China, No Restrictions on Foreign Firms Cross Border Transfers
China’s foreign exchange authority (SAFE) said last Friday that there are no restrictions on foreign firms’ cross-border profit transfers, responding to market concerns about tightened regulation over capital outflows.
As China has realized convertibility under the current account, real international payments and transfers are not restricted, including those of dividend and goods and services trade, according to a statement of the State Administration of Foreign Exchange (SAFE).
Weighed on by a weak Chinese RMB Yuan Vs the USD, regulators moved to crack down on illegal cross-border capital flows, while reiterating that normal business will not be affected and foreign investment is still welcome.
An anonymous SAFE official Thursday dismissed substantial pressures from capital outflows, saying the situation remains controllable.
Last month, the RMB Yuan fell Vs the USD, but was relatively stable against a basket of other currencies.
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