China Must Beware of Excessive Yuan Gain: Former  Official

China must ensure that the yuan's appreciation shouldn't deviate from its economic fundamentals and that the currency's one-way movement won't damage the economy, wrote Guan Tao, chief economist of Bank of China International and a former forex regulatory official in a blog post by Tencent News. Recently, the large-scale capital inflow has fueled the excessive appreciation of the yuan and affected economic and financial stability, and a possible reversal of capital flow may follow if the Chinese economy enters a slowdown, said Guan, noting that the country should balance economic development and security. The volatile appreciation of the yuan has lasted for a year with both the central parity rate and closing price of the yuan rising about 12%, Guan added.