China plans to monitor non-resident yuan accounts: report

China's foreign exchange regulator has ordered banks to submit monthly data on non-resident domestic currency accounts in order to curb incoming speculative capital, state media said Thursday.

The new rules target eight types of accounts of non-residential individuals and organisations, including yuan-denominated accounts of Hong Kong and Macau individuals, the Shanghai Securities News reported.

Yuan accounts of foreign institutions that invest in the domestic securities market will also be brought under the reporting system, it said, without citing any source.

China's foreign exchange reserves, already the world's largest, rose to 1.76 trillion dollars at the end of April, according to earlier state media reports.

The rapid growth in reserves has triggered official concern of a fresh surge in speculative inflow gambling on a strengthening yuan and a widening spread between falling US interest rates and rising Chinese rates.

Such short-term speculative funds are considered highly destabilising to a nation's economy.

(Agencies)