Record Capital Outflow to Canada

shri · 26-03-2021, 10:15 AM

Spotted on RTHK:

As China imposed a sweeping national security law in Hong Kong last year after massive protests, residents of the city moved tens of billions of dollars across the globe to Canada, where thousands are hoping to forge a new future.

Capital flows out of Hong Kong banks reaching Canada rose to their highest levels on record last year, with about C$43.6 billion (US$34.8 billion) in electronic funds transfers (EFT) recorded by Fintrac, Canada's anti-money laundering agency, which receives reports on transfers above C$10,000.

The previously unreported outflows, the highest since 2012 when the earliest Fintrac records are available, are the first evidence of a significant flight of capital overseas from the Asian financial hub following the security turmoil.

https://news.rthk.hk/rthk/en/compone...8-20210326.htm

Aramis · 26-03-2021, 10:23 AM

Money goes out in one direction and comes in the other direction solidifying Hong Kong's assimilation into China

Despite the cash leaving Hong Kong, it continues to receive inflows on a net basis, with total deposits growing by 5.4% in 2020 to HK$14.5 trillion ($1.9 trillion), according to the Hong Kong Monetary Authority.

https://www.reuters.com/article/us-h...KBN2BH3KR?il=0

ramelec · 26-03-2021, 10:41 AM

Hong Kong people moving money out of Hong Kong, whereas China people moving money into Hong Kong

Aramis · 26-03-2021, 10:47 AM

And along with the money, we'll likely see more HK people moving out and more mainlanders coming in...

GentleGeorge · 26-03-2021, 11:11 AM

Originally Posted by Aramis:

And along with the money, we'll likely see more HK people moving out and more mainlanders coming in...

What does this do to house prices?

You can get a nice place in Shenzhen, or a tiny box flat in HK, but in HK your asset is outside of capital control blanket...

Edwardstorm · 26-03-2021, 04:15 PM

Originally Posted by GentleGeorge:

but in HK your asset is outside of capital control blanket...

For now.... which is probably also a reason why many folks moved their money out of HK. We still had money in HK but moved a good chunk out in the last month.

pin · 26-03-2021, 04:39 PM

'wonder what will happen when the PRC decides to crack down on all the shady money being parked in HK from the Mainland?

Probably won't because most of the shady money is from the CCP.