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.
Kerry wins Shenzhen site for 480m yuan
Kerry Properties is believed to have won a commercial site in Shenzhen for more than 480 million yuan, underlying its confidence in the mainland property market.
The developer secured the 4,000 square metre site in Futian through a public tender at an accommodation value of 8,100 yuan per square metre, sources said.
As the site would yield 60,000 square metres when built up, it would cost Kerry Properties more than 480 million yuan for the land, the sources said.
'Kerry is keen to get the site as it is next to the group's Shangri-La hotel,' a source said. The 590-room Shangri-La Futian is due to open next year.
Sources said Kerry Properties had to achieve sales at 20,000 yuan to 25,000 yuan per square metre from the development in about three years to turn a profit.
A Kerry Properties executive did not deny the acquisition but said he was unaware of the transaction.
It is believed the auction of the Futian site had generated strong interest from local and Hong Kong developers. Over the past year, Kerry Properties has committed to develop or jointly develop three big projects in prime areas in Shanghai and Hangzhou at an estimated cost of more than US$1.69 billion.
Kerry Properties' strategy is to build high-end developments in leading cities for use by domestic and foreign clients.
Kerry Properties is controlled by the Kuok Group, which is also the largest shareholder of the SCMP Group.