A study of how mainland China’s export sector would be affected by an appreciation of the yuan has revealed that Hong Kong exporters fear that a stronger currency will jeopardise their recovery.
The Ministry of Commerce and Ministry of Industry and Information Technology recently conducted a so-called stress test. It asked labour-intensive exporters in the textile, garment, toy and shoe industries how a stronger yuan would affect their profits, according to the 21st Century Business Herald, an official newspaper. Exporters were also asked about their ability to pass on the financial impact to their customers.
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