Chinese Capital Controls Threaten Property Bubbles All Over The Globe As Buyers Lose Access To Cash

Friday, January 27, 2017
By Paul Martin

by Tyler Durden
ZeroHedge.com
Jan 27, 2017

For months/years we’ve covered the many real estate bubbles that have been inflating all over the world courtesy of Chinese billionaires looking to launder money offshore (here are just a couple of examples: Vancouver, Sydney and New York). But a new set of capital controls enacted in China on January 1st, and aimed specifically at curbing foreign real estate investments, may just be the needle that finally pops all those bubbles.

As Bloomberg pointed out earlier this month, the following new restrictions on foreign currency transaction were implemented earlier this year.

Customers must pledge money won’t be used for overseas purchases of property, securities, life insurance or investment-type insurance. While such rules aren’t new, citizens previously didn’t have to sign such a pledge
Customers must give a more detailed account of the planned use of funds, such as business travel, overseas study, family visits, medical treatment, merchandise trade or purchases of non-investment insurance policies, including the timing, by year and month
Violators of foreign-exchange rules will be be added to the currency regulator’s watch list, denied foreign-exchange quota for three years and subjected to anti-money-laundering investigations
Customers must confirm compliance with restrictions on money laundering, tax evasion and underground bank dealings
Customers must now confirm they aren’t lending or borrowing quotas to or from other citizens

The Rest…HERE

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