Stocks tumble again, offshore yuan weakens

    CHINA’S shares tumbled again Friday, with a major index closing lower than at any time since December 2014.

    On the currency markets, the yuan weakened sharply offshore, opening up a gap of more than 1 percent with the steady onshore market, despite central bank efforts earlier in the week to squeeze out speculators. Onshore, the yuan was 0.1 percent up on the week, but it is nearly 1.4 percent weaker against the U.S. dollar for the year so far and has lost nearly 5 percent since August. The Shanghai Composite Index ended down 3.5 percent at 2,902.22, while the CSI300 Index dropped 3.2 percent at 3,118.73. China’s major share indices have lost 16-18 percent so far in 2016.

    Major shareholders urged to support market

    THE China Association for Public Companies (CAPCO), which is supervised by China’s securities regulator, called on major shareholders of listed firms to work together to stabilize the stock market, Securities Times reported Friday.

    The call from Yao Feng, CAPCO’s executive chairman, comes as the number of China-listed companies so far this year whose major shareholders pledged not to reduce holdings in the near term has grown to at least 150. All the companies said the pledges made by their controlling shareholders were voluntary.

    Bondholders offer Kaisa another debt plan

    A GROUP of bondholders in debt-laden Shenzhen-based developer Kaisa Group Holding, including Farallon Capital and BFAM Partners, have drawn up a debt restructuring plan even as the company pushes ahead with its own proposal, a source close to the two funds said Friday.

    The bondholders proposal, which follows one launched by the company last month, had some additional benefits for investors with respect to the coupon, conversion price for the convertible bonds, collateral and capital buffer, the source said.

    Haier to buy General Electric’s appliance unit

    GENERAL Electric Co. has agreed to sell its appliance unit for US$5.4 billion to Chinese manufacturer Haier Group, which is looking to expand its products into homes around the world.

    GE and Haier announced the deal Friday, saying the companies will cooperate to expand their reach in health care, advanced manufacturing and the industrial sectors. Haier said it will have the rights to use the GE brand for appliances for 40 years.