After RMB reached a record high last week,Chinese top foreign exchange regulator stated China will increase scrutiny on importers and exporters who channel in money disguised as trade bills.

The State Administration of Foreign Exchange (SAFE) will hand down a risk warning notice 10 days after it finds any company's goods and capital flows do not match or that is channelling big amounts of money into China. Such companies will then be placed on the SAFE's B list, which is for companies that are more closely monitored, for three consecutive months and will only be moved back on the A list if all the relevant indicators return to the normal range, the regulator said in the statement published late Sunday.

The measures aimed at strengthening management of capital inflows, came after the RMB hit a record high on May 2 following a steady rise since April. Chinese exporters and importers often bring capital into or out of the country disguised under their trade accounts, and the SAFE has launched regular campaigns against the practice. Chinese export data in recent months have pointed to a gradual revival in external demand, but some analysts suspect local exporters may have overstated their business to sneak funds into the country and avoid capital restrictions.

The government is scheduled to announce April trade data today. Exports in March grew 10 percent from a year earlier and imports rose 14.1 percent.