The Chinese yuan's central parity rate against the green back has fallen 4.6 percent over the last four days, and China's export-oriented companies are set to be the biggest winners.
Some of the many factories flooding Western markets with "Made in China" products said they will benefit from the depreciation although the boon may be temporary, while others fear rising import costs could offset the benefit, reports Xinhua news agency.
Xu Jianping, head of textile company Zhongxiang in east China's Zhejiang province, called the weakening yuan "a big bonus".
The profits of his company, which sells a huge amount of cloth and garments overseas, will rise by 100 yuan (about $15.6) for every basis point the yuan's exchange rate drops, according to Xu.
"The average margin rate in China's textile industry is as low as around 5 percent. Every penny in profit increase will be helpful," he said.
Cost-sensitive textile products take up a major portion of China's exports.
History shows that if the yuan depreciates by 1 percent against the US dollar, the average margin rate in the industry will increase by two to 6 percent.
"The cheaper yuan means our products are cheaper. Our competitiveness is rising," said Wang Li, in charge of customs affairs for Shandong-based Luthai Textile Co Ltd.
"We are trying to take advantage of the depreciation and seek a stronger footing overseas," she added.
"The weaker yuan will have positive effects on machinery makers as well," said Tang Yongping, general manager of Bracalente Manufacturing Group's (BMG) China subsidiary.
The yuan was mildly appreciating when Tang joined BMG in 2006. A strong yuan added pressure to Chinese manufacturers already suffering from rising labour costs.
"To some extent, the ongoing depreciation will help reduce the financial burden," said Tang.
China overhauled its exchange rate formation mechanism this week, shortly after the world's largest goods trader reported an 8.9-percent slump in exports in July.
While export-oriented companies hailed the depreciation, those relying heavily on imported raw materials are concerned the cheaper yuan will increase their production costs.
"We have not yet felt the pinch because we are using oil storage," said Zhao Huili, trade manager of Shandong-based refiner Luqing Petrochemical Co Ltd.
"But we reckon the price of imported crude oil denominated in the US dollar will rise" and tariffs will increase accordingly, said Zhao.
China's imports also fell by 8.6 percent in July. Total foreign trade dropped 7.3 percent in the first seven months, while the country's annual growth target for 2015 is around 6 percent.
Liu Sai, a customs officer in Shandong's Jinan city, said the current fluctuation in the yuan's value will reassure trading companies and advised them to arrange production to extend gains and avoid losses.
"What really matters now is how long this round of depreciation will last and how much the yuan will fall," said Tang Yongping.
Zhang Xiaohui, assistant governor of China's central bank, said the value of the yuan has gradually returned to market levels as the discrepancy between the central parity rate and the actual trading rate had been largely corrected after declines early this week.
"There are no grounds for persistent and substantial depreciation as sound economic fundamentals determine that the yuan will re-enter a rising streak," said Zhang.
