FT Notices Shift in PBOC Policy

Chinese monetary policy undergoes big shift

The main point:

The consequence of the shift from inflow to outflow is that liquidity injections that were once taken as a sign of easing now appear more akin to efforts to maintain the status quo.

Capital outflows require a deflationary response by the PBOC based on the current policy. Liquidity injections are aimed at counter-acting the deflationary action caused by the dirty peg.