The RMB will remain stable until end 2008 said China's Commerce Minister, Chen Deming.
CURRENCY APPRECIATION of the Rmb against the USD appears to have halted in the past two months, breaking the dollar's steady downtrend in over 3 years.
“The Rmb is most likely to remain stable for the rest of the year,'' China’s Commerce Minister Chen Deming said last week.
The dollar hit a low at about Rmb 6.80 on 16 July 2008, 3 years after China threw out the USD peg for a managed floating exchange rate regime on 21 July 2005.
”A stable Rmb is positive for the world's economy and good for regional stability,” he said.
Forex traders believe that the Chinese government will slow the Rmb's appreciation against the US dollar to rein in the eroding value of revenues and slowing demand faced by China's exporters.
The Rmb will appreciate by about 5.5% a year over the next two years, according to estimates by the Economist Intelligence Unit.
We screened for S-chips with little or no exposure to the Rmb's appreciation against the US dollar. A selection presented here have a foothold in their niche sectors and conduct business primarily in China.
| Major Players with Little or No Export | Revenue (S$) | Market Cap | P/E | DividendYield (%) | P/B |
| CHINA HONGXING | $405,289,707 | $838,200,000 | 7.73 | 2.246 | 1.1 |
| HSU FU CHI | $669,321,705 | $826,800,000 | 11.49 | 3.005 | 1.83 |
| EPURE | $138,124,983 | $619,200,000 | 15.56 | 1.389 | 2.51 |
| CHINA XLX FERTILISER | $305,315,310 | $435,000,000 | 2.71 | 3.218 | 1.64 |
| CELESTIAL NUTRIFOOD | $356,464,901 | $423,254,784 | 4.33 | 3.008 | 1.08 |
| CHINA SKY CHEMICAL | $453,203,564 | $382,851,008 | 2.62 | 4.255 | 0.63 |
| CHINA ZAINO INTL | $300,766,953 | $311,849,984 | 4.89 | 20% payout | 4.16 |
| BIO-TREAT TECH | $277,315,248 | $138,155,200 | 5.27 | 4.774 | 0.31 |
| CHINA TAISAN | $160,611,703 | $134,545,504 | 2.68 | 30% payout | 1.92 |
| FUXING | $175,086,937 | $100,000,000 | 2 | 11.16 | 0.52 |
