Data out from FX regulator SAFE a short while ago 19 Oct

  • Jan-Sept net sell of USD 112.9bln

For commercial bank activity read PBOC intervention activity.

Say SAFE:

  • will fend off disorderly and intensified cross border flows
  • will safeguard stability of fx market
  • will steadily push fwd convertibility in capital account
  • will crack down on irregularities in fx market
  • will guide market players to recognmize fx risks

Ah lovely. We look fwd to their guest posts here at FXL then.

  • US Fed rate hikes and balance sheet normalization will not shake the stability of China's cross-border flows
  • expects obvious weakening of one-way expectations of yuan exchange rate

Ok, whatever.

"Keep those cross border flows coming guys"