Yuan ‘depreciation trend unlikely to happen’

    THE yuan is not entering a depreciating path but pressure will persist in the short term amidst U.S. dollar strength, the overseas edition of the People’s Daily quoted experts as saying yesterday.

    The paper said the Chinese currency will remain basically stable in the mid to long term with two-way volatility and a depreciation trend is unlikely to happen. It added that the yuan is supported by signs that China’s economy is stabilizing. The yuan would also be bolstered by overseas investment following its inclusion in the currency basket determining the value of the International Monetary Fund’s synthetic reserve currency Special Drawing Rights.

    Shanghai Paipaidai plans US listing

    A SHANGHAI-BASED firm is banking on U.S. investors’ appetite for China’s fast-growing peer-to-peer lending industry as it plans an initial public offering that could value it at roughly US$2 billion.

    Shanghai Paipaidai Financial Information Service Co., known as Ppdai.com, is in discussions with bankers to launch an IPO in the United States as early as the second half of next year, according to people familiar with the matter. The company, which was founded in 2007 and claims to be among the first online platforms in China to offer peer-to-peer unsecured loans, could hire banks to work on the offering by the end of this year, one of the sources said.

    Alibaba affiliate seeks US$1b to fund expansion

    ALIBABA Group Holding Ltd.’s affiliate Koubei is seeking to raise US$1 billion in funding as it steps up its battle with China’s other online giants for neighborhood services, according to people familiar with the matter.

    The company is seeking a valuation of US$8 billion in the fundraising, which will help it expand into more cities and add users, the sources said. Alibaba is focusing on its own local services after selling its stake in Meituan Dianping, a company backed by Tencent Holdings Ltd.

    CCB eyes more than 50 debt-to-equity deals

    CHINA Construction Bank Corp. (CCB) said it had approached more than 50 companies that could convert debt to equity as part of the nation’s efforts to tame an explosion in corporate leverage that poses risks for financial stability.

    The bank assessed the firms’ debt levels, industry indicators and the strength of their relationships with the bank, said Zhang Minghe, who is leading the bank’s swap program. The firms include State-owned and private firms in industries from steel to coal.