View more on these topics

Fall in China’s yuan pushes down Asian stocks


China’s central bank has again cut the guiding rate for the yuan following yesterday’s record 1.9 per cent devaluation.

The move has prompted falls across Asian stockmarkets, with the Shanghai Composite index down 1.06 per cent at 3886.32 and the Hong Kong Hang Seng index down 2.59 per cent at 23,863.20 as at 8.30 this morning. Japan’s Nikkei 225 index also fell 1.58 per cent to 20,392.77.

The BBC reports the People’s Bank of China has fixed the guiding rate of the yuan down 1.6 per cent to 6.3306 against the dollar. It follows a “one-off” adjustment to the rate yesterday of 1.9 per cent.

The bank issued a statement to the markets, saying: “Looking at the international and domestic economic situation, currently there is no basis for a sustained depreciation trend for the yuan.”

But the Financial Times quotes an analysts’ note from Societe Generale, which says: “There are no compelling reasons for [the yuan] to strengthen and fundamentals coupled speculative pressure argues for more weakness.”



Is the great fall of China a bigger problem than Greece?

With the Greek debt crisis dominating the national news cycle in recent weeks, the world has all but overlooked another potential market setback: the Chinese stock market crash. The nature of the Chinese stock market fall has sparked debate over whether it is only a domestic problem or could turn into something more serious for the […]


Mark Dampier: Betting against the consensus on China

Fidelity China Special Situations has had a fair amount of bad publicity since its launch in 2010, much of which was poorly informed, in my view. My sympathy therefore to Dale Nicholls, who assumed management of the trust in April last year. However, he has risen to the challenge admirably and patient investors have been […]

Miton veers from China risks and boosts cash

The drop in commodity prices and the recent fall in the Chinese stockmarket have brought Miton’s Anthony Rayner to avoid risks in the portfolio and secure more capital into cash. Since January and consistently through the year, Rayner and co-manager David Jane have reduced some of the overseas government bonds and credit exposure within the […]

Ingenious’ Guy Bowles: Greece and China are ‘irrelevant’

The ongoing crisis in Greece and the rollercoaster ride of the Chinese stockmarket are not issues that concern Ingenious Asset Management’s Guy Bowles. He sees them as short-term blips that are not going to impact his holdings in the £46m Global Growth fund he runs. “While they are extremely interesting, in terms of what’s actually […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment