China's Currency Pressure: Control, Liquidity Crunch, and Capital Outflow

China's control over the daily yuan fixing is at a record low, raising concerns about a potential currency pressure buildup. The People's Bank of China is investigating a liquidity crunch that caused short-term money rates to surge to record highs. The Chinese yuan is being pressured by the biggest capital outflow since 2016, leading to a decline in the currency. The PBOC has ramped up liquidity support to the banking system to alleviate stress in the market.