China toughens stance on offshore investments

China’s foreign exchange regulator is clamping down on the ability of companies to move money offshore.

Corporate executives are weighing up a tougher stance from China's State Administration of Foreign Exchange Safe, after the circulation of an unofficial copy of new rules showed the regulator was planning to increase its oversight of currency transactions.

Safe told banks on November 28 to deal carefully with requests for FX transactions under capital accounts from corporate clients. It has asked banks to report any transactions worth more than $5 million, compared to the $50 million cap it previously imposed.

Two separate sources confirmed the details of the order from Safe, citing the minutes of a Safe meeting on November 28. The minutes were also...

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