PRCs buying in HK

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  1. #1

    PRCs buying in HK

    Out of curiosity, how are are PRCs paying for property and other large purchases in HK? AFAIK, PRCs are limited to sending 50K USD per year out of China and they can only send the funds to an account in their own name.

    50K would make it impossible to buy a property or any other large item, yet I see PRCs in the newspapers all the time for buying up chunks of HK. How do they do it?


  2. #2

    Join Date
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    There are stories about people taking a suitcase / suitcases full of cash across the border . And there are many small and probably not really legal agencies that specialize in moving money from the PRC to HK and vice versa. But in any case, I think anybody in the PRC with enough money to buy property in HK has enough connections to bypass any limitations.


  3. #3

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    Quote Originally Posted by geo-seb:
    There are stories about people taking a suitcase / suitcases full of cash across the border . And there are many small and probably not really legal agencies that specialize in moving money from the PRC to HK and vice versa. But in any case, I think anybody in the PRC with enough money to buy property in HK has enough connections to bypass any limitations.
    - underground banks (remember the one they found in SZ with hundreds of million dollar balance sheet?)
    - undeground money transfers (ever bought something from China through a shop on lockhard street/WC?)
    - company transfers (i.e. they never hold RMB but simply ask their overseas customers to pay in USD which is kept outside China)
    - etc.

  4. #4

    I'm sure a lot of them keep their money in offshore accounts in foreign currency.


  5. #5

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    through illegal means (from a PRC perspective), but its all legal in HK!!

    see no evil, hear no evil.