abroad, some of them are directly converted into RMB time deposits, and the other part is directly invested in the stock market for speculative arbitrage.
Sixth, illegally carrying foreign currency cash into the stock market. Some domestic and foreign enterprises or individuals take advantage of frequent personnel exchanges at border crossings and lax inspection measures to transfer arbitrage funds to China. In practice, the proof of the source of funds is generally sponsored by relatives or friends, and it is difficult for banks to verify its authenticity.
Seventh, enter the stock market through a mixture of offshore business positions and onshore business positions. Banks can expand their lending capacity by mixing offshore and onshore business positions (and borrowing funds), and provide an indirect channel for overseas funds to transfer to China and enter the stock market.
Eight is to use related party transactions to enter the stock market. Overseas affiliated enterprises of multinational companies provide financial support to domestic enterprises in advance, such as prepaid training fees, research and development fees, amortization fees, delay or temporary non-repatriation of investment profits to the parent company, etc.
At present, banks, foreign exchange or securities regulatory authorities lack the necessary statistical monitoring means for the channels and scale of foreign speculative capital entering the China stock market. In particular, banks and securities companies are isolated from each other, so banks can't know the whereabouts of RMB funds after settlement, and securities companies can't know the source of RMB funds entering the stock market. Therefore, it is difficult to accurately grasp how much overseas speculative funds have flowed into the China stock market. According to some experts' estimation, the overseas speculative funds entering the China stock market may be as high as $654.38+000 billion. Overseas speculative funds entering the China stock market through the above eight channels mainly come from some large international hedge funds, especially the top hedge funds in the United States and Japan. After these funds entered the China stock market, they gradually moved closer to dozens of large-cap stocks, and pushed up the stock index by adjusting positions and pulling up large-cap stocks. Therefore, the manipulation of foreign speculative capital is one of the important reasons for the phenomenon of supervision and anti-supervision in China stock market.