Quick rise of yuan will seriously hurt local exporters

A quick rise in the yuan will seriously reduce profits of local exporters. The assessment comes from the Economic Information Daily, citing initial results of China's yuan stress test.

The test covers China's key export sectors such as home appliances and textiles. The results will serve as a reference for China's currency policy decision-makers.

They indicate a 3 percent appreciation in the yuan may erode up to 50 percent of profits of home appliance and handset makers. Chinaware exporters can only afford a one percentage point rise in the yuan against the dollar.

Textile exporters would also bear the brunt from any quick rise in the yuan's value, as their profit margins are often between 3 to 5 percent.