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China regulator targets big spenders overseas, anything over $187 to be reported
Australian Financial Review Aug 7 2017 11:30 PM
Lisa Murray
China waking up to Bad banks here in Oz spruiking Chinese Mums and Dads living in Shanghai and placing them in danger with IO equity stealing Loans.
China's foreign exchange regulator is tightening its scrutiny of overseas bank withdrawals, with a new requirement for daily reports on any transactions worth more than 1000 yuan ($187).
The State Administration of Foreign Exchange issued a new ruling on Thursday requiring all banks to report their transactions above 1000 yuan within 24 hours, starting from August 21.
It is the latest measure from Beijing aimed at monitoring and controlling capital outflows after China was rocked by record levels of money leaving the country in 2016. Outflows have since moderated as China's government introduced new restrictions and strengthened its foreign exchange controls.
More recently, the government clamped down on outbound investment by big private companies, directing state-owned lenders to review their exposure to the most acquisitive firms. It has also increased scrutiny of acquisitions by state-owned companies, requiring executives to justify deal values and financing arrangements.
Now the authorities are taking a closer look at Chinese bank card transactions overseas.
Last year, these topped $US120 billion, according to the regulator. The new monitoring system was first announced in June and slated for introduction next month. However, it has been brought forward.
At this stage, SAFE is just monitoring these transactions and there are no further restrictions being placed on Chinese people using their bank cards overseas.
Chinese individuals are allowed to withdraw up to 10,000 yuan every day per UnionPay card. However, some people use multiple cards to get around this restriction. Last year, China capped the overall amount people are allowed to withdraw overseas every year at 100,000 yuan.
Tourism Australia Managing Director John O'Sullivan said it was too early to predict the outcome of the new reporting measures.
"We continue to see strong spending and visitation growth from Chinese visitors, particularly as they move to free and independent travel," he said in a statement.
"We are aware of these regulatory changes and will monitor any potential impact to this very important market."
