A report, which was posted on the website of the State Administration of Foreign Exchange, signaled the start of a major drive against illegal cross-border flows. The notice, which was published on the Administration’s site, said:
"Although China’s current economic situation is improving . . . the negative impact of the global financial crisis still exists. The risk of frequent and fast changes in cross-border capital flows is still very high.
"The foundations for an economic recovery are not firm yet. It is still a tough job and a long-term task to prevent risks arising from cross-border capital flows."
Wall Street Journal Online reports that Fan Gang, an adviser to China’s central bank (shown here), said "China’s economic situation changes very quickly, including the condition of asset bubbles and hot money inflows. A certain flexibility in macroeconomic policy is an important factor in maintaining economic stability."