The State Administration of Foreign Exchange will Improve Monitoring over Cross-Border Capital Flow

It is reported that the State Administration of Foreign Exchange is going to issue a new regulation that requires all the foreign exchange business shall be done after opening a foreign exchange bank account. At present, this regulation is under consideration and is likely to be published.

Actually, it is showed in the China International Balance of Payment Report of the first half of 2008 published recently that the next step is to publish regulations according to Foreign Exchange Management Regulation, improve the laws and regulations related to foreign exchange, supplement the management, and build reasonable regulation framework; unite the administration of foreign exchange bank accounts of foreign organizations, and put foreign exchange bank account of foreign organizations and RMB transaction into cross-border balance administration, etc.