Chinese transportation stocks fell apart in September, led by airliners. China Southern Airlines (HKG:1055) tumbled 28.8% before making a significant comeback. Shares of China eastern Airlines (HKG:0670) fell just as hard but the recovery hasn't been as strong just yet.
While a technical correction was timely and just, investors have not to forget what the Central Bank of China did yesterday. They set an exchange rate for the Yuan above 6.3479 vs. the greenback, a new low for the US dollar. This is what we had to say following the news yesterday: Ramifications of a Stronger Yuan