By Wei Gu and Chuin-Wei Yap
Chinese officials are trying anew to slow a money exodus from the
country, clamping down on individuals seeking to flee the yuan and
making life tougher for companies that need to trade the currency for
dollars to do business.
China’s foreign-exchange regulator in recent months has deployed a
new system to monitor individual purchases of foreign funds and has
asked banks to reduce foreign-currency transactions.
It has summoned
bankers to its offices to give guidance and has grilled them when
foreign-exchange activity spikes, according to executives at Chinese and
Banks, in turn, have increased scrutiny of foreign-currency
transactions by businesses ranging from Chinese entrepreneurs investing
abroad to companies paying overseas bills.
A European chemicals manufacturer recently faced delays in Shanghai
in obtaining U.S. dollars, threatening its deadline for an overseas
The Bank of Tianjin is having trouble getting funds
from mainland investors for a planned Hong Kong public stock offering.
water-treatment company struggled to withdraw $2,000 for an engineer to
travel to the U.S.
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