{"id":2011540,"date":"2023-08-25T00:05:02","date_gmt":"2023-08-25T04:05:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/exclusive-china-asks-banks-to-limit-some-connect-bond-outflows-sources\/"},"modified":"2023-08-25T00:09:17","modified_gmt":"2023-08-25T04:09:17","slug":"exclusive-china-asks-banks-to-limit-some-connect-bond-outflows-sources","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/exclusive-china-asks-banks-to-limit-some-connect-bond-outflows-sources\/","title":{"rendered":"China has requested banks to restrict certain Connect bond outflows, according to sources."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">26<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fexclusive-china-asks-banks-to-limit-some-connect-bond-outflows-sources%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2011540&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div class=\"entry-content\">\n<p><strong>China&#8217;s Central Bank Takes Action to Support Yuan<\/strong><\/p>\n<p>The People&#8217;s Bank of China (PBOC) has instructed domestic banks to reduce their outward investments through the Bond Connect scheme, according to sources familiar with the matter. This move is part of a\u2062 series of measures aimed at bolstering the Chinese \u2064yuan. The guidance from the PBOC appears to be aimed at limiting the supply of yuan in <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/ruble-hits-record-low-as-russia-sanctions-take-hold\/\" title=\"Ruble Hits Record Low as Russia Sanctions Take Hold\">offshore markets<\/a> and containing yuan flows into Hong Kong.<\/p>\n<div id=\"div-gpt-ad-1663871513696-art-1\" style=\"min-width: 320px; min-height: 50px;  text-align: center;\">  \t<script>  \t\tgoogletag.cmd.push(function() { googletag.display('div-gpt-ad-1663871513696-art-1'); });  \t<\/script>  <\/div>\n<div class=\"ad-slot__ad-label\">Advertisement<\/div>\n<\/p>\n<p>This latest directive from the PBOC comes\u2063 as China&#8217;s financial \u2063markets experience losses \u2062and heavy outflows. Ken Cheung, chief\u2064 Asian FX strategist at Mizuho Bank, believes that\u2063 the guidance could reduce\u2064 mainland\u200b capital outflows through the bond market and\u2064 <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/exclusive-china-asks-banks-to-limit-some-connect-bond-outflows-sources\/\" title=\"China has requested banks to restrict certain Connect bond outflows, according to sources.\">drive \u2062offshore yuan \u200dyields higher<\/a> to support\u2064 the renminbi.<\/p>\n<p>The Bond Connect scheme, which has been in operation for two years, \u200callows\u200b mainland institutional investors to purchase bonds traded in Hong Kong. One of the sources\u200d suggests that restricting yuan from\u2063 flowing to\u2062 the offshore \u2064market could tighten offshore\u200c yuan\u200d liquidity and raise \u2062financing costs, \u200cpotentially \u2062striking against foreign\u2062 yuan bears.<\/p>\n<p>China has been \u2062implementing various measures to \u2064defend its currency, which has been weakened by a sluggish economy and \u2064capital\u200b outflows. The yuan has\u200c depreciated about 5% against the dollar this year, reaching a 10-month low\u2062 last week. However, it has since strengthened\u200c to trade at \u20627.2865 per dollar on Friday.<\/p>\n<p>Among the measures taken to raise the cost of shorting the yuan offshore, China&#8217;s <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/us-accuses-russia-of-ukraine-cyber-attacks-warns-invasion-would-bring-more\/\" title=\"US Accuses Russia Of Ukraine Cyber Attacks, Warns Invasion Would Bring More\">state-owned banks<\/a> have been\u2063 mopping up\u200c cash from the market and engaging in sell\/buy swaps in the \u2062forwards market to absorb\u2062 offshore yuan. Additionally, the PBOC has been urging\u200b banks to stop subscribing to Negotiable Certificates of Deposit \u200d(NCDs) issued by offshore \u2062banks, further curtailing the amount of yuan in Hong \u2063Kong markets.<\/p>\n<p>The\u200d PBOC \u200bhas not commented on the \u2064content of the window\u200d guidance,\u2063 and the sources spoke on condition of anonymity as they\u200d were not authorized\u2063 to talk to the media.<\/p>\n<p><a href=\"https:\/\/www.oann.com\/uncategorized\/exclusive-china-asks-banks-to\/attachment\/file-photo-illustration-picture-of-chinese-yuan-5\/\"><\/a><\/p>\n<p><a href=\"https:\/\/www.oann.com\/uncategorized\/exclusive-china-asks-banks-to\/attachment\/paramilitary-police-officers-stand-guard-in-front-of-the-headquarters\/\"><\/a><\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<h2>Latest News<\/h2>\n<\/p><\/div>\n<div class=\"entry-content\">\n<h3>Trump&#8217;s Interview with Tucker Carlson Goes Viral<\/h3>\n<\/p><\/div>\n<div class=\"entry-content\">\n<h3>Paws of War Assists Military Members\u2063 and Their Pets<\/h3>\n<\/p><\/div>\n<div class=\"entry-content\">\n<h3>Donald Trump to Turn Himself In for Georgia Election Case<\/h3>\n<\/p><\/div>\n<div class=\"entry-content\">\n<h3>Warner \u2063Bros\u200c Discovery Adds New Offering to Max<\/h3>\n<\/p><\/div>\n<div class=\"entry-content\">\n<h3>Investors with Short \u2063Position on Nvidia Face Losses<\/h3>\n<\/p><\/div>\n<div class=\"entry-content\">\n<h3>Meta \u200bPlatforms to \u200dRelease AI \u200cModel for Writing Code<\/h3>\n<\/p><\/div>\n<div class=\"entry-content\">\n<h3>Citigroup Acquires Stake in Peruvian Fintech Startup<\/h3>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>at controlling capital outflows and stabilizing the yuan. Domestic banks have been instructed to reduce their outward investments through the Bond Connect scheme, according to sources. This move is part of a series of measures implemented by the central bank to support the Chinese currency.<\/p>\n","protected":false},"author":66,"featured_media":2011541,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[542],"tags":[],"class_list":["post-2011540","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-oann"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2011540","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/66"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2011540"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2011540\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2011541"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2011540"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2011540"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2011540"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}