HSBC to cut lending to Chinese investors in US real estate

Beijing is fighting to slow the flow of cash out of China

New York /
Jan.January 31, 2016 03:00 PM

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.

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


Related Articles

arrow_forward_ios
JLL CEO Christian Ulbrich. (Getty)
JLL explores sale of China property management wing
JLL explores sale of China property management wing
China’s domestic housing sector was entering bubble territory last summer. (Getty)
Beijing may have slowed housing bubble — for now
Beijing may have slowed housing bubble — for now
(iStock)
China limits property loans to curb housing bubble
China limits property loans to curb housing bubble
Beike Zhaofang founder Zuo Hui (Getty; iStock)
Inside the world’s most valuable proptech company
Inside the world’s most valuable proptech company
WeWork CEO Sandeep Mathrani (Getty)
WeWork sells majority stake in China division
WeWork sells majority stake in China division
Newly uncovered trademarks show Trump’s Cuba real estate aspirations
Newly uncovered trademarks show Trump’s Cuba real estate aspirations
Newly uncovered trademarks show Trump’s Cuba real estate aspirations
Jackie Chan and the building (Credit: Andrew Chin/Getty Images, and NICOLAS ASFOURI/AFP via Getty Images)
Jackie Chan’s Beijing condos head to auction amid dispute between developers
Jackie Chan’s Beijing condos head to auction amid dispute between developers
In China, residential developers have used presales to power their construction, but that may not be enough in a Covid world. (Getty)
Presales powered resi development in China. Covid may change that
Presales powered resi development in China. Covid may change that
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...