Yuan Rally Surprises Chinese Exporters to Leave Them With Losses

Gloria Yu’s company exports bicycles and related accessories to as far as Europe and Africa. Having suffered “heavy losses” on some orders due to the yuan’s rapid gains earlier in the year, Yu is looking to better manage her dollar exposure.

“My heart was bleeding,” Yu said at the Canton Fair, the world’s largest trade show that started last week in China’s southern metropolis of Guangzhou. Interviews at the fair with more than a dozen firms that sell goods from electrical equipment to smart wearables show that exporters are increasingly positioning to sell the dollar on any rally, as they expect the yuan to strengthen further this year.