The Chinese yuan, also known as the renminbi, is already convertible under the current account - the broadest measure of trade in goods and services. However, the capital account, which covers portfolio investment and borrowing, is still closely managed by Beijing because of worries about abrupt capital flows.
Beiren deposits locked in institutions
Beiren Printing Machinery Holdings yesterday said it was unable to recover 17.7 million yuan (about HK$16.47 million) of maturing deposits with mainland financial institutions and had reclassified them as receivables.
The news, revealed in the H share's results announcements for last year, has further highlighted serious problems at the institutions.
But the company said the deposits, representing 1.94 per cent of its net assets, would not have significant impact on its operations.
It deposited five million yuan for six months with China Venturetech Investment maturing last July, but the institution was closed in June by the central government because of financial irregularities. It is unlikely Beiren Printing Machinery will recover any of the money.
Its other deposits, with a credit agency, a Construction Bank of China branch and a trust and investment company also ran into problems.
The company's net profits fell to 43.69 million yuan from 48.74 million yuan in 1997, the company said in a statement to the Hong Kong stock exchange.
Sales were 461.31 million yuan, up from 444.25 million yuan. Earnings per share were 10.9 fen, down from 12.2 fen. Directors declared a final dividend of 5.5 fen per share, the same as 1997.