Jane Chen / Shanghai Daily news

In an attempt to ward off the risks of overseas speculative capital, this year Shanghai will beef up supervision, analysis and administration  of trade crediting, individual foreign exchange trade, and overseas capital inflow in the property sector.
This information was revealed at a March 21 foreign exchange work meeting held by the Shanghai bureau of the State Administration of Foreign Exchange. According to the bureau, Shanghai's foreign exchange income and expense scales have experienced rapid growth but are still within the normal range.
The problem that needs close attention is that of fast capital inflow via indirect investment and that in the property market. In response, the foreign exchange authority will shift its strategy this year to tighten up the scrutiny of both the inflow and outflow of overseas capital.
While continuing to improve the administration of individual foreign exchange trade and foreign exchange trade for property purchases by non-local-residents, the authorities will toughen the control of corporate foreign loans.  As well, it will remain highly alert to the illegal financial practices of hot money inflow and money laundering, officials said.
Before the meeting, the country had been adopting a foreign exchange policy that was open to fund inflows and limited on outflows.