China stocks depress by yuan fall, soft economic data

Mainland China's stock market ended lower in volatile trade on Wednesday, 12 August 2015, on the back of weaker than expected industrial output data and as the central bank's continued devaluing the national currency for second straight day. All 10 SSE sectors fell below neutral line, with shares of technology, healthcare, financial, resources and retailers being major losers. The benchmark Shanghai Composite Index tumbled 1.06%, or 41.59 points, to end at 3886.32 points. The Shenzhen Composite Index, which tracks stocks on China's second exchange, lost 1.54%, or 35.09 points, to 2249.18 points. Total volume of A shares traded in Shanghai was 44.26 billion shares, while Shenzhen volume was 28.51 billion shares.

China's central bank continued devaluing the national currency, the yuan, for second straight day on Wednesday, 12 August 2015, after reforming the exchange rate formation system to better reflect the market. The central parity rate of renminbi, or yuan, weakened 1.6% to 6.3306 against the US dollar, narrowing from Tuesday's 1.9%, according to the China Foreign Exchange Trading System.

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