# Market bears smell blood as China scrambles to plug capital outflows

> China is tightening controls on capital outflows after the yuan fell almost 6 percent this year, pushing it to its weakest levels in about eight years. The move revives memories of the capital flight seen late last year.

- Date: 2016-12-05 · published 2016-12-05T12:00:00.000Z
- Category: macro · region China · magnitude medium
- Page: https://feedsoft.ai/events/73676-market-bears-smell-blood-as-china-scrambles-to-plug-capital-outflows
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

A weaker yuan raises the cost of dollar-priced feed imports for China, which can dampen Chinese buying of soybeans and meal at the margin.

## Read by commodity

- USDCNY: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| 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 | 2017-03-02 | [China struggles to plug its capital drain - Nikkei Asia](https://feedsoft.ai/events/72227-china-struggles-to-plug-its-capital-drain-nikkei-asia.md) | +0.5% | +0.1% |
| USDCNY | 2025-02-27 | [China steps up scrutiny of capital flows as yuan depreciates](https://feedsoft.ai/events/26288-china-steps-up-scrutiny-of-capital-flows-as-yuan-depreciates.md) | -0.1% | +0.1% |
| USDCNY | 2016-11-18 | [Exclusive - China ready to slow yuan descent, worried about capital outflows: sources](https://feedsoft.ai/events/74060-exclusive-china-ready-to-slow-yuan-descent-worried-about-capital-outflows.md) | +0.7% | +1.3% |
| 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% |

## Sources

- reuters.com: https://www.reuters.com/article/markets-china-yuan-idUSL4N1D9249/

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