Yuan’s US dollar peg to stay despite speculation

“At the moment, China doesn’t have the kinds of conditions for the currency to appreciate,” said George Lung, greater China economist at HSBC in Hong Kong. “We think China still has a certain degree of deflation and the export is the only support for the growth of the economy at the moment. Domestic demand is not really that strong, so if there is any appreciation in the yuan then maybe it will hurt exports.”

Pieter van der Schaft, director of economic research at Barclays Capital in Hong Kong,