Unify yuan, forex management: official

THE government ought to unify the yuan and foreign currency management to help monetary policy work more effectively, Zheng Yang, a vice director of the Shanghai branch of the State Administration of Foreign Exchange (SAFE), wrote in the SAFE-run China Forex magazine.

As part of measures, SAFE ought to closely monitor any changes in the yuan and foreign currency balance sheets at the country’s financial institutions, preventing external financial risks from spreading domestically, Zheng said in the magazine’s May edition. He noted that some foreign speculative funds have kept flowing into China through all kinds of channels due to yuan appreciation expectations, while domestic firms and individuals have also tended to cut their yuan debt, adding to the yuan rise pressures.

Northeast Securities cuts share sale price

NORTHEAST Securities Co., a brokerage based in the northeastern city of Jinzhou, cut the minimum price for a planned share sale by 45 percent, citing a change in capital markets.

The Shenzhen-listed company plans to sell 150 million to 300 million shares at no less than 25.66 yuan (US$3.67) each in a private offer to 10 institutional investors, it said in a statement yesterday. That’s a 26 percent discount on the company’s closing share price of 34.61 yuan April 30. Northeast Securities, China’s sixth-biggest brokerage by market value, in January said it planned to sell shares at no less than 46.49 yuan each.

Zijin Mining has nothing to disclose

ZIJIN Mining Group Co., China’s second-largest gold producer, said yesterday it had no information to disclose under Shanghai Stock Exchange’s listing rules after its yuan-denominated shares fell in the past three trading days.

“Investors should be aware of investing risks,’’ the firm said.

Western Mining buys stake in FerrAus

WESTERN Mining Co., China’s second-largest producer of lead concentrate, agreed to buy a 10 percent stake in Australian minerals explorer FerrAus Ltd.

Western Mining, which lists A shares in Shanghai, may buy as many as 15.9 million shares at A$1.15 (US$1.7) a share, Adelaide-based FerrAus said yesterday in a statement to the Australian Stock Exchange.