Following up my previous post on China’s hot money problem, here is another update (source: WSJ):

Capital control will never be effective. This is a classical problem for fixed-exchange rate system. No easy way out. It’s just a matter how big will be the hit when all hot money tries to get out at the same time.

A one-time reevaluation or even more dramatic measures may be on the horizon. And when it happens, don’t get surprised.