8 groups yuan depreciation will impact most
Updated: 2015-08-13 06:32
By Sun Chengdong(chinadaily.com.cn)
The yuan central parity rate announced by the China Foreign Exchange Trading System (CFETS) stood at 6.2298 against the greenback on Tuesday compared to 6.1162 on August 11th, down nearly 2 percent, the lowest level since April, 2013.
It was a step toward internationalizing the yuan. The People's Bank of China said that it will base the yuan-dollar exchange rate more on the previous day's closing rate at the interbank foreign exchange market.
The impact of the yuan's devaluation has yet to affect the day-to-day life of ordinary people, but the following groups will experience firsthand the good and bad effects of the yuan devaluation.
No 8 Stock investors
As yuan devaluates the stock market may also take a downward turn. The devaluation will cause depreciation of yuan-based assets, and financial and property stocks will suffer. Furthermore, the expectation of long-term depreciation of yuan will lead to outflow of hot money, which may tighten liquidity and drag down the index.
Investors look downcast at a brokerage house in Fuyang city, East China's Anhui province, July 28, 2015. [Photo/IC]