Chinese Firms Are Using Hong Kong to Hide Capital Flows: Chart

Unusual fluctuations in trade between Hong Kong and China are highlighting the city’s role as a conduit for illicit capital flows. China’s imports from the former British colony jumped 89 percent in February, raising concern companies are manipulating trade invoices to evade the nation’s strict capital controls as the yuan weakens. Exports to the city were inflated when the currency was strengthening, the Chinese government said in 2013.