17 Oct 2016
The arrest in China of Australians working for billionaire James Packer’s Crown Resorts could be a further signal about the level of alarm among Chinese authorities about the flow of cash to foreign casinos.
China has a problem with money fleeing the country. In recent years, there have been huge outflows of capital – the dividends of two decades of stunning economic growth – seeking safe havens such as property investments in Australia and Canada.
For years, China’s currency was allowed to strengthen against international currencies. But in the second half of last year, China started allowing the yuan to weaken against a basket of global currencies. This adds an extra incentive for wealthy Chinese to find ways of getting their money out of the country.
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