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From Bloomberg:
China’s foreign-exchange regulator has verbally instructed some banks operating in the mainland to limit yuan outflows and reduce offshore yuan positions and liquidity, according to people with knowledge of the matter.
Banks are asked to better manage net yuan outflows in their capital accounts in the near term, according to the people, who asked not to be identified because the information hasn’t been made public.
Banks are also requested to properly manage cross-border interbank yuan borrowing and corporate offshore yuan lending.
The State Administration of Foreign Exchange didn’t immediately respond to a faxed request for comment after office hours.
It’s farewell to that much loved Chinese bid for Australian real estate!
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