# Yuan and equity markets fall on Moody’s Ratings downgrade

> Moody's lowered China's sovereign bond outlook to negative while keeping its A1 rating, and China's Finance Ministry said it was disappointed. The yuan reversed recent gains to fall almost 1% against the dollar, while S&P and Fitch held their outlooks at A+/stable. Chinese stocks had rallied strongly the previous day.

- Date: 2023-12-11 · published 2023-12-11T12:00:00.000Z
- Category: macro · region China · magnitude low
- Page: https://feedsoft.ai/events/6457-yuan-and-equity-markets-fall-on-moody-s-ratings-downgrade
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

A weaker yuan and softer sovereign credit outlook can dampen Chinese import demand and the currency backdrop for commodity buyers, though the effect on feed prices is indirect.

## Read by commodity

- USDCNY: bullish ▲

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| USDCNY | 2023-12-14 | 1 | -0.9% | -5.0 | Moody's negative outlook on China's sovereign rating hit sentiment and pushed the yuan down almost 1% against the dollar, matching the direction and size of the move, though the event is dated three days before the window ends. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2019-09-22 | [Markets swing on trade and monetary policy](https://feedsoft.ai/events/57273-markets-swing-on-trade-and-monetary-policy.md) | +0.4% | -0.2% |
| USDCNY | 2025-05-14 | [China’s yuan falls from six-month peak on rising dollar demand - Markets - Business Recorder](https://feedsoft.ai/events/24887-china-s-yuan-falls-from-six-month-peak-on-rising-dollar-demand-markets-business.md) | +0.2% | -0.2% |
| USDCNY | 2017-05-24 | [Moody’s Downgrades China Credit Ratings for First Time in 30 Years as Debt Mounts - Newsweek](https://feedsoft.ai/events/10570-moody-s-downgrades-china-credit-ratings-for-first-time-in-30-years-as-debt.md) | -1.1% | -0.9% |
| USDCNY | 2024-07-22 | [China stocks drop after party meeting, yuan falls on rate cuts - The Pound Hub](https://feedsoft.ai/events/7517-china-stocks-drop-after-party-meeting-yuan-falls-on-rate-cuts-the-pound-hub.md) | -0.3% | -1.4% |
| USDCNY | 2017-01-25 | [Surprise China MLF rate rise weighs on bonds; yuan and money rates fall \| Reuters](https://feedsoft.ai/events/73175-surprise-china-mlf-rate-rise-weighs-on-bonds-yuan-and-money-rates-fall-reuters.md) | +0.3% | +0.3% |

## Sources

- forex.com: https://www.forex.com/en-us/news-and-analysis/china-roundup-dec-11/

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