News
China steps up control on cross-border hot money flow
(Xinhua)
Updated: 2009-11-26 10:35
China has tightened settlement and sale of foreign exchange by individuals to curb non-normal cross-border capital inflow, according to a statement of the State Administration of Foreign Exchange (SAFE).
Banks should deny, review or report to foreign exchange regulators, individual purchases or settlements of foreign exchange suspicious of splitting up one deal into several smaller ones to dodge limits on the size of exchange transfer by one person, which is understood to be one of the channels for hot money inflow, said the statement on Wednesday.
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China in 2007 set the limit of up to $50,000 per year for an individual to exchange between yuan and foreign exchange.
