With the weaker yuan since its depreciation 12 months ago, China’s imports have fallen 9 per cent year-on-year to US$132.28 billion for June.
Since Beijing’s one-off 1.9 per cent devaluation of the currency on August 11 last year, the yuan has slid more than 7 per cent against the US dollar..
As a result, many consumers have turned to buying luxury goods through eCommerce platforms instead of going to the expense of travelling overseas to make purchases. This move has also hurt luxury goods importers and retailers.
The weak yuan means all imported goods are more expensive than they were a year earlier, which has been hard on companies that import goods to sell in China, according to VC Brokerage director Louis Tse Ming-kwong.