China should rein in yuan intervention and let the currency advance to curb growth in its $3.95 trillion foreign-exchange reserves, according to a former central bank adviser and the nation’s biggest investment bank. Markets forces should determine the exchange rate so long as there are “controls on speculative, short-term capital flows,” Yu Yongding, the former adviser, told Bloomberg News in an interview on the sidelines of a conference in Shanghai. “China can no longer bear the cost of forex reserves, so just let the yuan appreciate,” Liang Hong, vice chairman of the capital markets committee of China ... (full story)