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Underground capital flow to Hong Kong curbed
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Many banks in Shenzhen have recently set limits on the amount of money that can be withdrawn from their outlets.

 

The daily limit for individuals is 30,000 yuan?(US$4042) and 100,000 yuan (US$13,473) for companies.

 

The move is aimed at curbing capital flow to Hong Kong through underground channels.

 

Mainland residents usually give cash to underground banks and get corresponding amounts of HK dollars put into their HK accounts.

 

According to an official from the Shenzhen branch of the central bank, the withdrawal limit will not affect the daily life of local residents. Intensified regulations will curb abnormal cash withdrawals and also check illegal cash transactions in order to provide more secure, convenient and efficient banking services.

For more details, please read the full story in Chinese (http://www.cs.com.cn/xwzx/03/200711/t20071115_1244882.htm).

(China.org.cn November 15, 2007)

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