HSBC enforces new restriction to Chinese citizens in the U.S.
Homebuyers who buy luxury homes will be monitored
Chinese nationals living in the U.S. will have a tough time getting a mortgage with one of the world’s largest banking and financial services organizations, HSBC.
According to Reuters authors Elizabeth Dilts and Julie Gordon, an HSBC spokesman in New York said the new policy went into effect last week, roughly a month after China suspended the Standard Chartered and the DBS Group Holdings from conducting some foreign exchange business and as Chinese authorities try to limit the amount of money leaving the country.
China's stock market slump, slowing economic growth and weak real estate prices have encouraged Chinese individuals and companies to try to shift money offshore for higher returns, a headache for Beijing as the capital outflows undermine efforts to prop up the yuan and domestic investment.
Realtors of luxury property in cities like New York, Los Angeles, and Vancouver, said more than 80 percent of wealthy Chinese buyers have ties to China.
HSBC declined to clarify which clients would be affected by the change beyond describing the policy as impacting some Chinese nationals.
Luxury homes news website Mansion Global, which first reported the HSBC policy change, said it would affect Chinese nationals holding temporary visitor 'B' visas if the majority of their income and assets are maintained in China.
Per the Reuters report, in 2015, the National Association of Realtors reported that Chinese nationals purchased about $28.6 billion in properties, a significant rise from 2014.
Reuters also reports that China's State Administration of Foreign Exchange said late last year it would soon launch a system to monitor foreign exchange businesses at banks and put people who tried to buy more foreign currency than is allowed on a watch list.
So Chinese nationals, if you are purchasing more than $50,000 in foreign currency, just know that you China will be watching you.
(image above courtesy of Hatchapong Palurtchaivong / Shutterstock.com)