Implode-o-Meter News - End of an Era as China's Love Affair With U.S. Real Estate Fades (AMIDST CAPITAL CRACKDOWN)

``The residential-property market here, especially for those priced between $2.5 million to $3 million, has been affected by China's measures to control capital flight," said the New York City-based Keller Williams Realty Landmark broker. "You need to cut the price, or it may take a real long time."... In terms of U.S. dollar value, the total share of Chinese buying of international sales dropped from 27.5% to 26.7%.
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The Chinese authorities have been compelled to increasingly tighten the noose on cross-border capital flows to defend the yuan and to slow down the burnout of the nation's foreign-exchange reserves since then. This includes increasing scrutiny of transfers overseas, to closely check whether individuals send money abroad by breaking up foreign-currency purchases into smaller transactions.

New measures were also introduced in December to crack down on illegal China UnionPay Co. card machines, which were suspected of being used to channel funds offshore via fake transactions. Meanwhile, illegal foreign-exchange transactions from underground banking were brought to regulators' attention, as China busted the nation's biggest underground bank, which handled $62 billion, according to a November report by the official People's Daily.

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End of an Era as China's Love Affair With U.S. Real Estate Fades (AMIDST CAPITAL CRACKDOWN)