Rising yuan brings on smiles
Asian property and tourism to gain; China-based shipbuilders could lose out
23 June 2010 | The Straits Times

REGIONAL bourses and certain key sectors are set to reap healthy gains from an expected rise in China’s currency after Beijing indicated it would allow more flexibility for the yuan’s valuation.

Analysts point to a clear precedent in the period 2005 to 2008, when the yuan surged 19 per cent against the greenback as China adopted a managed yuan float.

They have been quick to fire off glowing write-ups on the benefits likely to be reaped by a host of business sectors such as tourism, gaming and property, as the rise in the value of the yuan boosts the mainland’s purchasing power.

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