Export challenge

China's decision to make its currency flexible means exporters may suffer as a stronger yuan drives up the prices of their products.

However, if the expected appreciation of the Chinese currency can push them to move up the value chain rapidly, the exercise can turn out to be a boon for Chinese exporters in the long run.

The gradual and controlled manner in which China is likely to press ahead with the reform of its exchange rate regime signals that there will be no big, immediate impact on the bottom lines of most Chinese companies.