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Massive Chinese Capital Flows Out of China through Underground Banks

Chinese media reported that large amounts of Chinese capital are being transferred overseas through many means, the majority of which are underground banks. 

According to a rule of the People’s Bank of China, the maximum for any individual’s annual foreign exchange is limited to US$50,000. Such a limitation is simply too small to meet the quota of foreign investment and immigration needs, so how do they get the money out of China? 
According the a media report, underground banks are a major channel for transferring the money. In the southern city of Shenzhen, there are many hidden underground banks. An agent nicknamed Addie told the reporter that, although the Foreign Currency Administration Bureau can control large sums of money that flow in or out, they are apparently powerless if the amount is in the millions or even tens of millions of RMB. Addie explained, "As long as the customer tells us half an hour in advance the amount and type of currency to transfer, I will be able to help the customer to send the money out in accordance with the real-time exchange rates. We charge a fee of approximately 0.8-1.5 percent." 

Source: China Economic Weekly (republished by Xinhua), May 14, 2013