Banks will be required to report all yuan-denominated cash transactions exceeding 50,000 yuan (around 7,100 US dollars) to the People's Bank of China (PBOC), down from the current level of 200,000 yuan, said a document released by the central bank on Friday.Interesting to note that before the new rules were in place, Chinese had a higher reporting threshold than American banks, which report even domestic transactions above $10,000.
Cross-border transfers more than 200,000 yuan by individuals will also be subject to the report process.
In terms of foreign currencies, the report threshold remains at the equivalent of 10,000 US dollars for both cash transactions and overseas transfers.
Alternative currencies now have a persistent premium.
Bitcoin in China: $1021
Bitcoin in world: $993
A 2.8 percent premium. Similar to the 2.6 percent premium on gold at the Shanghai Gold Exchange.
SCMP: China’s newly-tightened forex rules unlikely to stem overseas property binge, say analysts
New rules that prohibit mainland Chinese residents from converting yuan into foreign currencies for overseas property purchases are unlikely to derail the rising interest in purchasing overseas homes -- nor have a meaningful impact on foreign home transactions, according to experts.
While the curbs may deter some buyers, market watchers say investors will continue to find ways around the controls amid rising demand for offshore real estate.