Flight from yuan likely temporary: HKMA chief

    HONG KONG Monetary Authority (HKMA) chief executive Norman Chan said yesterday he expects the sale of yuan assets amid currency depreciation to be a short-lived phenomenon.

    Offshore yuan deposits in Hong Kong, the biggest offshore yuan hub, likely shrank last month following the Central Government’s move to devalue the currency Aug. 11, the chief of Hong Kong’s de facto central bank said.

    COSCO, CSCL plan may involve restructuring

    THE controlling shareholders of China COSCO Holdings Co. and China Shipping Container Lines Co. (CSCL) are mulling a significant matter that may involve asset restructuring of the two State-owned shipping groups.

    China COSCO and CSCL said yesterday that trading of their shares will remain suspended for up to a month as their parent companies — China Ocean Shipping (Group) Co. and China Shipping (Group) Co. — are contemplating a plan that is “relatively complicated” and that may involve “asset reorganization.” The plan is currently under further research and analysis, including discussions of a possible deal with intermediaries and regulatory authorities, the two firms said.

    China Erzhong warns of potential default

    CHINA National Erzhong Group (China Erzhong), a State-owned manufacturer of heavy machinery, yesterday warned that it may have to stop paying interest on a 1 billion yuan (US$157 million) medium-term note after being sued by a creditor.

    China Erzhong said in a statement that one of its creditors, First Design & Research Institute MI China, had taken it to court to force a debt restructuring on the ground that the company was unable to pay debt and could not be liquidated. If the court orders a restructuring, China Erzhong said its five-year medium-term note issued in 2012 would mature with immediate effect.

    Maling to buy stake in New Zealand firm

    A UNIT of China’s Bright Food Group Co. will take a half share in New Zealand’s biggest meat co-operative for NZ$311 million (US$197 million), as China looks to import more of the country’s agricultural products.

    Sheep and beef exporter Silver Fern Farms will sell a 50 percent stake to food processor Shanghai Maling Aquarius, a Bright subsidiary, giving it funds to repay debt and helping boost its exports.