MNI DATA IMPACT: China March Cap Outflow Slows, FX Data Show

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

clients last month, indicating a slower capital outflow, according to data

released by the State Administration of Foreign Exchange (SAFE) on Thursday.

Here are some highlights noted by MNI: 

     -Banks sold net CNY16.6 billion equivalent FX on behalf of clients, less

than CNY102.3 billion deficit in February. Greater net sales correspond to

larger FX outflow. 

     -Banks' net purchases of FX forward contracts totaled CNY122.5 billion,

compared with CNY64.4 billion in February. The increased net purchase position

suggested market participants were betting on a stronger yuan in the longer

term. 

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

banks' proprietary trading, totaled CNY41.2 billion, compared to CNY101.3

billion in February.

     -For the first quarter, FX sales by banks fell 50% y/y, and the average

monthly FX sales in Q1 declined 74% from the second half in 2018, SAFE

spokeswoman Wang Chunying told reporters. 

     ***The yuan weaken 0.5% against the U.S. dollar last month following

February's 0.28% gain.

--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

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