Risks and opportunities of revaluing the renminbi

The US and Europe have recently joined the call from Japan demanding China to revalue the renminbi (RMB). There is also a belief that RMB revaluation would pull Hong Kong out of its economic doldrums. Meanwhile, China's central bank is sounding an alarm on inflation threat stemming from a robust economy and property punting, making RMB revaluation a sensible policy to curb inflation.