Economics
Yuan Drops to Four-Year Low as Share Slump Spurs Outflow Concern
- Report showed industrial profits remain in contraction
- Economic activity to improve as stimulus kicks in: Goldman
This article is for subscribers only.
The yuan closed at a four-year low after a slump in Chinese equities reignited concern capital will flow out when the economy is still showing few signs of a solid recovery.
The Shanghai Composite Index fell 2.6 percent in its biggest loss since Nov. 27 as emerging-market stocks halted a two-week rally. China recommenced initial public share offerings this month after banning new sales in June amid a rout that wiped $5 trillion from the value of local equities. A report over the weekend showed that while a contraction in industrial profits slowed, they have fallen for six straight months.