BEIJING, Oct 12 (Reuters) - China's policy of reforming its currency does not necessarily equate to exchange rate appreciation, and market players should get used to two-way yuan movements, the Chinese foreign exchange regulator said in a report on Tuesday.
Despite repeated official efforts to talk down expectations for a stronger yuan, the State Administration of Foreign Exchange said that capital inflows to China would rise over the rest of the year in part because investors believe the yuan will strengthen. (Reporting by Langi Chiang and Simon Rabinovitch; Editing by Ken Wills)