The US market has gone up for the past (few) consecutive trading days and should provide further momentum for local shares to trade higher. There are no local news (leads) that may dampen trading mood. The focus will remain on H shares because of the yuan, with second-liners also drawing some attention from investors.
Quotes about yuan (16 Quotes)
If China wants to fend off political pressure, it would have to say it wants a more significant yuan appreciation.
Margins in China are razor thin and they may not be able to withstand much yuan appreciation. The export sector is vulnerable and the government is going to be very cautious in what it does and that's the message.
The market may see this as just rhetoric, and it shows they're not leaving China with any agreement to strengthen the yuan. The yen is most sensitive to changes in expectations on the yuan.
A stronger yuan could lead to greater Chinese asset accumulation in the U.S. and elsewhere.
If the US dollar remains firm, then flows looking for an appreciation of the yuan will remain at their 2005 levels or lower and we're forecasting a more or less unchanged trade surplus.
If more and more enterprises and industries sell their U. S. dollars or foreign exchange maybe the yuan will have appreciation pressure. We don't want these kinds of capital flows to have a very strong impact on the economic growth trend.
A 30 percent appreciation of the yuan over the next year could be a destabilizing blow to their economy. That could lead to political upheaval. I don't know if at the end of the day you want that. And whether it's Wal-Mart or old line U. S. manufacturers or Silicon Valley, there are a lot of U. S. businesses that depend on low-priced Chinese inputs.
As for when to reform the yuan, there is no timetable yet.
This will definitely add to pressure, especially from lawmakers in the U. S. for further appreciation of the yuan.
The consistently elevated level of trade surplus continues to put pressure on officials to allow further yuan appreciation.
We will not reform the yuan until the time is right even if there is external pressure.
That argues for sustained yuan appreciation in the coming months, irrespective of dollar moves.
As Chinese policy makers get more confident about the sustainability of the economy's strong growth pace, political acceptance for yuan gains will also rise.
The Europeans are concerned that should China allow more appreciation in the yuan that we could see an acceleration of dollar weakness, and that could spill over into major markets, and we could see European currencies strengthening.
China's trade surplus has become a structural feature of the economy, so while political pressure may grow, the economic argument for a stronger yuan is weak,