Reuters reports, citing three banking and policy sources
It is being said that China's FX regulator, SAFE, has been conducting an atypical survey of banks and companies to check on their risk management process and ability to handle volatility in the yuan currency.
One of the sources said SAFE was surveying "how companies in different sectors managed their FX exposure and how they used hedging tools", while other sources added that the survey this month was different from the routine questionnaire for banks when submitting their proprietary trading books.
It is just something to take note of, as Chinese authorities have been defending the yuan from weakening past 6.50 against the dollar in recent times.
But as the Fed looks to move towards tapering and gearing towards potential rate hikes going into next year, they may yet be bracing for how to handle all of those developments should the dollar and Treasury yields climb in the months ahead.
