Asia Forum Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Asia Forum

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Sam who wrote (6436)	9/15/1998 5:17:00 PM
From: the Druid	Read Replies (1) of 9980

TO ALL: China launches crackdown on capital flight BEIJING, Sept 15 (AFP) - China said Tuesday it had launched a crackdown on illegal foreign exchange dealings in an attempt to stop capital flight out of the country and a repeat of the crises in Southeast Asia and Russia. "The growth of illegal dealings in foreign exchange is a result of the influence of the external economic environment and has already exerted a negative impact on China's foreign exchange balance," a spokesman for the State Administration of Foreign Exchange (SAFE) told state television. "We have a firm determination to fight against illegal activities such as breaches of exchange regulations or purchasing foreign exchange with the help of forged documents," he added. Despite repeated guarantees from China that it will not devalue its yuan, fears of such a move have prompted many busineses to move their assets out of the country and into a hard currency. "People must be aware of the dangers to the state's economic security from illegal trading in foreign exchange," the spokesman said. "We must draw lessons from the recent financial crises in Southeast Asia and Russia which partly stemmed from uncontrolled foreign exchange dealings ... which caused the outflow of state wealth," he added. SAFE announed two new measures to combat capital flight -- a fines system for financial institutions found to have broken foreign exchange sale and payment regulations; and a computerised network linking customs, banks and foreign exchange control departments so that the flow of goods and foreign exchange can be monitored. But the spokesman said the yuan would continue to be convertible on the current account. "This will not affect the principle of yuan convertibility under the current acount or go back to the past practice of total and rigid foreign exchange control," he said. "Halting the abnormal flow of foreign exchange will better satisfy normal enterprise and individual demands for foreign exchange in the long run."

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next