New rules to help curb speculative outflow of yuanThe central bank has drawn up new guidelines to strengthen inspections of domestic companies that make yuan loans overseas, the latest move to curb speculative shifting of yuan amid short-term depreciation pressure, a source with the bank said on Thursday. The guideline is among many methods that the central bank could use to enhance management of speculative capital flow, the source said. The central bank has become aware of the risks brought by speculative behavior through moving yuan out of the country, Sun added. "The central bank is not imposing a new cap, only enhancing regulations," said Wang. Wang said capital outflows tend to stabilize with such stricter inspections, which in turn improves investors' long-term outlook for the Chinese economy.

Source: The China Post December 02, 2016 18:02 UTC