The State Administration of Foreign Exchange (SAFE) will introduce currency provisioning rules, tighten management of domestic banks’ foreign debt quotas, increase regulation of Chinese special-purpose vehicles overseas and restrict equity investments by foreign companies in China, Bloomberg reported. The moves are in response to the quantitative easing measures introduced by the US Federal Reserve. Chinese officials have expressed concern that US easing could lead to a flood of speculative capital inflows into China, contributing to asset price increases. Significant capital inflows would also add to pressure for a strong Chinese currency. The new rules are intended to plug loopholes through which speculative capital can enter the country. However, speaking to state media, the deputy director of SAFE Deng Xianhong said that China did not actually face large-scale inflows of hot money.