China’s underground FX crackdown could hit offshore yuan liquidity
Renminbi deposits in Hong Kong already at lowest for seven months
China has stepped up its crackdown on illegal underground foreign exchange trading, in a move that market observers say could have an impact on offshore yuan liquidity.
The clampdown comes on the back of tighter capital controls being imposed by Chinese authorities, which have made it more difficult to move renminbi out of the mainland.
Recent legal conclusions issued in late January, by China’s Supreme People’s Court and the Supreme People’s Procuratorate, have identified “severe offences” to
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