BEIJING - China's foreign exchange regulator said Monday it would give prior attention to "abnormal" cross-border capital flow and prepare plans to combat potential risks.

China would also work to further improve the regulatory framework of both domestic and foreign currencies, the State Administration of Foreign Exchange (SAFE) said in a statement on its website.

Government authorities should make use of economic, legal and necessary administrative measures to reduce speculation and arbitrage trading, and at the same time "severely crack down" on illegal cross-border capital flow, the SAFE added.

Chinese forex regulators investigated more than 15,000 cases of foreign exchange irregularities from 2007 to 2011.

China recorded $3.1 billion of "hot money," or speculative funds outflow last year, compared with a hot money inflow totaling $35.5 billion in 2010, according to the SAFE.