China's capital curbs find favour as risks to stability pile up

Beijing

CHINA'S capital controls are biting, but that doesn't mean policymakers can relax.

The curbs - under fire from company chiefs and offshore investors - are keeping order in Chinese markets, which risk descending into volatility should authorities loosen their grip on money flows and the yuan, said Thomas Deng, UBS Wealth Management's chief China strategist.

This concern has the firm's parent bank and Standard Chartered plc backing the controls as well.

"For China, tighter capital control is controversial in theory, but more feasible in practice," Mr Deng said by phone from Hong Kong. "Th…