# China’s Yield Appeal Catapults Yuan to Global FX Big League

> Demand for yuan assets is rising as investors chase yields in a world where over $14 trillion of global debt pays below zero. Yuan trading volumes in London have reached record highs, and options on the currency now exceed those on the yen. Speculators are adding volatility to the market.

- Date: 2021-02-22 · published 2021-02-22T12:00:00.000Z
- Category: macro · region China · magnitude low
- Page: https://feedsoft.ai/events/48872-china-s-yield-appeal-catapults-yuan-to-global-fx-big-league
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

Strong capital inflows support the yuan, which lowers the dollar cost of Chinese commodity imports. The effect on feed markets is indirect and gradual.

## Read by commodity

- USDCNY: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2018-01-26 | [In Global Currency Game, China Is Losing to U.S.](https://feedsoft.ai/events/11863-in-global-currency-game-china-is-losing-to-u-s.md) | -0.3% | +0.2% |
| USDCNY | 2020-09-29 | [China is attracting global investors' attention, boosting the yuan](https://feedsoft.ai/events/51322-china-is-attracting-global-investors-attention-boosting-the-yuan.md) | -0.3% | -1.6% |
| USDCNY | 2025-05-28 | [China Pulls Back Support as Yuan Rebounds Against Dollar  - Caixin Global](https://feedsoft.ai/events/24886-china-pulls-back-support-as-yuan-rebounds-against-dollar-caixin-global.md) | -0.1% | -0.3% |
| USDCNY | 2016-12-30 | [Yuan Strengthens after China Announces Plans to Expand Currency Basket - Caixin Global](https://feedsoft.ai/events/73679-yuan-strengthens-after-china-announces-plans-to-expand-currency-basket-caixin.md) | -0.5% | -1.1% |
| USDCNY | 2020-02-04 | [China Adds Market Support With More Cash, Strong Yuan Fix - Caixin Global](https://feedsoft.ai/events/5133-china-adds-market-support-with-more-cash-strong-yuan-fix-caixin-global.md) | -0.6% | -0.9% |

## Sources

- dailymaverick.co.za: https://www.dailymaverick.co.za/article/2021-02-22-chinas-yield-appeal-catapults-yuan-to-global-fx-big-league/

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