DJ ASX Seeks Assurances from 50 Chinese Companies Amid Capital Flow Concerns -- Barron's Blog
06/09/2017 12:28PM AEST
By Adam Routh
The Australian Stock Exchange has sent letters to 50 Chinese companies listed on the bourse asking them whether they are having any problems with capital flow in and out of China, The Sydney Morning Herald reported.
The move to send out the so-called 'please explain' notices was prompted after Ding Sheng Xin Finance (DXF.AU), a Chinese finance company listed on the ASX, was suspended from trading after it failed to submit its annual accounts on time.
Here's more from the Sydney Morning Herald:
The ASX is now asking the companies if they are having any trouble repatriating or converting Chinese renminbi (RMB) into foreign currencies and if they are aware of any changes to laws in China that may prohibit the repatriation or conversion of RMB to foreign cash.
The move comes after the Chinese government issued new guidelines to curb capital outflow spending.
The companies are across a range of industries from property, agriculture, mining and technology.
ASX spokesman Matthew Gibbs said it was a precautionary measure and most companies are responding that there is no issue.
