# Yuan Surges in Hong Kong as Traders See PBOC Squeezing Bears - Bloomberg

> The offshore yuan jumped as much as 0.8% to 6.7677 per dollar, its strongest since November 4, after funding costs surged. The move followed a surprise Moody's sovereign rating downgrade a week earlier. Traders attributed the rally to a short squeeze and suspected central bank support.

- Date: 2017-05-31 · published 2017-05-31T12:00:00.000Z
- Category: macro · region China · magnitude low
- Page: https://feedsoft.ai/events/5664-yuan-surges-in-hong-kong-as-traders-see-pboc-squeezing-bears-bloomberg
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

A sharp yuan rally after a rating cut signals currency-market volatility that can shift Chinese import costs, though its direct effect on feed commodity prices is limited.

## Read by commodity

- USDCNY: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| USDCNY | 2017-05-31 | 1 | -0.6% | -6.1 | Offshore yuan jumped as much as 0.8% on 2017-05-31 from a short squeeze and suspected PBOC support, directly matching the sharp one-day drop in CNY per USD (yuan strengthening). |
| USDCNY | 2017-06-01 | 5 | -1.2% | -3.7 | The offshore yuan surged as funding costs spiked and shorts were squeezed, directly driving a sharp drop in CNY per USD. |

## 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 | 2026-03-03 | [Yuan Rallies Most in 10 Months as PBOC Strengthens Fix Into NPC - Bloomberg](https://feedsoft.ai/events/9161-yuan-rallies-most-in-10-months-as-pboc-strengthens-fix-into-npc-bloomberg.md) | +0.4% | +0.4% |
| USDCNY | 2017-09-07 | [PBOC Hasn't Embraced Yuan Gains Like This Since the Arab Spring - Bloomberg](https://feedsoft.ai/events/7800-pboc-hasn-t-embraced-yuan-gains-like-this-since-the-arab-spring-bloomberg.md) | +0.3% | +2.0% |
| 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 | 2021-12-31 | [Chinese Yuan Reaches 3-Year High With PBOC Reluctant for Stronger CNY in 2022 - Bloomberg](https://feedsoft.ai/events/43814-chinese-yuan-reaches-3-year-high-with-pboc-reluctant-for-stronger-cny-in-2022.md) | +0.1% | -0.2% |

## Sources

- bloomberg.com: https://www.bloomberg.com/news/articles/2017-05-31/yuan-set-for-strongest-close-since-november-as-intervention-seen

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