Game Over for the Wealthy: China Tightens Capital Controls

SCMP: China’s foreign investment ‘shopping spree’ over as Beijing moves to slash capital outflow
Tighter control of outbound investment is likely to put an end to a trophy asset shopping spree by well-connected companies such as Anbang Insurance and Dalian Wanda, with Beijing is ready to cut the supply of foreign exchange for such deals.

Shanghai’s municipal foreign exchange authority had told bank managers in the city that all overseas payments under the capital account bigger than US$5 million would have to be submitted to Beijing for special clearance before proceeding, the sources said.

...While the move did not necessarily mean all such deals would be vetoed, the regulatory procedures that would have to be navigated before completing them would take much longer, the sources said.
Capital outflows will increase if this is true, because anyone with legitimate reasons for moving money abroad has to know their window is closing. The next step, when the collapse begins, will be a total ban on outflows.

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