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The Shanghai branch of the People's.....>

CHINA PRESS
CHINA PRESS: The Shanghai branch of the People's Bank of China (PBOC) has banned
banks in the Shanghai Free Trade Zone from depositing or lending yuan offshore
through interbank accounts, China Securities Journal reported, citing an
unidentified person close to the PBOC. 
  - This ban will not affect cross-border capital flows that reflect real
demand, the newspaper added. 
  - This move is aimed at tightening offshore liquidity of the yuan and making
it more expensive to short the Chinese currency, the newspaper said, citing an
anonymous market analyst. 
  - This notice sends a clear signal that the PBOC is preventing capital outflow
and is stabilising the yuan's fluctuations, the analyst said, according to the
newspaper.

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