FINANCE

China’s FX Regulator Plans Full-Chain Management of Cross-Border Capital Flows

Published: Jul. 21, 2026 11:26 p.m. GMT+8

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Zhu Hexin, deputy governor of the People's Bank of China and administrator of the State Administration of Foreign Exchange, at the 2026 Lujiazui Forum in Shanghai on June 17, 2026. Photo: VCG

China’s foreign-exchange regulator plans to extend its oversight of cross-border capital flows to the full transaction chain as Beijing pushes ahead with capital-account opening.

At the 2026 Lujiazui Forum, Zhu Hexin, deputy governor of the People’s Bank of China and head of the State Administration of Foreign Exchange (SAFE), said capital-account liberalization must move beyond foreign-exchange conversion to cover underlying transactions, payment and settlement, risk hedging and exit arrangements.

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Explore the story in 30 seconds

SAFE plans to extend oversight to the entire cross-border flow chain to advance capital account opening.
A banking reform allowing high-quality firms to transact on instructions processed over $580B for 53,000 firms in H1 2026.
Regulation shifts toward post-transaction monitoring and AI to balance openness with risk management.

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What Happened When

In 1996：: China achieved full convertibility of the yuan under the current account.

In 2023：: SAFE launched a reform of banks’ foreign-exchange business.

In September 2025：: SAFE rolled out a policy package allowing the domestic reinvestment of foreign-exchange profits under FDI without prior registration.

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