Standard Chartered limits outgoing financial investments from China

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Standard Chartered Bank (SCB) in downtown, brand name logo design and office complex in Shanghai.

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Standard Chartered has actually suspended brand-new memberships by its customers in China into overseas items through a quota-based channel because recently, the Asia- focused bank stated in a declaration to Reuters.

The London- headquartered bank mentioned “commercial reasons” as its description for the suspension of brand-new financial investments under the certified domestic institutional financier (QDII) program. It did not elaborate.

StanChart’s relocation comes in the middle of Beijing’s efforts to stem capital outflows as weaker yuan and a slowing economy have actually driven savers to move properties offshore.

Launched in 2006, QDII is among the couple of outgoing financial investment channels certified domestic and foreign organizations utilize to assist Chinese wealth and business customers purchase overseas funds, bonds and other structured items.

China’s yuan has actually dealt with restored devaluation pressure in 2024, weighed down by the dollar’s revival due to market bets the Federal Reserve might wait longer than formerly anticipated to start cutting rate of interest.

The yuan has actually lost about 1.4% versus the dollar up until now this year.

Since 2006, StanChart has actually been granted an overall QDII quota of $2.8 billion, the 3rd biggest amongst foreign banks just behind HSBC‘s $4.73 billion and Citigroup‘s $3.5 billion, according to the current information from China’s forex regulator.

It has actually not openly revealed just how much of the quotas have actually been made use of.