Cash-Rich Mainland Chinese Investing Abroad

Cash-rich mainland Chinese--eager to put their money to work--are investing outside of China, posing a challenge for policymakers, reports The Wall Street Journal.

 

The newspaper says that fears of overly rapid growth in Macau's gambling revenue have prompted mainland Chinese officials to tighten visa policies for mainland visitors traveling to the territory's casinos. In Hong Kong, locals there fear that Chinese money is pushing local property prices beyond their reach.

 

Some of that money is flowing further afield, says the Journal. Yukihiko Ito, managing director of property broker Asterisk Realty Tokyo, told the newspaper that he has seen a sharp rise in mainland Chinese buyers in the Tokyo and Yokohama condominium market over the past two years.

 

According to the Journal, China's capital-control regime regulates the amount of money flowing in and out of mainland Chinese borders, including into the Chinese special administrative regions of Hong Kong and Macau. However, there are countless ways to get around these measures, experts tell the Journal.

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