Yuan pares advance after report PBOC to address capital flows SHANGAI: The yuan traded in Hong Kong pared gains on a report the Chinese central bank is weighing options to address changes in capital flows. Two options under consideration are widening the yuan's trading band or guiding the exchange rate lower via weaker fixings, according to two people familiar with the matter who asked not to be named as the discussions are private. China's capital and financial account deficit was $91.2 billion in the fourth quarter of 2014, the most in data going back to 1998, the State Administration of Foreign Exchange said Tuesday. "The yuan weakened on the capital outflow concern," said Li Bo, chief investment consultant at GF Securities Co. in Shanghai. The offshore yuan rose 0.03 percent to 6.2702 a dollar as of 5:25 p.m. in Hong Kong, after advancing as much as 0.16 percent earlier, according to data compiled by Bloomberg. In Shanghai, the currency climbed 0.03 percent to close at 6.2581, prices from the China Foreign Exchange Trade System show. The onshore spot rate pared gains after the currency regulator reported the record capital-account deficit, and as the Bloomberg Dollar Spot Index reversed a decline after Australia's central bank reduced its benchmark interest rate and said its currency is overvalued. The PBOC set the daily fixing 0.03 percent stronger at 6.1369 a dollar, boosting it for the first time in four days. The yuan in Shanghai was 1.94 percent weaker than the PBOC's fixing, close to a record 1.95 percent reached on Monday and the maximum allowed divergence of 2 percent. Twelve-month non-deliverable forwards climbed 0.02 percent to 6.3880 a dollar, paring an advance of as much as 0.19 percent earlier, according to data compiled by Bloomberg. The contracts traded 2 percent weaker than the Shanghai spot rate.