PBOC has limited cross-border lending to banks

Almaty. November 19. Silkroadnews - China's central bank demanded some banks to stop financing of cross-border credit institutions outside the Chinese mainland, infomed the newspaper "Vedomosti".
According to the publication, the Central Bank also gave an oral order for settlement companies and participating banks in Hong Kong and abroad to stop the repo bonds with mainland banks.
Two representatives of the foreign branches of state banks of China said that they no longer receive funding from the mainland banks.
The regulator explained that funding may be granted if it is necessary for the actual export-import operations.
According Maybank, restrictions on cross-border loans, introduced by Central Bank of China, are intended to slow down the weakening of the so-called offshore yuan introduced in 2004 to give investors outside of mainland ability to attract capital in the Chinese currency.
Since the beginning of the month offshore yuan depreciated by 1.35% against the dollar, while on the mainland rate decreased by 0.95%.