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Exclusive: China steps up yuan defence with bond limit guidance
Reuters
August 25, 20231:13 AM EDTUpdated 3 days ago
SHANGHAI/BEIJING, Aug 25 (Reuters) - China's central bank has asked domestic lenders to scale back outward bond investments according to two sources with direct knowledge of the matter, the latest in series of increasingly strong steps to support the yuan.
The directive, issued this week, is for banks to restrict southbound purchases under the Bond Connect scheme, and is aimed at limiting the supply of yuan offshore, the sources said.
snip
The move is the latest in a raft of recent efforts to make it harder to short the yuan and to prop up the currency against the U.S. dollar.
As China's financial markets suffer losses and heavy outflows, and investors grow impatient at the lack of more forceful action to address the stalling economy, the move also adds to the sense that policymakers see steadying the currency as an urgent task.
more.... https://www.reuters.com/world/china...ome-connect-bond-outflows-sources-2023-08-25/
Reuters
August 25, 20231:13 AM EDTUpdated 3 days ago
SHANGHAI/BEIJING, Aug 25 (Reuters) - China's central bank has asked domestic lenders to scale back outward bond investments according to two sources with direct knowledge of the matter, the latest in series of increasingly strong steps to support the yuan.
The directive, issued this week, is for banks to restrict southbound purchases under the Bond Connect scheme, and is aimed at limiting the supply of yuan offshore, the sources said.
snip
The move is the latest in a raft of recent efforts to make it harder to short the yuan and to prop up the currency against the U.S. dollar.
As China's financial markets suffer losses and heavy outflows, and investors grow impatient at the lack of more forceful action to address the stalling economy, the move also adds to the sense that policymakers see steadying the currency as an urgent task.
more.... https://www.reuters.com/world/china...ome-connect-bond-outflows-sources-2023-08-25/