# Beijing desperate to stem tide of capital outflow  - Nikkei Asia

> Beijing is struggling to stop capital outflows and stabilize the yuan, as the Federal Reserve signaled possible further rate hikes next year. Uncertainty around the incoming Trump administration adds to the pressure.

- Date: 2016-12-27 · published 2016-12-27T12:00:00.000Z
- Category: macro · region China · magnitude low
- Page: https://feedsoft.ai/events/73703-beijing-desperate-to-stem-tide-of-capital-outflow-nikkei-asia
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Expectations of more Fed hikes and capital flight support a stronger dollar and a weaker yuan, which can weigh on Chinese import demand for feed ingredients.

## Read by commodity

- DXY: bullish ▲
- USDCNY: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| 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 | 2022-04-29 | [Globalised yuan complicates Beijing's bid to stem capital flight](https://feedsoft.ai/events/7641-globalised-yuan-complicates-beijing-s-bid-to-stem-capital-flight.md) | +0.4% | +1.7% |
| USDCNY | 2022-05-05 | [US Fed rate hike: how can China stem capital outflow and prop up the yuan? \| South China Morning Post](https://feedsoft.ai/events/8315-us-fed-rate-hike-how-can-china-stem-capital-outflow-and-prop-up-the-yuan-south.md) | +1.7% | +0.8% |
| 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 | 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% |
| DXY | 2022-04-29 | [Globalised yuan complicates Beijing's bid to stem capital flight](https://feedsoft.ai/events/7641-globalised-yuan-complicates-beijing-s-bid-to-stem-capital-flight.md) | -0.1% | -1.1% |
| DXY | 2018-05-24 | [Southeast Asia braces for emerging-market capital flight - Nikkei Asia](https://feedsoft.ai/events/65268-southeast-asia-braces-for-emerging-market-capital-flight-nikkei-asia.md) | +0.3% | +1.7% |
| DXY | 2022-05-05 | [US Fed rate hike: how can China stem capital outflow and prop up the yuan? \| South China Morning Post](https://feedsoft.ai/events/8315-us-fed-rate-hike-how-can-china-stem-capital-outflow-and-prop-up-the-yuan-south.md) | +0.7% | -1.2% |

## Sources

- asia.nikkei.com: https://asia.nikkei.com/nar/articles/beijing-desperate-to-stem-tide-of-capital-outflow

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