Chinese stocks open lower; Yuan weakens against US dollar

Chinese stocks opened lower on Thursday, with the benchmark Shanghai Composite Index down 0.14 per cent to open at 2,461.78 points. The Shenzhen Component Index opened 0.21 per cent lower at 7,134.15 points, Xinhua news agency reported. Meanwhile, the central parity rate of the Chinese currency renminbi, or the yuan, weakened 149.00 basis points to 6.8631 against the US dollar, according to the China Foreign Exchange Trade System.

In China's spot foreign exchange market, the yuan is allowed to rise or fall by 2 per cent from the central parity rate each trading day. The central parity rate of the yuan against the US dollar is based on a weighted average of prices offered by market makers before the opening of the interbank market each business day.