File photo shows a worker counts Chinese currency Renminbi banknotes at a bank in Tancheng County of Linyi City, East China's Shandong Province. Photo: Xinhua

The People's Bank of China (PBC), China's central bank, and the State Administration for Market Regulation, on Friday issued a circular further clarifying rules on buying and selling renminbi, providing that renminbi withdrawn from circulation under a PBC announcement may be traded from the effective date of withdrawal.

The move is aimed at combating illegal buying and selling of renminbi, upholding the credibility of renminbi, protecting the legitimate rights and interests of consumers, and promoting the sound development of currency-cultural activities, according to the government agencies.

Effective from September 1, the rules stressed that no organization or individual may buy or sell renminbi, except in the following circumstances. First, the renminbi that has been officially withdrawn from circulation by announcement of the PBC may be bought and sold from the date the withdrawal takes effect. Second, commemorative coins can be bought and sold. Third, other circumstances specified by the PBC, according to a document posted on the PBC website.

The trading of commemorative coins and renminbi withdrawn from circulation shall comply with the relevant laws and regulations on market supervision and administration and renminbi administration, and shall follow the principles of honesty, good faith, voluntariness, and fairness, according to the document.

Sales information must be true and accurate; no false publicity may be conducted; no exaggeration of returns, no guaranteed commitments regarding future returns, no express or implied assurance of risk-free returns or principal preservation, and the like may be made; and no person may engage in money laundering, illegally raise funds, or conduct other illegal financial activities through the buying and selling of renminbi, nor provide facilitation for such activities.

Any illegal buying or selling of renminbi still in circulation shall be punished by government agencies. Where illegal buying or selling of renminbi involves fraud or swindling, the competent departments shall, depending on the seriousness of the circumstances, investigate and impose legal liability in accordance with the law, according to the document.