China May Adopt Tobin Tax on Short-Term Capital Flows

``China's central bank has drafted rules for a tax on foreign-exchange transactions that would help curb currency speculation, people with knowledge of the matter have said. UBS Group AG has said a so-called Tobin tax would be a step back for China's credibility on currency management, while Citi Private Bank said the proposal was "short-sighted" and would drive away foreign investors.''