Yuan fixing weakened to lowest level since 2011

CHINA’S central bank yesterday weakened its currency fixing to the lowest level since March 2011 as the U.S. dollar strengthened.

The reference rate was lowered by 0.3 percent to 6.5693 per dollar. A gauge of the greenback’s strength rose to a two-month high Tuesday as traders boosted wagers that U.S. interest rates will rise. A resurgent greenback is shaking up a strategy that the People’s Bank of China pursued over the past three months — a steady rate against the dollar, combined with depreciation against other major currencies.

Sinosteel extends bond redemption period again

SINOSTEEL, a State-owned steelmaker, will extend until June 14 the registration period for early redemption on a putable bond that investors could originally elect to redeem last October.

A statement posted on the website of one of China’s main bond clearinghouses Tuesday marked the 10th time Sinosteel has extended the redemption period. The repeated extensions come after Sinosteel had asked bondholders of its 2 billion yuan (US$304.94 million) October 2017 bond not to exercise a put option Oct. 20, because the company would not be able to make a full payment. Recovery prospects on the bonds are uncertain, analysts say, as China has pledged to fight overcapacity in the steel and coal sectors.

Regulators target fund misuse at OTC-listed firms

REGULATORS have launched an inspection into whether money owned by companies listed on the country’s biggest over-the-counter (OTC) equity exchange is being misappropriated by their parents or affiliated firms.

The operator of the New Third Board has asked underwriters to collect information on how money is being used at the 3,107 companies listed on the OTC exchange. The inspection came after 2015 annual reports revealed that the situation of fund misuse is quite serious at some companies.

Belle profit down 38% as consumer tastes change

BELLE International Holdings Ltd. said yesterday annual net profit fell 38 percent as more and more consumers shift to athleisure products and away from traditional fashion footwear and dress shoes.

Net profit declined to 2.93 billion yuan (US$447 million) for the year ended in February from 4.76 billion yuan a year ago. Belle in March warned of a 35 percent to 45 percent drop in annual profit.