Commerzbank Singapore and China

China: The drop left market watchers questioning how sustainable China efforts to support the yuan are, as capital flows out of the country due to fears of an economic slowdown and prospects of rising U.S. interest rates. "Frequent intervention will burn foreign reserves rapidly and tighten the onshore market liquidity," said Zhou Hao, senior economist at Commerzbank in Singapore, according to CBC. The offshore yuan weakened following the data release to trade at a record discount to the onshore rate, suggesting investors believe the official rate is being kept too high. China currency devaluation: What you need to know Globe spooked by Canada panda bear market: Don Pittis China reserves, the world largest, fell by $125 billion last month to $4.71 trillion , central bank data showed on Monday. There was relief, though, that the dip in reserves had not been larger, with some commentators predicting in the run-up to the announcement that the drop could be as much as $265 billion . Still, economists estimated that the fall was probably slightly above the $125 billion figure, given the positive impact of valuation changes as the dollar fell against major currencies. The decline in reserves has quickened following China near 2 per cent devaluation of the yuan on Aug. 11, which stoked fresh concerns about the economy and heavy selling of the currency. A large portion of China reserves are held in U.S. Treasuries. (news.financializer.com). As reported in the news.