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.
Shipyard confident of meeting forecast
GUANGZHOU Shipyard International is confident it can meet its forecast of 85 million yuan (about HK$114 million at the official rate) for the year ending December, 1993 as promised in the group's H-share prospectus, despite the Government's macro-economicmeasures.
For the first nine months, the group reported a profit of 86.6 million yuan and total turnover of 577 million yuan.
The net tangible assets of the company as of September 30, 1993 were about 589 million yuan.
The results were prepared for its listing on the Shanghai Securities Exchange. It was listed in Hong Kong earlier this year.
Although the results were based on China's accounting standards and may differ from the results which would have been reached if international accounting standards had been adopted, chairman Ren Fuwei is confident the full-year target can be achieved.
Mr Ren said the principal assumptions adopted in preparing the profit forecast for H shares issue in Hong Kong were still valid.
The company has two contracts for building eight ships, six for a customer in Hong Kong and two for an Iranian buyer.
These contracts ensure the company has sufficient business for its shipbuilding operations up to 1997.
In July, the Chinese Government granted the company the right to import and export, giving it the advantage of retaining in its bank account a substantial amount of foreign exchange revenue.