DISCOVERING PROFITABLE FINANCIAL OPPORTUNITIES IN THE OUTFLOW OF CAPITAL FROM CHINA

Abstract

The aim of this study is to understand how the capital is being moved offshore, what are the capital controls in place and how can we help move the money offshore. The research question therefore is to find the most profitable method of moving money offshore from China which heavily takes into considerations the risks involved too. The study has come to an understanding of 5 different effective ways to move the money of Chinese clients offshore without the approval of the government. The five different ways can be categorized into three different categories that include Illegal, Grey and Legal. From the advantages and disadvantages in the conclusion and the research findings, we come to an understanding that illegal methods are far too risky in comparison to the return not only for the service provider but also for the client. The grey methods include some unethical aspects to it and also contain risks that include imprisonment due to fraud. The return through the method of friends and family are far too low and the negotiation room for low commission are far too great on both grey channels. It seems that the legal method of moving money is the best option as the risks involved are much lower than both illegal and grey methods at the same time profitability from these methods are much higher than that grey methods if not in comparison to illegal channels. In between the legal methods, pension funds seem to be the best way to move money.