Turn liquidity to advantage, adviser says

BEIJING - China is unlikely to resort to a sharp appreciation of the yuan to tackle inflation pressure, said a senior government economic adviser.

Instead, the country should impose more regulations and launch stimulus packages to direct excessive liquidity to areas that can help it to restructure the economy, said Zheng Xinli, vice-president of the China Center for International Economic Exchanges.

He told China Daily that a sharp appreciation of the yuan will greatly damage the nation's economic recovery.