China has imposed restriction on purchases of insurance products in Hong Kong through Visa and MasterCard in a bid to control capital outflow from the country.
The State Administration of Foreign Exchange (SAFE) in a statement said that the purchase of insurance premiums overseas using Visa and MasterCards have been restricted to $5,000.
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Earlier, the regulator also put a cap on China UnionPay on purchase of insurance products in Hong Kong.
The move is aimed at support declining economic activity in China following the decline of Chinese Yuan in comparison to US Dollar.
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