Home / Top News Tools: Save | Print | E-mail | Most Read | Comment
SAFE Launches Campaign on Short-term Fund Inflows
Adjust font size:

China's forex watchdog has announced plans to monitor and check short-term, abnormal fund inflows in the latest effort to trim the country's huge international payments surplus.

China's current account surplus surged more than 36 percent to US$91.58 billion in the first half of 2006 compared with the same period of the previous year, according to the State Administration of Foreign Exchange (SAFE).

Deng Xianhong, deputy director of the administration, said the campaign would cover foreign currency exchanges, companies, foreign agencies and individuals in China's 10 wealthiest regions, but he would not specify the regions.

The administration also ordered all banks in cities, including Beijing, Tianjin, Shanghai, and Shenzhen, that handle foreign exchange services to monitor their own operations, Deng said.

He said the watchdog had investigated 1,914 cases and issued fines totaling 139 million yuan (US$17.98 million) in last year's forex campaign. It also uncovered 70 "underground" banks, or illegal private businesses offering remittance, foreign exchange and other banking services, and illegal foreign exchange centers.

In 2006, the administration inspected 2,027 branches of 29 domestic and foreign banks, of which 265 were fined 16 million yuan (US$2.07 million) for irregularities in foreign exchange services.

Analysts said the effort would help to prevent economic fluctuations caused by heavy inflows and outflows of short-term capital and slow the rise of China's US$1 trillion in foreign exchange reserves.

(Xinhua News Agency April 1, 2007)

Tools: Save | Print | E-mail | Most Read
Comment
Pet Name
Anonymous
China Archives
Related >>
- Surplus in Goods Trade Expands Forex Reserves
- China to Form State Forex Investment Company
- Agency to Invest Forex Reserves
- China to Form State Forex Investment Company in 2007
- Individual Overseas Investment Expected to Expand
- State Forex Investment Firm Faces Huge Challenges
- Forex Watchdog Warns Online Fund Fraud
Most Viewed >>
- Shanghai fuel oil futures jump 3.14%
- Fuel shortage as crude oil prices rocket
- CNOOC's 2 oil and gas fields start production in Bohai Bay
- More oil futures products needed
- Promoting civil servants
- New endeavor to build a harmonious world
- Chinese Oil Refining Business Under Pressure
- Will Raising Processed Oil Prices Push Up the CPI?
- Fuel oil futures trading robust
- Scientists seek keys to urban development

Product Directory
China Search
Country Search
Hot Buys