Enter multiple symbols separated by commas

China Hits Banks over ‘Hot Money’: FT

Ten international banks, including HSBC and Standard Chartered, have been punished by China’s foreign exchange regulator for breaching strict capital controls, the FT reported.

The banks had been helping to funnel huge amounts of foreign exchange into the country’s soaring stock and property markets.

The report said other institutions included Citibank, Bank of East Asia and branches of China’s “big five” state-owned commercial banks – China Construction Bank, Bank of China, Industrial and Commercial Bank of China, Agricultural Bank of China and Bank of Communications.

The State Administration of Foreign Exchange on Tuesday announced 29 banks – 19 of them domestic – had received unspecified punishment for “assisting speculative foreign capital to enter the country disguised as trade or investment”, the article added.

The administration's deputy director, Deng Xianhong said in a statement that the money these banks helped to channel had a "serious effect on healthy economic development and government efforts to control growth”.

The FT said none of the Chinese banks reprimanded would comment but Standard Chartered and HSBC acknowledged they had been inspected by SAFE.

Contact U.S. News


    Get the best of CNBC in your inbox

    Please choose a subscription

    Please enter a valid email address
    To learn more about how we use your information,
    please read our Privacy Policy.

Don't Miss

U.S. Video

  • Hero miles for military members: Real estate magnate's plea

    Chairman of the Fisher House Foundation, Ken Fisher, discusses the Hero Miles program with CNBC's Dina Gusovsky. During Military Appreciation Month, Fisher is asking every traveler to donate 1,000 of their miles to replenish the Hero Miles programs that is in danger of running out.

  • Cramer shuts down this market's haters

    "Mad Money" host Jim Cramer on why this market can't stop, won't stop.

  • From the battlefield to the boardroom

    Your Grateful Nation is dedicated to helping Special Forces veterans enter the corporate world and Knot Standard provides complimentary suits to vets. Mad Money's Jim Cramer spoke with Rob Clapper, Your Grateful executive director; John Ballay, Knot Standard co-founder and president; Tej Gill, retired U.S. Navy Seal; and Darren McB, active duty U.S. Navy Seal.