China reports breaking up gang that moved $3 billion abroad

Chinese police say they have broken up a gang that smuggled $3 billion out of the country amid efforts by Beijing to stem an outflow of capital from the economy.

The official Xinhua News Agency says seven people were detained. It said they were accused of moving money illegally using 148 bank accounts opened in 20 provinces with stolen identity cards.

Chinese authorities have steadily tightened foreign-exchange controls to stem an outflow of capital from the world's second-largest economy.

Xinhua said the group in Shaoguan made unspecified large profits by trading on the difference in exchange rates between Hong Kong dollars and the mainland's yuan.