Chinese families are sending money overseas, a sign of worry about the country’s economic and political future. But a cheaper currency is also helping exports.

Affluent Chinese have moved hundreds of billions of dollars out of the country this year, seizing on the end of Covid precautions that had almost completely sealed China’s borders for nearly three years.

They are using their savings to buy overseas apartments, stocks, and insurance policies. Able to fly again to Tokyo, London, and New York, Chinese travelers have bought apartments in Japan and poured money into accounts in the United States or Europe that pay higher interest than in China, where rates are low and falling.

The outbound shift of money in part indicates unease inside China about the sputtering recovery after the pandemic as well as deeper problems, like an alarming slowdown in real estate, the main storehouse of wealth for families. For some people, it is also a reaction to fears about the direction of the economy under China’s leader, Xi Jinping, who has cracked down on business and strengthened the government’s hand in many aspects of society.

In some cases, the Chinese are improvising to get around China’s strict government controls on transferring money overseas. They have bought gold bars small enough to be scattered unobtrusively through carry-on luggage, as well as large stacks of foreign currency.

Before the pandemic, he said, Chinese buyers typically bought Tokyo studio apartments for $330,000 or less to rent out. Now they are buying much larger units and obtaining investment visas to relocate their families.

All told an estimated $50 billion a month has been taken out of China this year, mainly by Chinese households and private-sector companies.

A broader move by families to send their savings elsewhere could be cause for alarm. Large-scale money outflows have set off financial crises in recent decades in Latin America, Southeast Asia, and even China itself, in late 2015 and early 2016.

So far, the Chinese government is indicating that it believes it has the situation under control. Money sluicing out of China has weakened the currency, the renminbi, against the dollar and other currencies. And that weakness of the renminbi has helped sustain China’s exports, which support tens of millions of Chinese jobs.

The flow of money out of China “is very manageable,” said Wang Dan, the chief economist for China in the Shanghai office of Hang Seng Bank.

Chinese policymakers are still relying on some of the limits on taking money out of the country that they imposed to stem the currency crisis eight years ago. Other restrictions imposed then, like scrutinizing exports and imports to catch disguised schemes for international money transfers, were allowed to lapse and have not been reimposed this year even as money outflows have resumed.

The renminbi fell in value earlier this year to its lowest level in 16 years. It hovered around 7.3 to the dollar for much of the past two months, before climbing somewhat in the last week.

And regulators have shut almost all gambling tours to Macau, a separately administered Chinese territory. These junkets allowed wealthy Chinese to buy casino chips with renminbi, gamble some of them on baccarat or roulette and then convert the rest into dollars.

Beijing has also banned most overseas investments in hotels, office towers and other assets of little geopolitical value. The architect of China’s foreign investment curbs, Pan Gongsheng, was promoted in July to become governor of the central bank, the People’s Bank of China.

But households and companies are still managing to send money overseas.

On a recent afternoon, Bank of China and China Merchants Bank branches in the mainland were selling gold bars for 7 percent more than their affiliated banks in adjacent Hong Kong. That price difference indicates that inside China, demand is high for gold, which can be readily moved out of the country.

Another trick that mainlanders are using to get money out of China is opening bank accounts in Hong Kong and then wiring money to buy insurance products that resemble bank certificates of deposit. According to the Hong Kong Insurance Authority, the premiums for new insurance policies sold to mainlanders visiting Hong Kong were 21.3 percent higher in the first half of this year than in the first half of 2019, after nearly disappearing during the pandemic.

At a Bank of China branch on Hong Kong’s Kowloon peninsula, mainlanders were waiting on a recent morning at 7:30 to open accounts, 90 minutes before the bank was set to open. The line was so long by 8 a.m. that anyone arriving later was lucky to reach the front of the line before the end of the workday, said Valerius Luo, a Hong Kong insurance agent.

Families are then typically putting $30,000 to $50,000 in U.S. currency into insurance products, several times more than before, as they search for safe places to park their savings, Mr. Luo said. “There are still people with powerful capital,” he said, “and they want an investment package that preserves value.“

Li You and Hikari Hida contributed research.

By Keith Bradsher and Joy Dong

Keith Bradsher reported from Shanghai and Beijing and Joy Dong from Hong Kong.

Joy Dong covers news in mainland China and Hong Kong. She is based in Hong Kong. @JoyDongHK More about Joy Dong

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