Sources said that the central bank of China is curbing the RMB through window guidance by flowing into Hong Kong, thereby ensuring the reduction of the offshore RMB market supply and stabilizing the RMB exchange rate.
Through the "south direction" in the bond mechanism, mainland China investors can invest in the Hong Kong bond market.Reuters on Friday (August 25) in the report, the two quoted sources in the report said that the central bank of the Chinese central bank was restricting the flow of RMB to the offshore market through curbing the southbound.
One of the sources said that the move will tighten the liquidity of offshore RMB and improve the cost of financing. The People's Bank of China does so to combat foreign capital to take a short RMB.
Reuters said that the instruction was the latest in a series of measures adopted by China to protect the RMB exchange rate.The RMB exchange rate is hit by China's weak economy and capital outflow, and the People's Bank of China has implemented a number of measures to increase the cost of short -term RMB.
According to Bloomberg, after the offshore RMB against the US dollar exchange rate fell below 7.3 last week, that is, 1 US dollar exchanged for 7.3 yuan (about S $ 1.36), it was only one step away from last year's historical low. ChinaThe central bank issued a strong stability signal, including verbal warnings, and it is reported that state -owned banks are required to strengthen intervention in the foreign exchange market. The stronger mid -range price is the largest in record.
