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Wealthy Chinese Are Trying To Find Ways To Transfer Money Abroad

A sign for sale in front of a house in Vancouver, British Columbia, Canada. Interest in foreign real estate is growing among wealthy Chinese. © Reuters
A sign for sale in front of a house in Vancouver, British Columbia, Canada. Interest in foreign real estate is growing among wealthy Chinese. © Reuters

There are signs that wealthy Chinese are looking to bypass regulations to move money out of the country because of concerns over trade tensions undermining the value of the yuan with USD.

Interest in insurance and real estate products abroad is also increasing as the coronavirus pandemic spreads throughout the region.

About a hundred people watched an online seminar on investing in Ireland this month, listening to an executive from a company there continually touting Irish assets as practically immune to ghosts Sino-American observation. 

Finally, the CEO shows a house of 1.32 million euros ($ 1.5 million) with expected profits of nearly 3%.
The talk is the latest among web-based seminars held since May by Juwai, a Chinese broker specializing in migration, real estate and educational opportunities abroad. Real estate in Malaysia and Japan were also offered.

Places like Malta and Cyprus are growing in popularity, according to another broker.

China has strict rules about exchanging money, setting a limit of $ 50,000 a year for each person. For overseas investments, buyers often include the limits of different family members or bring cash when traveling abroad.

But travel bans due to the coronavirus pandemic have lost business activities. Investment bank Natixis said capital outflows from China reached only $1 billion in the first quarter.

When the border begins to reopen, the flow is likely to increase.
"The yuan weakened more than 10% in two years."
Said a foreign currency insurance broker in Hong Kong. 
"You need foreign currency to protect your assets."
The broker earns a commission by meeting mainland customers in Shenzhen and escorting them to an insurance sales office in Hong Kong. Demand began to increase around May, with many customers planning to buy policies there in the fall or later, the broker said.

Wealthy Chinese are increasingly worried that this gray outward remittance method will soon be cut off because the government has decided to apply a new national security law to Hong Kong.


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