China will boost authenticity and compliance checks on trade and investment this year, its forex regulator said on Wednesday, and increase checks and punishment on illegal forex activities. It also expects a surplus in the country’s current account and a deficit in capital and financial accounts for 2017, the State Administration of Foreign Exchange (SAFE) said in its annual report for 2016 published on its website.
Growth in China’s services trade deficit will gradually stabilise, and cross-border capital flows will become more balanced, the regulator said. Overseas investment yields will likely increase this year.
China will also push forward with its market-based yuan exchange rate reform and increase the yuan’s flexibility in 2017, the regulator said, adding it would optimise diversification of forex reserves to serve China’s strategic goals.