As the authorities continue to try and stem an exodus of cash flowing out of the country, China’s police authority has said it broke-up almost four hundred «underground banks» last year.
China's foreign exchange reserves have shrunk by $1 trillion from a peak in June 2014 and the country is facing huge pressure from capital outflows as investors attempt to move their money overseas, sometimes illegally.
The «South China Morning Post» reports that The Ministry of Public Security (MPS) seized some $131 billion from the illegal banking operations last year.
The Ministry of Public Security has taken a prominent role in cracking down on financial irregularities and crimes as the Chinese government takes a more serious view of the threat they pose.
Prime Real Estate
However e-commerce and other online payment channels have made the fight harder for the authorities.
Last year the Chinese government embarked on a policy shift designed to stem capital outflows by placing curbs on mainland China’s outbound investment.
Commercial and prime residential real estate in New York, Europe and Australia has been a magnet for attracting substantial sums from China's growing seam of ultra high net worth individuals.
