Gloria Yu’s bicycle export firm incurred heavy losses earlier this year due to
rapid yuan appreciation and is now seeking better dollar risk management. At the
Canton Fair in Guangzhou, exporters indicated plans to sell dollars on rallies,
expecting further yuan strength. Despite Middle East tensions, China’s markets
remain resilient, with the yuan near a three-year high. The central bank is
balancing currency strength with exporter pressures, as rapid appreciation
squeezes smaller firms lacking hedging capacity.
