China’s underground FX crackdown could hit offshore yuan liquidity

Renminbi deposits in Hong Kong already at lowest for seven months

Not so easy: ongoing clampdown on illegal FX trading may make transferring renminbi out of China harder, analysts say

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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