The central parity rate of the yuan against the US dollar stood at 6.5646 on Thursday, 332 points lower than Wednesday, reaching a new low since March, 2011.
The continued depreciation of the yuan in the beginning of 2016 triggered debate among consumers and investors. The depreciation has influenced five groups of people most directly. Let's see if you are one of them.
1 Share holders
The depreciation of yuan usually goes hand in hand with the drop of A-share market. On one hand, the depreciation triggers the local currency asset devaluation which leads to the weakening of financial and real estate industries; On the other hand, once the expectation of the depreciation forms, the outflow of hot money will tighten the mobility of the A-share market.
2 Real estate investors
The past nine years have witnessed the appreciation of yuan as well as the price hike of real estate market in China. Some worry that the depreciation of yuan will cause the pull-out of capitals in real estate, especially the capital that flew from overseas in early years.
3 Overseas students
The depreciation of yuan has left many parents who pay for their children's education abroad worried. Market Analyst suggested that for those who plan to use foreign currencies in the near future make the exchange when the rate is low to avoid the risk.
4 'Hai Tao' shoppers
"Hai Tao" shopping, translated into English means buying overseas goods online, has been a major trend in China. Consumers who shop overseas through the middle buyers can usually get the products 30 percent cheaper than those sold in China. Many middle shoppers have already felt the pinch as fewer Chinese shoppers put in orders now that they have to pay more yuan for the overseas goods.
5 International travelers
Some tourist agencies have raised the price for traveling packages overseas, especially for US, in order to lower the costs. Those who travel to other countries will have to pay more yuan when purchasing products too.
