Residents and firms assess impact
Beijing and Shanghai residents were taken by surprise by the yuan revaluation, and businesses braced for the impact.
Jeff Qi, general manager of a US-based health food retailer planning to set up business on the mainland, said the yuan appreciation would raise set-up costs.
'Of course it will affect us, the production cost will be higher and materials will be more expensive, more investment will be required.'
Sammy Poon Kwok-sing, deputy general manager of Time City, a luxury watch chain with 31 outlets, said the yuan revaluation could affect sales.
'Retail sales in Hong Kong may improve as some customers may prefer to buy luxury items in Hong Kong. Our sales may be affected.'
He said he was surprised by the announcement. 'I thought they would make [it] a bit later.'
But the local production of many international brands cushions the blow for the retail sector. Mobile phone distributor Jeff Lo Kwok-leung, a Hong Kong resident working in Beijing, said: 'We source in China and we sell in China so the impact is minimal. Some components are imported but the effect will be minimal.'
Gavin Zhao, a New Zealand-born Chinese working in a trading firm in Beijing, lamented that he did not convert his money earlier.
'I may have lost some money already as I have not had enough time to change my US dollars to yuan. But it could be good news for Chinese travellers as it will be cheaper to tour abroad.'
In Shanghai, people drawing 100 yuan bills from an ATM in a residential neighbourhood said the impact of the move would be limited since the revaluation was relatively small.
However, one woman with access to foreign currency expressed regret that she had not sold her US dollars for yuan before yesterday's announcement.
'If I had changed earlier, I would have earned more,' she said.
Another resident planning to go abroad soon said he should have waited to sell yuan for dollars to cover his travel expenses. 'I lost money because I exchanged yuan for dollars before today,' he said.
Internet chat rooms yesterday were abuzz with heated discussion about the revaluation. Most people were worried that their property or share prices would be affected and some believed Beijing was bowing to international concerns and pressure from Washington.
Others took the news more calmly. Liu Hong, a reporter from China Radio International, said: 'For people like me who do not travel abroad often, I don't feel much difference. I will lose some money as I have US dollars deposited in the bank, but the loss is not big.'
