Forex regulator dismisses reports on transnational financing regulation

A clerk counts yuan bank notes and US dollar bills at a branch of the Industrial and Commercial Bank of China in Huaibei, East China's Anhui province. [Photo/IC]

BEIJING - China's foreign exchange regulator on Wednesday issued a statement on its website, dismissing media reports on tightened regulation of transnational financing.

In the brief statement, the State Administration of Foreign Exchange (SAFE) said no regulation had been issued on transnational financing of imports.

Some reports have said that China had adopted new measures to prevent capital flight.

The SAFE reiterated in the statement that enterprises can handle authentic, legal foreign exchange revenue and payments directly in banks.

The SAFE also clarified that cross-border guarantee business with authentic trade and investment backgrounds are not affected.

Despite drops in China's foreign exchange reserves, the reserves are still abundant to fend off external risk, the central bank said this month.

Forex reserves fell for the sixth straight month to about $3.01 trillion last month, down from $3.05 trillion in November and $3.12 trillion in October.

SAFE said last month that China's cross-border capital flow has remained stable with no surges in foreign exchange purchases.