Chinese stocks plunged today as the yuan weakened against the dollar. The Shanghai Composite Index closed down over 6 percent in its biggest daily decline in over three weeks, snapping a three-day winning streak.

The CSI300 index also fell more than 6 percent on the day. The yuan fell against the dollar on Tuesday despite a slightly stronger midpoint set by the central bank. Traders expect the currency to remain under pressure as the economy struggles.

China's securities regulator said last Friday that the government will allow market forces to play a bigger role in determining stock prices.

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