China close to full yuan convertibility on capital account — that means bigger flows of money: Implications for Vancouver real estate?

renminbiCityHallWatch reader HKHoward sent us this comment.

International Journalist Jonathan Manthorp pointed out on May 29, 2015 that billions of dollars are fleeing China for safe havens. Canada is one of the safest, with no restrictions on real estate purchases. Article here:
http://www.factsandopinions.com/galleries/opinion-columns/jonathan-manthorp-international-affairs/vancouver-not-mind-numbingly-boring-but-vacuously-vain/

A separate article is also worth reading: “China close to its goal of full yuan convertibility on Dollars, credit Desmog blog Canadaits capital account: Pan Gongsheng,deputy head of the central bank, says move to offer more flexibility for Chinese investment abroad is ‘not far away’ ” (South China Morning Post, Hong Kong, 21-June-2015).

In the article, the Vice Governor of the Central Bank of China, Pan Gongsheng, was quoted as saying the following: “We are not too far away from the yuan capital account full convertibility.”

China is close to its goal of allowing the yuan to be exchanged for foreign currency without any limits on the amount – a move that will grant greater flexibility to Chinese investment overseas, the deputy head of the central bank says.

The latest step in the opening of the capital account – which measures inflow and outflow of capital and covers investments such as stocks, bonds and properties – will be the launch of the new qualified domestic institutional investor programme, or QDII2.

“The QDII2 will remove the block on individuals investing overseas,” Pan told a wealth forum hosted by the local government in Qingdao , Shandong province yesterday.

http://www.scmp.com/business/banking-finance/article/1824483/china-close-its-goal-full-yuan-convertibility-its-capital

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HKHoward comments, “When there are no restrictions on the convertibility of the yuan wealthy Chinese investors will no longer be limited to legally converting just US$50,000 each year.

The need to find other means of moving funds will no longer be required and Canada, B.C. and Vancouver with no restrictions AT ALL on who can purchase real estate – especially compared to other jurisdictions where restrictions on non-resident purchases are being added to all the time – will become even more attractive for people looking to preserve capital by parking it in real estate.”

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