Balancing act needed as the yuan weakens

Experts say Chinese enterprises' dollar debt means depreciation must be carefully managed

China, like much of the world, is beefing up monetary stimulus to boost its economy. But unlike its peers, it probably will not let its currency depreciate to help.

Sustained weakness in the yuan would make it more expensive to repay the $1.1 trillion of debt that the Bank for International Settlements estimates is owed by Chinese companies. As a result, China has to offset interest rate cuts and other easing measures with steps to curb the yuan's 2.9 percent slide from its peak about a year ago.