Personal Financial Management FAQ's

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What should expats do about their banking whilst in China?

Whatever your financial circumstances, as an expat you would be advised to examine the possibility of opening an offshore bank account, in order to take advantage of the tax efficiency and enhanced confidentiality that this provides. No tax is payable on interest arising from money held in an offshore bank account, so even if you are just looking for somewhere to receive funds remitted from home, or have your salary paid into, this has to be a plus.

In China this is particularly important given the restrictions on taking hard Chinese currency out of the country. The controls are quite strict and troublesome and this can cause issues if you have all your salary and savings accumulating in a bank account within the PRC.

It is most convenient usually to set up a bank account within China for conducting day-to-day transactions easily and limiting currency exchanges and risks. You can also then set-up an offshore account (which can usually be denominated in many currencies) where you accumulate savings and conduct investment activities. This also provides greatest flexibility when it comes to leaving countries!