2012.05.04 03:33:18 *Vietnam Gold Shops Quote Dollar At VND20,830-VND20,850 Vs VND20,840-VND20,860 Thursday

SHANGHAI (Dow Jones)--China shouldn't overstride in its liberalization of the yuan, and should instead push forward, step by step, with market-oriented exchange-rate reform, a government think tank wrote in a research report carried Friday by the People's Daily, the mouthpiece of China's ruling communist party. In the report, the Chinese Academy Of Social Sciences said the exchange rate is basically at an equilibrium level and that provides a major foundation for the state's efforts to increase the flexibility of its currency and liberalize its exchange-rate system. However, the foundation isn't firm enough yet, the think tank added. As such, it suggested China could test market response by increasing the yuan's flexibility moderately at the initial stage, while preparing for potential market intervention. The country could then widen the trading band gradually in the absence of big fluctuations, and subsequently let the market set the exchange rate. Separately, also on Friday, the overseas edition of the newspaper cited Chinese experts as saying that fundamentals for a sharp appreciation in the yuan are non-existent, and that the rise in the currency's value would likely slow in the future, with greater two-way movement emerging. The reports come after China and the U.S. pushed competing agendas as they opened high-level talks Thursday, with Washington calling for more action on the yuan and Beijing saying it wanted faster action on the easing of American curbs on high-tech exports. Newspaper website: http://www.people.com.cn -By China Bureau, Dow Jones Newswires; 8621 6120-1200; djnews.shanghai@dowjones.com (END) Dow Jones Newswires May 03, 2012 21:35 ET (01:35 GMT)