Putting great store in Sino-UK ties
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Capital inflows into developing countries have been increasing rapidly, reaching $46.4 billion by the end of October, compared to a total of $9.4 billion in 2009, according to EPFR, the global fund tracker.
Thailand has imposed a 15-percent withholding tax on interest and capital gains earned by foreign investors on Thai bonds, while South Korea has asked banks not to lend in foreign currencies.
China's foreign exchange regulators also vowed on Tuesday to take new measures to control abnormal cross-border capital flows.
The State Administration of Foreign Exchange (SAFE) said it will force banks to hold more foreign exchanges and strengthen auditing of overseas fundraising as part of its efforts to clamp down on inflows of "hot money", or speculative capital.
The foreign exchange regulator said in a statement that it will tighten management of banks' foreign-debt quotas and introduce new rules on currency provisioning. The government will also regulate Chinese special-purpose vehicles overseas and tighten controls on equity investments by foreign companies in China.
