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Yuan’s Quick Appreciation May Hurt China Manufacturing: Herald

CHINA PRESS

The yuan's recent surge may attract capital inflow and encourage speculative trading which can hurt industry development and economic growth in the long term, the 21st Century Business Herald commented. The healthy growth of the manufacturing industry depends on stable exchange rates and costs, while excess liquidity and capital inflow create inflation risks and fan asset prices, wrote the newspaper. Policymakers should beware of a stronger yuan's impact on the competitiveness of Chinese goods given that businesses already face rising raw material costs, the newspaper said.

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