Shanghai and Shenzhen-traded shares linking to aviation and airport sectors plunged remarkably since the opening of the afternoon session on Tuesday as sharp fall of China's yuan is expected to incur exchange loss for these companies.
The index tracking the aviation transport block declined 4.96 percent till market close on Tuesday. The central parity rate of the RMB, or the yuan, saw a record intraday decline of over 1,000 points to 6.2298 against the U.S. dollar on Tuesday as compared to 6.1162 on Monday following decision of the People's Bank of China (PBOC), the central bank, to improve its "central parity system" effective from Tuesday to better reflect market development in the exchange rate between the Chinese yuan against the U.S. dollar.
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