FXStreet (Delhi) – Research Team at TDS, suggests that the recovery in Chinese house prices appears to be spreading, with prices up in 39 cities over December, vs 33 in November. Key Quotes “Also prices dropped in only 26 cities from the 27 prior. Prices in Shenzhen rose 3.2%/ and prices in Shanghai nearly 2%, the fastest pace in 6 months. From Jan 25th, foreign financial institutions with yuan deposited onshore will be imposed with the same reserve requirement ratios as local banks, that is 17.5%. Those exempt are foreign CBs, SWFs and international lending agencies. By making offshore banks hold more yuan in reserve, it reduces the amount of currency available in the market, cutting supply and in turn making it more difficult to short.” For more information, read our latest forex news.