China moves to ease yuan pressure

Under the new rules, effective from November 1, branches of Safe will be able to authorise foreign investments of up to $3 million by Chinese companies -- up from a previous ceiling of $1 million.

Qu Hongbin, China economist at HSBC in Hong Kong, said the move is part of the process of relaxing regulations on the currency market, which will come slowly. "The market is not supply-and-demand based, and it would not be wise to suddenly change," he said.

David Mann, FX strategist at Standard Chart