Yangzijiang Shipbuilding Hedges for 3% Yuan Advance

Yangzijiang Shipbuilding Holdings Ltd., China’s third-largest shipyard outside state control, is basing currency-hedging on the yuan gaining 3 percent a year in expectation the government will prevent rises above that pace.

“Appreciation is inevitable because of China’s trade imbalance, but the rate won’t be as rapid as the Americans and other countries are expecting,” Chairman Ren Yuanlin said yesterday in an interview in Singapore. “Three percent a year is a scenario we can live with.”