You are here
Shanghai, Hong Kong: Most Chinese stocks decline after PBOC weakens yuan fixing
[HONG KONG] Most Chinese stocks fell after the nation's central bank weakened the yuan's reference rate by the most since January and declining energy prices dragged down commodity producers.
The Shanghai Composite Index declined 0.3 per cent. The People's Bank of China cut the fixing, which restricts onshore moves to 2 per cent on either side, by 0.26 per cent to 6.5079 a US dollar. Gauges of energy and materials producers slid more than 0.4 per cent, while technology shares climbed.
Concern that a weakening currency will spur capital outflows has helped drag down the Shanghai index 19 per cent this year, the most among global peers.
The Chinese currency has returned to a more "normal, rational and fundamentals-driven" trend, and the nation doesn't need to use the foreign-exchange policy to boost trade, PBOC governor Zhou Xiaochuan told reporters on Saturday.
The Hang Seng China Enterprises Index retreated 0.6 per cent in Hong Kong at 9:37 am, while the Hang Seng Index fell 0.7 per cent.