China has taken up steps, which are no reforms, rather anti-reform to break the backbone of fear surrounding its currency depreciation. Reform seeking China is once again back to the trinity table. Government probably feels it is now more important have stable Yuan and ability to choose interest rates, so sacrificing the free movement of capital is the option.

In a previous article under the series, we discussed China has its own version of impossible trinity, where it tries to control all three pillars but not in entirety, it's more of guiding the trinity towards intended direction.

• It has chosen to shelf two key outbound investment schemes in its bid to prevent capital from flowing out of the country. Last year approximately $1 trillion has left China and this year could be same without any measures, this probably has led to this decision.

These two schemes were part of reforms and liberalization of capital account, which was designed to facilitate overseas investment. Under these schemes Chinese mutual funds were allowed to invest in foreign securities. Qualified Domestic limited Partner Scheme (QDLPS) allowed foreign asset managers like Black Rock to invest wealthy Chinese clients' money outside China. China will also be delaying launch Qualified Domestic Institutional Investor Scheme 2 (QDII2). First scheme was originally launched back in 2013.

Many asset managers, who have received license from China for investing money outside have not yet received the necessary quotas for months mow.

It can be seen as a slap on those vocals, who said Chinese economy is reforming.