People's Bank Of China

To "Prevent Public Panic", Beijing Orders Banks To Keep Capital Controls Secret

"You must control your forex deficit, but you can't say that SAFE is controlling capital outflows," a high-ranking government official told Chinese bankers. The banks were told to "manage sentiment" to prevent public panic, the banker said, and the banks' research analysts should not broadcast any negative views on the yuan.

China Warns May Dump Treasuries To Keep Yuan Stable, Prepares More Capital Controls

Having tried and failed with simple jawboning, China admitted that it has "studied possible scenarios of yuan exchange rate and capital outflows in 2017 based on models, stress tests and field research, and is preparing contingency plans", Bloomberg reported citing sources, and added that "China may further cut U.S. Treasury holdings in 2017 if needed to keep exchange rate stable."

Few Chinese Sell Yuan On First Day Of New Year After Barrage Of New Capital Controls

Whether due to the spate of new measures or for some other reason, despite concerns of a flood of FX conversions from Yuan to Dollars on the first day following the Yuan reset, there was little evidence at Beijing and Shanghai banks on Tuesday that Chinese individuals were rushing to lock in 2017 quotas to buy foreign exchange.

Bitcoin Surges Above $1,000 As China Unveils New Capital Controls

Chinese demand for bitcoin overnight finally proved too great, and US markets had no choice but to arb the difference. So with Bitcoin trading in China at an implied price of over $1,050 at this moment, the digital currency finally soared above $1,000 in the US as well, trading just around $1,024 on Coinbase as of this moment.

As China Liquidates US Treasuries, It is "Gobbling" Up Japanese Government Bonds

China is on a shopping spree, and has been "gobbling" up Japanese government bonds, adding that Beijing bought close to a net 9 trillion yen ($86.6 billion) worth of JGBs in the January-August period, more than tripling the amount from the same period last year. Incidentally that's almost equivalent to the number of US Treasurys sold by China.

China Bond Yields Drop To Decade Lows As Economy Sinks After New Loan Creation Tumbles

Following an unprecedented credit expansion by China, which in the first few months of 2016 injected well over a trillion dollars in total credit, the payback - as previewed here - is coming. As reported earlier, overnight China reported that a swath economic activity, from factory output to investment and retail sales, slowed last month, reflecting renewed weakness in China’s economy, resulting in10Y bond yields dropping to near all time lows.

Kyle Bass Shares The "Stunning" Thing A Central Banker Once Told Him

"I had a fascinating out of body experience meeting with one of the world's top central bankers in a private meeting about three years ago. it was one of those moments where I...it was one of those epiphanies almost, where it's something you and I knew, but hearing him say it, call it one of the four top central bankers in the world, it was a jarring experience for me..." - Kyle Bass