Yuan swings prompt com­pa­nies to cut dol­lar debt

China Daily (Canada) - - NEWS CAPSULE -

With more dep­re­ca­tion of the yuan ex­pected in the next few months, Chi­nese com­pa­nies that have piled up dol­lar­de­nom­i­nated debt are look­ing to re­duce their debt bur­dens at a time when the econ­omy is slow­ing sharply.

Sany Heavy In­dus­try Co Ltd, the Bei­jing-based equip­ment man­u­fac­tur­ing gi­ant, said that it had started re­duc­ing its for­eign ex­change loans from last year.

The com­pany cut its forex loans from $3.72 bil­lion at the be­gin­ning of 2015 to $2.15 bil­lion by the end of Oc­to­ber 2015, ac­cord­ing to data pro­vided by the com­pany.

China East­ern Air­lines Co Ltd, one of the ma­jor car­ri­ers in China, said it was re­pay­ing debts worth $1 bil­lion as part of its on­go­ing ef­forts to cut dol­lar-de­nom­i­nated debt.

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