BEIJING -- Stocks were mixed overnight in China, as markets in Hong Kong slipped 0.7% to 16,490, while in Shanghai, buyers sent equities higher by 0.7% to 1746.In New York trading Monday, wireless services outfits were in the red again. Linktone ( LTON) lost 12.7% to $4.49 after it said China Mobile's ( CHL) new
When Henry Paulson was sworn in as U.S. Treasury Secretary, Senate Finance Committee member Charles Grassley said he wanted Paulson to "be very, very tough on China's currency issue," Condon observed. Certainly, the yuan has seen some movement recently. UBS economist Jonathan Anderson wrote in a research report that after two months of staying near the 8 yuan to $1 level, China's currency has been closing consistently below that ratio in the past few weeks. On a month-over-month basis, he said the yuan has been strengthening at a 3% annualized pace. Still, he doesn't expect to see another revaluation. At least in the context of the trade surplus, some say U.S. pressure to allow further yuan appreciation is off the mark. Central bank president Zhou Xiaochuan has argued that China's trade surplus owes more to its low-priced labor force, pointing out that many of the exporters within China are in fact foreign companies who've outsourced manufacturing. Amid the chatter about what's in store for the yuan, it's perhaps no surprise that last week a rumor swept through the markets saying the central bank was about to convene an emergency session to talk over new exchange-rate reform policies. However, it never came to pass.