Latest news with #StateAdministrationofForeignExchange
Arabian Post
3 days ago
- Business
- Arabian Post
Shanghai to Host Global Operations Centre for Digital Yuan
China's central bank governor, Pan Gongsheng, announced at the Lujiazui Forum on 18 June that a dedicated international operations centre for the e‑CNY will be established in Shanghai. The move signals Beijing's renewed push to extend the digital yuan's reach in global transactions and shift the balance of currency power. Pan described stablecoins and central bank digital currencies as 'reshaping cross‑border payments', emphasising that global financial infrastructure needs stronger regulatory alignment. He argued that traditional cross‑border payment systems are inefficient, vulnerable to politicisation, and susceptible to unilateral sanctions. The Shanghai centre will serve as a nexus for international e‑CNY operations, aiming to streamline digital yuan transactions abroad and enhance integration with global financial markets. This facility complements efforts to boost the Cross‑Border Interbank Payment System, which has recently onboarded major international banks, including Standard Bank and First Abu Dhabi Bank. ADVERTISEMENT Governor Pan framed this initiative as part of a broader strategy to foster a 'multi‑polar international monetary system'. By promoting competition among key currencies, China seeks to reduce reliance on the US dollar while enhancing financial system resilience. Pan also called for more coordinated global regulation of stablecoins and CBDCs. As digital monetary instruments gain traction, he said global oversight must be harmonised to manage risks effectively. Beyond infrastructure, Chinese regulators affirmed their commitment to exchange‑rate stability and further opening domestic financial markets. Zhu Hexin of the State Administration of Foreign Exchange noted improved tools to counter external pressures, while Li Yunze of the National Financial Regulatory Administration highlighted efforts to foster a transparent and predictable environment for international investors. Analysts say China's timeline aligns with expanding e‑CNY pilots and integration of public transport systems in several cities, such as Chengdu, Beijing, Suzhou, and Shanghai. The Shanghai centre appears aimed at extending these domestic innovations into globally scaled applications. Internationally, China has taken part in multilateral CBDC initiatives such as Project mBridge, alongside the BIS, Hong Kong, Thailand, UAE, and Saudi Arabia. This collaboration signals a shift toward creating interoperable digital payment bridges and presents an alternative to dollar‑centred systems. Observers suggest that China aims to balance integration with established structures such as SWIFT while developing parallel alternatives like CIPS. That strategy could help counteract geopolitical vulnerabilities inherent in dominant payment networks. Critics caution that for the digital yuan to gain traction, China must address capital‑account restrictions, strengthen market transparency, and win international trust in its legal and regulatory systems. Yet this latest initiative dovetails with China's longer‑term ambition to internationalise the renminbi. The launch of the Shanghai operations centre — with its promise to enable faster, more efficient overseas e‑CNY transactions — may mark a significant milestone in Beijing's drive toward a more diversified global monetary order.
Business Recorder
3 days ago
- Business
- Business Recorder
China's forex regulator vows to fend off external shocks
SHANGHAI: China's foreign exchange regulator on Wednesday vowed to keep the yuan exchange rate basically stable and fend off external shocks and risks. Speaking at the Lujiazui Forum in Shanghai, Zhu Hexin, head of the State Administration of Foreign Exchange, said China's ability to counter forex market volatility has improved. China's yuan slips as Middle East tensions rise China will set up a forex management policy evaluation mechanism, and improve the rules for qualified foreign investors, he said.
Saba Yemen
08-06-2025
- Business
- Saba Yemen
China records slight increase in foreign exchange reserves by end of May 2025
Beijing - Saba: China's State Administration of Foreign Exchange announced on Saturday evening that the country's foreign exchange reserves reached $3.2853 trillion by the end of May, an increase of $3.6 billion, or 0.11%, compared to the end of April. The Xinhua News Agency reported that the authority attributed this increase to the combined effects of currency exchange rate fluctuations and asset price changes during May. The authority emphasized that the continued recovery of the Chinese economy and the improvement in the quality of economic development enhance the stability of the country's foreign exchange reserves. Whatsapp Telegram Email Print
Reuters
07-06-2025
- Business
- Reuters
China's forex reserves up $3.6 billion in May, less than expected
BEIJING, June 7 (Reuters) - China's foreign exchange reserves rose by a less-than-expected $3.6 billion in May, official data showed on Saturday, as the dollar continued to weaken against other major currencies. The country's foreign exchange reserves, the world's largest, rose 0.11% to $3.285 trillion last month, below the Reuters forecast of $3.292 trillion. They were $3.282 trillion in April. The increase in reserves was due to "the combined effects of factors such as exchange rate conversion and asset price changes," China's State Administration of Foreign Exchange said in a statement. The yuan weakened 1.05% against the dollar in May, while the dollar slid 0.23% against a basket of other major currencies .
Time Business News
10-05-2025
- Business
- Time Business News
China Escalates Crackdown on Overseas Money Transfers Exceeding $50,000 as Capital Flight Surges
Beijing / Hong Kong / Zurich — The Chinese government has intensified its enforcement campaign against unauthorized overseas fund transfers, focusing sharply on individuals and companies attempting to exceed the legal limit of USD 50,000 per year per person. This crackdown reflects Beijing's growing concern over rising capital flight, a weakening yuan, and systemic risks to China's financial stability as wealth continues to leak out of the country through underground channels, crypto assets, and trade misinvoicing schemes. Under the latest directives from the State Administration of Foreign Exchange (SAFE) and the People's Bank of China (PBOC), banks across the mainland have begun freezing accounts, blacklisting senders, and launching retroactive audits of foreign exchange activity dating back five years. Chinese nationals transferring funds abroad for real estate purchases, investment migration, luxury goods, or unverified tuition payments are now at the center of regulatory scrutiny. 'Anti-Capital Flight' Measures Intensify Amid Yuan Devaluation In April 2025, the yuan hit a 17-year low against the U.S. dollar, prompting more Chinese citizens to seek ways to protect their wealth. In response, regulators enacted a multi-agency initiative involving SAFE, the Ministry of Public Security, and the National Supervisory Commission to suppress what they call 'disguised foreign exchange behaviour.' Beijing's new approach includes: Enhanced real-time transaction monitoring of cross-border fund movements. of cross-border fund movements. Mandatory verification of overseas tuition and healthcare payments. Bans on family-based 'ant transfers' — where multiple individuals each send $50,000 abroad on behalf of one client. — where multiple individuals each send $50,000 abroad on behalf of one client. Digital surveillance of VPN and cryptocurrency usage related to fund conversions. 'Capital flight has become a national security concern,' stated a PBOC official in a recent press conference. 'China must safeguard its economic sovereignty.' High-Profile Cases and Account Freezes Authorities have detained at least 47 individuals since January 2025 on suspicion of violating foreign exchange laws. Most were accused of using shell companies, fabricated invoices, or international money changers to bypass the $50,000 threshold. Case Example: A Shanghai-based couple attempted to wire USD 3.2 million to Canada over 14 months using 38 separate accounts belonging to employees and relatives. SAFE flagged the transfers, and their assets were frozen in March. Authorities charged them with 'foreign exchange evasion and falsification of contracts.' Domestic banks such as ICBC, Bank of China, and China Merchants Bank have received new directives to report all transfer activity over USD 10,000 for enhanced review, even within the legal yearly quota. Global Ripple Effects: Real Estate, Education, and Offshore Banking Disrupted In Vancouver, London, and Sydney, real estate brokers report delays and cancellations of Chinese property transactions. At international schools in the U.S. and Australia, tuition payments from Chinese parents are being flagged or rejected by intermediary banks due to enhanced compliance red flags. 'Clients are calling in a panic,' said Elena Wu, an international financial advisor based in Hong Kong. 'One family had their wire transfer for their son's U.K. education reversed without explanation. The mainland bank held the funds.' Offshore private banks and citizenship-by-investment firms also report delays and increased compliance burdens when onboarding mainland Chinese clients. The $50,000 Cap: A Legacy Rule Under Pressure China's $50,000 cap, introduced as part of its foreign exchange control framework, was designed to prevent volatility in the yuan and avoid depletion of foreign reserves. However, the rule is now being weaponized with new urgency. 'Until recently, the rule was enforced passively, with loopholes left open,' explained Giovanni D'Amato, Managing Director of Maus Coex Capital. 'Now we're seeing enforcement with retroactive penalties, asset seizures, and criminal charges.' Despite the campaign, Maus Coex estimates that over USD 125 billion was transferred out of China in 2024, both legally and illegally—a sharp increase over the previous year. Crypto, Trade Invoicing, and Dual Citizenship in Beijing's Crosshairs In its crackdown, the Chinese government has also ramped up its surveillance of: Cryptocurrency exchanges and digital wallets convert yuan into stablecoins and Bitcoin. and digital wallets convert yuan into stablecoins and Bitcoin. Trade misinvoicing schemes are used by exporters to conceal foreign income and route profits offshore. are used by exporters to conceal foreign income and route profits offshore. Dual passport holders, particularly those using a second nationalities to circumvent KYC rules at foreign banks. Chinese nationals holding a foreign passport but residing in China risk being treated solely as Chinese citizens, effectively voiding their ability to claim foreign consular protection or open foreign bank accounts under a second name. Foreign Banks Under Pressure to Comply Banks in Singapore, Switzerland, the UAE, and the U.S. are under increasing pressure to implement enhanced due diligence protocols for inbound wire transfers from Chinese clients. Many now require written evidence of the source of funds, proof of regulatory compliance from China, and enhanced identity checks. 'We've seen banks delay or reject transfers even as low as $20,000,' noted Julia Cheung, Asia Strategy Director at Maus Coex Capital. 'It's a chilling effect, and many families are now reconsidering their offshore plans.' A Legal Pathway: Maus Coex Offers Structured, Compliant Alternatives Maus Coex Capital offers legal and compliant alternatives to those impacted by the $50,000 cap. These include: Foreign Trusts and Investment Platforms : Establishing overseas trusts in Singapore or the Cayman Islands that can accept international investments within legal parameters. : Establishing overseas trusts in Singapore or the Cayman Islands that can accept international investments within legal parameters. Education and Medical Transfer Compliance Services : We ensure that documentation for tuition and medical care is filed with SAFE and banks in the proper formats. : We ensure that documentation for tuition and medical care is filed with SAFE and banks in the proper formats. Corporate Expansion Strategies : Setting up legal overseas subsidiaries with real business activity that qualify for foreign direct investment permissions. : Setting up legal overseas subsidiaries with real business activity that qualify for foreign direct investment permissions. Second Citizenship Planning: Maus Coex helps design identity diversification plans for better banking access abroad for families eligible for investment migration. 'Panic is not a plan,' emphasized D'Amato. 'We're showing our clients how to comply with Chinese law, protect their wealth, and stay ahead of the enforcement curve.' Contact Maus Coex Capital for Confidential Consultations Maus Coex Capital operates globally with advisory teams in Zurich, Hong Kong, Singapore, Dubai, and London. We offer discreet financial planning and asset transfer strategies for high-net-worth individuals, business owners, and families navigating China's evolving economic landscape. 📞 Phone: +41 22 508 7271📧 Email: info@ 🌐 Website: 🔗 LinkedIn: 📷 Instagram: 🐦 Twitter/X: 📘 Facebook:
