that's gonna open up another can of worms... the offshore and the onshore are fairly close, otherwise people will just do anything possible to arb. but it's certainly necessary so that PBOC can manipulate while still maintain 'stability'... currently the real estate in the top 4 'tier 1' metros dubbed as BSGS already are valued higher than the entire US... if you use the PPP as proxy (the 2 countries are fairly close in PPP, although the US still has a big lead in GDP), then you could argue that the exchange rate should be more like 20, instead of 7. of course everybody cannot cash out at the current price and move the money outside, without causing a complete RE crash.... but the reality is all this printed money has created the liquidity trap nobody has ever seen before... it's literally 'trapped' because it can't get out... control is very tight right now for any kind of foreign exchange out flow.. so the game goes on... a very tricky acrobat by the PBOC to - maintain the currency stability so it does not trigger a panic capital outflow; and - keep printing enough money to stimulate for the GDP figure and paper over the ever growing bad debts.
I suspect to free up the liquidity, they will start allowing higher leveraged loans against already inflated assets. So the first real middle class generation of Chinese fucks over the next 3-4 generations, just like may happen in the USA.