Recently, there have been special policies targeting Hong Kong people in Mainland China. Personal accounts have been frozen under various pretenses such as “suspected illicit money.” The threshold for withdrawing money has also been “raised,” taking up to a few days. When you go to an ATM to draw money, you must wait for at least one hour and get approval from the security guards before you can enter the bank to do the transaction.
We can’t blame those who act like special forces in depositing their savings. These people know that their savings would lose purchasing power due to the depreciation of the RMB, but they have no other options. The current economic environment has made Chinese people uneasy and unsure of their future.
Real estate forms the backbone of China’s economy, contributing about 30 per cent of its gross domestic product, but experts said the country has to wean its reliance on the sector for growth given its shifting population trends.