Since the beginning of 2018, the State Administration of Foreign Exchange (SAFE) has implemented the arrangements of the CPC Central Committee and the State Council on making breakthroughs in defending against and addressing financial risks. While deepening the reform and opening up of foreign exchange administration and supporting the development of the real economy, the SAFE has been dedicated to safeguarding the health and good order of the foreign exchange market. It has organized special inspections of key players and businesses such as banks, third-party payment institutions and entrepot trade, cracking down on behaviors violating the foreign exchange law and regulations. In the first half, it identified and dealt with 1,354 cases violating foreign exchange regulations, fined and confiscated RMB 345 million, up by 19.7% and 59.5% year on year respectively. To be specific, there were 455 cases on violating financial institutions, 340 on violating companies and 559 on violating individuals.

Next the SAFE will continue to deepen the foreign exchange administration reform and boost the liberalization of the financial market to serve the new landscape of comprehensive opening up in China. It will endeavor to ensure the stability, continuity and consistency of cross-cycle foreign exchange administrative law enforcement. It will be committed to cracking down on false transactions, frauds, illegal arbitrages and other behaviors involving the departure of financial capital from the real economy into the virtual economy, as well as underground banks and illegal foreign exchange trading platforms, and other behaviors violating the law and regulations, in a bid to ensure the health and good order of the foreign exchange market and safeguard the economic and financial security in China.