China bans new offshore brokerage accounts to prevent ‘bypassing’ of forex controls

Market Impact

New investments by existing mainland clients are also to be “strictly monitored” to prevent investors from bypassing China’s foreign exchange controls. The actions, which will restrict capital outflows, come as faltering growth for the world’s second-largest economy has spurred investment overseas, weighing on the yuan and prompting authorities to ramp up efforts to stabilise the currency.