China's Currency Pressured by Control, Liquidity Crunch, and Capital Exodus

China's control over the daily yuan fixing has reached a level unseen for over a decade, raising concerns about a potential currency pressure buildup. The country's financial regulators are 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 exodus since 2016, leading to a decline in the currency. The PBOC has ramped up liquidity support to the banking system to alleviate market stress. The yuan may see increased volatility and decline during the Golden Week holiday.