China SAFE issued oral instructions to banks on curbing capital outflows

Reuters quotes several banks noting that China’s FX regulator, State Administration of Foreign Exchange (SAFE), has issued instructions to them, asking the banks to keep restriction on capital outflows a secret.

Key Quotes:

“A representative from an international bank attending the meeting said there were no written instructions, but a high-ranking SAFE official told them explicitly what was expected of them."You must control your forex deficit, but you can't say that SAFE is controlling capital outflows," the official told the 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.”