China to allow mainlanders to transfer funds abroad
The Shenzhen branch of People’s Bank of China (PBoC) will allow individuals to transfer up RMB80,000 (US$12,700) per day across the border using selected banks, according to media reports. Those chosen to participate include the Shenzhen branches of Industrial & Commercial Bank of China, China Merchants Bank, Bank of China, Citic Bank and Hua Xia Bank. Chinese individuals were previously limited to taking US$50,000 out of the country each year, although it is unclear whether the new program will limit the number of transfers annually. Banking executives predict that at first the service will be primarily used by mainland Chinese who plan to travel to Hong Kong. The program has not been officially announced, and Shenzhen’s PBoC denied reports that it would begin permitting such transfers. Local agencies have previously announced outbound investment programs that were later scuttled by central authorities.