Hot money inflows targeted

Warnings to be issued to companies if capital flows fail to match trade

China's top foreign exchange watchdog has vowed to tighten supervision of cross-border capital flows through international trade in a major effort to block speculative money inflows which have helped push the yuan to record highs in recent weeks.

The State Administration of Foreign Exchange said on Sunday it would increase scrutiny on exporters who channel money into the country disguised as trade payments.