Date
21 August 2017

China weighs tax to counter capital inflows, SAFE official says

China will continue to face pressure from foreign capital inflows this year and the authorities are considering a tax on spot currency conversions, among other measures, to discourage short-term capital inflows, Guan Tao {管濤}, a State Administration of Foreign Exchange senior official, said Friday. China’s financial system can cope with the fallout of US Federal Reserve tapering but global market volatility might trigger capital outflows, Guan said. The foreign exchange settlement surplus in 2013 soared 210 percent from the previous year to 1.68 trillion yuan (US$270.2 billion) while the domestic banks’ valet foreign settlement surplus was 1.28 trillion yuan, up 85 percent year on year, administration data showed.

– Contact HKEJ at [email protected]

MY/AC/SK

 

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