Chinese warn foreign banks to obey forex regulations

by Richard Kilner

Story link: Chinese warn foreign banks to obey forex regulations

Yesterday foreign banks were warned against contravening Chinese foreign exchange regulations by the State Administration of Foreign Exchange.

The warning has been seen a possible indicator that the authorities in Beijing may be contemplating restricting the influx of speculative capital.

Deng Xianhong, SAFE’s vice head, stated at a forum that certain foreign banks have ignored the forex regulations.

Xianhong went on to say that such behaviour not only increased the risks the banks themselves faced but also have negative effects both on the Chinese banking system and the wider economy of China.

June 2007 saw SAFE discipline 19 Chinese banks and 10 foreign banks, all for assisting foreign speculative capital to enter China.