Weakened yuan turns up pressure

Onshore investors have been on edge over recent days thanks to signs of weakness in the yuan. With international and domestic factors weighing on the currency's value, a depreciating renminbi could further depress China's already sluggish economy.

While the yuan's slide is expected to continue, the profile of the US dollar has steadily strengthened. The greenback continues to appreciate against many other currencies, cementing its status as a safe haven.

Meanwhile, signs of monetary policy indecision on the part of the European Central Bank have also exerted pressure on the renminbi.

In certain respects, a devaluated currency can have its benefits. For example, a cheaper yuan would make Chinese-manufactured goods more competitive to foreign buyers. Many foreign trade and export companies have been buoyed recently thanks to trends in the currency market.

The real question though is whether unilateral appreciation of the yuan has already diminished the competitiveness of Chinese industry as a whole.

Overall, the currency market should focus on its own development and the protection of profits and revenue.