Chinese banks cause alarm as capital flight measures intensify • Hacker News Board

Re: Chinese banks cause alarm as capital flight measures intensify

#31

Post by diceduckmonk » Sun, Mar 05, 2023, 1:09 PM UTC

AnimalMuppet wrote: post #24

adaml_623 wrote: post #7

I wonder what the billionaires do to get their money out? Do they pay people to travel with jewellery that gets sold for foreign currency once it's outside China? Do they overpay for imported goods and get the difference paid into a Swiss bank account? It's always interesting to me how really wealthy people pay for loopholes

In other places in the past, it was often done by bribing an official to ignore a wire transfer. Today in China? I don't know.

You don't need an official to authorize personal expenditures on an Amex Centurion black card. This is why staff at luxury clothing stores in Venice speak Chinese.

Re: Chinese banks cause alarm as capital flight measures intensify

#32

Post by elorant » Sun, Mar 05, 2023, 1:10 PM UTC

adaml_623 wrote: post #7

I wonder what the billionaires do to get their money out? Do they pay people to travel with jewellery that gets sold for foreign currency once it's outside China? Do they overpay for imported goods and get the difference paid into a Swiss bank account? It's always interesting to me how really wealthy people pay for loopholes

In Cyprus during capital controls banks allowed high value individuals to withdraw money.

Re: Chinese banks cause alarm as capital flight measures intensify

#33

Post by ikekkdcjkfke » Sun, Mar 05, 2023, 1:14 PM UTC

ReflectedImage wrote: post #22

adaml_623 wrote: post #10

Earlier quoted context omitted.

Do you think it's feasible to mine bitcoin to 'export' wealth from China? Or is there a way to buy bitcoin with Renmimbi?

China mines 50% of all bitcoins

I wonder how many tonns of coal they burned

Re: Chinese banks cause alarm as capital flight measures intensify

#34

Post by andy_ppp » Sun, Mar 05, 2023, 1:15 PM UTC

Are the increasingly tight capital controls a precursor to a war with Taiwan or because the CCP expects some other shock to occur? Is their economy expected to crash for some other reason or is this simply dictatorships love centralised control over everything especially capital?

Re: Chinese banks cause alarm as capital flight measures intensify

#35

Post by refurb » Sun, Mar 05, 2023, 1:16 PM UTC

notch898a wrote: post #4

refurb wrote: post #3

Meanwhile, China’s ruling party is intent on attracting inbound foreign capital. Somehow i think that may be a challenge. There may be money to be made in China, but if you never know if you can get it out thats going to put a damper on things.

Seems like fairly easily dealt with by foreign big capital kind of money. They can just buy some commodity with their chinese cash, export it as a trade good, then import it in the country of choice and sell it and deposit it in their account. Sure you may lose 20% of profits in the process but that's probably ok if you're getting access to an untapped market.

A even better method is to start a business in China and get permission to send money overseas to buy “supplies”.

I was talking to guy in California who got an order for $1M in chips from a Chinese company. He had done tons of business in China and even had a factory there. Sent the invoice ahead of time (no product shipped) and the guy in China went silent.

His theory was that they used the invoice to get approval to exchange to USD and send it to the US. They probably edited the invoice to change the bank account the payment was made to.

That worked years ago, but nothing stops the Chinese government from clamping down on it.

Re: Chinese banks cause alarm as capital flight measures intensify

#36

Post by ChatGTP » Sun, Mar 05, 2023, 1:17 PM UTC

Logans_Run wrote: post #6

refurb wrote: post #3

Meanwhile, China’s ruling party is intent on attracting inbound foreign capital. Somehow i think that may be a challenge. There may be money to be made in China, but if you never know if you can get it out thats going to put a damper on things.

I'm not so sure about that. China has brought a lot of US debt https://www.ey.com/en_cn/china-overseas-investment-network/o...

They bought US debt because they are confident the US will pay it off, it’s a ROI?

Not to attract capital…

Re: Chinese banks cause alarm as capital flight measures intensify

#37

Post by foota » Sun, Mar 05, 2023, 1:18 PM UTC

andy_ppp wrote: post #34

Are the increasingly tight capital controls a precursor to a war with Taiwan or because the CCP expects some other shock to occur? Is their economy expected to crash for some other reason or is this simply dictatorships love centralised control over everything especially capital?

Could be in preparation for supplying arms to Russia.

Re: Chinese banks cause alarm as capital flight measures intensify

#38

Post by sixQuarks » Sun, Mar 05, 2023, 1:18 PM UTC

refurb wrote: post #3

Meanwhile, China’s ruling party is intent on attracting inbound foreign capital. Somehow i think that may be a challenge. There may be money to be made in China, but if you never know if you can get it out thats going to put a damper on things.

Not only that, look what they did to the Chinese stocks, not to mention their idiotic covid zero lockdowns. No investor can trust the government to not fuck up everything.

Re: Chinese banks cause alarm as capital flight measures intensify

#39

Post by wunderland » Sun, Mar 05, 2023, 1:20 PM UTC

Capital flight will decrease (in the medium term, like by the end of the decade) as US Dollar dominance diminishes. Oil trades between China-Russia-India are now denominated in Rupee-Rubles or Renminbi-Rubles starting only this past year, and so the groundwork is already laid.

Re: Chinese banks cause alarm as capital flight measures intensify

#40

Post by ChemSpider » Sun, Mar 05, 2023, 1:28 PM UTC

foota wrote: post #37

andy_ppp wrote: post #34

Are the increasingly tight capital controls a precursor to a war with Taiwan or because the CCP expects some other shock to occur? Is their economy expected to crash for some other reason or is this simply dictatorships love centralised control over everything especially capital?

Could be in preparation for supplying arms to Russia.

That possibility makes me really nervous. A few weeks ago I was pretty sure that Beijing would not be that stupid, and simply stick with sending tons of dual-use goods, to keep up the plausible deniability.

But Chinese rockets hitting Ukrainian kids in Kyiv/Europe? That would trigger dramatic sanctions. I don't think that is priced into the current world stock market.