The State Administration of Foreign Exchange (SAFE) sent a notice to banks and cross-border payment companies on August 22, urging them to strengthen oversight on leveraged forex trading, as well as on transactions related to individual purchases of overseas properties and stocks. In the notice, which was seen by Reuters, SAFE published a blacklist of 43 entities suspected of conducting illegal forex trading. The watchdog identified two companies - Airwallet (Hong Kong) Ltd and Easy Transfer - as being suspected of conducting illegal forex activities.
Airwallet could not be reached immediately for comment. Easy Transfer, which facilitates tuition payment for students studying overseas, didn't respond to emailed questions. In a statement to Reuters, SAFE said that illegal leveraged forex trading has seriously disturbed financial order. Since 2018, regulators have launched a crackdown on such activities, and has sent blacklists of illegal entities to banks and payment institutions, it said.
SAFE added that it will keep its forex policy consistent, and will continue to meet normal demand for foreign exchange from individuals and companies. The yuan has depreciated 3% against the US dollar so far this year. Pressure sharply intensified in early August after China let the currency slide through a key support level amid mounting US trade pressure, though it recently pulled off its 2019 lows.