China FX emergence continues

Banks and non-banks have increased their FX deposits, according to figures released by the Bank for International Settlements last month. And a new regulation from the State Administration for Foreign Exchange (Safe) will encourage further growth, by allowing more domestic firms to retain FX earnings, said analysts. The rule, which the Safe hopes will spur exports and put Chinese firms on an equal footing with foreign companies, comes into effect on October 15.

Foreign banks are likely to see