China may see "huge" inflows of speculative capital as foreign investors step up bets on yuan gains, making it difficult to manage liquidity, said Zhang Xiaoqiang, vice-minister of the National Development and Reform Commission (NDRC).

Loose monetary polices in developed countries, a weakening US dollar and China's economic recovery will put renewed pressure on the yuan to appreciate, Zhang said in a statement yesterday.

Overseas investment is estimated to have increased in 2009 and the country is becoming more reliant on foreign economies, he said.