Chinese Officals Open To Currency Reform, Paulson said

[B]Chinese officials open to currency reform, Paulson said[/B]
Chinese officials are committed to currency elasticity and further financial restructuring, former Goldman Sachs chief executive Paulson said following his visit to China. By going through diplomatic channels in his "Strategic Economic Dialogue the U.S. Treasury Chief hopes to avert legislative actions to correct Beijing?s $235 Billion trade surplus with the United States. Nonetheless, Paulson did not release the pressure on China. Paulson expressed to the Chinese president Hu Jintao and Deputy Prime Minister Wu Yi that a faster rate of appreciation in the Yuan would be beneficiary to the Chinese economy.

[B]Financial institutions are rushing in to capture the attention of the 1.3 billion people in China [/B]
Bank of East Asia, Hong Kong?s third-largest bank by assets, reported a 20 percent increase in net income from China. “Consumer demand is now emerging on the mainland, fueling demand for credit” said Bank of East Asia Chairman David Li. Surging equities and rising incomes have stoked demand for financial services in the world?s fastest growing economy. Financial institutions are rushing in to capture the attention of the 1.3 billion people in China with an estimated $2.2 trillion in household savings. Consumption on the mainland has also ticked up with retail sales jumping 15 percent in the first half and overall loans for cars, homes, and consumer goods expanding at the same rate.

[B]US dollar advanced against the yuan on speculation of stronger than expected US Non-farm payrolls[/B]
The Chinese yuan lost 0.9 percent against the US dollar, to close at 7.5753 on the exchange-traded session, on speculation that tomorrow we may see a stronger than expected US Non-farm payrolls. Yet, Yuan 1 year non-deliverable-forwards traded at 7.1623 to the dollar, anticipating the yuan could be almost 5 percent stronger in one year’s time. “This Friday, we are expecting July Non-farm payrolls and now more than ever, the stability of the US economy hinges on the strength of the labor market because non-farm payrolls could easily make or break it for the US dollar”. July Non-Farm Payrolls: Will it Hurt or Help the US Dollar?