Bloomberg
China Risks Missing ‘Window’ of Yuan Gains in 2010, HSBC Says
April 13, 2010, 7:54 AM EDT
April 13 (Bloomberg) -- The Yuan may not rise in 2010 if it doesn’t show “noticeable” gains by July as external political pressure and weakening Chinese economic data sway policymakers from acting, according to HSBC Holdings Plc.
“If the RMB does not show noticeable appreciation in Q2 then the political and economic cycles could make it difficult for it to occur at all in 2010,” a team including David Bloom in London wrote in a report sent to Bloomberg today.
“The perception that offshore commentators are seeking to pressure China on the currency appears to have hardened resolve onshore,” they wrote. “Despite the apparent haste to tighten over the early months of the year, internal views on the domestic economy also appear to be relatively sanguine. The window for RMB appreciation in 2010 would appear to be narrowing.”
China Risks Missing ‘Window’ of Yuan Gains in 2010, HSBC Says
April 13, 2010, 7:54 AM EDT
April 13 (Bloomberg) -- The Yuan may not rise in 2010 if it doesn’t show “noticeable” gains by July as external political pressure and weakening Chinese economic data sway policymakers from acting, according to HSBC Holdings Plc.
“If the RMB does not show noticeable appreciation in Q2 then the political and economic cycles could make it difficult for it to occur at all in 2010,” a team including David Bloom in London wrote in a report sent to Bloomberg today.
“The perception that offshore commentators are seeking to pressure China on the currency appears to have hardened resolve onshore,” they wrote. “Despite the apparent haste to tighten over the early months of the year, internal views on the domestic economy also appear to be relatively sanguine. The window for RMB appreciation in 2010 would appear to be narrowing.”