China shares open down 0.5pc after yuan band widened

SHANGHAI: China shares opened down 0.5 percent on Monday, after the central bank widened the yuan's trading band over the weekend.  

The Shanghai Composite Index opened at 2,346.3 points, after rising 2.3 percent over the week last week.

China took a milestone step in turning the yuan into a global currency on Saturday by doubling the size of its trading band against the dollar, pushing through a crucial reform that further liberalises its nascent financial markets.

The People's Bank of China said it would allow the yuan to rise or fall 1 percent from its mid-point, or daily fixing, every day, effective Monday, compared with its previous 0.5 percent limit.