OMG! There is a huge shortage of Renminbi now!

Just take a look at the charts for the past few days.

The overnight CNH Hibor has surged from 5.35% to 42.8% now which shows that there is a huge shortage of Chinese yuan now.  This means that the China government has succeeded in stamping the capital outflow and attracted foreign investors to stock up on yuan.

The HK-China bond trading link has also helped to boost the Chinese yuan demand.