Headlines here: China forex reserves end-Oct USD 3.1092trln vs 3.1085trln prev
- China's foreign exchange reserves rose for the ninth month in a row
- Increase of US$700 million was the smallest this year
Macquarie Securities says:
- The PBOC now has "a stronger grip" on the yuan exchange rate
- Cites the role of the counter-cyclical factor in setting the daily price of the yuan - which is still a mystery as to how it works
On capital outflows, MBL add:
- "As capital outflows have disappeared from the headlines, we expect the PBOC to further ease capital controls"
