Phoney exports worry Chinese authorities

Irregularities in China’s export data have authorities worried some companies are using phony trade deals to bring foreign cash into the country, the Financial Times reports.

Read: Canada must look beyond China, U.S. for export growth: CIBC

“Despite years of repeated campaigns to limit hot money, an apparent surge in Chinese exports in the first quarter, when other countries reported much weaker data, pointed to a resurgence in inflows. Analysts believe Chinese exporters were over-invoicing as a way of bringing more cash into the country covertly,” the report says, adding the limits on inflows are designed to curb inflation-fueling speculation.

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Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.