Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: RealMuLan who wrote (36393)	7/22/2003 1:42:26 PM
From: RealMuLan	Read Replies (1) \| Respond to of 74559

No-shows marr ASEM meeting bday.co.za DALIAN - A meeting of Asian and European economic ministers, meant to be China's first high-profile post-Sars event, is likely to be marred by European no-shows and a Chinese reluctance to touch the hot issue of the yuan. The question of whether the Chinese currency is undervalued is expected to be on many participants' minds during the fifth Asia Europe Meeting (ASEM) of economic ministers in the northeastern port city of Dalian this week. Even so, when Chinese Commerce Minister Lu Fuyuan addressed senior Asian and European officials Tuesday, he failed to mention the yuan or the fact its peg to the US dollar has allowed it to fall against major currencies recently. ...

To: RealMuLan who wrote (36393)	7/22/2003 2:04:32 PM
From: energyplay	Read Replies (3) \| Respond to of 74559

An increase in the value of the Yuan will reduce the cost of those imports. For comapnies selling to the expanding domestic market , this wold help profits. For exporters, the effects will vary, depending on percent of interanl and external content. Note that since China is generally the lowest cost producer, and the most price competition comes from other Chinese factories, it is likely that Chinese exporters have much more room to raise prices than would be expected. A higher Yuan would also tend to raise prices of raw materials worldwide. It would also increase capital equipment imports to China, and thus reduce some of the trade imbalances.