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Capital is leaving China as economic uncertainty and a narrowing interest rate gap with the U.S. push businesses and individuals to convert yuan into foreign currency. Foreign exchange reserves have dipped below $3 trillion.
Persistent capital outflows add downward pressure on the yuan and could force tighter policy or more reserve sales. A weaker yuan can raise the dollar cost of Chinese feed imports.
asia.nikkei.comYUSHO CHO, Nikkei staff writer, KAZUKI KAGAYA, Nikkei senior staff writerMar 2, 2017After 398 past bullish macro events, Chinese Yuan (CNY per USD) moved a median +0.0% over 5 sessions (56% higher; middle half -0.3% to +0.5%), and +0.0% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
