Societe Generale's Greater China economist, Michelle Lam, spoke to Bloomberg TV:

• PBOC will watch carefully on capital outflow dynamics in the near-term

• Doesn't want to upset traders too much on the matter

• If trade tensions continue to escalate, can expect USD/CNY to rise to 7.50

• PBOC may tighten capital controls if outflows start to pick up

• However, doesn't expect pace of capital outflows to be as dramatic as in the past

• Markets are more prepared to deal with a weaker yuan now