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, Taiwanâs 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 Reserveâs expanded monetary stimulus will cause capital to flood into emerging markets. http://www.bloomberg.com/news/2010-...ital-inflows-with-audits-position-limits.html China and Taiwan working together?