Forex regulator tighten controls on 'hot money' inflows
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China's foreign exchange regulator Friday published a list of companies and one individual involved in illegal foreign exchange deals, in an effort to tighten controls on "hot money" inflows.
The statement posted on the State Administration of Foreign Exchange (SAFE) website was the second such disclosure after SAFE published the first list in November.
The illegal transactions included the use of fake contracts and false claims to obtain speculative capital. All those named had been fined for their law-breaking.
Fourteen companies based in eight provinces, including northeast China's Liaoning Province and the eastern provinces of Zhejiang and Fujian, were named in the statement.
In one case, Shenzhen-based Yestock Information Technology (Shenzhen) Co., Ltd. and Shenzhen Chuangtou Electronic Information Technology Co., Ltd., used a fake contract worth 10.65 million Hong Kong dollars (1.37 million U.S. dollars) to send 9.9 million yuan into the stock market.
It also named a Chinese national surnamed Huang, who illegally received 1.75 million U.S. dollars in November and December 2008, by using 18 outdated export cargo declarations.
Previously, the SAFE listed nine bank branches and outlets found to have been involved in illegal foreign exchange transactions.
By the end of October, China's foreign exchange regulator had uncovered 197 cases of illegal foreign exchange transactions worth 7.34 billion U.S. dollars since its crackdown on "hot money" inflows was launched in February.
