Banking

China to combat hot money inflows in 2011

(Xinhua)
Updated: 2011-01-07 10:03

BEIJING -- China's foreign exchange regulator said Thursday that it would focus on combating hot money inflows into the country to avert economic risks in 2011.

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The State Administration of Foreign Exchange would crack down on irregular money inflows and strengthen supervision of cross-border fund flows this year, according to a statement on the website of the SAFE.

Further, it would gradually loosen restrictions on cross-border capital transactions while maintaining or increasing the value of its foreign-exchange reserves, according to the statement.

The US second round of quantitative easing has added to China' s mounting pressures caused by hot money inflows this year amid its concerns about excessive liquidity.