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.
SFK Construction to invest 200m yuan in three mainland projects
SFK Construction Holdings, a Hong Kong-based building construction and civil engineering contractor, will invest 200 million yuan in three mainland property projects.
The company, which plans to raise about HK$1.17 billion in an initial public offering in Hong Kong this month, recently signed three preliminary contracts for turnkey projects that would help mainland landlords restart frozen projects.
The three projects, one located in Guangzhou, Guangdong province, and the other two in Chengdu, Sichuan province, had a total investment value in excess of one billion yuan, the company said.
'Our workforce investment in the three projects will bring us an annual rate of return of 20 per cent or more. We will see a return within one to three years,' said SFK Construction chairman and executive director Chan Ki-chun. 'We would like to have more turnkey projects on the mainland.'
The company said sales expanded 62 per cent to HK$1.03 billion in the six months to September last year, compared with HK$634 million a year earlier.
Gross profit for the period rose 10 per cent to HK$185 million in the first half.
According to a market source, SFK Construction's full-year net profit rose 22.9 per cent to HK$247 million for the year to March last year, while turnover increased 4 per cent to HK$1.39 million.
Separately, solar panel component maker Solargiga Energy Holdings plans to raise HK$2.5 billion through an initial public offering arranged by BNP Paribas, according to a market source.
The firm is the mainland's second-largest producer of mono-crystalline silicon ingots. Silicon ingots can be processed into silicon wafers, a major component of solar panels.
'We will definitely benefit from the increasing application of solar energy products due to high oil prices,' said Solargiga president and executive director Tan Wen-hua.
'Also, Beijing is encouraging the solar energy industry to help meet the country's soaring appetite for power and to reduce environmental pollution from widespread use of fossil fuels.'
Solargiga's turnover rose to 880 million yuan last year, compared with 400 million yuan in the year before. Net profit last year doubled to 200 million yuan.