Shanghai Cracks Down on Illegal Capital Flight

(Beijing) – The Shanghai branch of China's foreign exchange regulator has tightened its oversight for conversion of Chinese yuan to foreign currencies, aiming to slow capital outflows that have pushed the yuan to multi-year lows over concerns of a major economic slowdown, sources close to the regulator said.

The Shanghai bureau of the State Administration of Foreign Exchange (SAFE) has told some local commercial banks to closely review applications when firms apply to convert yuan into foreign currencies for overseas investments, according to the sources.