China's latest interest rate hike would have no easily quantifiable impact on the influx of so-called "hot money" as such funds would not be deposited in banks simply to earn higher rates, Dr. Ou Minggang, deputy chief editor of the Chinese Banker magazine, told Xinhua on Friday.
Rather, analysts said, funds were likely to be attracted into China by an anticipated appreciation of the yuan and continued gains in the equity and real estate markets.
"Hot money" refers to short-term capital flows that move from market to market, seeking the highest returns.
The People's Bank of China (PBOC), the central bank, announced on Thursday that it would raise the one-year deposit interest rate by 27 basis points to 4.14 percent and the lending rate by 18 basis points to 7.47 percent, effective on Friday.
This rate hike was China's sixth this year, part of a series of moves to ease inflation pressure, as the economy is expected to expand 11.5 percent for the full year.
