China's capital control not directed at property purchases, says ambassador

SIM BAK HENG

KUANTAN: China did not exercise any capital control with regards to the purchase of property by its citizens in Malaysia said China’s ambassador to Malaysia Dr Huang Huikang.

He said China did not have to resort to capital control as it has enough reserve.

“We have enough reserve. In fact, our reserve is as high as USD 1,000 billion, and ranks number one in the world.

“All measures taken are aimed at strengthening our financial control and curbing money laundering,” he told reporters after visiting the Malaysia-China Kuantan Industrial Park here today.

In recent months, China has imposed a series of measures to limit capital outflows, including tighter approvals for foreign acquisitions by both Chinese companies and individuals.

Concerns were raised following a recent news report that Chinese property developer Country Garden Holdings Co Ltd has closed all its showrooms in China promoting the Forest City project in Johor amid Beijing’s intensified crackdown on capital outflows.

Huang said China wants to ensure a balance inflow and outflow of its capital through the measures.

“The measures will also help us to ensure the ‘One Road One Belt’ policy will progress smoothly,” he said.