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An employee counts yuan banknotes at a bank in Hefei, Anhui province. Much of the cheap money sloshing around China has been invested in property while other parts of the economy are starved for capital.
An employee counts yuan banknotes at a bank in Hefei, Anhui province. Much of the cheap money sloshing around China has been invested in property while other parts of the economy are starved for capital.
(JIANAN YU/REUTERS)

In China, too much money in all the wrong places

China is seeing in the new year with an old problem: hot money. Growth for 2013 came in at a reassuringly rapid 7.7 per cent. Add in an appreciating currency, new investment opportunities and low rates elsewhere, and China’s appeal for investors who are able to borrow cheaply in foreign currencies and shovel the proceeds into China is all too strong.