IN BRIEF (Page 9)

Yuan has worst quarter in 7 yrs

The yuan had its biggest quarterly decline since a dollar peg ended in 2005 as Europe's crisis hurt demand for Chinese exports.

The People's Bank of China lowered the currency's daily reference rate by 0.48 percent this quarter, while the Dollar Index strengthened 4 percent as investors favored safer assets. The yuan weakened 0.88 percent this quarter to 6.3541 per US dollar in Shanghai, according to the China Foreign Exchange Trade System.

First mainland ETFs get nod

The China Securities Regulatory Commission approved the first two mainland-listed exchange-traded funds to track Hong Kong stock indexes, on the Shanghai and Shenzhen bourses.

The Hong Kong Securities and Futures Commission also authorized the listing of a yuan-denominated A-share ETF on the Hong Kong stock exchange, it said.

The ETF under the Renminbi Qualified Foreign Institutional Investor program, which allows Hong Kong units of mainland financial companies to raise yuan in the city and invest in mainland's capital markets, will track the performance of an A-share index, it said.

Food firm denies allegations

China Yurun Food Group Ltd, the nation's second-largest meat processor, rejected allegations of accounting irregularities and contaminated products as "groundless".

Yurun shares rose as much as 5.1 percent in Hong Kong trading on Friday after saying it has procedures to ensure that "assets are safeguarded, operational controls are in place, risks are properly managed". Yurun hasn't found any food safety concerns related to its products, it said in a statement to the Hong Kong Stock Exchange. The meat company fell 13 percent to HK$6.51 in Hong Kong trading on Thursday, the lowest since October 2006.

Rio Tinto upbeat on China market

Rio Tinto Group, the world's third-largest mining company, sees economic growth in China accelerating in the second half of this year even as the European economic crisis escalates.

"Recent fiscal and monetary loosening should lead to a pickup in growth," Rio Tinto Chief Economist Vivek Tulpule said on Friday in London. "We expect Chinese growth to be above 8 percent this year, despite lower export demand and monetary tightening." The fastest-growing major economy accounted for 31 percent of Rio's $61 billion in sales last year.

Agencies - China Daily

(China Daily 06/30/2012 page9)