September 22, 2007 (LPAC)--People's Bank of China Governor Zhou Xiaochuan, speaking yesterday at the Asian Financial Forum in Hong Kong, that China is concerned about the widening gap between Chinese interest rates and those in the US, due to increasing Chinese interest rates, and the Fed's cut last week. This gap has "not much affected China's currency policy", partly because the RMB is not fully convertible, Zhou said. However, China will nevertheless monitor changes related to the U.S. interest rates, he said, according to Xinhua, since the rate gap will encourage arbitrage and carry trades, bringing more hot money into China.