China to revise cross-border investment rules for local PE funds

China plans to revamp cross-border investment rules for domestic private-equity funds this year, the foreign-exchange regulator said in a statement Saturday.

The State Administration of Foreign Exchange intends to expand pilot schemes to facilitate foreign-exchange settlements in several free trade zones, while preventing financial risks from cross-border capital flows, according to the statement.

The regulator said it aims to maintain forex reserves at above $3 trillion. China’s foreign-currency holdings climbed to $3.112 trillion in July from $3.102 trillion a month earlier. Authorities will crack down on illegal private banking and cross-border gambling to maintain market stability, according to the statement.