SHANGHAI, Aug 21 (Reuters) - China's major state-owned banks were seen actively mopping up offshore yuan liquidity on Monday, three people with knowledge of the matter said, a move that raised the cost of shorting the Chinese currency.
State banks often act as agents for China's central bank in the offshore foreign exchange market, but they could also trade on their own behalf or execute their clients' orders.
Tightening up offshore yuan liquidity could also act to stabilise the yuan, said one of the sources. (Reporting by Shanghai Newsroom, editing by Ed Osmond)
