29/11/ · China forex regulator tightens controls to stem capital outflows - sources. SHANGHAI/HONG KONG (Reuters) - China is stepping up measures to stem capital outflows after its yuan currency skidded to Estimated Reading Time: 4 mins 20/01/ · China tightens controls on moving money overseas. Chinese banks are delaying and even blocking some foreign exchange transactions under Estimated Reading Time: 30 secs 18/04/ · According to a SAFE newsletter issued on 7 March , the forex reserve of China in February has returned back to USD 3 trillion, and “the Estimated Reading Time: 7 mins
China Tightens Forex Capital Controls - Mish Talk - Global Economic Trend Analysis
Chinese banks are delaying and even blocking some foreign exchange transactions under a decision by the central government to limit capital leaving the country, a move that could hurt demand for foreign assets including Australian property.
At meetings on Monday and Tuesday afternoon senior bank executives were told by the government to toughen up their capital controls. While they haven't introduced new rules, one executive told The Australian Financial Reviewbanks were using china tightens control on forex safe foreigner measures to slow the amount of money going overseas.
The crackdown has seen more stringent checks for both companies and individuals. China has stepped up its defence of the yuan, buying the currency in Hong Kong and sparking a record surge in the city's money-market rates to deter bearish speculators.
While official figures on Tuesday showed China's GDP grew 6. China's managed currency has fallen 3 per cent since August, which should help its economy. There are fears of a larger devaluation and moves by the central bank to prop up the currency. A former adviser to China's central bank, Yu Yongding, said the decisoin to tighten existing capital controls was "useful but not sufficient" because the yuan is overvalued.
An Australian real estate agent based in Shanghai, Scott Kirchner, said the tougher capital controls could "cause problems for Australian developers as clients may not be able to get their money out of China".
American lawyer Dan Harris said on his blog on January 14 that his firm's China office had received more "money problem" calls in china tightens control on forex safe foreigner week than it had received for the whole of the past year. China tightens control on forex safe foreigner, one option for those interested in buying overseas property was to use the currency quotas of friends and family.
Alternatively, underground channels in Macau or Hong Kong were available to get money out of the country. Both these methods are now under increased scrutiny as the government tries to stabilise the yuan, china tightens control on forex safe foreigner.
For example, he said "if you want to transfer money to a private bank account opened with an American passport, all of the transfers need to provide an American tax identification number. He said that was aimed at curbing the "massive amount of currency flowing out of the country for speculation purposes amid concern the [yuan] is devaluing faster than people would like to see".
He said it was not expected to affect legitimate outbound investment and Australia would continue to be a big beneficiary of Chinese investment in agriculture, services-related sectors and tourism. China has been gradually tightening capital controls since the middle of last year, as outflows accelerated due to the slowing economy and increased talk of devaluation. In September, the government introduced restrictions on cash withdrawals from foreign ATMs.
Beijing has also cracked down on the "pooling" of foreign exchange quotas, a practice where family and friends use each others allocations to put money into a single overseas bank account.
UBS China economist Wang Tao said the "top concern" of markets is capital outflows getting "out of control, leading to a sudden tightening of domestic liquidity and sharp depreciation of the currency, resulting in market turbulence in China and elsewhere in emerging markets".
Skip to navigation Skip to content Skip to footer Help using this website - Accessibility statement. More Today's Paper Markets Data Events Lists. World Asia Print article. Angus Grigg and Lisa Murray. Updated Jan 21, — 9. Save Log in or Subscribe to save article. Bloomberg "We are now refusing all foreign currency transfers where the documents are not fully complete … previously the requirements were not so strict," said a bank executive in Shanghai who asked not to be named.
Outflows a threat. Angus Grigg is an investigative reporter based in Sydney. He has worked as a foreign correpondent in China and Indonesia, and has won two Walkley Awards. Connect with Angus on Twitter. Email Angus at agrigg afr.
Lisa Murray edits the Perspective and Review sections and writes on news specialising in Asia, the world and trade. She was previously based in Shanghai as China correspondent, china tightens control on forex safe foreigner. Connect with Lisa on Twitter. Email Lisa at lmurray afr. License article. Fetching latest articles.
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, time: 37:53The Australian Financial Review
28/11/ · China is stepping up measures to stem capital outflows after the yuan currency skidded to more than eight-year lows, taking aim at outbound investment, sources said on Tuesday 29/11/ · China forex regulator tightens controls to stem capital outflows - sources. SHANGHAI/HONG KONG (Reuters) - China is stepping up measures to stem capital outflows after its yuan currency skidded to Estimated Reading Time: 4 mins China tightens control on forex safe foreigner. Jan 05, · Hong Kong’s insurance sector is likely to come under increased pressure after Beijing tightened its scrutiny of individual foreign currency purchases at the start of the new year in a bid to further restrict capital outflows, analysts say
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