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BEIJING, Aug. 12 (Xinhuanet) -- Export companies will benefit the most. Exporters can profit by settling the payments on spot rate. The yuan's depreciation is inspiring for Chinese exporters as the country saw a nearly 9 percent slump of export growth last month.
At the same time, importers will feel the pinch. This will further extend to individual shoppers buying overseas products on e-commerce platform. Also, the number of outbound tourists are expected to decrease, as tourist agencies will have to push up prices to cover rising costs.
The depreciation of the yuan is likely to pressure China's A share market. More funds will flow out of the stock market due to capital risk flight and in turn further push up the greenback. UBS has pointed out that emerging markets' currency depreciation is usually accompanied with capital outflow and stock price declines.
(Source: CNTV.cn)
