The index of the Shanghai stock exchange fell by 5.33%, the Shenzhen exchange index fell by 6.6%. This happened on the background of weakening of the yuan to the dollar in the first week of 2016, more than 1.5%.
MOSCOW, 11 Jan. Chinese stocks collapsed on the auction Monday amid growing investor concerns over the state of the economy, according to AFP.
At the end of trading the index of Shanghai stock exchange Shanghai Composite fell by 5.33% to 3016,7 points, the index of Shenzhen stock exchange Shenzhen Composite index fell by 6.6% to 1848,1 item. As at 10.25 Moscow time Hong Kong Hang Seng Index fell by 2.36% to 19975,67 item.
Investors ‘ concerns over China’s economy intensified after the people’s Bank of China weakened the yuan to the dollar in the first week of 2016, more than 1.5%. This was the largest change in the rate of the national currency of the PRC from August 2015, when the devaluation of the yuan the strongest effect on global stock markets. However, on Friday, January 8, Chinese Central Bank raised the yuan exchange rate against the dollar to 6,5636 with 6,5646 yuan a day earlier. On Monday, the regulator continued strengthening of the yuan, setting the rate at around 6,5626 yuan per dollar.
However, market participants fear that China would continue the devaluation of the national currency, trying to support exporters and to remain competitive in the regional market. This will be another indicator that the Chinese economy continues to slow.