China to enhance foreign investments management, regulate forex inflow

2008-07-19 13:22:24 GMT       2008-07-19 21:22:24 (Beijing Time)       Xinhua English

BEIJING, July 19 (Xinhua) -- China will further strengthen management of foreign investment projects and check foreign exchange inflow in a bid to better control it, according to the country's top economic regulator.

The move will also safeguard the country's economic safety, protect ecological environment, optimize develop and reform mechanism, and prevent industrial monopolization, said the National Development and Reform Commission (NDRC) in a circular on Friday.

Projects that are not approved by the government, provide fake application materials, or use foreign exchanges improperly, will be punished.

Local governments will also investigate and supervise foreign enterprise-involved programs, including joint ventures, exclusively foreign-owned firms, bilateral cooperation projects, mergers and acquisition programs.

Meanwhile, regional economic regulators should look at the projects, monitor foreign exchange inflow channels, and enhance finance management of foreign enterprises.

Projects with severe environment contamination, high energy consuming, high resources consuming need stricter inspection and supervision.

China's cumulative foreign exchange reserve stood at 1.809 trillion U.S. dollars by the end of June, up 35.73 percent year on year, while foreign direct investment (FDI) rose 45.6 percent to 52.4 billion U.S. dollars in the first half from a year earlier.

BEIJING, June 27 (Xinhua) -- China's foreign exchange reserve increased 40.3 billion U.S. dollars in May, just over half the rise in April of 75 billion, to stand at 1.797 trillion dollars, the China Securities Journal reported on Friday.

In May, China registered a trade surplus of 20.21 billion dollars while the foreign direct investment (FDI) was 7.76 billion dollars. Full story

BEIJING, July 3 (Xinhua) -- Overseas tourists who come to China during the Olympics next month will reportedly be able to exchange no more than the equivalent of 50,000 U.S. dollars at Chinese banks.

Thursday's edition of the Shanghai Securities News quoted the State Administration of Foreign Exchange (SAFE) as saying that the limit will remain in effect until a month after the conclusion of the Special Olympic Games for the disabled (Paralympics) in September.

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