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0 pointscbsmith2y ago0 comments

> Out of curiosity, why? China's stock market is melting down in the midst of persistent deflation. A lot of people who thought they had liquidity may not anymore. Beijing could open the taps, but then that puts pressure on the currency.

The whole point of the money laundering operation is to get the money out of the country. China going to pot only accelerates it.

0 comments

JumpCrisscross2y ago

> China going to pot only accelerates it

You have to have money to launder it. Also, if the currency keeps getting hammered, Beijing will crack down on the exit channels.

alephnerd2y ago

Most Chinese don't invest in their stock market. The accredited investor qualification is much harder to get than in the US.

Most investment is in real estate, which has remained fairly stable in Tier 1 cities (which is where most of the post-2008 Chinese Canadians are from)

To get more than the $50k limit out, people would use a hawala type system where you'd use assets in China as collateral and get guaranteed cash from a broker abroad.

JumpCrisscross2y ago

> Most Chinese don't invest in their stock market

Most Chinese aren’t buying British Columbian property.

> accredited investor qualification is much harder to get than in the US

On a relative basis, right? In absolute terms, it’s still very low. Similar to the practical requirements for opening an American brokerage account.

> Most investment is in real estate, which has remained fairly stable in Tier 1 cities

Do you have data for this? My impression was sales are being discouraged.

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0 pointscbsmith2y ago0 comments

The whole point of the money laundering operation is to get the money out of the country. China going to pot only accelerates it.

0 comments

JumpCrisscross2y ago

> China going to pot only accelerates it

You have to have money to launder it. Also, if the currency keeps getting hammered, Beijing will crack down on the exit channels.

alephnerd2y ago

Most Chinese don't invest in their stock market. The accredited investor qualification is much harder to get than in the US.

Most investment is in real estate, which has remained fairly stable in Tier 1 cities (which is where most of the post-2008 Chinese Canadians are from)

To get more than the $50k limit out, people would use a hawala type system where you'd use assets in China as collateral and get guaranteed cash from a broker abroad.

JumpCrisscross2y ago

> Most Chinese don't invest in their stock market

Most Chinese aren’t buying British Columbian property.

> accredited investor qualification is much harder to get than in the US

On a relative basis, right? In absolute terms, it’s still very low. Similar to the practical requirements for opening an American brokerage account.

> Most investment is in real estate, which has remained fairly stable in Tier 1 cities

Do you have data for this? My impression was sales are being discouraged.

1 more reply

j / k navigate · click thread line to collapse