RMB appreciation impacts exports

The Chinese currency continues to climb against the US dollar. The yuan-dollar midpoint is set at 6.1811 on Monday, 56 points down from the previous session.

So far this year, the currency has gained 1.5 percent against the US dollar, beating last years entire increase. Analysts warn that the appreciation would take a huge impact China's exports.

The yuan's appreciation continues, reaching record highs for the 15th time since April.

Analysts say the yuan's appreciation is due to the capital inflow and the acceleration of China's economic growth.

Xu Guoxiang, Director of Shanghai university of finance & economics, said, "On one hand, the market is highly expected for yuan appreciation. On the other hand, some countries has implemented monetary easing policies pushing their currencies depreciated, such as Japan. And it also contributes to yuan's appreciation."

Besides, a flood of hot money into China also boosted yuan's appreciation. Experts warn that the hot money may distort China's export figures.

Xu said, "All in all, yuan's appreciation would take severe harm to China's export-oriented industries, such as cotton spinning industry and textiles, as their gains are small."

Experts point out that the yuan's appreciation will also lower the cost of imports and will benefit foreign trade growth.