China and Taiwan impose capital controls

Discussion in 'Wall St. News' started by MohdSalleh, Nov 9, 2010.

  1. China will force banks to hold more foreign exchange and strengthen auditing of overseas fund raising, stepping up efforts to curb hot-money inflows that may inflate asset bubbles and add pressure for a stronger yuan.

    Also today, Taiwan’s Financial Supervisory Commission said it will restore curbs on foreign investments in fixed-income securities to include government debt due in more than a year. Capital inflows from overseas helped pushed the Taiwan dollar up the most in more than a decade yesterday.

    The measures underscore concern around the world that the U.S. Federal Reserve’s expanded monetary stimulus will cause capital to flood into emerging markets.

    China and Taiwan working together?:D