# China slap at yuan shorts barely tickled bigger bears

> Overnight offshore yuan funding rates in Hong Kong surged to record highs above 80 percent, which traders believe was orchestrated by Chinese authorities. The spike made it prohibitively expensive to borrow yuan for short-selling. The move hit bearish yuan positions.

- Date: 2017-01-15 · published 2017-01-15T12:00:00.000Z
- Category: macro · region China · magnitude low
- Page: https://feedsoft.ai/events/11873-china-slap-at-yuan-shorts-barely-tickled-bigger-bears
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

Higher offshore yuan funding costs squeezed speculators betting on a weaker yuan, which can influence the USD/CNY rate that shapes China's import purchasing power for feed ingredients.

## Read by commodity

- USDCNY: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| USDCNY | 2017-01-17 | 5 | -1.2% | -3.1 | Record offshore overnight funding rates above 80% made shorting the yuan prohibitively expensive, forcing short covering and pushing USD/CNY lower. |
| USDCNY | 2017-01-12 | 1 | -0.7% | -3.3 | Record offshore funding rates above 80% made yuan shorting prohibitively expensive, squeezing bears and supporting the yuan around this period. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2017-01-05 | [China’s Epic Short Squeeze Is Back as Yuan Rally Burns Bears - Bloomberg](https://feedsoft.ai/events/10251-china-s-epic-short-squeeze-is-back-as-yuan-rally-burns-bears-bloomberg.md) | +0.1% | -1.0% |
| USDCNY | 2017-06-01 | [China crushes yuan bears, snubs Moody's as currency takes off](https://feedsoft.ai/events/8835-china-crushes-yuan-bears-snubs-moody-s-as-currency-takes-off.md) | -0.2% | -0.2% |
| USDCNY | 2024-03-28 | [China sets yuan at much stronger fixing than markets expected](https://feedsoft.ai/events/31439-china-sets-yuan-at-much-stronger-fixing-than-markets-expected.md) | +0.1% | +0.3% |
| USDCNY | 2024-08-23 | [After battle with yuan bears, China is now keen to avoid sharp currency gains](https://feedsoft.ai/events/29022-after-battle-with-yuan-bears-china-is-now-keen-to-avoid-sharp-currency-gains.md) | -0.7% | -1.3% |
| USDCNY | 2017-03-16 | [China, following Fed, lifts short-term rates to steady yuan, battle debt](https://feedsoft.ai/events/72222-china-following-fed-lifts-short-term-rates-to-steady-yuan-battle-debt.md) | -0.5% | -0.4% |

## Sources

- reuters.com: https://www.reuters.com/article/china-yuan-shorts-idUSL4N1F3356/?feedName=usDollarRpt&feedType=RSS

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