Chinese executives back stronger yuan

Beijing: Chinese executives are joining US President Barack Obama in backing a stronger yuan, even as Premier Wen Jiabao says the currency isn’t undervalued.

Yang Yuanqing, chief executive of Beijing-based computer maker Lenovo Group, said gains would boost consumers’ purchasing power.

Qin Xiao, chairman of China Merchants Bank Co, said an end to the yuan’s 20-month peg to the dollar would let lenders set market-based interest rates.

Chen Daifu, chairman of Hunan Lengshuijiang Iron & Steel Group Co, said a stronger currency would cut import costs.

The remarks are significant because it’s the first time so many executives at state-controlled enterprises have spoken publicly in favour of appreciation since China pegged the yuan at 6.8 per dollar in July 2008 to protect exporters, said Lee Boon Keng, of Bank Julius Baer & Co in Singapore.