# China ‘must prevent reversal’ of hot money flows as US kicks off monetary tapering, former official warns | South China Morning Post

> A former Chinese central bank official warned Beijing to prevent a reversal of hot money flows as the Fed began tapering its bond purchases. Investors fear large capital inflows could reverse and make the yuan more volatile.

- Date: 2021-11-03 · published 2021-11-03T12:00:00.000Z
- Category: macro · region China · magnitude low
- Page: https://feedsoft.ai/events/44275-china-must-prevent-reversal-of-hot-money-flows-as-us-kicks-off-monetary
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

Capital flow volatility could move the yuan and affect the dollar cost of Chinese feed imports, though the link to grain prices is indirect.

## Read by commodity

- USDCNY: neutral

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2018-12-24 | [China to keep yuan currency from sliding below 7 to the US dollar as part of trade war deal, analysts said \| South China Morning Post](https://feedsoft.ai/events/61790-china-to-keep-yuan-currency-from-sliding-below-7-to-the-us-dollar-as-part-of.md) | -0.7% | -2.3% |
| USDCNY | 2018-04-12 | [Analysis  \| Why devaluing the yuan is a no-no for China amid US trade war fears \| South China Morning Post](https://feedsoft.ai/events/65713-analysis-why-devaluing-the-yuan-is-a-no-no-for-china-amid-us-trade-war-fears.md) | +0.1% | +1.5% |
| USDCNY | 2018-02-09 | [China says yuan no longer a one-way bet as currency slides against US dollar \| South China Morning Post](https://feedsoft.ai/events/66717-china-says-yuan-no-longer-a-one-way-bet-as-currency-slides-against-us-dollar.md) | +0.3% | +0.1% |
| USDCNY | 2017-10-10 | [Chinese firms rush to hedge as yuan swings begin to sting \| South China Morning Post](https://feedsoft.ai/events/6416-chinese-firms-rush-to-hedge-as-yuan-swings-begin-to-sting-south-china-morning.md) | -1.0% | -0.3% |
| USDCNY | 2019-01-22 | [Volatility expected for Chinese yuan, as experts diverge on 2019 outlooks \| South China Morning Post](https://feedsoft.ai/events/61315-volatility-expected-for-chinese-yuan-as-experts-diverge-on-2019-outlooks-south.md) | -0.5% | -0.3% |

## Sources

- scmp.com: https://www.scmp.com/economy/china-economy/article/3154728/china-must-prevent-reversal-hot-money-flows-us-kicks-monetary

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