Yuan Gives Up Gains, Stocks Slide as China Pushes for Stability

Central bank calls on lenders to prevent ‘herd behavior’
Weaker economy main reason for rout in equities: China Vision

UBS’ Donna Kwok talks about the U.S.-China trade spat and the implications for the world’s second-largest economy.(Source: Bloomberg)

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By Tian Chen and Jeanny Yu

August 8, 2018 at 1:49 AM UTC

Updated on

August 8, 2018 at 9:22 AM UTC

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China’s yuan edged lower, wiping out earlier gains after the central bank was said to have met lenders to encourage currency stability, while mainland stocks fell following their best day in more than two years.

The yuan fell 0.14 percent at 6.8372 per dollar as of 5:07 p.m., erasing an early morning gain of 0.48 percent, and the offshore-traded currency slipped 0.32 percent. The Shanghai Composite Index closed down 1.3 percent, stripping back Tuesday’s 2.7 percent rally, while Hong Kong’s Hang Seng Index added 0.4 percent. The yield on 10-year government bonds rose three basis points to 3.53 percent, though it remains near its lowest in a year.