China tells banks to scrutinise reasons for large capital outflows
The People’s Bank of China has issued guidance to several Chinese commercial banks to verify sources of capital and their purpose for usage overseas to ensure the practicality of outflows and their legal alignment. In particular, authorities are targeting “extra-large” foreign acquisitions valued at $10bn or more, property investments by state-owned firms over £1bn and overseas investments by Chinese companies in unrelated industries exceeding £1bn.

Net outbound yuan payments have totaled 1.8 trillion year in the year to date, while offshore yuan deposits declined by 255.7 billion yuan, according to latest figures. Photo: Reuters