In its latest move to boost slowing economic growth, the PBOC has devalued the yuan, while insisting it’s a one-time move. The yuan/dollar ratio is currently at 6.33, down from 6.21 yesterday.

BABA Aug 11 2015A number of Chinese Internet stocks that record the lion’s share of their revenue in yuan are seeing their U.S. shares (denominated in dollars, of course) underperform (CQQQ -3.4%) amid a 1.3% drop for the Nasdaq.  Major decliners include Baidu (BIDU -3.8%), Qunar (QUNR -10.2%), Ctrip (CTRP -5.9%), JD.com (JD -5.8%), Sina (SINA -5%), NetEase (NTES -3.9%), Jumei (JMEI -10.7%), Youku (YOKU -6.2%), Bitauto (BITA -6.4%), Leju (LEJU -6%), Changyou (CYOU-7.7%), and Autohome (ATHM -5.3%).

Bidu Aug 11 2015The People’s Bank of China (PBOC) called it a “one-off depreciation”, but economists disagreed over the significance of a move that reversed a previous strong-yuan policy that aimed to boost domestic consumption and outward investment.

Source:  Seeking Alpha / Reuters