RMB Exchange Rate Reform Is Innovating High &Nbsp; Small Export Enterprises Are Affected.

The continuous appreciation of RMB at the end of 2010

Last Wednesday, European and American stock markets went up all the way, the market risk preference improved, and the US dollar weakened.

The central parity of the RMB against the US dollar continued to rise in the near future, and the highest level since the exchange reform was set on Thursday. The cumulative increase in the 8 trading dates reached 394 basis points.

China's high trade surplus also makes the RMB strong, and the US pressure on RMB appreciation is expected to increase.

However, at the signing ceremony of the "China SME listing research and training center" held in Guangzhou, Li Lianzhong, director of the Economic Bureau of the Central Policy Research Office of the CPC Central Committee, said that the appreciation and depreciation of the RMB would not be shifted by American consciousness, but rather by objective law.

Some analysts expect that the RMB will continue to appreciate 5% against the US dollar this year. This undoubtedly adds to the worsening of our labor-intensive enterprises with relatively low profit margins.

Liu Dexue, director of the Department of international trade, School of economics, Jinan University, told reporters that the appreciation of the renminbi would have a greater impact on next year's exports, especially for small businesses.

Small businesses have a thin profit margin and no perfect foreign exchange risk prevention system will be hit harder.

However, Liu Dexue believes that the renminbi is only appreciating against the US dollar and will not be appreciating against other currencies.

In addition, China's export tax rebate policy still has some regulatory space.