Yuan devaluation hits China stocks

(MENAFN- Saudi Press Agency) Chinese stocks ended mixed on Tuesday as the central bank's surprise decision to allow its currency to fall hit the shares of airlines and importers but boosted exporters as investors bet a weaker yuan would help their competitiveness, Reuters reported.

The People's Bank of China described the near 2 percent devaluation early in the day as a 'one-off', based on a new way of managing the exchange rate that better reflected market forces, but analysts wonder if just the beginning of a longer slide in the yuan's value.

The CSI300 index of the largest listed companies in Shanghai and Shenzhen fell 0.4 percent, to 4,066.67 points, while the Shanghai Composite Index was unchanged at 3,927.91.