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The Coming Exhibitions Fashion Access HongKong Fair Dates:Oct.3rd-5th,2007 Location:HongKong Convention and Exhibition Center Canton Autumn Fair 2007,China Dates:Oct.25th-30th,2007

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Canton Fair

China Import and Export Fair, also called Canton Fair, is held twice a year in Spring and Autumn since it was inaugurated in the Spring of 1957. It is China\'s largest trade fair of the highest level, of the most complete varieties and of the largest attendance and business turnover.

China needs to allow yuan to appreciate faster - S

BEIJING, Mar 20, 2008 (XFN-ASIA via COMTEX) -- NO MATCHES FOUND. | news | PowerRating | PR Charts -- China needs to allow its currency to appreciate more quickly for its inflation fighting efforts to have any impact in an environment where the dollar continues to fall, Standard Chartered said. Faced with inflationary pressure, Beijing is likely to allow the currency to rise by 15 pct against the US dollar this year, and a further seven pct in 2009, it said. The revision to Standard Chartered's previous forecast for a nine pct rise this year, puts the yuan at 6.35 to the dollar by the end of 2008, and at 5.90 by the end of 2009. "We realize that this is more aggressive than current market expectations and marks a significant and important change from our previous view," Standard Chartered economist Stephen Green said. "However, given the moves seen in the past few days, the acceleration of dollar declines and inflationary pressures in China, we think Chinese policymakers will come to the view that this kind of adjustment is needed," he said. Green noted that the dollar's deterioration is likely to continue, which is significant for China as Beijing's currency policy seems to target a path of gradual appreciation against the US currency. "A moderate appreciation against a depreciating currency is not an appreciation - it is a depreciation," Green said, adding that the yuan's effective exchange rate barely moved in February and it has lost nearly one pct so far in March. Despite a 3.2 pct appreciation against the dollar so far this year, the yuan has depreciated by 3.2 pct against the euro and 9.4 pct against the yen, he said. China's undervalued currency has generated surplus liquidity, which has added to inflationary pressure. The government's key policy goal at present is to combat inflation, but the pace of yuan appreciation has not been fast enough to deal with the issue. "The speed of yuan appreciation against the dollar did accelerate since November in an apparent attempt to solve this (inflation). The problem ... is that this policy is in clear danger of not working; the yuan is not really appreciating," Green said. "To get the yuan to actually appreciate, it now needs to move more against the weaker dollar," he said. Allowing the currency to appreciate more rapidly would also lower the cost of oil, soya and iron ore in yuan terms. "We are not naive enough to believe that a 15 pct appreciation will solve imported inflation - but the faster the yuan rises the better. A quicker appreciation also moves China closer to the day when it becomes economical to import global corn, wheat and rice," Green said. Green noted that officials in Beijing are concerned about the impact a faster appreciation will have on Chinese exporters. But he said, regardless of how much the yuan appreciates against the dollar, there will be very limited demand anyway from US consumers hit by the credit squeeze. The focus should instead be on Europe, which bought 27 pct of China's goods last year and was responsible for 31 pct of the growth in exports. The US only purchased 22 pct of China's goods last year, contributing to 13 pct of the increase in exports. "Look more to Europe, now China's biggest export destination, where sales are still growing at 25 pct year-on-year. The issue here is the yuan is already down 4.9 pct versus the euro this year.