How China's capital & foreign exchange controls restrict natural persons' behaviour, & the legality of various funding channels between China and Hong Kong

Course Description

<p>Course Valid period: 60 days after success payment</p><p>More and more court cases dealing with proceeds transferred between HK and China, for example, Mainland Chinese visiting HK for insurance products may complain they cannot receive the premium they are entitled in China, sole proprietors may want to sue money exchange shops for causing their bank accounts in China frozen. All these legal matters involving capital flows between China and Hong Kong, lawyers have to form their view quickly whether the relevant capital flows are in compliance with the capital and foreign exchange controls of mainland China, and hence the legality of the capital view.</p><p>Since China&#039;s capital and foreign exchange controls cover different scopes, the control measures are originated from different laws, administrative notices, and guidelines. We deliberately structure the courses into six major topics, and in each topics, the legal source(s) will be pointed out one by one for your future reference:</p><p>·         China’s  capital and FX controls in a nutshell</p><p>·         Sole proprietors doing business in China, and their FX controls</p><p>·         Personal wealth into and out of China for maintenance (divorced couple), inheritance, school fees</p><p>·         Stock, securities and funds markets in China</p><p>·         Favorable treatments to HK residents, e.g., China Connect (滬深港通) and Wealth Management Connect</p><p>·         Funds transferal channels between China, Hong Kong and overseas, and respective legality</p><p>We try our best to explain in detail the situations that Hong Kong lawyers encounter most, including using money exchange shops and remittance platforms for remittance, purchasing insurance policies by bank cards, making high-value consumption by credit cards and etc. We will inspect the legality of these behaviors and the legal risks faced by involved parties.</p>

Course Outline

<p>OutlinesContent of this course:</p><ul><li><p>Background of China’s capital and FX control</p><ul><li><p>The economic reasons: international balance of payments, and the impossible trinity among capital mobility, exchange rate and monetary policy</p></li><li><p>How the capital and FX control operates in China in a nutshell?</p></li></ul></li></ul><ul><li><p>Individual’s current account items of business nature</p><ul><li><p>Controls on self-employed individuals, sole proprietors</p></li></ul></li></ul><ul><li><p>Individual’s current account items of non-business nature</p><ul><li><p>Maintenance (divorce), family support, inheritance, school fees into and out of China</p></li><li><p>Bringing cash into and out of China</p></li><li><p>Restrictions on depositing and withdrawing FX from bank accounts in China</p></li></ul></li></ul><ul><li><p>Individual’s capital account</p><ul><li><p>Overseas banks and funds houses investing China: Qualified foreign institutional investors (QFII)</p></li><li><p>China residents investing US securities: Qualified Domestic Institutional Investors (QDII)</p></li><li><p>Private funds, public funds in China</p></li><li><p>Mutual investment among residents in Hong Kong, Macau and the cities in Greater Bay Area: China Connect &amp; Wealth Management Connect</p></li></ul></li></ul><ul><li><p>Favors given to Hong Kong residents</p><ul><li><p>Bigger remittance limit</p></li><li><p>Favorable terms in purchasing flats in Greater Bay Area</p></li></ul></li></ul><ul><li><p>Funds transferal channels between China, HK and overseas and respective legality</p><ul><li><p>Using bank cards for unlimited consumption?</p></li><li><p>Using individuals’ annual facilitation quota to move funds out of China</p></li><li><p>Engaging money exchange shops in Hong Kong</p></li></ul></li></ul>