(ECNS) -- China's foreign exchange regulator is denying that it has strengthened control of domestic institutions for direct outbound investment to curb capital outflows.
It is rumored that the move will limit the purchasing of foreign exchange in large amounts. But the State Administration of Foreign Exchange (SAFE) said no change has been made to the policy.
SAFE said it continues to regulate overseas direct investment by Chinese companies according to the provisions issued in 2009.
Banks should examine and verify authenticity and compliance when handling fund transfer requests by domestic institutions for outbound investment, and this has always been a requirement of the provisions, according to SAFE.
SAFE said previously it has not asked institutions to defer the launch of new products under the Qualified Domestic Institutional Investor (QDII) program.
This year SAFE is set to launch a new system to monitor foreign exchange businesses at banks to prevent people from evading official limits on currency buying.
