# China struggles to plug its capital drain - Nikkei Asia

> 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.

- Date: 2017-03-02 · published 2017-03-02T12:00:00.000Z
- Category: macro · region China · magnitude medium
- Page: https://feedsoft.ai/events/72227-china-struggles-to-plug-its-capital-drain-nikkei-asia
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

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.

## Read by commodity

- USDCNY: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2016-12-27 | [Beijing desperate to stem tide of capital outflow  - Nikkei Asia](https://feedsoft.ai/events/73703-beijing-desperate-to-stem-tide-of-capital-outflow-nikkei-asia.md) | +0.2% | -1.0% |
| USDCNY | 2018-10-30 | [Yuan's slide to decade low puts China in tricky position - Nikkei Asia](https://feedsoft.ai/events/62765-yuan-s-slide-to-decade-low-puts-china-in-tricky-position-nikkei-asia.md) | -0.5% | -0.1% |
| USDCNY | 2016-12-05 | [Market bears smell blood as China scrambles to plug capital outflows](https://feedsoft.ai/events/73676-market-bears-smell-blood-as-china-scrambles-to-plug-capital-outflows.md) | +0.3% | +1.1% |
| USDCNY | 2017-02-07 | [USD/CNY to rise as China’s capital outflows intensifies: Strategist](https://feedsoft.ai/events/72721-usd-cny-to-rise-as-china-s-capital-outflows-intensifies-strategist.md) | +0.3% | +0.6% |
| USDCNY | 2024-05-29 | [Chinese yuan falls to six-month low on dollar strength - Nikkei Asia](https://feedsoft.ai/events/30488-chinese-yuan-falls-to-six-month-low-on-dollar-strength-nikkei-asia.md) | -0.1% | +0.3% |

## Sources

- asia.nikkei.com: https://asia.nikkei.com/spotlight/china-s-annual-congress/china-struggles-to-plug-its-capital-drain

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