It just got harder for Chinese citizens to buy U.S. real estate. HSBC has announced it will no longer provide mortgages “to some Chinese nationals” who buy real estate in the U.S. HSBC declined to clarify which clients would be affected.
The new policy went into effect last week, an HSBC spokesman in New York told Reuters.
The policy change comes as Beijing battles to slow the flow of cash out of China. Chinese buyers spent $28.6 billion on U.S. properties in 2015.
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Last month, China moved to limit foreign exchange businesses and suspended Standard Chartered and DBS Group Holdings Ltd. from conducting some business.
The HSBC policy change could also affect Chinese nationals holding temporary visitor ‘B’ visas if the majority of their income and assets are maintained in China, Mansion Global reported.
At the moment, Chinese citizens are limited to purchasing $50,000 in foreign currency a year.
“HSBC fully complies with all applicable regulations in the markets in which it operates and constantly reviews its policies to protect its customers and support the orderly and transparent operation of financial markets,” the London-based bank said in a statement. [Reuters] – Christopher Cameron