China stocks sag sharply as Yuan drops to 3-week low
In China stocks fell steeply on Monday, as the country’s central bank brought the Yuan to its weakest value for three weeks, after at Shanghai’s recent meeting Chinese officials struggled to dispel concerns over China’s economic strategy.
The Shanghai Composite Index demonstrated -2.9% at 2687.98. On Monday, the Shenzhen Composite Index dipped 5.4%, and the Nasdaq-style ChiNext benchmark lost 7%. As for Hong Kong’s Hang Seng Index, it slumped 0.9%.
Most other Asian stock benchmarks went up a little, they pared earlier revenues. Japanese Nikkei Stock Average lost 1%, Australian S&P/ASX 200 acquired 0.2%, while South Korean Kospi stood still.
The evident losses in Chinese stocks arose when the country’s central bank lowered the Yuan to 6.5490 against the greenback, thus marking the currency’s weakest value in the onshore market since February 5. Furthermore, the Yuan, which is allowed to fluctuate in a 2% up and down limit of the country’s central bank’s daily fixing onshore, fell almost 1% against the evergreen buck since mid-February.
By the way, the losses in Shanghai came as the country’s margin loans dropped to their lowest level in a year.