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China's foreign exchange regulator will strengthen penalties for illegal foreign exchange activities, to curb hot money inflows.
The State Administration of Foreign Exchange says some banks have loosened approval requirements for their forex transactions. The administration will increase the scope and pace of its investigations into banks' forex activity and promote healthy, stable development of cross-border finance.
After a two-year examination of banks' forex regulations, the administration found unusually fast growth in some banks' forex loans.