Central bank weakens yuan reference rate

    THE yuan traded offshore fell for a second day yesterday after China’s central bank weakened the daily reference rate by the most since January as a gain in the U.S. dollar drove declines in Asian currencies.

    The yuan traded in Hong Kong dropped 0.2 percent to 6.4760 a dollar yesterday morning. The People’s Bank of China reduced the fixing, which restricts onshore moves to 2 percent on either side, by 0.3 percent to 6.4824, the most since Jan. 7. The currency traded in Shanghai retreated 0.13 percent, according to China Foreign Exchange Trade System prices.

    Bank of Tianjin prices IPO near bottom end

    BANK of Tianjin Co., a commercial lender based in the northern Chinese port city, and its owners raised US$949 million after pricing a Hong Kong initial public offering (IPO) near the bottom end of a marketed range, according to sources with knowledge of the matter.

    The bank and some existing investors sold a combined 995.5 million shares at HK$7.39 (US$0.95) apiece, the sources said. The shares were offered at HK$7.37 to HK$9.58 each, according to the lender’s prospectus. Bank of Tianjin is the first company to price a Hong Kong IPO of more than US$300 million this year, as the Hang Seng China Enterprises Index rebounds from a roughly seven-year low hit last month.

    Yurun unit repays defaulted bond payment

    NANJING Yurun Food Co., a subsidiary of Hong Kong-listed meat processor China Yurun Food Group Ltd., paid 252.25 million yuan (US$39 million) to bondholders yesterday.

    The payment comprises an interest of 32.25 million yuan and 220 million yuan in the principal amount. The company said late Thursday it was unable to repay one-year short-term financing notes with a principal of 500 million yuan and coupon of 6.45 percent that were due Thursday.

    Bohai Steel may be unable to pay debt

    BOHAI Steel Group Co., a steelmaker based in northeastern China, may be unable to make full repayment on 192 billion yuan (US$29.61 billion) in debt, financial magazine Caixin reported.

    The city government of Tianjin, which owns the firm, has set up a committee of creditors to help resolve the problem, Caixin said. Creditors include the Tianjin branch of Bank of Beijing Co. and 105 other financial institutions.