The benchmark DAX index at Frankfurt Stock Exchange on Wednesday fell significantly by 369.04 points and closed at 10,924.61 points.

China's currency continues to fall in value on Wednesday following the central bank's decision to improve its "central parity system" to better reflect market development in the exchange rate between the Chinese yuan, or renminbi, against the U.S. dollar. The blue-chip index opened 1.3 percent lower and eventually lost 3.27 percent.

The slump left all the 30 DAX member shares in the red. The utilities company E.ON SE dropped by the smallest margin. It slipped by 0.34 percent.

Henkel AG & Co. KGaA Vz, a laundry and home care company, slumped by 8.97 percent. Daimler AG fell by 4.87 percent. Continental AG dropped by 4.69 percent. ThyssenKrupp AG slid by 4.65 percent and Beiersdorf Aktiengesellschaft, a personal care company, went down by 4.63 percent.

The turnover stood at 5.48 billion euros (around 6.13 billion U.S. dollars). Daimler AG was the most traded share of the day with a turnover of 655.43 million euros. (1 euro = 1.12 U.S. dollars).