The South China Morning Post:
Starting Monday, all overseas payments under the capital account made through commercial banks in Shanghai that exceed US$5 million have to be submitted to Beijing for special clearance before proceeding, banking sources told the Post.
“My guess is it will be very difficult for them to get approval. The Chinese government is cracking down on capital outflow... particularly on companies that are buying assets offshore that are not in their core areas of expertise,” said Shaun Rein, managing director of China Market Research.
“Too many real estate and other firms are buying assets that they know nothing about and clearly this is viewed as a way to transfer yuan out and evade capital controls,” he added...
Analysts said the updated information about the deal was meant to ease concerns raised by US lawmakers in February when the planned sale was announced, about Chinese companies taking control of the US bourse and gaining access to confidential information.
More in the South China Morning Post.“The Chinese have been looking to buy into the Chicago bourse for quite a while now,” said Rein. “There is good cash flow and if the equity markets do better then there is a lot of money to be made. But a lot of lawmakers in the United States complain about a stock change being owned by the Chinese and worry over it being owned by companies or parties related to the Chinese government.”
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