MNI DATA IMPACT: China June Capital Outflow Quickens

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

in June, indicating FX outflow was accelerating. Here are some highlights noted

by MNI from data released by the State Administration of Foreign Exchange (SAFE)

on Thursday: 

     - Banks sold net CNY131.4 billion equivalent FX on behalf of clients,

reversing the net purchase of CNY31.8 billion FX in May. Greater net sales

correspond to larger FX outflow.

- Banks' net purchases of FX forward contracts totalled CNY66.9 billion,

compared with CNY131.2 billion in May, 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, totalled CNY132.8 billion, compared to May's net FX

purchasing of CNY42.5 billion.

- The yuan strengthened 0.49% against the U.S. dollar last month following May's

2.46% decline.

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

--MNI Sydney Bureau; +61 405322399; email: lachlan.colquhoun.ext@marketnews.com

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