Latest news with #StateAdministrationofForeignExchange
Saba Yemen
6 hours ago
- 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
2 days ago
- 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:
Business Recorder
23-04-2025
- Business
- Business Recorder
Yuan holds ground on trade optimism, regulator vows stability
HONG KONG: China's yuan held steady against the US dollar on Wednesday, supported by regulatory pledges to maintain market stability and fresh optimism over US-China trade relations. Sentiment improved after US Treasury Secretary Scott Bessent suggested a possible de-escalation of the US-Sino trade war, while noting negotiations with Beijing have not yet started and would be a 'slog'. In addition, the State Administration of Foreign Exchange said on Tuesday that it would prevent excessive exchange rate fluctuations and guard against unusual cross-border money flows. Regulators will also strengthen oversight and enrich their policy toolkits while correcting any pro-cyclical market behaviour, it added, apparently referencing options to prevent volatile currency moves. The yuan was 0.09% higher at 7.2995 to the dollar by 0420 GMT, 65 pips firmer than the previous late session close. Its offshore counterpart traded at 7.3077 yuan per dollar , up less than 0.1% in Asian trade.
Bloomberg
23-04-2025
- Business
- Bloomberg
Yuan Cross-Border Use by Chinese Climbs to Record as Dollar Sags
Chinese investors and trading companies boosted their use of the yuan in international settlements to a record last month as the dollar's global allure dimmed and Sino-US trade tensions escalated. Individuals and entities based in China used the yuan in 54.3% of their cross-border activities in March, for a total of $724.9 billion, according to Bloomberg calculations based on data published by the State Administration of Foreign Exchange on Tuesday.
