Chinese Yuan Getting Weak Sends Good News to 5 Major Industries

The exchange rate of Chinese Yuan did not remain stable just before the opening of “The People’s Congress” and “Chinese Political Consultative Conference,” which was rarely seen. During half the month, it depreciated by nearly 1.6%. Since mid-February, the exchange rate of Chinese Yuan has turned down to depreciation from appreciation. Within 10 days after Feb. 17, the immediate exchange rate for Chinese Yuan to US Dollar depreciated by nearly 1,000 basic points. On Feb. 28, the immediate exchange rate for Chinese Yuan to US Dollar was 6.1451:1, the largest downfall since the exchange reform of 2005.

Last year the appreciation of Chinese Yuan caused great impact on industries for exports, diminishing the international competitiveness. If the exchange rate gets weak this year, 5 major industries including clothing, steel, shipment, chemical engineering, and automobiles will be benefited. The analyst of Mysteel Research Institute Mr. Jei Shen Tzeng said that the depreciation of Chinese Yuan can cause indirect impact on the industries of machines and home appliances. When the exports of products in these industries increase, they will perhaps boost the development of the Chinese steel market.