Daily Management Review

Chinese watchdogs are tightening the fight against capital outflow from the country


The China shares Regulatory Commission (CSRC) issued an order forbidding local brokerage companies and their overseas subsidiaries from opening new accounts for mainland Chinese clients to trade shares and other assets offshore.

Along with closing alternative channels for offshore trading, including as websites and mobile applications, it is also mandated to stop all pertinent marketing and promotional efforts directed towards Chinese investors on the mainland. 

According to reports, the injunction was issued on September 28.

In view of the faltering economic recovery and the declining value of the yuan, analysts surmise that the Chinese authorities are intensifying their efforts to prevent capital flight from the nation by pressuring investors to look for more advantageous trading environments. 

Bloomberg reports that the nation's capital outflow reached a record high of $49 billion in August alone.

source: bloomberg.com