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Rpt canada seizing more suspect money from chinese travelers

´╗┐(Repeating for additional clients with no changes to text.)By Ethan LouTORONTO Aug 8 Canada has been seizing increasing amounts of undeclared or suspected criminal money from mainland Chinese travelers, border officials said, with the amount confiscated last year more than double that taken in 2013. Capital flight in various forms has been a growing concern for China, with factors ranging from the depreciation of the yuan to an anti-corruption campaign launched by Chinese President Xi Jinping at the end of 2012. Reuters obtained limited seizure figures from the Canada Border Services Agency under the country's access-to-information laws. The agency provided more comprehensive numbers in July. The data showed seizures from Chinese citizens dipped by about one-quarter from 2012 to 2013, when they were at C$5.5 million ($4.22 million). Seizures jumped to nearly C$11.5 million last year.

At least C$6.5 million has been seized so far in 2016. By year end, that figure could eclipse 2015 levels, as the data consistently showed more seizures in the second half. According to the agency, suspected criminal proceeds and undeclared money over C$10,000 could be seized. The former is forfeit, while the latter can be returned on payment of a C$250-to-C$5,000 fine. The agency's numbers did not separate the two and did not indicate the exact origins of the seized money.

Canadian border service spokeswoman Esme Bailey said it is not unusual for the amounts seized to vary from year to year, and the agency does not base enforcement on nationality. A spokesman for the Chinese embassy in Canada, Yang Yundong, said his government always urges citizens to "learn in detail and comply with" Canadian law. He said China's own law enforcement does not tolerate illegally carrying money abroad. China said last year more than one-quarter of its 100 most-wanted corruption suspects had fled to Canada.

The Royal Canadian Mounted Police declined to comment on the number of Chinese corruption suspects in the country. Canada's Department of Justice said it does not track those numbers. In the United States, penalties for not declaring currency over $10,000 can include a fine of up to $500,000 and up to 10 years in prison. The value of U.S. seizures from Chinese citizens arriving by air, while roughly on par with Canada, consistently accounts for under 10 percent of the total, the U.S. border agency said. Such seizures from Canada's three largest airports alone make up more than one-quarter, according to the country's data.

Slower october loans will not derail china recovery

´╗┐China's banks lent more slowly than markets expected in October, signaling that private sector credit may be relatively tight despite total financing in the economy being on track to hit a record high in 2012. New yuan loans, outstanding credit, M2 money supply and total social financing all came in below consensus forecasts in the benchmark Reuters poll, but analysts said aggregate levels of credit were likely adequate to support a rebound in economic growth signaled by a raft of other indicators last week."October new yuan lending is weaker than expected. But the overall social financing is on track to exceed 14 trillion yuan this year - a record high. That will provide enough support for the economy," Zhou Hao, an economist at ANZ Bank in Shanghai, told Reuters. China's banks extended 505.2 billion yuan ($81.5 billion) of new local currency loans in October, central bank data showed on Monday, but missing market expectations of 600 billion yuan. Total social financing, a broad measure of liquidity in the economy, stood at 1.29 trillion yuan, down from 1.65 trillion yuan in September. The moderating credit data followed a flurry of factory output, investment and trade statistics last week that signaled the world's second-largest economy was striding further along the road of recovery, and shows that Beijing cannot yet relax efforts to boost growth from its weakest in three years. Nie Wen, an analyst with Hwabao Trust in Shanghai, said a year-on-year decline of 2.3 percentage points in the rate of growth of M1 in October signaled that liquidity in the real economy was tight."That is not good for a recovery in private-sector investment," Nie said.

But while the data suggested Beijing may need to do more to ensure policy is loose enough to spur growth in the private sector, economists said the uptick in total social financing was the more significant measure, indicating more widespread use of credit beyond bank lending in channels that were likely to be tapped to fund government-mandated infrastructure investments."Take trust loans for example. Since August we have seen quick expansion of trust loans," said Dongming Xie, an economist at OCBC Bank in Singapore."This may due to rising investment activities from local government level. But this was not captured in new yuan loan (data)."MONETARY POLICY CENTREPIECE Bank lending is a centerpiece of China's monetary policy, given that it is controlled by Beijing in order to manage inflation and economic growth.

The October new loan data - released on the People's Bank of China website this site - implies total lending is on course to exceed 8.5 trillion yuan in 2012. This is expansionary versus the 7.5 trillion of new loans extended in 2011 and above the 8 trillion yuan that sources told Reuters back in February was the target for 2012. China's cabinet said last month it will provide a "reasonable" amount of credit in the fourth quarter to spur activity and speed construction of key projects. After easing monetary policy earlier in the year, credit supply has increased while inflation has stayed low, allowing Beijing to hold off on additional pro-growth measures.

Some analysts think that may change later this month after the ruling Communist Party's congress selects a new leadership in a once-in-a-decade handover of power, enabling a new top team to deliver a growth spurt at the start of its time in charge of the world's second-biggest economy. China's central bank chief, Zhou Xiaochuan, cautioned last week that external risks still loomed large and the People's Bank of China had policy room to respond if necessary. The PBOC cut interest rates in June and July and has lowered required reserve ratios