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.
China Southern floats profit
CHINA Southern Glass Holding says it has posted a profit after tax and minorities of 82.54 million yuan (about HK$73 million) for the first half, despite depression brought on by China's macroeconomic policies.
The interim profit of the Shenzhen-listed glass manufacturer represents more than half of the 155.21 million yuan it projected for the whole year.
No comparison figures have been revealed. The interim figures have been adjusted to conform with international accounting standards (IAS), but without verification by chartered public accountants, it said.
Turnover for its main operation stood at 243.53 million yuan. Earnings per share were 32.8 fen. The company said it had accomplished its dividend distribution and bonus issue.
It said that despite the macroeconomic policy-induced depression in the first half of this year, the company had succeeded in overcoming heavy difficulties while expanding markets.
''The proposed projects of the company are making good progress. The company has become a specialised group in the glass industry.'' It said the group's solid foundations had enabled it to resist risks and to develop its business.
The projects of Spandrel Tempered Glass, ITO coated Conductive Glass and Structure Ceramics, which were put into production last year, were producing good results, the company said.
The ultra-thin float glass project was progressing, with site selection completed and its equipment contract in its final stages.
It said it expected that the construction would take about 24 months.
Another project which the company would focus on this year was an automotive glass venture.
The project would incorporate the manufacture and marketing of automotive safety glass.
Total investment in this project was expected to be about 150 million yuan.
The directors believe that profit forecasts will be fulfilled, barring unforeseen occurrences.