Hong Kong may be hit by yuan's fall
香港受人民幣貶值沖擊

Hong Kong's economy is widely exposed to the changes on the mainland. Retailers and tourism services providers are feeling the pinch of a cheaper yuan.

Analysts also expect less mainland capital going into Hong Kong property.

One analyst forecast there will be less than 4 percent of property transactions done by mainlanders in the third quarter, after climbing to 4.4 percent in the second quarter.

However, Hong Kong bourse chief Charles Li says the yuan's correction bodes well for the local stock market in the long run.

Experts expect further drops of yuan against the Hong Kong dollar as the Hong Kong currency is pegged with the US dollar which has an appreciation bias.