EconoChina

A blog on Chinese economy & society

China “stress-testing” the impact of RMB revaluation

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A leading financial newspaper in China is reporting that stress-testing the labor-intensive exporters to access the impact of RMB revaluation. The effort is supposed to be conducted via several ministries and is already underway.

The low-end manufacturers like textile exporters already suffered from razor-thin profit margin of 3-5%. It’s estimated that every 1% rise in RMB will wipe out a corresponding percentage point of margin for these manufacturers.

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Written by Cindy Luk

February 26, 2010 at 6:00 pm

Posted in China, Industries & Companies

Tagged with ,

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