China will fend off cross border capital flow risks - FX regulator

FILE PHOTO: A China yuan note is seen in this illustration photo May 31, 2017. REUTERS/Thomas White/Illustration/File Photo

BEIJING (Reuters) - China will promote capital account convertibility this year and pay attention to exchange rate risk management, the foreign exchange regulator said on Tuesday.

The State Administration of Foreign Exchange (SAFE) also said that enforcement standards in the foreign exchange market would be steady, consistent and predictable across cycles, while micro policies would be used to maintain foreign exchange market order.

China roiled domestic and international financial markets when it unexpectedly devalued its currency in August 2015, and some investors have also been caught off-guard by the implementation of more stringent cross-border capital flow rules since late 2016 as Beijing sought to stem capital flight.

The government will also fend off risks from cross-border capital flows while improving rules and regulations for management of foreign exchange, SAFE said on its website after concluding an annual work conference.

Reporting by Beijing Monitoring Desk and Elias Glenn; Editing by Jacqueline Wong and Kim Coghill