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Strategies & Market Trends : HONG KONG -- Ignore unavailable to you. Want to Upgrade?

To: RealMuLan who wrote (1119)	1/18/1998 4:19:00 PM
From: ----------	Respond to of 2951

More on Chinese Currency.... from South China Morning POst... Summers hails Beijing's strong currency stance WANG XIANGWEI and agencies in Beijing The yuan hit a two-year high yesterday after Beijing categorically ruled out a devaluation, a move hailed by visiting top US financial official, Lawrence Summers. Vice-Premier Zhu Rongji pledged on Wednesday Beijing would keep the yuan stable as a contribution to Asian financial stability. The yuan closed at 8.2785 to the US dollar yesterday from 8.2790 on Wednesday. The yuan last reached this level on May 16, 1995 and is its highest close since a 1994 currency realignment took China away from a fixed exchange rate system. US Deputy Treasury Secretary Mr Summers hailed China's commitment not to devalue. "I welcome the Chinese unequivocal commitment to the maintenance of their exchange rate regime and also welcome their recognition it was the most important contribution that China could make to stability in Asia," Mr Summers said after meeting Mr Zhu and other officials. "We agreed the performance of our economies along with the performance of the Japanese economy were profoundly important to the situation in Asia." Mr Summers' visit will be followed by Saturday's arrival of Michel Camdessus, managing director of the International Monetary Fund, highlighting the strength of China's involvement in Asia's financial affairs. Mr Summers arrived in Beijing yesterday morning and was scheduled to leave later in the day. In addition to meeting Mr Zhu, he held talks with People's Bank of China governor Dai Xianglong and Vice-Finance Minister Liu Jibin. He said he held wide-ranging discussions on the Asian financial situation and on Chinese economic policy, following up on talks initiated between US President Bill Clinton and President Jiang Zemin . "I think it was a very good and worthwhile discussion and it very much suggests that as the two presidents wished, our countries are co-operating well on these issues," Mr Summers said. "China, as a major economy in the region, has the potential to be a source of strength as it works to continue to grow, to continue to open its economy and continues to deepen its financial system." He said Chinese leaders agreed countries should pursue sound policies and that bilateral aid should only support IMF assistance. Beijing's pledge was also welcomed by visiting US economics professor Merton Miller, the Xinhua news agency reported yesterday. Mr Miller said he had "full confidence" in the future stability of the yuan and the Hong Kong dollar. He said speculators would retreat as long as Beijing and Hong Kong stood firm.