Exports seen as best hedge against yuan

PUBLISHED : Wednesday, 16 June, 1993, 12:00am
UPDATED : Wednesday, 16 June, 1993, 12:00am

FOREIGN investors should establish export-oriented ventures in China to hedge against the sliding yuan, according to a management consultant.

Speaking to members of the Institute of Directors, Yeung Kwok-ki said businessmen should seek openings for exports of quality China-made products, instead of relying on the huge internal market.

''They should stop seeing China as a cheap-labour country because it is changing fast and moving towards financially motivated labour,'' he said.

In choosing locations, investors with technological ventures in mind should consider research and technological centres such as military industrial bases.

Investors planning processing projects should look to raw material and energy sources to cut transport costs while investment in retail businesses should go to the ''open cities''.