No sign of flight of funds

Policy sources have said that China is likely to use its vast reserves to stop any precipitous fall through the 7 level as it could risk triggering heavy capital outflows.

Recent Chinese data have pointed to rising outflows. But so far there have been no signs of a widespread flight of funds like that in 2015, due largely to capital controls put in place since then.

Sales of net foreign exchanges by Chinese commercial banks rose to the highest in September since June 2017.