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.
Soaring costs push China Southern into red
China Southern Airlines, the largest Asian airline by passenger numbers, posted a 4.82 billion yuan (HK$5.47 billion) loss for last year, worse than most analysts expected. The company did not declare a final dividend. Sales increased 1.63 per cent to 55.29 billion yuan from 54.4 billion yuan in 2007. However, the carrier plunged into a loss from a 1.84 billion yuan profit a year earlier after operating costs increased 16.64 per cent to 61.77 billion yuan. The result exceeded the mean estimate of a 2.3 billion yuan loss by Thomson Reuters.