Heavy Fines for Forex Trading Violations Can’t Stop Capital Fleeing China

Heavy Fines for Forex Trading Violations Can’t Stop Capital Fleeing China
A bank teller counts stacks of US dollars and Chinese 100-yuan notes at a bank in Hefei, Anhui Province, China. Since the Chinese Communist Party cracked down on Chinese stocks, the amount of capital leaving China has accelerated. STR/AFP/Getty Images
Winnie Han
Updated:

In China, companies, banks, and individuals cannot freely move money into or out of the country unless they comply with strict foreign exchange (forex) rules.

The Chinese communist party (CCP) has been imposing “zero tolerance” controls to limit foreign exchange trading done in a private or surreptitious manner. But despite the CCP’s best efforts, the massive outflow of Chinese capital to other countries is continuing and the speed has recently accelerated.