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“The tighter rules on outflow of capital are intended to slow down the amount and speed of outflow of capital and downplay the depreciation pressure on exchange rate of (the renminbi),” said Wang Yong, professor of Peking University’s School of International Studies, director of that school’s Centre for International Political Economy, and formerly a visiting professor at UBC.

Chen Bo, associate department chair of finance and economics at Shanghai University, said Beijing is walking a tight rope with the tighter foreign currency rules, since it is also trying to turn the renminbi into a major international currency.

“China’s government is reluctant to call them capital controls, as its ambition is still internationalizing renminbi and our financial market in the long run,” Chen said. The new rules, he said, “are just the remedies in the short run, when we face quick renminbi depreciation and financial turmoil. I think they will be removed once the exchange rate of renminbi is completely stabilized.”

Neither Chen nor Wang believes the real estate booms outside China played a part in the establishment of tighter rules.

“Investment in foreign property markets has been part of rapidly growing outbound investment from China, but it does not mean that this is one of main objectives leading to the tighter rules,” Wang said. “But it is sure that the new rules will slow down Chinese investment in foreign property markets.”

Canadian observers say the new rules would have no more than a minor effect in Vancouver, with tighter mortgage rules and the foreign buyers tax having a bigger impact.

“I think anyone who is serious about getting money out of China will continue to do so,” Stephens said. “This will curtail some individual investors, or at least give them pause for reflection. … There will be a few high-profile cases of wealthy individuals caught by the new regulations — not really enough to make much of a tangible difference, but enough to send a message to people to be careful.”

chchiang@postmedia.com