Support us China's government wants its people to keep their money at home. Photo: Facebook Screengrab TOKYO – China’s latest fix for its ailing economy: build a better birdcage. The metaphor runs deep in Chinese culture, where enclosures for pet birds have long captured the tension between freedom and control — the belief that markets, like captive creatures, need defined limits or they descend into chaos. But Xi Jinping’s attempt to cage Chinese citizens’ money movements abroad probably won’t fly as intended. In recent weeks, Beijing has moved to seal off the channels through which its 1.4 billion citizens send capital overseas. On May 22, the China Securities Regulatory Commission cracked down on unlicensed brokers funneling investor money into foreign markets. Regulators are now pressing Hong Kong and Singapore brokerages to wind down their cross-border securities, futures, and fund businesses. The CSRC is working on a two-year timeline and, officially, the target is “illicit” flows. But the shift in mood alone is likely to have an unintentional chilling effect on Asia’s largest economy.
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