A few of offshore yuan-clearing banks and related offshore participant banks were instructed by China's central bank to suspend yuan account financing and bond repo trading, according to a cnstock.com report on Wednesday.
The move suggested the Peole's Bank of China (PBOC)'s concerns about yuan depreciation pressure, said Lu Zhengwei, chief economist with Industrial Bank, adding that China has moved to restrict trade at offshore yuan-clearing banks in a bid to stabilize RMB exchange rate and step up capital controls.
Market watchers noted that the move is temporary and will have quite limited impact on offshore yuan-clearing banks and related offshore participant banks.
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