17th April
written by LightingPro

BEIJING – The People’s Bank of China (PBOC), the country’s central bank, announced Saturday it will widen the yuan’s daily trading limit against the US dollar to 1 percent from Monday. 

In the foreign exchange spot market, Chinese banks can exchange the yuan 1 percent above or below the central parity against the US dollar announced by the China Foreign Exchange Trading System each trading day. 

Previously, the daily trading limit was set at 0.5 percent. 

The announcement came a month after PBOC governor Zhou Xiaochuan told Xinhua on the sidelines of the annual parliamentary session that the country is considering “appropriately” widening the yuan’s trading band to better reflect an exchange rate regime decided by market supply and demand. 

China’s current foreign exchange market is developing more maturely and trading entities are more capable of pricing independently and managing their risks, the PBOC said in a statement on its website. 

Adjusting to the demand of market development, widening the yuan’s trading band aims to promote exchange of the Renminbi, boost the yuan’s two-way fluctuation flexibility and improve the market-based managed floating exchange rate regime tied to a basket of foreign currencies, according to the PBOC. 

The central bank pledged in the statement that it will maintain the “normal fluctuation” of the yuan’s exchange rate, stabilize the rate at “reasonable and balanced levels,” and keep the macro economy and financial markets stable. 

Zhao Qingming, a senior researcher with China Construction Bank, said the widening of the yuan’s trading band against the US dollar is helpful to bring the exchange rate of the Chinese currency to balanced levels. 

“The PBOC’s move (to widen the trading band) has been much anticipated for a long time,” said Lu Zhengwei, chief economist of the Industrial Bank, welcoming the central bank’s long-awaited announcement. 

Lu said he hoped the trading band would be further extended, to 2.5 percent in about 10 months, then to between 10 percent to 20 percent in three years to prepare for the free floating to provide a buffer zone for the greenback’s future fluctuation. 

Calling it “a symbolic move” by the PBOC, HSBC economist Qu Hongbin said the widening of the trading band implies the trend for the yuan’s one-way appreciation has come to an end. 

“The yuan will be ushered into a new era of truly two-directional fluctuation,” Qu said, citing “great changes” in the yuan’s fundamentals. 

“China’s foreign trade is coming to an almost balanced level and the yuan has appreciated 30 percent against a basket of major currencies since 2005 to approach very closely the market’s balanced level,” Qu added. 

China swung back to a trade surplus in March from February’s deficit of $31.48 billion, posting a $670million trade surplus in the first quarter, according to customs data. 

However, Zhao Qingming, the economist for CCB, China’s second-largest lender, said whether China will allow a wider trading band remains unclear. 

“We can’t expect too much from it, because the widening is merely a technical adjustment,” he explained. 

According to Zhao, judging by the daily fluctuations of major currencies, it is extremely rare to see daily changes reach or exceed 1 percent. 

The yuan strengthened 5 basis points to 6.2879 against the US dollar on Friday. The central parity rate of the yuan against the US dollar is based on a weighted average of prices before the opening of the market each business day.

16th March
written by LightingPro

Premier Wen Jiabao said on Wednesday that China will intensify its currency regime reform and the foreign exchange rate has possibly reached “equilibrium”, a signal that there is little room for the renminbi to appreciate soon.

“In the Hong Kong market, the non-deliverable forwards (a type of futures contract) have started to fluctuate in both directions. And this tells us that the exchange rate of the renminbi has possibly reached equilibrium,” Premier Wen Jiabao said at a news conference at the end of the National People’s Congress session.

“China will go on intensifying foreign exchange reform, especially to allow relatively wider, two-way fluctuation.”

“The premier’s remark on equilibrium means China will not allow its currency to rise by much in the short term, or say this year,” said Li Wei, an economist at Standard Chartered Shanghai.

“And it also shows the nation is not optimistic about China’s economy and the exports dragged down by the European debt crisis,” he added.

In the annual Government Work Report last week, Wen cut China’s expected economic growth rate this year to 7.5 percent.

“China aims for quality growth in the economy, and we want to solve the problem that China’s economy is unbalanced, uncoordinated, and unsustainable,” Wen said.

“Premier Wen’s remarks that China will continue to push for relatively big-scale and two-way fluctuation in the currency is excellent because it takes us a lot closer to the point that the renminbi can be freely traded,” said Simon Derrick, head of currency strategy at BNY Mellon, an investment management and services company in New York.

Stephen Gallo, head of market analysis at financial service provider Schneider Foreign Exchange in London, agreed.

“Overall, the recent fluctuations in renminbi are more important from a structural rather than a cyclical perspective – in other words, China’s words and its deeds certainly suggest that the case for a more flexible yuan is gaining traction on the part of policymakers,” Gallo said.

The best way to solve the “difficulties and frictions caused by the trade imbalance between China and the US is to cooperate”, Wen said.

Wen’s remarks come at a time that trade and economic tensions between China and the US have been intensifying for several months, in which time the US lodged an appeal about China’s rare earths exports policies with the global trade arbitrator and established an interagency trade enforcement unit to see whether nations, including China, play by the rules.

On Tuesday, the US brought up a case before the World Trade Organization about China export restrictions on rare earths, 17 rare elements used in a number of high-tech items ranging from wind turbines to missiles.

Japan and the European Union joined the US in challenging China’s export policy.

Wen didn’t mention the rare earths case during the news conference, but he called for cooperation between China and the US. “Cooperation would lead to healthy and sustainable growth for both economies,” he said.

China and the US should promote “bilateral trade and two-way investment”, enhancing cooperation in new energy, new materials, environmental protection, aviation and other high-tech fields, Wen said.



6th January
written by LightingPro

“Happy New Year!” To whom our respected customer and friends. We’ve like to take this opportunity to thank you for your concern and big support on our work and business in the past year. Hope you have a most happy and prosperous New Year.

In 2011, we have expanded our products lines both on LED indoor lamps and outdoor lamps. Presently, our company has many working partners who locate all over the world, most of them are high-tech enterprises with strong capital. They both are very satisfied with our quality and service.

Look into a new year, we will develop and release more challenging products. In order to improve our customer service to all our customer, we have especially set up a special follow up teams to take care all customer’s projects. Recently, we are trying to design a new module for our 10W bulbs. After finishing the design, we’ll keep the lower price with high effiency.  If you need more information about it, you can contact with us freely. We hope we can provide more high quality LED light to all the customers. Allow me to congratulate you on the arrival of the New Year and to extend to you all my best wishes for your perfect health and lasting prosperity.

Our goal is providing high quality LED lighting and good services to our customers. We always look for long term business partner. Lighting Orient will continue to provide you and the Company our excellent quality, customer service and competitive pricing !

19th January
written by admin

Chinese New Year is coming. Lighting Orient will close from January 29, 2011 – February 9, 2011.

In these days, we will still check our email. However, we may not reply as quick as working days.If you have urgent requirements in these days, please kindly call sales representative you contact.

Thanks to support from all our customers and partners in 2010. We got big success in 2010. Customers from over 80 countries enjoyed our products in these years. We also improve quality and reduce cost in 2010. It’s a wonderful year. Much more customers begin to accept LED technology. Our sales amount grew over 200% again. In 2011, we believe LED technology will not only be accepted in commercial lighting, but also resident lighting. Market of LED lighting will grow bigger and bigger.

In 2011, we will still work hard to develop and improve quality. So, our customers and partners can get more benefits.

Hope our partners and customers get another wonderful year with us in 2011.

7th November
written by admin

You may hear lots of advantages about LED lighting. Energy saving, eco-friendly, long lifespan…….balabalalbala. Yes, everyone love energy saving and eco-friendly products. However, you may think price of LED is high. So, you did not change all of your lighting to LED.

One good news is CREE, which is one of the best LED brand, will reduce price soon. Price of some price may be 20%-30% lower. After price of CREE LED become lower, we believe that most of other LED manufacturer will reduce price soon.

So, good news to everyone is that price of our LED lighting may be lower recently. It depends on manufacturer.

In 2015, we believe LED lighting will be used in most of commercial and home lighting application.

Tags: ,
24th September
written by admin

Chinese National Day is coming. Official vacations in China is October 1 – October 7, 2010.  If you have something urgent, please kindly call your sales by mobile phone.

Now, GDP of China is 2nd in the world. It’s amazing. Even as Chinese, we do not think we are 2nd only after 30 years of economic development.

We hope global buyers can buy more high quality products from China. We also hope we can sell more high quality LED lights to global partners.