China's yuan plunges most since 2015

Hong Kong

CHINA'S yuan extended declines, sinking the most since the aftermath of the shock devaluation of the currency in August 2015, after trade figures missed estimates and amid speculation policymakers will step up efforts to rein in gains.

The onshore spot rate weakened 0.7 per cent to 6.3375 against the US dollar as at 12.59pm in Shanghai, after dropping as much as 1 per cent earlier. The currency extended losses after China reported a much narrower trade surplus than expected, on the back of a jump in imports. Volatility surged, and the gap between onshore and offshore rates tripled compared with the same time on Wednesday.