MNI DATA IMPACT: China Banks Sell More FX as Outflow Quickens

     BEIJING (MNI) - Chinese banks net sold more foreign exchange for their

clients last month, suggesting accelerated capital outflow as the yuan weakened.

Here are some highlights noted by MNI from data released by the State

Administration of Foreign Exchange (SAFE) on Monday: 

     - Banks sold net CNY53.1 billion equivalent FX on behalf of clients, more

than CNY16.6 billion in March. Greater net sales correspond to larger FX

outflow.

- Banks' net purchases of FX forward contracts totaled CNY96.3 billion, compared

with CNY122.5 billion in March, suggesting market participants are still betting

on a stronger yuan in the long term. 

- Banks' net FX selling, including both transactions with clients' and banks'

proprietary trading, totaled CNY73.7 billion, compared to CNY41.2 billion in

March.

- The yuan weakened 0.24% against the U.S. dollar last month following March's

0.50% decline.

--MNI Beijing Bureau; +86 (10) 8532-5998; email: wanxia.lin@marketnews.com

--MNI Beijing Bureau; +86 10 8532 5998; email: william.bi@mni-news.com

[TOPICS: MAQDS$,MAUDR$,MAUDS$,M$A$$$,M$Q$$$,M$U$$$]