China Limiting Amount of Money Multinational Companies Can Move Out of the Country

In a move to fight capital outflows that are weakening the yuan, China’s foreign-exchange regulator has instructed banks to sharply limit how much multinational companies move out of the country and into their other operations around the world, reports the Wall Street Journal.

Before the cap, large companies could move $50 million worth of yuan or dollars in or out of China with minimal documentation. Now, the cap is the equivalent of $5 million.

China also intends to tighten scrutiny of overseas acquisitions by domestic companies, reports the Journal.

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