China attitude to ease their strict capital control
$UP Fintech(TIGR.US$
Hi All,
Came across this article from SCMP published in March 2021 about China attitude considering to ease their strict capital control in allowing investment aboard.
https://sg.news.yahoo.com/china-strict-capital-controls-may-061739623.html
A extract from the article:
‘The State Administration of Foreign Exchange, the nation’s foreign exchange regulator, said last month China was considering allowing personal investment in overseas stocks and insurance policies within an annual spending limit of US$50,000. Currently, mainland Chinese residents can convert up to US$50,000 per year on foreign currencies for travel, overseas study or work, but not for buying overseas property, securities or life insurance policies’
Futu and Tiger is currently one of the biggest fintech brokers in China that has oversea exposure. But currently “at regulatory risk”.
My thoughts is that China just wants to set the rule right and regulate them (play by their rule).. but not to chase them out of China or to crush them..
what do you think?
Hi All,
Came across this article from SCMP published in March 2021 about China attitude considering to ease their strict capital control in allowing investment aboard.
https://sg.news.yahoo.com/china-strict-capital-controls-may-061739623.html
A extract from the article:
‘The State Administration of Foreign Exchange, the nation’s foreign exchange regulator, said last month China was considering allowing personal investment in overseas stocks and insurance policies within an annual spending limit of US$50,000. Currently, mainland Chinese residents can convert up to US$50,000 per year on foreign currencies for travel, overseas study or work, but not for buying overseas property, securities or life insurance policies’
Futu and Tiger is currently one of the biggest fintech brokers in China that has oversea exposure. But currently “at regulatory risk”.
My thoughts is that China just wants to set the rule right and regulate them (play by their rule).. but not to chase them out of China or to crush them..
what do you think?
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芥蓝東 : Foreign exchange control, just withdraw from the Chinese market
Invest and learn : To go with your thoughts, if you are tiger and Futu, knowing this regulatory risks, why they don’t want to apply for a brokerage license in China in the first place to mitigate the regulatory risks?
There’s more to this than meets the eye.
Sir Bahamut : The argument is actually futu and tiger are not operating within Mainland China; its just that they are serving china wealthy customers via other offshore methods which may be subjected to China legal enforcement. Albeit like the VIE structure
Larry Edelweiss Invest and learn: Thing is - you have to understand that they don't allow anyone except for qualified institutional firms to offer offshore investment begin with - what's there to apply ? The loophole came from the reality that Chinese Nationals can open HK bank account, and therefore fund their Moomoo account using HKD.