China busts underground bank in Guangzhou: China Daily

Chinese police have broken up a secret banking operation used to transfer assets abroad, the official China Daily reported on Tuesday.

The underground bank, hidden in a food market in the southern city of Guangzhou, is suspected of being involved in cross-border transactions worth more than $70 million in the past month alone, the paper said, citing a statement from Guangzhou's public security bureau.

China is cracking down on underground banks and other foreign exchange violations in a bid to "prevent and resolve risks from cross-border capital flows" and bolster the yuan, the country's forex regulator said in July.

Last year, Chinese police busted more than 380 underground banks, involving more than 900 billion yuan ($135.97 billion), and arrested more than 800 suspects, according to the Ministry of Public Security.

Guangdong province busted three large underground banks earlier this year involving cross-border transactions worth 3 billion yuan and resulting in the detention of 30 suspects, China Daily said.