# China’s Epic Short Squeeze Is Back as Yuan Rally Burns Bears - Bloomberg

> The yuan posted a record two-day rally offshore, and interbank rates spiked, making short positions expensive. Traders recalled a similar squeeze the previous January.

- Date: 2017-01-05 · published 2017-01-05T12:00:00.000Z
- Category: macro · region China · magnitude low
- Page: https://feedsoft.ai/events/10251-china-s-epic-short-squeeze-is-back-as-yuan-rally-burns-bears-bloomberg
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

Sharp yuan swings driven by funding squeezes add volatility to China-linked currency exposure, but the move is largely financial and has limited direct effect on feed supply or demand.

## Read by commodity

- USDCNY: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| USDCNY | 2017-01-05 | 1 | -0.7% | -3.4 | A record two-day offshore rally and a short squeeze with spiking interbank rates made bearish yuan positions costly, driving the yuan sharply higher on Jan 5. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2017-05-31 | [Yuan Surges in Hong Kong as Traders See PBOC Squeezing Bears - Bloomberg](https://feedsoft.ai/events/5664-yuan-surges-in-hong-kong-as-traders-see-pboc-squeezing-bears-bloomberg.md) | -0.8% | -0.6% |
| USDCNY | 2022-10-26 | [CNY/USD: Offshore Yuan Rises Most on Record as China Banks Sell Dollars - Bloomberg](https://feedsoft.ai/events/39355-cny-usd-offshore-yuan-rises-most-on-record-as-china-banks-sell-dollars-bloomberg.md) | +0.1% | -1.5% |
| USDCNY | 2017-01-15 | [China slap at yuan shorts barely tickled bigger bears](https://feedsoft.ai/events/11873-china-slap-at-yuan-shorts-barely-tickled-bigger-bears.md) | -0.6% | -0.5% |
| USDCNY | 2017-06-01 | [Yuan's Forecasters Getting It Wrong as China Jolts Markets - Bloomberg](https://feedsoft.ai/events/70728-yuan-s-forecasters-getting-it-wrong-as-china-jolts-markets-bloomberg.md) | -0.2% | -0.2% |
| USDCNY | 2021-09-30 | [Dollar (USD) Rally Challenges China Recovery With Yuan (RMB) Gains - Bloomberg](https://feedsoft.ai/events/45272-dollar-usd-rally-challenges-china-recovery-with-yuan-rmb-gains-bloomberg.md) | -0.4% | -1.2% |

## Sources

- bloomberg.com: https://www.bloomberg.com/news/articles/2017-01-05/china-s-epic-short-squeeze-is-back-as-yuan-rally-crushes-bears

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.