Equities may shake off yuan depreciation

Recovery appears possible as currency seen stabilizing at a reasonable level to the US dollar

Although a depreciating yuan has taken a toll on the Chinese A-share market over the past two weeks, a recovery appears possible as the local currency is expected to stabilize at a reasonable level to the US dollar soon, market insiders said.

The central parity rate of the renminbi weakened 340 basis points to 6.6497 against the dollar on Tuesday, hitting a new low since August 25, 2017. The currency closed at 6.6336 on Friday.