Chinese forex regulator will continue crackdown on underground banks

BEIJING - China's foreign exchange regulator said on Wednesday it will continue to crack down on underground banks to improve foreign exchange management and safeguard economic and financial security.

The State Administration of Foreign Exchange (SAFE) said it will maintain intense pressure to clamp down on illegal banks, among other unlawful activities, according to a statement posted on its website.

The statement was published after a SAFE meeting with the Ministry of Public Security, the third this year, vowing to work closely together to disrupt illegal foreign exchange activities.

The total sum of overseas investments has grown rapidly, with some using capital with ambiguous origins, the regulator said, noting that concerns about capital outflow have also been on the rise.

The government will continue to support capable and qualified businesses to carry out outbound investment activities in accordance with regulations, an official statement said last week.

The principle in investment management policies has not changed, it said.

Outbound investment has grown quickly in recent years and played an important role in deepening mutually beneficial cooperation between China and other countries.