Since 2003, accompanied by the end of the Asian financial crisis and the rapid development of China economy, the RMB appreciation is expected to appreciate, U.S. interest rates continued to depreciate, enterprises, individuals and institutions have to repatriate foreign assets, in another part, by a variety of foreign speculative capital and non-normal normal channels scattered, and inspired the inflow of hot momey into China. The reason why the international hot money flows into China is mainly due to expectations of RMB appreciation and depreciation of the US dollar. Since 2003, the average annual increase of China's foreign exchange reserves over 280 billion U.S. dollars. In extreme conditions, large-scale withdrawal of hot money may lead to financial crisis, from the excess liquidity in the short time into a liquidity shortage, the economic impact of more sustainable and stable development. Though, unlike previous occasions, it is ferocious and difficult to recognize, even as the stock and real estate market, the feel of this speculative way the strategy and profitability have undergone a qualitative change in the latest periods. China government should be on high alert in risk management to prevent too much hot money came into and resulted in asset bubble caused by continuous hot money generated. In this research, the author tries to analyze the impacts of hot money toward overall financial market development and future trends that may affect in China.