Currently, the government allows each individual to buy up to US$50,000 a year in foreign currencies and bans large “irrational” outbound investments, such as purchases of hotels, real estate, sports clubs and entertainment concerns. Photo: AP

China cracking down on illegal underground forex trading in bid to control capital flight

  • Beijing cracking down on use of unregulated underground banks to buy or sell foreign currency to maintain stability of the exchange rate and its slowing economy
  • Prison term of up to five years and a fine for ‘severe’ offence, jail term of more than five years and fine or confiscation of property for an ‘extremely severe’ violation
Topic |   China economy

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Currently, the government allows each individual to buy up to US$50,000 a year in foreign currencies and bans large “irrational” outbound investments, such as purchases of hotels, real estate, sports clubs and entertainment concerns. Photo: AP
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