OK, what does China gain from all these insane currency controls? What would they lose if they operated like any other modern country? I dont get it.

zillahh wrote:

root wrote:

zillahh wrote:Are these limits in and out of Mainland China also applicable to HK based bank accounts?

No. Just in Mainland. HK still FREE !!!

http://www.hsbc.com.hk/1/2/hk/investmen ... d_init#top

Thanks. But, my intentioned question was remittance from HK bank to Mainland bank/atm, and yearly withdrawal limits?

Ok, i got it. I SURE what ATM transactions do not affect yearly/daily limit of the person witch name on card. That are different sistems.

ratty wrote:OK, what does China gain from all these insane currency controls? What would they lose if they operated like any other modern country? I dont get it.

What's easy for understanding. Just imagine if 1 RMB = 1 DOLLAR. What happens ? Chinese QQ car will valued for $30k (30k rmb now). And american Buick Enclave will still cost $30k or 30k RMB..

Ok, you are a buyer with cash, what you will buy in same case ?

Who sold - that wins

I think its perfectly clear to many people why China has currency controls.

Let's face it: China Inc. is not being run as a charity. Obviously, the government expects some benefit from a policy that they work so hard to maintain.

And I should add that, as a potential exporter, I would benefit as well.

root wrote:

zillahh wrote:

root wrote:

zillahh wrote:Are these limits in and out of Mainland China also applicable to HK based bank accounts?

No. Just in Mainland. HK still FREE !!!

http://www.hsbc.com.hk/1/2/hk/investmen ... d_init#top

Thanks. But, my intentioned question was remittance from HK bank to Mainland bank/atm, and yearly withdrawal limits?

Ok, i got it. I SURE what ATM transactions do not affect yearly/daily limit of the person witch name on card. That are different sistems.

Thanks. I guess my next question is; what are the 'different systems' guidelines? How much remittance is permitted from oversea or HK, Macau, or other banking accounts transferred to Mainland ATM's yearly? 2,737,500/y RMB?

Root, I'm not messing with you, I really am curious.

No limits for ATM card applicable, except your bank daily limit.

paulinshanghai wrote:There is a lot of difference, as well as the risks.

Just use the bank.Either get a Chinese friend to exchange a lot, or you can exchange the equivalent of $500USD a day.

Just tried to exchange EUR 5k to RMBa couple weeks back and I was shocked that the bank told me I could only exchange about EUR 3k++ per day. EUR 5k isn't THAT much... geez. So the limit is the equivalent of EUR 3k++ not USD500 per day for foreigners (not sure about local Chinese)

If you're changing foreign currency to RMB, I recommend using a bank. Or better, if you are bringing $8000 from the US, simply open an account an Bank of America, and then withdraw it free of transaction charges at China Construction Bank's ATMs. There are some places you'll be able to use a foreign debit card (Carrefour, Ikea, restaurants at Xintiandi, etc), but there are also many places where you'll need a local card, or cash. With such a small amount of money, you're probably not going to use it all at once -- even if there is a point or two benefit to a money changer, the risk of getting counterfeit bills could kill any savings you might realize.

Money changers are not as useful since the implementation of ATMs and credit cards. However, if you have a stack of RMB, and you can't provide proof that you paid taxes on it -- well, then a money changer is very helpful. Look for them to be close to the banks, with a minimal profit -- but then also look at where your (foreign) currency is, relative to the RMB, make yourself a little spreadsheet so that you are clear on the difference a point or two will cost you. And don't go to People's Square, those guys count on you not knowing what you're doing, and not being willing to wait in line at the bank. Have a knowledgeable Chinese person refer you to a money changer and do the transaction over the counter at his bank. Not everyone knows one, so you may have to ask a few people.

mswp wrote:If you're changing foreign currency to RMB, I recommend using a bank. Or better, if you are bringing $8000 from the US, simply open an account an Bank of America, and then withdraw it free of transaction charges at China Construction Bank's ATMs.

By transaction charge, do you mean ATM charge? How much is your typical ATM charge in China? $2-$3?

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I don't think we can say "BLACK market" any more.

I don't know about other countries, but with a US based ATM card, you can get whacked $8-9 for a transaction -- that's why the BOA/China Construction relationship is useful. You might also want to check out Citibank's policies. They have a number of ATMs in Shanghai. It wouldn't necessarily be convenient, but you could get the job done in a few days.

Really, make a spreadsheet, figure out what the difference will cost you -- the exercise will help you understand how to move back and forth between the currencies, but really. you'll have much bigger things to worry about when you arrive.