Shares up, led by banks, electrical utilities

    CHINA’S benchmark index closed up yesterday in volatile trade as electrical utilities rose and banks spiked, while a slump in small-cap shares limited some gains.

    The Shanghai Composite Index gained 0.61 percent to 3,127.44 points, while the Shenzhen Composite Index closed down 3.64 percent at 1,412.30. Investors were continuing to back blue chips and shed small-cap shares, as evidenced by a sharp 5.4 percent slide in the ChiNext growth company index in Shenzhen, the steepest slump since 2013.

    Hopu among investors in Xiaomi

    CHINESE private equity firm Hopu Investment Management Co. is among the consortium of investors putting a total of just more than US$1 billion into Xiaomi Corp. in a deal valuing the smartphone maker at more than US$45 billion, according to a source familiar with the situation.

    Hopu, run by prominent Chinese financier Fang Fenglei, is part of a group of investors led by All-Stars Investment Ltd., a fund run by former Morgan Stanley analyst Richard Ji, the source said. The investment in the Chinese technology company has made it one of the most valuable startups globally. Other investors in the deal include Russian investment firm DST Global, Singapore sovereign wealth fund GIC Pte. Ltd. and Yunfeng Capital.

    Yuan can remain stable: central bank official

    CHINA’S yuan should be able to remain basically stable despite recent weakness, central bank deputy governor Yi Gang said.

    Yi said that China’s economic fundamentals were supporting the yuan, which has been holding up relatively well against a strong U.S. dollar. “We have every reason to believe that the yuan’s exchange rate could remain basically steady at a reasonable and balanced level,” Yi said at an economic conference Sunday. He noted the yuan has lost about 2 percent against the U.S. dollar this year, though he insisted this was not a depreciation but rather a reflection of a strong dollar.

    CNPC in deal with South Sudan

    CHINA National Petroleum Co. (CNPC), parent of PetroChina Co., has entered into an agreement with South Sudan to boost production of existing oilfields in the young African state, according to a report in China Petroleum New, a CNPC-run paper.

    Oil is the main source of cash for South Sudan, but output has dropped due to conflict and ageing fields. Fighting between rebels and the government has damaged some fields.