China's commercial banks sell net USD 12.5bln in May vs USD 23.7bln in April

China's fx regulator,SAFE, out with their latest data 20 June 2016

• Jan-May total sales USD 161bln

This is effectively the level of PBOC intervention which is executed through the banks.

Lesser activity as already highlighted the slower pace of FX reserve reduction.

Says SAFE:

• fx supply and demand more balanced in May
• pressure on cross-border outflows has gradually eased compared with beginning of the year        
• reduction in outflows is a reflection on China's economic fundamentals
• Chinese companies and individuals less willing to keep forex depos
• companies efforts to deleverage their foreign debt has slowed