Bloomberg News

China Intensifies Scrutiny of Importer, Exporter Capital Flows

May 06, 2013

China’s currency regulator said it will increase scrutiny of cross-border capital flows by importers and exporters to prevent speculative funds entering the country disguised as trade bills.

The State Administration of Foreign Exchange will send out risk-warning notices to companies whose goods and capital flows do not match, as well as those that are bringing big amounts of cash into China, it said in a statement on its website.

Recipients of such notices have 10 days to explain the need for their transactions and those that fail to comply or are unable to provide satisfactory proof will then be placed on SAFE’s so-called B list, which means their activities will be closely monitored for a period of at least three months. A return to SAFE’s A list can only take place once relevant indicators return to a normal range, the statement said.

SAFE said it would finalize the B list and send out the first batch of warnings before May 10. It also ordered banks to adjust their foreign-exchange positions to comply with regulations.

The yuan fell 0.03 percent to 6.1572 per dollar as of 12:01 p.m. in Shanghai, after earlier touching a 19-year high of 6.1521.

--Judy Chen. Editors: James Regan, Robin Ganguly

To contact Bloomberg News staff for this story: Judy Chen in Shanghai at

To contact the editor responsible for this story: James Regan at

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