China to revise forex rules in first half 2008: report

0 Comments | AFP, March, 2008

SHANGHAI (AFP) — China is expected to release revised foreign exchange regulations in the first half of the year in an effort to strengthen control on illegal capital inflows, state media reported Monday.

The revised rules, which will supersede regulations dating back to 1996, are likely to enhance supervision of how incoming funds actually end up being used, the China Business News reported, without citing any sources.

China has been working for years to curb illegal foreign capital inflows speculating on the appreciation of the domestic currency.

The authorities have worried these inflows of hot money would add to difficulties in reining in overheated sectors such as the property market and fuel already sizzling economic growth.

© 2008 AFP