China Intensifies Scrutiny of Importer, Exporter Capital Flows

China Intensifies Scrutiny of Importer, Exporter Capital Flows

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

About bambooinnovator
Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (, the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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