The People’s Bank of China (PBOC) is the central bank of the People’s Republic of China. While not a conventional forex regulator, the PBOC plays a critical role in overseeing foreign exchange activities, capital flows, and currency stability in China. Forex trading is highly restricted for retail individuals and closely monitored through capital controls.
The People’s Bank of China (PBOC) enforces tight control over forex trading through capital regulations and a closed financial system. While the RMB is increasingly globalized, speculative forex trading within China remains restricted. For safe and legal activity, individuals must use authorized channels regulated by the PBOC and SAFE.
Leverage is not permitted for retail forex trading in China, as speculative trading is generally prohibited. Banks may offer FX hedging or spot transactions with no leverage to corporate clients.
- Managing China’s foreign exchange reserves and RMB exchange rate policy
- Supervising capital account flows and cross-border forex settlements
- Regulating forex transactions for financial institutions
- Coordinating with SAFE (State Administration of Foreign Exchange) on capital control enforcement
Forex brokers are not legally permitted to operate or advertise in mainland China unless approved by the PBOC and CSRC. Individuals should avoid unregulated offshore platforms claiming access.
- Foreign banks must obtain licenses and follow capital inflow/outflow rules
- All forex transactions must be reported to SAFE
- Banks offering FX services must comply with PBOC guidelines on currency settlement
- Cross-border RMB settlement is allowed only through approved clearing channels
Advantages
- Strong protection of RMB stability and capital security
- Well-structured cross-border regulatory framework
- Reduces exposure to volatile speculative capital inflows
Limitations
- Retail forex trading is banned
- No access to international brokers from mainland China
- Lack of transparent licensing framework for forex brokers
Country
China
Established
1948
Contact
+86 10 6619 4114
Complaint bodies
People’s Bank of China (PBOC) SAFE (State Administration of Foreign Exchange)
Hotline
+86 10 6619 4114
Last updated on: March 27, 2025
High Risk Warning : Please note that foreign exchange and other leveraged trading involves significant risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved, seeking independent advice if necessary.