New rules to help curb speculative outflow of yuan

The central bank has drawn up new guidelines to strengthen inspections of domestic companies that make yuan loans overseas, the latest move to curb speculative shifting of yuan amid short-term depreciation pressure, a source with the bank said on Thursday.

Lenders must register with local foreign exchange regulative bodies in China before issuing loans overseas, and the amount of the loans should not exceed 30 percent of net assets of the lender, according to the source, who requested anonymity.

The guideline is among many methods that the central bank could use to enhance management of speculative capital flow, the source said.