Chinese banknotes are seen at a vendor's cash box at a market in BeijingThe Chinese central bank’s decision to relax its grip on the yuan has been welcomed as a sign of financial liberalization, but it is aggravating concerns among foreign executives and investors about their exposure to China in the near term. The doubling of the trading band from Monday points to much greater downside risk in a currency that many investors have treated as a one-way appreciation bet for years, even when the yuan’s daily trading range was expanded in the past. But it adds to a combination of factors that had already made these investors cautious. The central bank had engineered a slide in the yuan’s value, adding to jitters in a market already anxious over the country’s first default on a domestic bond, and signs of slowing economic growth, highlighted by a dramatic 18 percent fall in exports in February and sluggish manufacturing. “The foreign investors who we spoke with before this announcement were already becoming cautious,” said Brian Ingram, chief investment officer at Ping An Russell Investment Management in Shanghai. “I think this announcement adds to the short-term or near-term bear case for those investors.” MORE