China eases restrictions on overseas debt

By FXStreet FXStreet (Mumbai) – Beijing has eased restrictions on Chinese companies seeking to raise funds overseas, after a record monthly decline in China’s foreign exchange reserves in August, as reported by FT.

The decision to loosen capital controls on inbound
funds stands to boost capital inflows at a time when big domestic stock market losses and the slowing Chinese economy are heightening concerns about capital outflows.

China’s foreign exchange reserves fell 2.6%to $3.557 tn in August, a monthly $ 94bn drop that was the sharpest on record, as the People’s Bank of China (PBOC) sold down some of its stockpile to support the renminbi.

Data from the Bank of International Settlements (BIS) show that foreign bank claims on China shrank by $77bn in the first three months of 2015, reflecting their reluctance to lend and Chinese borrowers’ increasing wariness of taking on foreign currency debt.

Meanwhile, China is considering implementing restrictions on automated trading in its commodity markets, according to the sources who spoke to the FT.
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Source:: FX Street