To kick off 2017, China’s State Administration of Foreign Exchange (SAFE) imposed a new round of restrictions on Chinese individuals and companies wanting to transfer money abroad.

While there have always been ways and means of circumventing the regulations in the past, the latest layer of controls on Chinese currency transactions and the use of banks to police the policies, may stem the flow from China in the short term as middle class Chinese investors find it all a bit too hard.

With the currency exchanges for the purpose of overseas property investment expressly disallowed by the Regulators, the challenge will be for Australian developers to come up with local funding solutions to offer potential investors.  Easier said than done in the current banking climate, but something will be needed to bridge the gap until the next round of workarounds appear or China relaxes the stronghold on its cash reserves.