China, No Restrictions on Foreign Firms Cross Border Transfers

China, No Restrictions on Foreign Firms Cross Border Transfers

China, No Restrictions on Foreign Firms Cross Border Transfers

$USDCNY

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.

Stay tuned…

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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