Business

China has no plan to devalue currency

BEIJING: China has no intention and need to carry out competitive currency devaluations, the head of the country's foreign exchange regulator said.

In a weekend piece in the Chinese magazine Modern Bankers, Mr Pan Gongsheng said the People's Bank of China's supplying of liquidity to the market was to prevent excessive fluctuations of the exchange rate and prevent a "herd effect", to maintain market stability.

"China has no intention of raising competitiveness via currency devaluation. It does not have this wish, and it also does not have this need," Mr Pan, who runs China's State Administration of Foreign Exchange, wrote.

China was working hard to raise the exchange rate's flexibility and to maintain its stability, he added.

The yuan is up just around 0.6 per cent so far this year, after losing nearly 7 per cent last year. - REUTERS

China stresses 'steady' planning

BEIJING: Chinese Vice-Premier Zhang Gaoli has stressed the need for "steady" planning in an ambitious new economic zone the government has touted as a driver of growth in northern China, state news agency Xinhua said yesterday.

The zone, in Hebei province's Xiongan, around 100km south-west of Beijing, will house some of Beijing's relocated "non-capital functions". It is currently 100 sq km in area but will eventually be expanded to 2,000 sq km.

Visiting the Xiongan New Area on Saturday, Mr Zhang said the government should "plan well before taking action and make steady efforts in planning construction", Xinhua reported.

He "stressed tight control of land, property development and neighbouring regions as well as protecting historical and cultural heritage and the ecological environment", the report added. - REUTERS

ChinaCurrenciesstock market