China to raise cash flow limits
BEIJING - China is set to raise the limits on the amount of cash brought into, and taken out of, the country from next month.
The move could prove a boon to Hong Kong's ailing stock market and economy, which is eyeing big-spending mainland tourists, analysts said.
The new policy, which takes effect from Sept 1, would raise the cash limit for Chinese residents travelling abroad to US$5,000 (S$8,800) from US$2,000, the State Administration of Foreign Exchange said in a statement on its website. Foreigners would be allowed to take upto US$5,000 in cash when they leave the country. Those who registered the cash they possessed when they entered the country could not leave with more than that, it said.
The maximum amount for foreign travellers leaving the country would remain unchanged at US$5,000, it said.
For Chinese entering the country, the ceiling on foreign cash they could bring would be raised to US$5,000 from US$2,000, it said. Those bringing in between US$5,000 and US$10,000 must obtain approval.
The step was 'aiming at regulating activities by individuals taking foreign cash into and out of the country and cracking down on illegal activities such as money laundering and capital flight', it said.
The government has relaxed foreign-exchange curbs, including allowing some firms to retain more forex earnings in order to help relieve pressure on the yuan, which has come under growing overseas pressure for a revaluation. -- Reuters
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