LexisNexis(TM) Academic - Document
LexisNexis(TM) Academic - Document
Copyright 2005 Nationwide News Pty Limited
The Australian
March 15, 2005 Tuesday All-round Country Edition
SECTION: FINANCE; Marketplace; Pg. 27
LENGTH: 425 words
HEADLINE: China resists yuan revaluation
SOURCE: MATP
BYLINE: Catherine Armitage China correspondent
BODY:
CHINESE Premier Wen Jiabao has ruled out an imminent revaluation of the yuan but said further reform of China's exchange rate mechanism "may come unexpectedly".
He said China would "strengthen and improve" macro-economic policy measures to stabilise growth, while also acknowledging China's unruly and plunging stock market was of particular concern.
In his annual press conference at the Great Hall of the People yesterday, Premier Wen warned that a revaluation of the renminbi -- from a current peg of 8.3 to the US dollar that critics claim artificially helps Chinese exports -- could have a negative effect on Chinese companies, neighbouring countries and "even the world".
He criticised those urging revaluation of the renminbi, saying they had "not given much thought to the problems that will arise thereafter".
While work on exchange rate reform was "in progress", the necessary pre-conditions for reform were macro-economic stability and growth and "a healthy financial situation". Although much progress had been made, the "road ahead could be rather rocky".
Premier Wen said financial reform was a "critical and often problematic aspect of the economy".
Premier Wen said this year would be "the year we are going to fight the toughest battle in the reform process".
Although policy measures to cool overheated parts of the economy had been largely successful, "we must not slacken our efforts in the slightest".
"The situation China is facing now is like going upstream. If we don't simply forge ahead, we will fall back."
The Premier cited specific problems in the economy, including soaring prices for capital goods, low farm incomes and an "overstretched supply chain" in raw materials such as coal, electricity and oil.
"Our top priority is to further strengthen and improve macro-control measures to achieve fairly stable and fairly rapid economic growth."
Premier Wen said the Government would use market-based and administrative measures to achieve its goals. He listed restructuring and transforming the functions of government among the highest priorities, which also included state enterprise reform focusing on corporate governance and the shareholding system, as well as financial, rural and social security reforms.
He said China was "not knowledgeable or experienced enough" in running a securities market. He promised the government would "take measures to strengthen its work in this respect" by improving the quality of listed companies and tightening market oversight to stamp out financial fraud.
LOAD-DATE: March 14, 2005
Copyright 2005 Nationwide News Pty Limited
The Australian
March 15, 2005 Tuesday All-round Country Edition
SECTION: FINANCE; Marketplace; Pg. 27
LENGTH: 425 words
HEADLINE: China resists yuan revaluation
SOURCE: MATP
BYLINE: Catherine Armitage China correspondent
BODY:
CHINESE Premier Wen Jiabao has ruled out an imminent revaluation of the yuan but said further reform of China's exchange rate mechanism "may come unexpectedly".
He said China would "strengthen and improve" macro-economic policy measures to stabilise growth, while also acknowledging China's unruly and plunging stock market was of particular concern.
In his annual press conference at the Great Hall of the People yesterday, Premier Wen warned that a revaluation of the renminbi -- from a current peg of 8.3 to the US dollar that critics claim artificially helps Chinese exports -- could have a negative effect on Chinese companies, neighbouring countries and "even the world".
He criticised those urging revaluation of the renminbi, saying they had "not given much thought to the problems that will arise thereafter".
While work on exchange rate reform was "in progress", the necessary pre-conditions for reform were macro-economic stability and growth and "a healthy financial situation". Although much progress had been made, the "road ahead could be rather rocky".
Premier Wen said financial reform was a "critical and often problematic aspect of the economy".
Premier Wen said this year would be "the year we are going to fight the toughest battle in the reform process".
Although policy measures to cool overheated parts of the economy had been largely successful, "we must not slacken our efforts in the slightest".
"The situation China is facing now is like going upstream. If we don't simply forge ahead, we will fall back."
The Premier cited specific problems in the economy, including soaring prices for capital goods, low farm incomes and an "overstretched supply chain" in raw materials such as coal, electricity and oil.
"Our top priority is to further strengthen and improve macro-control measures to achieve fairly stable and fairly rapid economic growth."
Premier Wen said the Government would use market-based and administrative measures to achieve its goals. He listed restructuring and transforming the functions of government among the highest priorities, which also included state enterprise reform focusing on corporate governance and the shareholding system, as well as financial, rural and social security reforms.
He said China was "not knowledgeable or experienced enough" in running a securities market. He promised the government would "take measures to strengthen its work in this respect" by improving the quality of listed companies and tightening market oversight to stamp out financial fraud.
LOAD-DATE: March 14, 2005
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