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PBOC Shows Signs of Tightening Monetary Policy

According to Galaxy Securities' Co. chief economist, Zuo Xiaolei, China's central bank may tighten monetary policy this year after previously saying it would "fine-tune" it. Xiaolei says that the People's Bank of China has excessively loose monetary policy in the first two quarter of the year but that the last two quarters needed to be changed to "appropriately loose monetary policy". The People's Bank of China also said in a quarterly report that it will maintain a "moderately loose" monetary policy and guide "appropriate" loan growth. According to Xiaolei, the adjustment will avoid big ups and downs in China's economy and ensure growth. The central bank is selling more bonds to decrease the supply of yuan in the public's hands, in attempt to avoid inflation.

China's central bank may tighten monetary policy this year after saying yesterday that it would use "dynamic fine-tuning," Galaxy Securities Co. chief economist Zuo Xiaolei said. "In the first half, we had excessively loose monetary policy and now, in the second half, we're moving into appropriately loose monetary policy," Zuo said today by phone from Beijing. The Shanghai Composite Index fell for a second day, trimming this year's gain to 84 percent, on concern that the government will rein in lending to prevent bubbles in stocks and property. The Peoples Bank of China also said in a quarterly report that it will maintain a "moderately loose" monetary policy and guide "appropriate" loan growth. "The central bank is doing the right thing," Zuo said, without specifying how it may tighten policy. "China needs stable economic growth. China doesn't need big ups and downs." The stock index slid 2.4 percent as of the break in trading at 11:30 a.m. local time. The central bank has kept interest rates and reserve requirements for banks unchanged this year after cutting them in the final four months of last year to counter the effects of the global credit crisis. It's selling more bills to mop up cash. The reserve ratio is 15.5 percent for big banks and 13.5 percent for small lenders. The key one-year lending rate is 5.31 percent. "Spooking Investors' The reference to fine-tuning policy "is spooking investors who are worried that the central bank will follow up with tightening measures, such as hiking the reserve ratio," said Wang Zheng, a fund manager at Jingxi Investment Management Co. in Shanghai. The central bank will "use market oriented methods to carry out dynamic fine-tuning taking into consideration domestic and international economic conditions and price changes," it said in yesterday's report. Chinese banks made a record 7.37 trillion yuan ($1 trillion) of new loans in the first half as the government sought to revive economic growth that slowed to the weakest pace in almost a decade. M2, the broadest measure of money supply, rose a record 28.5 percent in June from a year earlier.

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China vs. EU: Tariffs on Fasteners

China filed a complaint against EU tariffs on fasteners at the WTO, claiming its duties break global commerce rules. On January 2009, the EU imposed a five-year tariff on imports of Chinese iron or steel fasteners worth an estimated 575 million euros ($809 million) in 2007, which the country justified as for prevention of "further distortions" and to "restore fair competition". China, however, does not agree that the EU has been harmed significantly enough to defend the trade protection. China and the EU are consulting to sort through their WTO case. The two countries must now hold talks for at least two months to resolve the trade dispute, and if it persists, China may ask WTO judges to rule.

China filed its first complaint against the European Union at the World Trade Organization, saying EU anti-dumping duties on Chinese screws and bolts break global commerce rules. The EU decided in January to impose the five-year tariffs on imports of Chinese iron or steel fasteners worth about 575 million euros ($809 million) in 2007. The 27-nation bloc said at the time that the levies would "prevent further distortions and restore fair competition." China said EU rivals haven't been sufficiently harmed to justify the trade protection. The EU "failed to comply with the relevant WTO rules in the process starting from initiation, investigation to the final determination," China's WTO mission said in an e-mailed statement from Geneva today. "The determinations made are neither impartial nor transparent, which infringes the legitimate commercial interests of over 1,700 Chinese fastener producers." Fasteners, used for everything from car parts to furniture, are made in the EU by companies such as Italy's Fontana Luigi SpA that demanded the levies to counter below-cost, or dumped, sales in Europe by Chinese competitors. The duties stemmed from an inquiry opened by the EU in November 2007. China, the world's second-largest exporter after Germany, accounts for 60 percent of EU imports of the carbon steel fasteners, which also come from Taiwan, the U.S. and Japan. Rules Followed The European Commission, the EU's trade authority, rejected China's accusation that the bloc failed to follow WTO rules in probing imports of Chinese fasteners. "As we do in all anti-dumping cases, the applicable EU rules were followed scrupulously, which are in full compliance with the terms of the WTO Anti-Dumping Agreement," the commission said in a statement from Brussels. "The commission has continuously rejected any notion that the investigation might not have been legally sound or otherwise incompatible with its obligations under the WTO agreement." Chinese fastener manufacturers increased their share of the EU market to 26 percent in the 12 months through September 2007 from 17 percent in 2004, according to the bloc. EU producers suffered a drop in their combined home-market share to 17 percent from 22 percent in the same period, when consumption expanded by almost a third. The duties range from 26.5 percent to 85 percent, depending on the Chinese company. The Chinese subsidiaries of two EU producers -- Italy's A. Agrati SpA and Spain's Celo SA -- were exempted from the levies. Consultations Today's request for consultations is the first step in the WTO case. Under the Geneva-based trade arbiter's rules, China and the EU must now hold talks for at least two months in an effort to resolve the dispute. If consultations fail, China can ask WTO judges to rule. The EU is already trying to curb imports of Chinese products ranging from frozen strawberries to ironing boards. China faces EU anti-dumping duties on about 40 products -- more than any other nation. The bloc has complained three times against China at the WTO. The EU has carried out more than 140 anti-dumping probes into imports from China since 1979, "becoming one of the WTO members most frequently taking anti-dumping actions against Chinese products," China's mission said. "The Chinese side opposes consistently any abuse of anti-dumping actions and the rising tide of trade protectionism." Not About Protectionism The commission said anti-dumping measures are about fighting unfair trade, not protectionism. "The decision to impose measures was taken on the basis of clear evidence that unfair dumping of Chinese products has taken place with state distortion of raw-material prices," the commission said. "This is harming the otherwise competitive EU industry, with potentially dire long term effects." China has been cited in 60 trade probes by other countries this year, compared with 62 in all of 2008, state-run Xinhua News Agency reported on July 14, citing Liu Danyang, vice director of the Bureau of Fair Trade for Imports and Exports under the Commerce Ministry. Investigations this year involve trade worth $8.27 billion, compared with $6.2 billion in 2008, Xinhua said, adding that Liu attributed the higher figures to rising trade protectionism.

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China Development Bank Will Expand to Brazil, Egypt and Russia

China Development Bank Corporation opened its first branch outside the mainland in Hong Kong on the 29th of July, 2009 as the state-run bank for public works projects plans to expand carry out. Russia, Egypt and Brazil are the locations of the next expansions. Moscow and Cairo will begin operating later in 2009 while Rio de Janeiro will operate in 2010, according to Vice President Li Jiping. The bank has already engaged in lending to the three countries and admit that their "...strategic goal is to become an internationalized bank" and support the nation's rapid economic growth in the next decade. Chinese Premier Wen Jiabao said on July 10th that the nation's $2 trillion plus of foreign exchange reserves "should be used to help companies invest abroad." The China Development Bank Corporation plans to invest in ports, steel mills and energy in Brazil, according to Rio de Janeiro state Governor Sergio Cabral. In addition, the bank has "expressed interest" in investing in projects in the 2014 World Cup Soccer tournament and Rio de Jainero's bid for the 2016 Olympics. In Russia, the bank lent $1.3 billion to Russia's state development bank, Vnesheconombank. Meanwhile, in Ghana, the bank lent more than $1 billion to finance a cotton facility in Malawi and power station in Ghana in 2007.

China Development Bank Corp., the state-run bank for public works projects, opened its first branch outside the mainland in Hong Kong today and plans offices in Russia, Egypt and Brazil as part of a global expansion push. The offices will start operating in Moscow and Cairo this year and the Rio de Janeiro area next year, Vice President Li Jiping told a press conference. The Beijing-based bank agreed in May to lend $10 billion to Brazil's state-controlled oil company, helped finance a fund in Africa and extended loans in June to Russia's development bank. "Our strategic goal is to become an internationalized bank," Li told reporters, adding that the Hong Kong branch will cover Asia. "Mainland organizations can effectively go out to the international market through this Hong Kong platform." Chinese Premier Wen Jiabao said on July 20 that the nation's more than $2 trillion of foreign-exchange reserves should be used to help companies invest abroad. China's "going out" strategy is also designed to help ensure the nation has access to the resources needed to sustain the fastest economic expansion among the world's 20 largest economies. The bank agreed to lend $1.3 billion to Vnesheconombank, Russia's state development bank, the Moscow-based lender said June 14. The China-Africa Development Fund, which has helped finance a cotton facility in Malawi and power station in Ghana, was set up in June 2007 with an initial $1 billion from China Development Bank. Brazil Plan The branch in Brazil will invest in ports, steel mills and energy, Rio de Janeiro state Governor Sergio Cabral said on June 30. The bank also has expressed interest in investing in projects related to the 2014 World Cup soccer tournament and Rio's bid for the 2016 Olympics, Cabral said in a statement. The city is home to Petroleo Brasileiro SA, which is considering buying Chinese equipment in return for further loans, and Vale SA, the world's largest iron-ore producer. China, the world's third-biggest economy, became Brazil's leading trade partner this year after the global recession choked sales to the U.S. The two countries' central banks are studying a proposal to use their own currencies -- the real and the yuan -- in bilateral trade instead of the U.S. dollar. Leaders of Brazil, Russia, India and China -- the so-called BRIC nations -- called for a "more diversified" monetary system to reduce dependency on the U.S. dollar at a June 16 meeting in the Russian city of Yekaterinburg. China Development Bank's profit tumbled 28 percent last year on higher loan losses as the nation's economic growth slowed. The bank, which had 3.8 trillion yuan ($556.3 billion) of assets at the end of 2008, received a $20 billion capital injection from the government in December 2007 and is seeking to become a commercial lender. The Ministry of Finance owns 51.3 percent of the bank and Central Huijing Investment Co., a unit of China's $200 billion sovereign wealth fund, holds the rest.

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China Adjusts Gasoline & Diesel Prices to $3.14/gallon Max

China slashed gasoline and diesel prices by about 3.3 percent after three consecutive increases in prices caused widespread concern about fuel costs. The National Development and Reform Commission announced that pump prices for 90 octane gasoline will cost a maximum of about $3.14 a gallon in Beijing. China's top planning agency said it adjusted the prices to match the movement in crude-oil costs, taxes and profit for refiners, such as China Petroleum & Chemical Corporation and PetroChina Co. This is the second time in 2009 that the prices are cut to help reduce costs for manufacturers and encourage economic growth of 8 percent this year, create jobs and improve social unrest. Wang Jing, the chief oil analyst at Orient Securities Ltd. said, "This move is to some extent signaling that the Chinese government is bowing to public pressure in adjusting fuel prices... It also reassures the industry that the country will stick to the fuel pricing formula." The country's government may adjust fuel prices when crude-oil costs change more than 4 percent over 22 working days, according tot the reform commission.

China, the world's second-biggest energy user, cut gasoline and diesel prices by at least 3.3 percent after three increases since March triggered public concern that fuel costs are too high. Pump prices for 90 octane gasoline will be set at a maximum of 5.7 yuan ($0.83) a liter, or about $3.14 a gallon, in Beijing, the National Development and Reform Commission said in a statement on its Web site. Prices were adjusted to reflect the decline in global crude prices, said China's top planning agency. Today's price cut, the second this year, will help to lower costs for manufacturers as China targets 8 percent economic growth this year to generate jobs and maintain social stability. The government's third increase on June 30 sparked "widespread public debate," according to the official Xinhua News Agency, after China's gasoline prices exceeded those in the U.S., the world's largest oil user. "This move is to some extent signaling that the Chinese government is bowing to public pressure in adjusting fuel prices," Wang Jing, the chief oil analyst at Orient Securities Ltd., said by mobile phone in Shanghai. "It also reassures the industry that the country will stick to the fuel pricing formula." The Chinese government controls prices under a mechanism that takes into account crude-oil costs, taxes and a profit for refiners, including China Petroleum & Chemical Corp. and PetroChina Co., the nation's biggest fuel producers. China may adjust fuel prices when crude-oil costs change more than 4 percent over 22 working days, the reform commission said in May. PetroChina, Sinopec "The latest fuel price cuts are unlikely to lower shares of the two companies as the move shows the government is strictly enforcing the pricing mechanism and will allow oil companies to pass on higher costs if crude prices rise," said Grace Liu, an analyst at Guotai Junan Securities in Shenzhen. PetroChina gained 1.8 percent to HK$9.49 in Hong Kong trading before the fuel price announcement while Sinopec, as China Petroleum is known, climbed 0.7 percent to HK$7.14. The gasoline price charged by refiners will fall by 3.3 percent to 6,510 yuan a ton, or 70 U.S. cents a liter, starting tomorrow and the diesel price will drop by 3.7 percent to 5,770 yuan a ton, the National Development and Reform Commission said today. Jet fuel prices will be reduced by 5.5 percent to 4,770 yuan a ton. The price of gasoline in Beijing, set at $3.14 a gallon, compares with an average of $2.49 a gallon in the U.S. "Public's Misconception' Gasoline and diesel prices have risen by an average 24 percent this year, according to calculations made by Bloomberg. China cut prices by as much as 3 percent in January. About 94.3 percent of more than 260,000 people surveyed by Chinese Web portal sina.com thought fuel prices are too high, Xinhua said on July 1. The reform commission said in a statement on July 14 that the public have a "misconception" about the government's fuel-pricing mechanism. Fuel prices have been raised by "no more than 25 percent" since mid-January, compared with a 70 percent gain in global oil prices during the period, the commission said in the statement.

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China Shipbuilding to Sell Around 2 Billion Shares

Chinese state-owned company, which is the biggest ships' maker, is planning to offer $942 million in initial public offering, according to a report from China Securities Commission.

The Beijing-based, state-controlled company is selling as many as 1.995 billion shares, or a 30 percent stake, in the stock offering, according to a draft prospectus posted on the Web site. The commission's listing panel is scheduled to meet July 27 to vet its application to sell shares. China International Capital Corp. is managing the sale. China Shipbuilding Industry Co. is 97 percent owned by China Shipbuilding Industry Corp., one of the nation's largest shipbuilders and repairers, according to its Web site. China Shipbuilding Industry Co.'s sales rose 41 percent to 16.06 billion yuan last year from 2007. Net profit grew 52 percent to 1.2 billion yuan in the same period, according to the draft prospectus.

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China's Largest Housing Contractor will raise $7.3 Billion in IPO

China State Construction Engineering Company, China's largest housing contractor, is planning on raising $7.3 billion "in the world's biggest initial public offering since March 2008". It looks to sell about 12 billion shares from 3.96 yuan to 4.18 yuan each.

"The market won't have any problem holding up the State Construction sale," Yu Yang, a Guangzhou-based strategist at Guotai Junan Securities Co., said before the filing. "There's so much money around after the relatively loose monetary policy." State Construction's profit fell 44 percent in 2008 to 4.92 billion yuan because of the slowing property market, rising raw material prices and higher tax payments. The company and its advisers are predicting a recovery this year, as the government's 4 trillion yuan stimulus package begins to revive the economy. Nationwide property sales jumped 53 percent last month from a year earlier by value, and investment in real estate development increased 9.9 percent, the statistics bureau said July 10. Economic growth is therefore picking up pace.

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PBOC Begins Tightening Monetary Policy

The People's Bank of China sold one-year bills at the "highest rate this year," which increased money market rates to avoid bubbles in the stock and property markets.

The idea is to "soak up excess cash in the financial system after…almost eight months" and avoid inflation. It also absorbs funds through bill buy-back arrangements with commercial lenders. "The central bank is using the gradual increase in yields to alert the market to prepare for a tighter policy in the future," said Liu Jianyan, a fixed-income analyst at First Capital Securities Co. in Shenzhen. "But there won't be a drastic reversal of previous loose monetary policy." The yield rose from 1.60 last week to 1.65. Liu predicts that yield on the one-year bill will climb to 2 percent by the end of 2009. The hike in yields will be restricted because China's central bank will avoid raising its 5.31 percent benchmark one-year lending rate for a year as the government hopes to maintain "mini-bubbles" to help the world's third- largest economy recover, said James Yuan, who manages 36 billion yuan as chief investment officer at the joint venture of Prudential Financial Inc.

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China Eastern Airlines and Shanghai Airlines Integrate

China Eastern Airlines is planning to buy Shanghai Airlines, a deal worth about 7 billion yuan ($1 billion).

Since the announcement, each share of Shanghai Airlines will be exchanged for 1.3 China Eastern Sales. China Eastern is going to raise the 7 billion yuan by issuing shares. After the deal is sealed, China Eastern will control over 50 percent of flights from its base in Shanghai and improve the airline's business. Both companies suffered losses in 2008, and the integration of the airlines will allow them to compete against Air China and China Southern Airlines, its domestic rivals. Shanghai Airlines will keep its brand name. Combined, the two companies will operate about 306 airplanes.

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China and the U.S Prepare to Discuss Global Warming

The U.S is planning on demanding China to decrease its tariffs on clean energy technology in order to further the two country's goals of combating global warming.

According to David Sandalow, assistant secretary of energy for policy and international affairs policy, the two countries know they have "much to gain by partnering to develop clean energy technologies that will power our economy by cutting carbon emissions," since both are the largest greenhouse gas emitters. As reported by Reuters, "The two countries have tremendous trade opportunities in areas such as wind power, energy efficiency, clean coal and modernizing the electric grid, but U.S. companies face high tariffs on some exports," said Travis Sullivan, policy director for Commerce Department. In addition, U.S companies are worried about Chinese policies that favor domestic companies, which threaten American products. In turn, China is concerned about "U.S export controls that restrict sales of some high-technology goods." Currently, "China is resisting setting a hard cap on greenhouse gas emissions that many believe is necessary for the U.S. Senate to approve any climate treaty." "We think China needs to make a significant commitment ... in order to address the climate problem," Sandalow said.

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China's Car Sales Increased 48%

China's passenger-vehicle sales increased about 48 percent in June, which is the most significant increase since February 2006.

Much of the credit is being given to the government's stimulus spending from a $585 billion (4 trillion yuan). The two quarter sales jumped 18 percent to 6.1 million after the government slashed some retail taxes and offered vehicle subsidies in rural areas to encourage demand and help the auto market. According to an analyst at First Capital Securities Co., Wang Qingtao, "China's downward slide is clearly over. There is also a huge natural demand for vehicles, which will continue to drive the industry for years to come." Stocks for SAIC motor Corp., China's biggest automaker have more than tripled this year. Stocks for Dongfeng Motor Group Co., the largest Hong Kong automaker have more than doubled this year alone. Increasing auto sales add to the evidence that China's economy is recuperating from a slowdown in the beginning of 2009.

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China Pressures for International Reserve Currency

The Chinese authorities find it hard to explain to its domestic public why a relatively poor developing country is lending so much to one of the world's most affluent economies. Yet the reason is pretty straightforward. The decision to peg the yuan to the dollar in 1994 initially helped achieve macroeconomic stability, but with a growing trade surplus and appreciation pressure on its currency it also forced the PBOC to intervene in the foreign exchange markets to maintain the yuan's parity with the dollar. While the accumulation of foreign reserves – the complement to China's ever-growing current account surplus - has been regarded as virtuous and as an insurance against currency crisis, it has increasingly created problems.

Chinese authorities have repeatedly called for a new global monetary order that depends less on the U.S. dollar. In March, for instance, Chinese Premier Wen Jiabao expressed concern about the value of China's large holdings of U.S. assets and demanded that the U.S. government take measures to guarantee its "good credit." Also in March, just before the London G-20 Summit, the People's Bank of China (PBOC), published a paper by Zhou Xiaochuan, the PBOC governor, on its Web site in which he asked for a new "super-sovereign" international reserve currency "that is disconnected from individual nations" to secure global financial stability and facilitate world economic growth. He proposed that a more prominent role should be given to Special Drawing Rights (SDRs), a basket of currencies used by the International Monetary Fund (IMF) as a unit of account, suggesting that SDRs could replace the dollar as main reserve currency in the medium term.

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China Gives $950 Million to Help Zimbabwe

The government says it needs some $8bn to rebuild the country following years of collapse. "The gvernment through the minister of finance, secured credit lines of almost $950m from China," Mr Tsvangirai said in a news conference.

China was one of the few countries to retain economic support for Zimbabwe in recent years. "We will encourage and facilitate more Chinese companies to seek development in Zimbabwe," Chinese official Zhou Yongkang told state news agency Xinhua. China has agreed to give Zimbabwe a loan of $950m (£573m) to help it revive its battered economy, Prime Minister Morgan Tsvangirai has said. Mr Tsvangirai had been criticised by supporters of President Robert Mugabe for failing to get more support during his recent trip to the West. Mr Tsvangirai and Mr Mugabe formed a power-sharing government in February

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China and Hong Kong decide on Yuan

The yuan will now be used in cross-border trade between China and Hong Kong, in attempt to reduce the reliance on the U.S dollar. Joseph Yam, Hong Kong Monetary Authority Chief Executive and Zhou Xiaochuan, the governor of People's Bank of China signed the agreement today and affirm that the first yuan transactions will begin next month. The benefits that accompany the agreement are reduced transaction costs and reduced foreign-exchange risks.

"It's an important step to make the yuan an international currency," said Fang Ming, an analyst in Beijing at Bank of China Ltd., the nation's biggest foreign currency trader. "In the long-term, the world reserve currency system will consist of several major currencies, including the yuan and the euro, instead of just the U.S. dollar." Many worry about the $1.95 trillion in foreign-currency reserves but Zhou assures that China will not change its composition suddenly, but will rather do it gradually. Hong Kong Chief Executive Donald Tsang announced, "Our long-term goal to promote Hong Kong as an overseas yuan trade settlement center for China, and today's arrangement is a big step towards this goal." The People's Bank of China has now agreed to provide 650 billion yuan ($495 billion) to Argentina, Belarus, Hong Kong, Indonesia, Malaysia and South Korea through "currency swaps" to begin expanding it use.

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China Prevents Yuan from Strengthening

China is preventing its currency from strengthening against the dollar to support jobs and exports.

China is preventing its currency from strengthening against the dollar to support jobs and exports. This would make it easier for Chinese manufacturers to keep prices low for consumers abroad, like the U.S and Europe, which would help more factories stay in business. However, it would restrict China's spending power when importing raw materials and luxury goods, which furthers the stress between China and its trading partners. During the past four years, China has managed its exchange rate against an "undisclosed" basket of currencies "as a step toward making the yuan fully convertible," according to Bloomberg. Timothy Geithner, U.S Treasury Secretary urged China to allow its currency to be more flexible. He also advises the country to rely less on exports and more on imports to work for growth in the economy. He also stresses the importance for market-set interest rates and exchange rates to manage the economy. Trade gaps between its trade partners have "boosted the nation's foreign-exchange reserves." In March 2009, the reserves reached $1.95 trillion The Chinese government will be able to maintain an exchange rate that favors its manufacturers because the U.S. government needs its support to finance it's large budget deficit, said Chris Ruffle who helps oversee $3 billion of assets as co- chairman of Martin Currie Investment Management Ltd.'s China unit in Shanghai. China is the biggest foreign holder of U.S government debt. Its importance in the U.S bond market will keep China in control of its own currency.

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Trade Dispute: China, U.S and European Union

Both the U.S and European Union have reportedly criticized China for "unfairly limiting its raw materials exports" and instead give its domestic industry access to cheaper materials. China denies such claims and affirms that it is following its World Trade Organization obligations and protecting the environment and natural resources.

Both the U.S and European Union have reportedly criticized China for "unfairly limiting its raw materials exports" and instead giving its domestic industry access to cheaper materials. China denies such claims and affirms that it is following its World Trade Organization obligations and protecting the environment and natural resources. Bauxite, magnesium and coke, which is used to make steel are some of the materials that are causing the two countries to become concerned. Ron Kirk, U.S Trade Representative holds that China is "unfairly restricting exports of raw materials," and is therefore harming American steel, aluminum and chemical manufacturers that rely heavily on these materials to make their products. The U.S and E.U criticisms have resulted in a 60 day consultation period, where the dispute will be resolved. Should the two countries win against China, they would be permitted by the WTO to impose economic sanctions on China.

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Foreign Direct Investment in China fell from a Year Earlier

Investment slumped 17.8 percent in May to $6.38 billion, after falling 22.5 percent in April, the commerce ministry said at a briefing in Beijing on Monday.

Investment slumped 17.8 percent in May to $6.38 billion, after falling 22.5 percent in April, the commerce ministry said at a briefing in Beijing on Monday. According to the commerce ministry, foreign-invested businesses account for 30 percent of investment from abroad, 55 percent of trade and 11 percent of urban jobs. Chief Asia economist for Morgan Stanley in Hong Kong, Wang Qing says that companies are "not in the mood for aggressive overseas expansion," On June 12 and 13, Premier Wen Jiabao admitted that the world economic outlook was still unclear and that China still has to establish "solid foundations for a recovery." The economy expanded 6.1 percent in the first quarter compared to the same quarter in 2008, which was the slowest pace in 10 years. China's economic problems are due to falling exports, dwindling profits, industrial overcapacity, and unemployment. However, there are signs of increased retail sales, industrial output, and market confidence.

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Tax plan sets off a Protest in China

It was reported by officials in Nankang that "several hundred protesters blocked a major road while others delivered a petition to a local government office."

The officials said that the protest is based on a misunderstanding over the tax plan, since a few furniture-store owners mistakenly thought that municipal party and government wants the furniture industry to collapse. The tax plan: To enforce payment of taxes more strictly from the furniture makers and dealers. Due to opposition, however, the local government's plan has been postponed from June 15.

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China Citic Bank's Net Rises 61%

China Citic Bank Corp. said its 2008 net profit rose 61% on higher net interest income. Net profit for the 12 months ended Dec. 31 totaled 13.32 billion yuan ($1.95 billion), up from 8.29 billion yuan in 2007, the midsize lender said. The bank earlier forecast its 2008 net profit would rise around 60% on steady asset growth, higher fee-based and commission income, and a lower cost-to-income ratio.

China Citic Bank Corp. said its 2008 net profit rose 61% on higher net interest income. Net profit for the 12 months ended Dec. 31 totaled 13.32 billion yuan ($1.95 billion), up from 8.29 billion yuan in 2007, the midsize lender said. The bank earlier forecast its 2008 net profit would rise around 60% on steady asset growth, higher fee-based and commission income, and a lower cost-to-income ratio.

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China's Textile Exports Continue to Weaken

Textile exports in China continue to weaken in 2009 and there are no signs for a turnaround in the near future.

Textile exports in China continue to weaken in 2009 and there are no signs for a turnaround in the near future. China has increased tax rebates in order to stimulate the industry, but no immediate market reaction has been seen. Certain textile and apparel products have received an increase in tax rebates from 15 percent to 16 percent. This is the fourth time the government has raised the rebate rate since last August. However, amid the financial crisis, the rebate is likely to have little effect as demand from foreign countries has decreased dramatically. Orders from US and European markets, which used to contribute up to 40 percent of the companies business, has declined to account for only 20 percent.

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Marketers Bullish on China's Recovery

Top marketers based in China believe that the country's economy will recover more quickly than the West, and is likely to turn around by 2010, according to a survey conducted by market research firm Millward Brown-ACSR and communications agency Hill & Knowlton.

Top marketers based in China believe that the country's economy will recover more quickly than the West, and is likely to turn around by 2010, according to a survey conducted by market research firm Millward Brown-ACSR and communications agency Hill & Knowlton. The survey of 59 chief marketing officers and senior marketing directors (85 percent of whom are from multinationals) indicated that cautious optimism exists in marketing departments, with 75 percent of correspondents believing the economy would return to a booming state next year, as Chinese consumers had been less affected than those in the West. Senior management expressed more confidence (81 percent) than other levels (71 percent) about the country's economic recovery by 2010.

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China's Hotels Could Lead Recovery

China's hotels may spearhead the industry in shaking off the economic recession, said a senior official from China Tourist Hotels Association (CTHA) on Tuesday.

China's hotels may spearhead the industry in shaking off the economic recession, said a senior official from China Tourist Hotels Association (CTHA) on Tuesday. A survey based on the performance of 14 major cities' hotels showed that between September 2008 and January 2009, hotels of all varieties in China were hit by the global economic slowdown compared to the same period in 2007, while hotels managed by international companies felt more of a pinch than their local rivals. Of the hoteliers polled in the 14 cities, 60 percent were prudent about prospects for 2009, and another 34 percent were still full of confidence. The forthcoming World Expo 2010 Shanghai, estimated to draw 70 million visitors, will also set domestic hoteliers' adrenalin flowing, said Huang Zhengang, secretary general with Shanghai Municipal Tourism Administration.

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China, Argentina Sign 70 Billion Yuan Currency Swap Deal

China inked a 70 billion yuan ($10.25 billion) currency swap agreement with Argentina on Sunday, the largest financial deal between China and a Latin American country, Xinhua News Agency reported.

China inked a 70 billion yuan ($10.25 billion) currency swap agreement with Argentina on Sunday, the largest financial deal between China and a Latin American country, Xinhua News Agency reported. The deal was jointly signed by People's Bank of China Governor Zhou Xiaochuan and Central Bank of Argentina Governor Martin Redrado on the sideline of the 50th annual meeting of the Inter-American Development Bank, which aims to stabilize regional currency, shun financial risk and stem the ripple effect of the ongoing financial crisis. Under such a framework, Argentina importers could use renminbi, instead of the US dollar, to settle deals with Chinese exporters, Xinhua reported. Argentina is the fifth country after South Korea, Malaysia, Belarus and Indonesia to sign such a currency swap deal with China.

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China: Chalco Profit down 99% in 2008

Aluminum Corporation of China Ltd (Chalco), reported a 99.9 percent plunge in full-year net profit to 9.2 million yuan ($1.35 million) in 2008, due to product price fluctuations on the international market, the company's annual report revealed Monday.

Aluminum Corporation of China Ltd (Chalco), reported a 99.9 percent plunge in full-year net profit to 9.2 million yuan ($1.35 million) in 2008, due to product price fluctuations on the international market, the company's annual report revealed Monday. "The company suffered major losses from the snowstorm at the beginning of last year, and the earthquake disaster," said the statement. The shock from the financial crisis, rises in raw material prices and consecutive plunges of finished product prices had posted "unprecedented difficulties and challenges" for the company, said the statement.

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China Steel Futures Contract Joins Global Race

China will join the race for a global steel benchmark with its first major steel futures contract on Friday, but it will need to thread a fine line to woo both local speculators and big mills.

China will join the race for a global steel benchmark with its first major steel futures contract on Friday, but it will need to thread a fine line to woo both local speculators and big mills. The fact that the contract is located in the world's biggest steel producer and consumer is both a blessing and curse for the Shanghai Futures Exchange: while there is no shortage of small trading houses eager to trade, there is also the risk of rampant speculation, the kind that sank a previous contract in the 1990s. The Shanghai bourse has already found local success with copper and other commodity futures that have had a growing influence on global markets, and it may face better odds with steel, which has yet to gather critical mass on any of the four exchanges that launched contracts over the past few years. "We have not yet had a global pricing centre for steel products, and the futures in Shanghai can play the role," said Tan Wentao, head of research and development at Shanghai-based HNA Topwin Futures.

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China Calls for the End of the Dollar

The Governor of the People's Bank of China, Zhou Xiaochuan, has recently called for the end of the dollar as the international benchmark currency.

The Governor of the People's Bank of China, Zhou Xiaochuan, has recently called for the end of the dollar as the international benchmark currency. Instead, Xiaochuan wants the to replace the dollar with another international currency that will be controlled by the International Monetary Fund. Although there are very few analysts in the world that foresee this ever happening, the proposal is suggesting that China is trying to increase its role in the world economy. It is also a signal of China's increasing skepticism that their dollar-denominated foreign reserves could lose significant value in coming years.

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China Faces Declining Output

In the first two months of 2009 industrial output, in Shanghai, has dropped 12.7 percent.

In the first two months of 2009 industrial output, in Shanghai, has dropped 12.7 percent. The city started experiencing slowed growth in September and October, and beginning in November output started to decline. Out of the 34 industrial sectors, 28 face negative output growth. In 2008, economic growth slowed to 9.7 percent, the first single-digit growth rate since 1992.

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China Signs Currency Swap Agreement

China and Indonesia have agreed on a three-year currency swap worth 100 billion yuan. This deal may be extended upon mutual agreement.

China and Indonesia have agreed on a three-year currency swap worth 100 billion yuan. This deal may be extended upon mutual agreement. The currency swap is intended to promote bilateral trade and direct investment between both countries. It will also provide short-term liquidity during this volatile market crisis.

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Bank of China Plans To Invest In Publishing

The nation's third-largest lender by market value, Bank of China, has decided to take stake in the publishing industry.

The nation's third-largest lender by market value, Bank of China, has decided to take stake in the publishing industry. Bank of China spokesman, Wang Zhaowen, stated, "if there is any suitable program in the publishing industry, BOC is willing to invest. And we're also ready to finance the expansion of existing publishing companies."

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china

China to Continue Buying US Treasuries

China will continue to buy US treasuries, assessing the overall credit risk as minimal.

China will continue to buy US treasuries, assessing the overall credit risk as minimal. China's nearly $2 trillion in reserves is heavily weighted in US dollar assets, accounting for nearly two thirds of the total. Hu Xiaolian, a vice governor of the People's Bank of China, stated that "China would not be swayed in determining the make-up of its portfolio by short-term volatility in currency markets."

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China Southern Power Grid gets $14.64 Billion Credit Line

China Southern Power Grid (CSG), the second-largest Chinese power distributor, will receive a $14.64 billion credit line from Industrial and Commerce Bank of China.

China Southern Power Grid (CSG), the second-largest Chinese power distributor, will receive a $14.64 billion credit line from Industrial and Commerce Bank of China. The company is reaching for a 5% growth in electricity sales within the next year. CSG sold 232 TWh of electricity in the first half of 2008.

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China Shipbuilding Stimulus Plan Made Public

China will give a 17 percent subsidy on ship prices for domestic ocean-going buyers until 2012.

China will give a 17 percent subsidy on ship prices for domestic ocean-going buyers until 2012. They will also offer preferential interest rates to ship manufacturers as part of the stimulus plan. Chinese banks, through the issuance of US bonds, will offer financing support for ship buyers. Qualified domestic shipyards will also be encouraged to list or issue bonds to solve capital shortage problems.

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Bank of China Picked to Lead Lending on Mega-Bridge

Construction on a massive bridge connecting Hong Kong with Macao and the city of Zhuhai will begin as early as this year.

Construction on a massive bridge connecting Hong Kong with Macao and the city of Zhuhai will begin as early as this year. Bank of China was chosen as the lead bank responsible for 22 billion yuan of the 37.6 billion yuan investment. The remaining funds will come from the Chinese central government and the governments of Hong Kong, Macao and the Guangdong province. The loans are expected to be repaid using a toll fee on the bridge.

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China Gold Output Pegged at 290 Tons

China is likely to be able to produce up to 290 tons of gold this year.

China is likely to be able to produce up to 290 tons of gold this year. China's gold output has grown 7.6 percent annually through 2003 to 2008. China currently ranks seventh in the world in terms of proven gold reserves.

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The World Bank Reduces China's GDP Expectations

For the second time within four months, the World Bank has reduced its growth forecasts for China's 2009 GDP.

For the second time within four months, the World Bank has reduced its growth forecasts for China's 2009 GDP. This is to be expected after Chinese exports fell 25.7 percent year on year in February. Amid the global downturn, there is confidence that China, the third largest economy, will continue to expand at a higher rate than most other countries.

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China National Offshore Oil Corp to Raise $11.7b in Debt Financing

China National Offshore Oil Corp (CNOOC) aims to raise approximately 80 billion yuan towards financing aggressive expansion plans set for this year.

China National Offshore Oil Corp (CNOOC) aims to raise approximately 80 billion yuan towards financing aggressive expansion plans set for this year. This comes in response to declining revenue and cash flow following the collapse in world crude oil prices. CNOOC is also looking at other potential refining projects across the country, and continues to eye a number of overseas acquisition targets, Wu Mengfei, the company's chief financial officer, told reporters.

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China's Shaanxi Province Bolsters Lead and Zinc Industry

China's Shaanxi province is purchasing 77,000 tons of refined lead and zinc in order to boost smelters struggling from weak demand.

China's Shaanxi province is purchasing 77,000 tons of refined lead and zinc in order to boost smelters struggling from weak demand. Shaanxi Non-ferrous Metals Company, a Shaanxi government company, is paying above market value for the lead and zinc in order to support smelters and prices.

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China Denies Coca-Cola Decision EqualsTrade Protectionism

China's Ministry of Commerce (MOC) denied Coca-Cola's proposal to acquire Huiyuan Juice Group.

China's Ministry of Commerce (MOC) denied Coca-Cola's proposal to acquire Huiyuan Juice Group. MOC spokesman Yao Jian said the decision was based "on sufficient investigation and research, on the basis of facts, and strictly in line with the country's anti-monopoly law". Although the decision borders closely on protectionism, the Chinese government has stated that it would continue to actively accept foreign investment.

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China Telecom's 3G Services Start Trials

The fastest 3G service available was launched yesterday in Shanghai by China Telecom.

The fastest 3G service available was launched yesterday in Shanghai by China Telecom. At the moment, 3G data cards must still be plugged into laptops to receive service. But plans to officially launch 3G services, including for mobile phones, by the beginning of April are in circulation.

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China Northern Wins High Speed Rail Order

China Northern Locomotive & Rolling Stock Industry (Group) Corp, signed a contract last Monday with China's Ministry of Railways to supply the latter with $5.73 billion worth of high-speed rail.

China Northern Locomotive & Rolling Stock Industry (Group) Corp, signed a contract last Monday with China's Ministry of Railways to supply the latter with $5.73 billion worth of high-speed rail. The new equipment will be part of the Beijing-Shanghai Express Railway by 2011.

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China's Overseas Contractual Projects Up

Despite the global economic downturn, China has experienced a 24.8 percent increase year-on-year in overseas contractual projects.

Despite the global economic downturn, China has experienced a 24.8 percent increase year-on-year in overseas contractual projects. This is most likely due to Chinese companies gaining experience in investing overseas. The rise in investment in developing countries has also had positive affects.

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China's Factory Gate Prices Continue to Fall

According to the National Bureau of Statistics (NBS), the factory-gate price of industrial products has continued to decline in March.

According to the National Bureau of Statistics (NBS), the factory-gate price of industrial products has continued to decline in March. Out of the eight monitored categories, six reported price drops since February 20. The NBS surveyed 313 enterprises to collect the data.

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US asked to ensure safety of Chinese assets

Premier Wen Jiabao said today that China has asked the US Government to ensure the safety of Chinese assets within the US.

Premier Wen Jiabao said today that China has asked the US Government to ensure the safety of Chinese assets within the US. China is the largest creditor for the US, holding $681.9 billion worth of US government bonds. This has left Wen worried about the security of their foreign assets.

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China's Government Revenue Dropped 11.4%

China's government revenue dropped 11.4 percent in January and February compared to a year earlier.

China's government revenue dropped 11.4 percent in January and February compared to a year earlier. This is a result of declining corporate profits and recent tax cuts. According to a statement on the finance ministry's website, government revenue was down to 1.02 trillion yuan in the first two months of 2009.

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China's Money Supply Surges

China's money supply grew at a faster pace in February than it had in over five years.

China's money supply grew at a faster pace in February than it had in over five years. The surge in money supply can be traced back to the major increase in yuan dominated loans produced by the Chinese Banks. The banks have quadrupled the lending in an attempt to boost the struggling economy.

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China Prepared for more Stimulus Measures

In an attempt to battle the economic downturn, China prepares to add a second leg to their stimulus package.

In an attempt to battle the economic downturn, China prepares to add a second leg to their stimulus package. China's 4-trillion-yuan two- year stimulus package has not yet created enough stability to ensure an 8-percent economic growth this year, therefor, an additional 1.18 trillion yuan will be used to spur consumption. Premier Wen Jiabao said that it is an arduous task for China to achieve the 8-percent economic growth target this year, but it is still possible with considerable effort.

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Bank of China Creates 500 Billion Yuan in New Loans

Bank of China (BOC) created new yuan-denominated loans this year that will account for about 10 percent of the country's 5 trillion yuan in new loans.

Bank of China (BOC) created new yuan-denominated loans this year that will account for about 10 percent of the country's 5 trillion yuan in new loans. This was coupled with 120 billion yuan of subordinate bonds. BOC is the third State-owned commercial bank that will issue subordinate bonds this year.

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China to Increase Farmers' Enthusiasm

The Chinese government must increase farmers' enthusiasm for growing grain if it is to produce all of the grain it needs.

The Chinese government must increase farmers' enthusiasm for growing grain if it is to produce all of the grain it needs. Due to the decline in grain prices farmers have been discouraged from growing more grain, and could potentially put China in danger of grain insecurity. China has witnessed a grain surplus for five consecutive years.

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China's Industrial Output Growth Continues to Slump

The beginning of 2009 has been marked by only a 3.8 percent increase in industrial output compared to the same time period last year.

The beginning of 2009 has been marked by only a 3.8 percent increase in industrial output compared to the same time period last year. The nations industrial output for the month of February was stronger than that of January, however, this could simply be due to the the extra amount of working days in the month of February. Nevertheless, the stronger industrial output figures for the month of February represent an improving trend.

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China Warns Job-Seekers to Beware of Pyramid Schemes

The State Administration for Industry and Commerce and the Ministry of Public Security announced that due to the economic downturn 20 million out of the 130 million migrant workers have lost their jobs and 7.1 million graduates will also seek employment.

The State Administration for Industry and Commerce and the Ministry of Public Security announced that due to the economic downturn 20 million out of the 130 million migrant workers have lost their jobs and 7.1 million graduates will also seek employment. This has lead to a dramatic increase in pyramid schemes. Often times the pyramid schemes were disguised as recruiting assistance programs. Last year alone, 400,000 people were involved within pyramid schemes. Pyramid sales were banned in China in 1998.

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china

China Starts Oil Field Project in Iraq

China has began its oil field project in Iraq this week

China has began its oil field project in Iraq this week. The project is expected to generate 110,000 barrels per day in the coming 6 years. The project would allow China to satisfy its growing domestic demand for energy, while also helping the war-torn country of Iraq to rebuild its infrastructure and boost oil production. China has vowed to "boost oil output to 110,000 bpd in six years and create local employment opportunities, and boost business development of Wasit province as well as its industry recuperation." The project is also expected to boost Sino-Iraqi cooperation, ranging from commercial ties to agricultural collaboration.

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China May Top Japan GDP in '09

A recent report released by the China Policy Institute of the University Nottingham (UK), showed that China will potentially overtake Japan to become the world's largest economy by the end of 2009 or beginning of 2010.

A recent report released by the China Policy Institute of the University Nottingham (UK), showed that China will potentially overtake Japan to become the world's largest economy by the end of 2009 or beginning of 2010. The Research revealed that big economies such as the US, Germany, Japan and the UK "are not likely to recover to their 2007 output levels until 2011 or 2012, but China is expected to expand at 7 to 8 percent this year". Chinese Premier Wen Jiabao has stated that China would achieve an 8% growth this year if proper and timely measures are taken. However, while GDP figures may be high, China's per capita GDP still remains very low.

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China to Import Gas From Qatar

In an effort to satisfy its growing gas domestic demand, China has made a deal to import liquefied natural gas (LNG) from Qatar.

In an effort to satisfy its growing gas domestic demand, China has made a deal to import liquefied natural gas (LNG) from Qatar. China plans to import 2 million tons of LNG from the Middle Eastern country each year for 25 years. Qatar is the world's largest exporter of LNG, producing over 31 million tons a year. The deal is expected to strengthen energy cooperation between the two regions. The agreement is part of China's plan to import 60 million tons of LNG each year by 2020. China's National Offshore Oil Co. has also signed deals with Russia and Kazakhstan, securing 13 million tons of LNG imports a year.

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China: Sanyuan Wins Bidding of Sanlu

Sanlu, a Chinese dairy company that was associated with the melanime scandal, has been bought by Beijing Sanyuan Food Co Ltd. in an auction earlier today.

Sanlu, a Chinese dairy company that was associated with the melanime scandal, has been bought by Beijing Sanyuan Food Co Ltd. in an auction earlier today. Sanlu was declared bankrupt last month after months of hardship resulting from the milk scandal, including a fine of $7.3 million dollars. Sanlu resulted to auctioning all of its real estate holdings, buildings, equipments, investment rights, and interests in three other dairy firms. Sanyuan won the bidding for Sanlu's assets with $90.13 million.

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China's Defense Budget to Grow 14.9% in 2009

China unveiled plans to increase its defense budget by 14.9% from $9.1 billion last year to $80 billion in 2009

China unveiled plans to increase its defense budget by 14.9% from $9.1 billion last year to $80 billion in 2009. The defense spending will now account for 6.3% of the country's total fiscal expenditure in 2009. The rise in the defense budget is aimed at providing better treatment of the country's servicemen, including an increase in subsidies and salaries in order to improve their living standards. The budget will also be geared towards the purchasing of technology and equipments aimed at enhancing China's military force. The government will also invest on raising the capacity of the military anti-terror and disaster relief operations. Funding will also be available for the reconstruction of military facilities impacted by the Sichuan earthquake last May. Li Zhaoxing, a spokesman for the People's Congress, described the increase in the defense budget as "modest", stating that "China's defense expenditure was fairly low compared with other countries, considering the size of China's population and territory."

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China Plans Oil Refinery in Tianjin with Russia

China and Russia are expected to jointly build an oil refinery in the Tianjin province next year, as both countries seek to satisfy growing domestic demand.

China and Russia are expected to jointly build an oil refinery in the Tianjin province next year, as both countries seek to satisfy growing domestic demand. The project will be developed by Russia's OAO Rosneft and China's National Petroleum Corp. The $ 4 billion project once conclude, will be able to process 10 million tons of crude a year. Last month, China and Russia signed a loans-for-oil agreement, where China is expected to loan $25 billion to Russian oil companies in exchange for 20 years of sustained supplies of oil. Moreover, China and Russia will begin the construction of an oil pipeline linking the two countries. The pipeline is expected to be concluded in 2010. The construction of new oil refineries are in line with China's stimulus package for the petrochemical industry and its need to satisfy the country's rapidly growing demand for energy.

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china

China National Coal Group Sees More Profit with Output Up

China National Coal Group announced that they expect to almost double their profit within five years due to an output twice that of last years.

China National Coal Group announced that they expect to almost double their profit within five years due to an output twice that of last years. This was stated regardless of the current economic situation which has slowed coal demand and the demand for coal generated electricity. Prospects are still positive for the future of coal in China.

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Chinese SOEs Down More than 30 Percent

Chinese State-owned enterprises (SOEs) are down more than 30 percent year-on-year.

Chinese State-owned enterprises (SOEs) are down more than 30 percent year-on-year. The State-owned Assets Supervision and Administration Commission announced that the decline was due to "unusual domestic natural disasters, the global downturn and 'policy-induced' losses". Since 2002 profits had risen an average of 150 billion yuan a year prior to this years loss.

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china

Ban on Chinese Toys Lifted

India lifts a month long ban on Chinese toys on the condition that the products be tagged with world consumer safety certificates.

India lifts a month long ban on Chinese toys on the condition that the products be tagged with world consumer safety certificates. China rejected the ban calling it an act of protectionism. Even Indian toy dealers have complained that since the ban many are at risk of having to shutting down due to soaring toy prices.

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china

China Plans to Bolster Oil Reserves

Due to the fluctuating world price of oil in 2008, China is building-up its oil reserves in order to maintain a more steady economy.

Due to the fluctuating world price of oil in 2008, China is building-up its oil reserves in order to maintain a more steady economy. The plan includes the construction of nine new refining bases over the next three years. China, the second largest consumer of oil world wide, relies heavily on imports, contributing about 50 percent. The decision to increase oil reserves has been well-received all across China.

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China: Chinalco, Investing $19.5 billion in Rio

Chinalco, China's aluminium Corp., announced plans to invest over $19.5 billion on Rio Tinto, Australia's mining giant.

Chinalco, China's aluminium Corp., announced plans to invest over $19.5 billion on Rio Tinto, Australia's mining giant. Chinalco has stated that although it is a big investment, it does not plan to control Rio in any way. The investment has been a part of China's increasing efforts to secure minerals during a time where commodity prices have slumped sharply. China has planned to invest around $25 billion in mines and companies during this time.

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china

China Eastern Airlines Gets Cash Boost

Yesterday, China Eastern Airlines received approval to raise 7 billion yuan (US $1.2 billion) through a stock sale.

Yesterday, China Eastern Airlines received approval to raise 7 billion yuan (US $1.2 billion) through a stock sale. The shares will be sold to China Eastern's state run parent. Rumors the government will promote a merger between China Eastern and another ailing airline, Shanghai Airlines have not been validated, and the position of Liu Shaoyong, China Eastern Chairman, has not changed.

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China Tells Banks To Put Aside More Bad Loan Provisions

China cautions its five biggest state owned banks to set aside more provisions protecting against bad loans.

China cautions its five biggest state owned banks to set aside more provisions protecting against bad loans. The banks also received a whole-year schedule on risks, to encourage them to move in line with the stimulus plan. The banks were told too closely watch strategic investors, and overseas partners in order to be best prepared to retain the benefits of cooperation.

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China Denies Funding Acquisitions Abroad

The alleged allegations were that China had been funding domestic mining firms to seek acquisitions abroad.

The alleged allegations were that China had been funding domestic mining firms to seek acquisitions abroad. Chen Bin, director of the Industrial Coordination Department under the National Development and Reform Commission, said that Chinese mining firms pursuing foreign resources arose from the companies own independent business decisions, and no government funding existed. These decisions were proposed in order to ensure sufficient mineral supplies to fuel domestic industrial growth.

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china

Nearly 10,000 Cars Recalled in China

Mitsubishi Motors, a Japanese car manufacturer, is recalling 9,390 cars due to brake system problems.

Mitsubishi Motors, a Japanese car manufacturer, is recalling 9,390 cars due to brake system problems. The models being recalled are the Outlander EX and the Lancer EX; with 9,108 and 282 cars being recalled respectively. This comes after almost 13,000 cars were recalled by Mitsubishi for failing break lights last December.

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china

China's Banking Industry Pocketed 583 Billion Yuan in 2008

Throughout this global economic crisis the Chinese banking industry last year still managed to receive revenues of 583.4 billion yuan, $85.3 billion.

Throughout this global economic crisis, the Chinese banking industry last year still managed to receive revenues of 583.4 billion yuan, $85.3 billion. This was a 30.6 percent increase over 2007's figures. The success is credited to intensified supervision in the foreign currency markets and strong communication with the commission.

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China's PICC Group to Complete Shareholding Reform the Year

One of the country's largest insurance groups, PICC Group, will conclude their shareholding reform this year.

One of the country's largest insurance groups, PICC Group, will conclude their shareholding reform this year. PICC Group has been working since the beginning of 2008 to promote an A-share offering. The listing plan was delayed due to the sluggish market and claims for natural disasters. PICC won't participate in bidding for AIG's Asian subsidiary American International Assurance Co.

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china

China's Green Economy by 2030

China is capable of creating a green economy by the year 2030

China is capable of creating a green economy by the year 2030. Oil imports are to be reduced 30 to 40 percent, coal demand by 40 percent, and greenhouse gas emission by 50 percent. China should be prepared to spend 1.5-2.5 percent of their total GDP annually in order to bring about these changes.

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China's Stimulus Package 'May Grow'

The Chinese government may introduce another four trillion yuan into their stimulus package in order to combat the slowing economy.

The Chinese government may introduce another four trillion yuan into their stimulus package in order to combat the slowing economy. "We expect that the central government's stimulus package is very likely to grow to seven billion or to eight trillion yuan if the country's economy doesn't rebound as expected," said Sun, chief China economist with Nomura International. Economic data for the months of March and April, will be the deciding factor for the expansion of the package.

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China Unveils Stimulus Plans For Nonferrous Metals and Logistics

China's State Council, announced that they will add support for the country's nonferrous metals and logistics sectors.

China's State Council, announced that they will add support for the country's nonferrous metals and logistics sectors. They will promote company restructuring and offer subsidized loans to support technical innovations. To boost the logistics sector an industry standard and an information platform will be promoted. Within the last month, China has revealed stimulus packages for 10 industries.

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china

China Attempts To Raise Domestic Demand

President Hu Jintao reported that the nation will take "more forceful" steps to boost domestic demand...

China's State Council, announced that they will add support for the country's nonferrous metals and logistics sectors. They will promote company restructuring and offer subsidized loans to support technical innovations. To boost the logistics sector an industry standard and an information platform will be promoted. Within the last month China has revealed stimulus packages for 10 industries.

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China's Pension Fund To Increase Overseas Investment

The National Council for Social Security Fund (SSF) said on Wednesday, China will "steadily increase" the use of social security funds for overseas investment.

The National Council for Social Security Fund (SSF) said on Wednesday, China will "steadily increase" the use of social security funds for overseas investment. Overseas investment makes up 6 percent of the total (SSF). The investment in stocks rapidly declined in 2008 while the world stock markets were struggling. The total asset of the Social Security Fund was 562 billion yuan at the end of 2008.

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china

China Sovereign Fund Posts 5% Investment Return

China investment Corp (CIC), a $200 billion sovereign wealth fund, created a profit of $10 billion this past year.

China investment Corp (CIC), a $200 billion sovereign wealth fund, created a profit of $10 billion this past year. That raised their annual return to 5 percent, regardless of their investments in Morgan Stanely and the private equity firm Blackstone, which amounted a net loss of $4 billion. CIC invested in highly liquid financial assets, including treasury bills and bank notes; this coupled with considerable dividends from domestic financial institutions led to the large annual return.

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China: Trade Team Heads to EU for Big Deals

A delegation of Chinese business men led by the country's Minister of Commerce Chen Deming, headed to Europe today in an effort to strengthen China-Europe ties.

A delegation of Chinese business men led by the country's Minister of Commerce Chen Deming, headed to Europe today in an effort to strengthen China-Europe ties. China has stated a growing need for European goods, stemmed from the stimulus package released last November. The delegation aims to sign numerous trade deals potentially worth billions of dollars.

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china

China's Electronics Industry Gets a Lift

China has announced plans to boost the nation's electronics and information industries.

China has announced plans to boost the nation's electronics and information industries. Authorities will provide investments and promote the expansion of high-tech and communication services and innovations for the next three years. The government will also aim to encourage domestic electronic business to venture overseas in order to promote and market their projects, as well as build R&D;centers. The government hopes that the plan will help to stimulate consumption in light of the weakening domestic demand.

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china

Russian and China Sign $25bn Deal

China Development Bank has announced that it will lend Rosneft, a Russian state oil firm, $15 billion. Russia in return, will supply China with over 15 million tons of oil per year for 20 years.

China Development Bank has announced that it will lend Rosneft, a Russian state oil firm, $15 billion. Russia in return, will supply China with over 15 million tons of oil per year for 20 years. The deal represents China's efforts to diversify its oil imports, as it is currently very reliant on Middle Eastern oil exports. China has also recently made deals with Central Asian and South American oil companies. China is the world's second largest oil importer and will benefit greatly from diversified deals. Meanwhile, oil exporting countries that make deals with China are expected to highly benefit from infrastructure development.

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china

China Pledges to Increase Aid to Africa

Chinese President Hu Jintao announced plans to increase aid to Africa despite the difficult times fueled by the global financial crisis.

Chinese President Hu Jintao announced plans to increase aid to Africa despite the difficult times fueled by the global financial crisis. In fact, China aims to overcome difficult times through mutual support with Africa. China aims to reduce or cancel African debts, while at the same time expanding trade and investment with the continent. China hopes to also promote mutual development. President Hu Jintao added that his recent visit to Mali has resulted in increased bilateral cooperation between the two countries. The Chinese government will continue to encourage firms to invest in Mali particularly in areas of agriculture, telecommunications, technology and infrastructure construction. China- Mali relations reflect China's commitment to Africa, as stated by authorities. China further aims to "enhance coordination and mutual support to safeguard the interests of the developing countries [in Africa]."

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china

Chinalco May Invest Up To US$20b in Rio Tinto

China's Aluminium Corp, Chinalco, has announced plans to invest up to $20 billion in Rio Tinto in an effort to gain further access to commodities

China's Aluminium Corp, Chinalco, has announced plans to invest up to $20 billion in Rio Tinto in an effort to gain further access to commodities. The deal would benefit both companies as Chinalco would gain access to bauxite and alumina, both needed for the production of aluminum. Rio Tinto currently has about $38.0 billion of debt and would benefit from the investment.

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china

China Expects Slower Bilateral Trade With South Korea

Bilateral trade between China and South Korea has been growing rapidly in the last few years, but authorities predict a sharp slowdown during 2009 due to the global economic slowdown

Bilateral trade between China and South Korea has been growing rapidly in the last few years, but authorities predict a sharp slowdown during 2009 due to the global economic slowdown. Both countries expect to increase cooperation in order to overcome the current crisis. Both countries are set to hold talks on possible free trade agreements, expansion of mutual investments, and further conflict-prevention efforts.

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china

China: ICBC Opens Up With a Credit Boost

China's Industrial and Commercial Bank (ICBC) has issued new loans worth around $36.9 billion in an effort to boost credit and cushion the impacts of the economic slowdown

China's Industrial and Commercial Bank (ICBC) has issued new loans worth around $36.9 billion in an effort to boost credit and cushion the impacts of the economic slowdown. the bank has directed its loans towards infrastructure, including railways and roads, the energy sector and to SME. The bank hopes to advance 530 billion yuan in loans throughout 2009,.

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china

China: $85b To Be Spent on Power

China expects to spend $85 billion on the country's power industry this year, particularly in nuclear reactors, grid construction and wind farms

China expects to spend $85 billion on the country's power industry this year, particularly in nuclear reactors, grid construction and wind farms. The amount is slightly larger than that spent on power industry in 2008. In 2008, the government showed more focus on electricity distribution efforts with a 17.7% increase from 2007, than on power generation with a 10.8% decrease since 2007. The increase in spending on the power industry is part of the government's massive stimulus plan released last year. Currently, the country has eleven nuclear reactors with a combined capacity of 9.07 GW, which only amounts to 1.3% of the total generating capacity. The government has announced its goal to increase nuclear capacity to 5% of the total power production by 2020. China will start the construction of several nuclear plants, with a combined capacity of 8.4 gigawatts.

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china

Japan's Panasonic's Losses to Exceed ¥300 Billion

The Japanese electronics corporation, Panasonic, is expected to experience over 300 billion yen in losses for the business year through March.

The Japanese electronics corporation, Panasonic, is expected to experience over 300 billion yen in losses for the business year through March. The losses are mainly attributed to the extra costs for streamlining its manufacturing operations and the fall of its stock holdings. Panasonic has not suffered an annual loss since 2001. Other electronic giants are revising their estimates amid the financial crisis, with Toshiba and Sony expecting losses to exceed 100 billion yen.

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china

China Reports 111b Yuan in 2008 Fiscal Deficit

China reported a 111 billion yuan fiscal deficit in 2008.

China reported a 111 billion yuan fiscal deficit in 2008. China's fiscal revenue actually went up 19.5% from the previous year, reaching 6.3 trillion in 2008. However, fiscal spending increased significantly last year, reaching 6.24 trillion yuan, a 25.4% year on year increase. Fiscal spending in 2008 was 22.6% above the amount planned, mostly due to stimulus packages and earthquake relief funds.

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china

China's Textile Firms Likely to Feel the Squeeze

Due to decreasing global demand, China's textile export growth is projected to slow down considerably.

Due to decreasing global demand, China's textile export growth is projected to slow down considerably. There will be no significant increases in exports to the United States or Europe, two of China's biggest markets. In 2008, textile exports totaled over $185 billion, an increase of 8.2% as compared to 2007. Increased labor costs and appreciation of the renminbi are also major causes of the projected drop in exports.

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china

China to Unveil Petrochemical Stimulus Package

In 2008, China's petrochemical industry fell on hard times.

In 2008, China's petrochemical industry fell on hard times. The government has taken action to revive the industry, announcing a 500 billion-yuan stimulus package. The money will be used for oil products upgrade and construction for new large-scale petrochemical projects. China will spend 40 billion yuan in 2010 to improve the quality of 60 million tons of diesel.

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china

Report: China to See More Interest Cuts in 2009

In an effort of enhance market fluidity, The Bank of China (BOC) will continue to cut interest rates throughout 2009.

In an effort of enhance market fluidity, The Bank of China (BOC) will continue to cut interest rates throughout 2009. China's fiscal deficit is said to reach $73 billion in 2009, up about 178% from last year. The country is estimated to grow about 8% this year.

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china

Central Bank Gives a Lift to Car Financing

China's central bank will support the establishment of additional auto financing companies in order to boost the sales of cars.

China's central bank will support the establishment of additional auto financing companies in order to boost the sales of cars. It will support the issuing of new auto financing company licenses. This week, the State Council approved a stimulus package for the auto industry after auto sales decreased to 6.7% last year.

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china

China Revises 2007 Growth from 11.9% to 13%

According to the National Bureau of Statistics, China's GDP in 2007 increased 13% to over $3.76 trillion.

According to the National Bureau of Statistics, China's GDP in 2007 increased 13% to over $3.76 trillion. The updated statistics for China's economy suggest that China has in all likelihood surpassed Germany to become the world's third-largest economy. Only the United States and Japan have larger GDP's per year.

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china

China, US promise $20 billion for trade

In an effort to tackle the global financial crisis and stabilize their economies, China and the US pledged $20 billion to finance trade.

In an effort to tackle the global financial crisis and stabilize their economies, China and the US pledged $20 billion to finance trade. Both countries will allow their import-export bank to provide credit for importers in developing countries to buy Chinese and US goods. Currency reform is also expected in order to re balance growth.

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china

China Builds South East Asia Ties

China aims to strengthen bilateral relations with Laos and Cambodia.

China aims to strengthen bilateral relations with Laos and Cambodia. China has increasingly invested in South East Asia and now plans to raise financial and infrastructural assistance in both countries. Moreover, China plans to promote coordination of security with Cambodia, as well as increase trade with Laos.

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china

China Slashes Key Interest Rate To Boost Economy

China announced an interest rate cut of 1.08%, the biggest in more than a decade, in order to fight the impacts of an economic slowdown

China announced an interest rate cut of 1.08%, the biggest in more than a decade, in order to fight the impacts of an economic slowdown. China's central bank has announced that the one-year lending rate will drop yo 5.58% while the deposit rate will rise back to 2.52%.

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china

PetroChina Does Big Gas Deal with Shell

PetroChina Co has closed an agreement with Royal Dutch Shell to buy 40 million tons of liquefied natural gas

PetroChina Co has closed an agreement with Royal Dutch Shell to buy 40 million tons of liquefied natural gas. PetroChina plans to buy 2 million tons of liquefied natural gas from Shell annually over the next 20 year.

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china

China and Peru Agree Trade Deal

During a visit by the Chinese president, Hu Jintao, China and Peru concluded a free-trade agreement.

During a visit by the Chinese president, Hu Jintao, China and Peru concluded a free-trade agreement.China wants to strengthen economic cooperation with Central and Latin America and is particularly interested in the region's raw materials such as copper, zinc and iron ore. Latin America would benefit from increased infrastructure, technology and shared skills. This month a Chinese news agency announced that exports to Latin America grew 52% in the first 9 months of 2008, to $111.5bn.

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china

China Seeks Boost to Cuba Ties

Chinese President, Hu Juntao, will be visiting Cuba in the next following days in order to strengthen economic ties between the two countries

Chinese President, Hu Juntao, will be visiting Cuba in the next following days in order to strengthen economic ties between the two countries. China is currently Cuba's second largest trading partner, with bilateral trade at $2.3 billion in 2007. Mr. Hu will also be traveling to Costa Rica in order to promote a free trade agreement between China and Central America.

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china

China's Retail Sales Surge

China's retail sales experienced its fastest growth rate in nine years, despite the current global financial crisis.

China's retail sales experienced its fastest growth rate in nine years, despite the current global financial crisis. Retail sales rose 22% in October from last year to $148 billion. Chinese officials hope that the recently announced stimulus package will encourage people to raise domestic consumption.

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china

China Authorises ‘Massive’ Stimulus Package

The Chinese Government has announced a US$586 billion stimulus package in an effort to avert further negative economic impacts caused by the global financial crisis.

The Chinese Government has announced a US$586 billion stimulus package in an effort to avert further negative economic impacts caused by the global financial crisis. The money will be invested on infrastructure and social welfare programs during the next two years.

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china

China to Spend US$146 bil. on Quake Reconstruction

China announced that it will spend $146.5 billion over the next three years to help rebuild the areas affected by the Sichuan Earthquake.

China announced that it will spend $146.5 billion over the next three years to help rebuild the areas affected by the Sichuan Earthquake. The earthquake killed 80,000 people and left 10 million homeless. The money will go towards housing, education, health and infrastructure. The government aims to create basic living conditions in the area and to have economic development match or surpass pre-earthquake levels.

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china

PepsiCo to Invest $1b in China Over Next 4 Years

Pepsico announced that it plans to invest $1billion in China during the next four years, as part of the company's plan to expand in growing markets.

Pepsico announced that it plans to invest $1billion in China during the next four years, as part of the company's plan to expand in growing markets. The investment will create thousands of jobs and fund programs to increase manufacturing capacity in China.

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china

Chinese Planes Bound for US Market

In a deal marking its entrance into the big-plane market, China will sell 25 ARJ21-700 jets to a U.S. company.

In a deal marking its entrance into the big-plane market, China will sell 25 ARJ21-700 jets to a U.S. company. The contract is worth about $735 million.

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china

China Cuts Interest Rates Again

In an effort to stimulate economic growth, China's central bank has cut the interest rate by 0.27%

In an effort to stimulate economic growth, China's central bank has cut the interest rate by 0.27%. It is the third interest rate cute made by China in the past six weeks.

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china

China Creates 9 Million Jobs in Three Quarters

In the first three quarters of the year, China created 9.36 million jobs.

In the first three quarters of the year, China created 9.36 million jobs. In addition, over 4 million laid-off workers were re-employed. The government plans on taking even more responsibilities for creating employment by offering taxation, financing, and other ways of helping start-up businesses.

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china

China's GDP Growth Slowed Down to 9% in Q3

After growing 10.6% in the first quarter and 10.1% in the second quarter, China's economy grew just 9% in the third quarter.

After growing 10.6% in the first quarter and 10.1% in the second quarter, China's economy grew just 9% in the third quarter. The growth of 9% is the lowest its been in five years. The decrease in growth can be attributed to a weaker demand for China's exports.

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china

Another Record Golden Week in China

Last week, more than 18.29 million tourists visited China, a 13.2% increase from one year ago.

Last week, more than 18.29 million tourists visited China, a 13.2% increase from one year ago. Beijing was the most popular tourist destination. Retail sales increased 21%, reaching $61 billion.

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china

Holiday Tourists Flock to Beijing, Drawn in Part by Olympic Venues

About 635,000 tourists traveled to Beijing during the first two days of the National Day holiday.

About 635,000 tourists traveled to Beijing during the first two days of the National Day holiday. The number of travelers reflects a 14.4% increase from last year. Catering businesses also posted significant increases in revenue.

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china

Overseas Firms Eye China's Dairy Industry

As the tainted milk scandal continues to outrage Chinese consumers, foreign companies are looking to enter China's diary sector.

As the tainted milk scandal continues to outrage Chinese consumers, foreign companies are looking to enter China's diary sector. For example, Japan's Asahi Breweries has entered the sector with a liquid milk product costing nearly twice as much as the country's current milk products. Chinese consumers may be willing to pay the higher cost since they now have a higher demand for food and safety regulations.

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china

China Eases Policy Decisively to Support Economy

For the first time since February of 2002, China's central bank cut the cost of bank loans.

For the first time since February of 2002, China's central bank cut the cost of bank loans. In addition, the People's Bank of China lowered the reserve requirement by 1% for almost all banks. The two moves by the central bank are attempts to stimulate the country's slowing economy.

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china

Chinese Authorities Take New Move to Protect Farmland

With a fast-depleting land bank, China faces many new challenges regarding its farmland.

With a fast-depleting land bank, China faces many new challenges regarding its farmland. The Chinese government is now making developers who obtain arable land reclaim an equal-sized area to get approval for building on the land. Only "key projects with national significance" are exempt from the new rule.

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china

Mainland China Banks Get Credit Rating Boost

The credit rating of 10 mainland commercial banks have increased from last year.

The credit rating of 10 mainland commercial banks have increased from last year. Seven banks were rated AAA this year as compared to only five last year. China Merchants Bank went from AA+ to AAA and China CITIC Bank Corp Ltd upgraded from AA to AAA. The increase in banks' ratings were due partly by higher risk resistance and profitability.

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china

Chinese Government to Steer Investment into 5 Key Areas

In an effort to maintain steady economic growth, the government aims to steer investment into five key areas including agriculture, energy saving and emissions reduction, economic restructuring, independent innovation, and social undertakings.

In an effort to maintain steady economic growth, the government aims to steer investment into five key areas including agriculture, energy saving and emissions reduction, economic restructuring, independent innovation, and social undertakings. Furthermore, high-energy consuming sectors will be regulated in how much they can expand. The government will focus on these five areas to help competitive enterprises out of difficulty.

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china

Economists Doubt JPMorgan's Estimate of China's Stimulus Package

Economists from the Ministry Finance and National Development and Reform Commission questioned JPMorgan's report on China's economic stimulus package.

Economists from the Ministry Finance and National Development and Reform Commission questioned JPMorgan's report on China's economic stimulus package. JPMorgan reported that China's stimulus package would be worth somewhere between $33 billion and $67 billion. Economists speculate that these estimates are too high.

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china

Talk of gov't support drives China stocks up more than 7%

Chinese shares rose more than 7 percent on Wednesday, making their largest one-day gain in four months.

According to analysts, investors warmly received a statement made by the China Insurance Regulatory Commission, which said several hours after the market close on Tuesday that it would always firmly support the development of the country's share market.

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china

Green Tax on Big Cars in China

China increases vehicle excise tax by 40%

Purchasing larger cars in China after September 1, will cost more due to the 40% raise in vehicle excise tax. China's Ministry of Finance (MOF) and State Administration of Taxation (SAOT) announced this new ruling via a notice posted on their websites. Due to China's rapid economic growth, it has lead to an expanded middle class increasing the number of private car ownership to 20% on a yearly average. This ruling follows a similar trend in the past several years of highly-polluting factories being shut-down, companies adopting more energy-saving technologies, and public buildings being required to adopt energy saving practices.

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china

China Reports 6.3% Rise in CPI in July

According to a report by the National Bureau of Statistics, China's consumer price index rose 6.3% in the month of July.

According to a report by the National Bureau of Statistics, China's consumer price index rose 6.3% in the month of July. Food prices grew significantly with meat and cooking oil increasing the most. The 6.3% of growth is somewhat lower than July's growth of 7.1%

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china

China Think Tank Forecasts Q3 GDP Growth at 10.2%

The State Information Center projects China's economic growth to be 10.2%.

The State Information Center projects China's economic growth to be 10.2%. in the third quarter. According to the report, consumption will continue to drive the economy. The consumer price index is expected to rise 6.6% in the third quarter.

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china

Accommodation Prices During Olympics Drop in Beijing

Supply of housing in Beijing far exceeded demand, thus lowering the price of accommodations.

Supply of housing in Beijing far exceeded demand, thus lowering the price of accommodations. Most people expected that the Olympic Games would increase accommodation prices, but some rentals of flats decreased almost 75%. The price of hotel rooms in Beijing also decreased.

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china

Bonds Supply More Funds in China

The China Securities Regulatory Commission reported that from January to June of this year, 21 listed companies raised 74.5 billion yuan through bond issuance, six times as much as the same period last year.

The China Securities Regulatory Commission reported that from January to June of this year, 21 listed companies raised 74.5 billion yuan through bond issuance, six times as much as the same period last year. The increased number of companies turning to bonds is due mostly to the condition of the stock market during the fist half of the year. Funds raised through initial public offering stood at 94 billion yuan, which is 30% less than last year.

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china

China's First Anti-Monopoly Law Takes Effect

In order to promote fair competition, China has implemented its first anti-monopoly law.

In order to promote fair competition, China has implemented its first anti-monopoly law. The law was proposed 14 years ago, but it wasn't until last year that the Standing Committee of the National People's congress officially approved it. Chinese experts feel that the law still needs a good deal of tweaking to make it more efficient.

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china

Urban Students Will Be Free From Tuition, Other Fees

Starting in the upcoming Autumn term, urban students in China will not have to pay tuition and other fees.

Starting in the upcoming Autumn term, urban students in China will not have to pay tuition and other fees. Free textbooks and subsidized boarding for students from low-income families will continue to be offered. However, those who misuse funds for compulsory education will be punished.

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china

Mainland, Hong Kong Sign Further Expanded Economic Agreement

Supplement V to the Mainland and Hong Kong Closer Economic Partnership Agreement (CEPA) was signed by the Chinese central government and the government of the Hong Kong Special Administrative Region.

Supplement V to the Mainland and Hong Kong Closer Economic Partnership Agreement (CEPA) was signed by the Chinese central government and the government of the Hong Kong Special Administrative Region. Supplement V states that if a mainland-incorporated banking institution established by a Hong Kong bank meets certain requirements, it can locate its data center in Hong Kong. CEPA will now offer Hong Kong businesses new opportunities in the mainland

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china

High Energy-Consuming Sectors Grow Slower in H1

China's six high energy-consuming sectors- electric power, chemicals, iron and steel, petroleum, building materials, and nonferrous metals- experienced a decrease in growth in the first half of the year.

China's six high energy-consuming sectors- electric power, chemicals, iron and steel, petroleum, building materials, and nonferrous metals- experienced a decrease in growth in the first half of the year. These sectors grew 14.5% in output, which is 5.6% lower than the rate of growth during the first half of 2007. The slow in growth is due to the Chinese government's policy of decreasing the development of high energy-consuming sectors in order to achieve sustainable economic growth.

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china

Hybrid Rice Set to Boost Yields by 20%

The deputy director-general of the Hunan Hybrid Rice Research Center said that an output of 900 kg of rice per mu would be a reality in the next two years.

The deputy director-general of the Hunan Hybrid Rice Research Center said that an output of 900 kg of rice per mu would be a reality in the next two years. Increases in hybrid rice technology has allowed the per mu rice output to reach 700 kg in 2000 and 800 kg in 2004. This next milestone in per mu rice output should increase China's rice output by 20%. At least 20 other countries have begun planting China's hybrid rice.

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china

China's Growth Rate May Dip to 9.9%

Because the state of the world economy is worse than anticipated, China's economy is expected to finish at only 9.9% this year and then fall to 9.7% next year.

Because the state of the world economy is worse than anticipated, China's economy is expected to finish at only 9.9% this year and then fall to 9.7% next year. Increasing food and energy prices will continue to take their toll on the world economy. The rate of inflation is expected to rise 6.3% in China, which is more than twice the rate of the past ten-year average.

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china

Chinese Banks' Risk Controls Intensify in Loan Growth Check

China's commercial banks reduced their bad loan ratio reduced to 6.1% by the end of June, which is 0.62% lower than at the beginning of 2008.

China's commercial banks reduced their bad loan ratio reduced to 6.1% by the end of June, which is 0.62% lower than at the beginning of 2008. The main commercial banks combined for a total of 1.18 trillion yuan (US$17 billion) in bad loans, 24.71 billion yuan less than at the start of the year. Lenders extended 2.7 trillion yuan of loans in the first half this year.

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china

China's Economy Grows 10.4%, Inflation Eases

China's Gross Domestic Product (GDP) grew 10.1% in the second quarter, continuing China's steady decline in economic growth since the second quarter of 2007.

China's Gross Domestic Product (GDP) grew 10.1% in the second quarter, continuing China's steady decline in economic growth since the second quarter of 2007. The Consumer Price Index (CPI) fell to 7.1% after rising 7.7% in the previous month. However with price increases in the global market, the public will have to expect further price hikes in the near future.

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china

Yuan Hits Another New High Against Dollar

The yuan, China's currency, set another high against the US dollar.

The yuan, China's currency, set another high against the US dollar. The yuan's central parity rate was 6.8128 yuan to the dollar and the reference rate was up 102 basis points. This year, the yuan has risen over 7% against the dollar as compared to 6.9% all of last year.

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china

China's Forex Reserve Reaches $1.809 Trillion by June

The People's Bank of China (PBOC) announced that China's cumulative foreign exchange stood at $1.809 trillion at the end of June, up 35.73 percent from last year.

The People's Bank of China (PBOC) announced that China's cumulative foreign exchange stood at $1.809 trillion at the end of June, up 35.73 percent from last year. China's foreign exchange reserve increased only $11.9 billion in June as compared to $30 billion from June of last year. It increased by $280.6 billion in the first half, up $14.3 billion over the first half of 2007.

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china

China Oilfield Agrees to Buy Awilco for $2.49 Billion

China Oilfield has agreed to buy Awilco Offshore ASA for $2.49 billion, in order to increase its rig fleet by 47%.

China Oilfield has agreed to buy Awilco Offshore ASA for $2.49 billion, in order to increase its rig fleet by 47%. Gavin Strachan, an ODS-Petrodata research consultant, explains that is more profitable to buy newly delivered rigs (or rather an entire company with newly delivered rigs) than to order more-- which takes several years to deliver. Both Lehman Brothers Holdings Inc and JPMorgan Chase & Co. are advising China Oilfield on the offer.

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china

Foreign Funded Banks in China Own $193 Billion in Assets

Assets owned by foreign funded banks totaled some $193 billion by the end of March.

Assets owned by foreign funded banks totaled some $193 billion by the end of March. This was an increase of 55% year on year. These assets count for 2.44% of total assets of the banks in China. This indicates both a rising trend in foreign banks opening, and investing, as well as rising asset values for China.

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china

China Toughens Foreign Exchange Receipts and Export Settlements

Three Chinese central government departments are planning to institute a computer check for foreign recepits and export settlements starting July 14.

Three Chinese central government departments are planning to institute a computer check for foreign recepits and export settlements starting July 14. This is to prevent the "hot money" flowing in and out of the country, as well as monitor capital flows. Analysts believe more than $147 .9 billion dollars of "hot money" has already flowed into the country since January.

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china

China's Economy Set to Cool

China's economy is set to cool down after May, due to tightened monetary policies.

China's economy is set to cool down after May, due to tightened monetary policies. Tightened policies were instituted to prevent the overheating that occurred last year. Economists suggested that a growth rate between 9 and 10 percent would be beneficial to the Chinese economy, and any rate above might lead to instability. China's CPI for May was 113.3.

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china

China Approves Reports on Reconstruction Plan

China passed a plan to the State Council to adjust the central budget and establish a fun for post earthquake reconstruction.

China passed a plan to the State Council to adjust the central budget and establish a fun for post earthquake reconstruction. Some 40 billion yuan will go towards subsidizing the reconstruction of farmers' homes. The country plans to spend three years completing reconstruction, and another five years to further develop these regions.

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china

McDonalds Raises Prices in China

McDonalds, like many of its competitors such as KFC and Pizza Hut, has increased its food prices in China.

McDonalds, like many of its competitors such as KFC and Pizza Hut, has increased its food prices in China. The company has claimed the need to increase prices due to raw materials, food, labor cost and skyrocketing oil prices being so high. Most consumers feel relatively unaffected as the price increases are between .5 and 1.5 yuan, and are accompanied by a host of other price increases throughout the economy.

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china

Chinese Steel Imports Hurt US

The US International Trade Commission has claimed that the Chinese have been selling steel products at a less than fair value, damaging the US $1.4 billion dollar steel industry.

The US International Trade Commission has claimed that the Chinese have been selling steel products at a less than fair value, damaging the US $1.4 billion dollar steel industry. The Department of Commerce instituted a duty of of 99% to 700% on the imported goods, thus protecting American steel makers from a subsidized Chinese product.

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china

Small Car Sales Can Rise with Fuel Price

Analysts looking at the recent price increases on fuel and petroleum do not believe it will have a fatal impact on Chinese consumerism in the auto industry, but may lead to smaller fuel efficient car purchases.

Analysts looking at the recent price increases on fuel and petroleum do not believe it will have a fatal impact on Chinese consumerism in the auto industry, but may lead to smaller fuel efficient car purchases. Rather than the expected 20% growth in the car industry, analysts expect that it will only reach 15% growth, and that middle class consumers will look for economy cars as opposed to large sedans.

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china

PetroChina Joins Shell, Qatar Oil Company for Petrochemical JV

PetroChina is interested in gathering oil behemoths QPI and Shell Ltd to determine whether a refinery and petrochemical complex in China could be built between the three companies.

PetroChina is interested in gathering oil behemoths QPI and Shell Ltd to determine whether a refinery and petrochemical complex in China could be built between the three companies. Petro China would control 51 % percent of the venture, while QPI and Shell split the rest. China's demand for petrochemicals is attracting interest and investment from the middle east, and refineries and complexes such as these are desperately needed.

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china

UnionPay ATM Business Expands to 45 Countries

UnionPay has expanded its ATM capacity to 45 countries and regions.

UnionPay has expanded its ATM capacity to 45 countries and regions. China Union Pay's overseas business saw an increase in 70% year-on-year. Business in major companies such as the United States and Japan has jumped more than 500%. Such statistic indicate great advancement in the credit networks of Asia.

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china

The National Development and Reform Commission Calls for a Check on Inflation

The NDRC is asking for a tight control on prices in China to avoid greater inflation.

The NDRC is asking for a tight control on prices in China to avoid greater inflation. Rather than raise the prices of products, Manufacturers will be asked to cut production costs, along with a request to local governments to cut the administrative fees paid by them. The fear of inflation was instilled last week when China raised the price of petroleum and diesel fuels.

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china

House Sales Perk Up in Shenzhen

The sales of apartments and houses increased by 51 percent and 56 percent from May.

The sales of apartments and houses increased by 51 percent and 56 percent from May. The district was experiencing sliding prices in housing for the 2008 year, but for the time being the market is doing better.

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china

Fuel Move Boosts Chinese Shares

After the 18% price raise in fuel prices by China, shares closed 3% higher on the Shanghai Composite Index.

After the 18% price raise in fuel prices by China, shares closed 3% higher on the Shanghai Composite Index. This action pushed down global oil prices by as much as $5 a barrel, a significant change on the New York futures market. The largest beneficiaries of the price hikes are oil refiners, who have been suffering deep losses buying oil on the international market and selling it and government instituted prices.

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china

China Allocates $2.8 billion USD in Subsidies to Offset Fuel Hikes

The ministry of finance said today it would allocate 19.8 billion yuan (USD $2.8 billion) in subsidies to groups that would be affected by Thursday's oil price hikes.

The ministry of finance said today it would allocate 19.8 billion yuan (USD $2.8 billion) in subsidies to groups that would be affected by Thursday's oil price hikes. Of the groups, 7.8 will be allocated to grain producers, and 12 billion will be used towards taxis, urban and rural buses, fishing and forestry sectors. The offer was struck after concern for inflationary reaction; Chinese government wishes to ease the public into the new higher gas prices.

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china

China to Raise the Price of Fuel

China has decided to raise the price of fuel (petrol and diesel) by 18%.

China has decided to raise the price of fuel (petrol and diesel) by 18%. It is the first subsidy cut in eight months, and there is fear that it will give rise to inflation. However the restrictions and idea of lower demand in China caused a significantly noticeable drop in the price of crude oil to $133.34 a barrel.

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china

China Completes New Hydropower Station

This Thursday was the commencement of the first generating unit with a hydropower station on the Lancang River.

This Thursday was the commencement of the first generating unit with a hydropower station on the Lancang River. It is the first of three to be installed this year, and one of fourteen to be built in the long term conception. These energy stations are part of a new Chinese strategy to develop the vast west and transport electricity to its eastern borders with a budget of $12.3 billion yuan.

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china

China and Japan Strike Gas Deal

Japan and China have joined forces to develop a gas field in the East China Sea.

Japan and China have joined forces to develop a gas field in the East China Sea. This resolved long standing tension after China began drilling in 2003, raising Japanese fears that China might be able to siphon Japanese gas through the drilling. Chinese President Hu Jintao visited Tokyo this May to speak with Japanese President Yasuo Fukuda,, indicating improved and improving relationships to come.

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china

Brazil and China Are Top Investment Favorites by Spanish Firms

Brazil and China, according to a survey released on Teusday, are listed as the top two investment destinations of leading Spanish companies for this coming year.

Brazil and China, according to a survey released on Teusday, are listed as the top two investment destinations of leading Spanish companies for this coming year. Conducted by KPMG, the survey indicated that 27% of Spanish companies expect to invest in the two countries within one year.

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china

Stocks See the Largest Weekly Fall Since 1996

Chinese stock market plunged 13.8% this past week, which is the largest fall since December of 1966.

Chinese stock market plunged 13.8% this past week, which is the largest fall since December of 1966. About 3.07 trillion yuan ($445 billion USD) was lost."It is hard to say where the bottom is, and the market may continue to dive." says WuFeng an analyst at TX Investment Consulting Co Ltd.

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china

Aviation Market Consolidates for Large Jet Building

China's aviation industry group has consolidated two of its leading state-owned aircraft designers and producers.

China's aviation industry group has consolidated two of its leading state-owned aircraft designers and producers. This comes after the first large passenger-aircraft company was established in Shanghai in May.

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china

Quake-hit Sichuan Reopens 13 Cities to Tourists

The cities of Zigong, Panzhihua, Luzhou, Suining, Neijiang, Leshan, Nanchong, Yibin, Guang'an, Dazhou, Meishan, Ziyang and Liangshan, were reopened to restore the Sichuan province's travel industry.

The cities of Zigong, Panzhihua, Luzhou, Suining, Neijiang, Leshan, Nanchong, Yibin, Guang'an, Dazhou, Meishan, Ziyang and Liangshan, were reopened to restore the Sichuan province's travel industry. Losses have been put at 27.84 billion yuan ($4.03 billion), according to the tourism bureau.

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china

Chinese Online Shoppers Spend 2.3 Billion USD in First Half

Online Chinese shoppers spent 2.3 billion USD dollars since January of 2008

Online Chinese shoppers spent 2.3 billion USD dollars since January of 2008. Over half of these consumers were male, and over 15% were students.

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china

China's Tectonic Shift

2008 has been a tough year for the Chinese government.

2008 has been a tough year for the Chinese government. However, as Malkiel argues, these tragedies and setbacks should lead to a freer China, an improved image for the government, and "a renewed commitment to encourage rapid growth in the poorer central and western regions of the country."

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china

Taiwan, China Sign Formal Agreement on Tourism

Taiwan and China agreed on Friday to expand charter flights and tourism.

Taiwan and China agreed on Friday to expand charter flights and tourism. From July 4, 36 charter flights will run from Friday to Monday.

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china

China's May Trade Surplus Down 10% to USD20.2 bln

China's monthly trade surplus decreased to USD20.2 billion in May, down 10 percent from the same month last year.

China's monthly trade surplus decreased to USD20.2 billion in May, down 10 percent from the same month last year. Exports and imports in May rose 28.1 percent and 40 percent year on year to USD120.49 billion and USD100.29 billion, respectively.

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china

Macao Seeks to Build up Business Platform with Largest Annual Trade Fair

Macao tries to build itself as an " efficient business platform".

Macao tries to build itself as an " efficient business platform". Macao Trade and Investment Promotion Institute (IPIM) will organize an event from Oct. 23 to 26 this year to highlight the roles of Macao as an economic and trade co-operation service platform between China and the Portuguese- speaking countries.

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china

Huaneng Banks on Development of Clean Energy

With the prices of oil and coal soaring up, Huaneng Group, China's largest power producer, is making efforts to adjust its power generation structure.

With the prices of oil and coal soaring up, Huaneng Group, China's largest power producer, is making efforts to adjust its power generation structure. A 120 megawatts (mW) wind power plant is under construction in Wenchang, Hainan. A 200-mW Shidaowan nuclear power plant in Rongcheng, Shandong is expected to start construction in 2009.

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china

China's Export And Import Volume in Service Trade Tops USD200 bln in 2007

China's export and import volume in service trade (excluding government service) was USD250.91 billion in 2007, up 30.9 percent year to year.

China's export and import volume in service trade (excluding government service) was USD250.91 billion in 2007, up 30.9 percent year to year. The trade deficit decreased 14.6 percent to USD7.61 billion.

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china

Feature: China's Huawei Seeks to Expand Services in E Africa

China's Huawei Technologies is seeking to expand its services and become a dominant player in telecom services in East Africa.

China's Huawei Technologies is seeking to expand its services and become a dominant player in telecom services in East Africa. The telecoms company has had exceptional growth in the region since it began operations in 1998 in Kenya and become the largest CDMA product provider in the region.

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china

China Pension Fund to Invest in Private Equity Funds

China's $74 billion national pension fund said it has received approval to invest up to 10 percent of its assets in private equity funds.

China's $74 billion national pension fund said it has received approval to invest up to 10 percent of its assets in private equity funds. The National Council for Social Security Fund, or NSSF, may invest in private equity and industry investment funds, the pension fund said in a statement posted on its Web site. The investments must be cleared with China's National Development and Reform Commission, according to the release.

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china

China Telecom Courting Foreign Investors: Official Media

China Telecom seek to foreign investors to help fund its plan to buy China Unicom's CDMA mobile phone technology business which will cost CNY110 billion (USD16 billion).

China Telecom seek to foreign investors to help fund its plan to buy China Unicom's CDMA mobile phone technology business which will cost CNY110 billion (USD16 billion). China Telecom is the country's largest fixed line operator. It was said that four or five companies including SK Telecom have shown interest so far.

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china

China to Float CNY20 bln Treasury Bonds Next Week

China will issue CNY20 billion (USD2.9 billion) "certificated treasury bonds" from June 10.

China will issue CNY20 billion (USD2.9 billion) "certificated treasury bonds" from June 10. The annual interest rate of three-year bonds and five-year bonds are 5.74 percent, and 6.34 percent, respectively

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china

China to Import Grain As Economy Grows: Environmentalist

China is likely to become a major grain importer to feed its increasingly rich population as citizens change their eating habits.

China is likely to become a major grain importer to feed its increasingly rich population as citizens change their eating habits. According to Brown, an influential environmental scholar, the change of Chinese food chain is resulting in a two-million-tonne increase of grain consumption per year.

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china

China Quake Raises Inflationary Risks

Reconstruction after China quake on May 12 raise demand for cement, steel and other materials and will likely add to inflationary pressures.

Reconstruction after China quake on May 12 raise demand for cement, steel and other materials and will likely add to inflationary pressures. China's inflation rate has come to a 12-year highs in April at 8.5 percent.

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china

China Stops Refunding Export Tax on Some Vegetable Oil Products

China will stop refunding export taxes levied on twenty vegetable oil products from June 13 to control vegetable oil exports.

China will stop refunding export taxes levied on twenty vegetable oil products from June 13 to control vegetable oil exports. Those twenty vegetable oil products include soybean oil, peanut oil, olive oil, palm oil, cotton seeds oil and corn oil, etc.

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china

China Unicom Buying China Netcom for Nearly $24B

China Unicom Ltd. announced plans to take over China Netcom Group Corp. Ltd in a share swap valuing the fixed-line operator at HKD185billion(USD23.8 billion).

China Unicom Ltd. announced plans to take over China Netcom Group Corp. Ltd in a share swap valuing the fixed-line operator at HKD185billion(USD23.8 billion). At the same time, China Unicom and its parent would sell the CDMA mobile network and accompanying business to China Telecom and its parent for CNY110 billion (USD15.86 billion).

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china

China Faces Tough Decisions Over Hot Money Inflows - Credit Suisse

This year China's inflation has reached highs not seen in over a decade.

This year China's inflation has reached highs not seen in over a decade. China will have to address the problem of capital inflow to avoid the inflationary pressure getting out of control

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china

Sinopec to Halt Oil Products Exports, Raise Output

Sinopec, China's largest refiner, would increase its oil processing and stop exports in the third quarter to ensure domestic supply.

Sinopec, China's largest refiner, would increase its oil processing and stop exports in the third quarter to ensure domestic supply. China's export decreased 7.8 percent comparing the first four months of a year earlier while the import increased 9.2 percent.

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china

Central Asia: Beijing Flexes Economic Muscle Across Region

China, with billions of dollars invested in Central Asian resources, is making deals that regional leaders find hard to turn down. Beijing, indeed, has a clear strategy for Central Asia -- and it's working.

China, with billions of dollars invested in Central Asian resources, is making deals that regional leaders find hard to turn down. Beijing, indeed, has a clear strategy for Central Asia -- and it's working. What does China see across its western border? Gareth Leather, a China expert for the London-based Economist Intelligence Unit, says the answer is obvious. Central Asia is home to large, relatively untapped oil and natural-gas fields. Most are in Kazakhstan and Turkmenistan -- and Beijing has been quick to seize on export opportunites.

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china

Asian Stocks Fall; BHP Billiton, Cnooc Decline After Oil Drops.

Asian Stocks Fall; BHP Billiton, Inpex Decline After Oil Drops From Record Asian stocks declined, led by raw- materials companies.

Asian Stocks Fall; BHP Billiton, Inpex Decline After Oil Drops From Record Asian stocks declined, led by raw- materials companies, after crude oil fell the most in a month yesterday on concern slowing global growth will sap demand.

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china

China, ROK Agree to Upgrade Bilateral Ties to "Strategic Partnership"

China and the Republic of Korea (ROK) agreed to upgrade their "comprehensive and cooperative partnership" to "strategic cooperative partnership" on May 27,2008.

China and the Republic of Korea (ROK) agreed to upgrade their "comprehensive and cooperative partnership" to "strategic cooperative partnership" on May 27,2008. The two countries will expand substantive cooperation, especially in key areas of trade, investment, environment, logistics, communication and energy. China-ROK free trade area (FTA) will be promoted in a bid to forge closer economic ties.

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china

Government Spending Slashed for Quake Relief

China will cut down government spending by 5 percent this year to release money for quake reconstruction.

China will cut down government spending by 5 percent this year to release money for quake reconstruction. A CNY 70 billion (USD 10 billion) fund will be financed for rebuilding.

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china

Yuan Gains Sharply Against the Dollar

The value of the Yuan rose to a new high after an overnight fall of the US Dollar.

The value of the Yuan rose to a new high after an overnight fall of the US Dollar. The suggested causes of the fall are US inflation and rumored Euro zone interest rates. This is the 36th time in 2008 that the Yuan has set a new high against the US Dollar.

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china

Importing Food Inflation Cautioned

China is now limiting exports on the same agricultural products that it imports since it is experiencing an 11-year high in energy and agricultural prices.

China is now limiting exports on the same agricultural products that it imports since it is experiencing an 11-year high in energy and agricultural prices. Besides deterring exports, China is also using its reserves of what, rice and pork.

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china

Industrial Output Up 15.7% in April

In accordance with the National Bureau of Statistics, the industrial output of China's major enterprises grew 15.7 percent year-on-year in April.

In accordance with the National Bureau of Statistics, the industrial output of China's major enterprises grew 15.7 percent year-on-year in April. Delivered exports of major enterprises accounted CNY659.5 billion. Growth is particularly present in the textile industries as well as on nonmetal mineral products, ferrous metals melting and pressing, telecommunication, computers and chemical materials industries.

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china

FDI Surges in the First Four Months

On the word of the Ministry of Commerce, China received USD35.02 billion worth of foreign direct investment (FDI) these last four months, 59.32 percent more than the same period last year.

On the word of the Ministry of Commerce, China received USD35.02 billion worth of foreign direct investment (FDI) these last four months, 59.32 percent more than the same period last year. China remains a popular destination; it is especially appealing to the top 500 multinationals.

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china

Inflation Jumps 8.5% in April

Inflation rate in China has risen to the highest level in 11 years.

Inflation rate in China rose to the highest level in 11 years. In accordance with the National Bureau of Statistics, the Consumer Price Index (CPI) climbed 8.5 percent in a year.

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china

Inflation Expected to Go Down in Q2

China is expecting a drop in their inflation percentage rate from 8 percent to 7.5 percent for the second quarter of this year.

China is expecting a drop in their inflation percentage rate from 8 percent to 7.5 percent for the second quarter of this year. Nonetheless, consumer price index gained 8.7 percent in February, is been the highest since 12 years ago.

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china

China Urges Strict Local-Level Control of Grain, Fertilizer Exports

In order to guarantee local supply of grain and fertilizers in China, the Minister of Commerce insisted on controlling exports.

In order to guarantee local supply of grain and fertilizers in China, the Minister of Commerce insisted on controlling exports. Food prices rose 21 percent in the first quarter; therefore the government came to a decision of imposing export duties of 5 percent to 25 percent this year.

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china

Yuan Appreciation Dampens Textile Export Prospects

Due to the appreciation of Yuan Renminbi (CNY) against the USD, China's textile producers are loosing overseas clients.

Due to the appreciation of Yuan Renminbi (CNY) against the USD, China's textile producers are loosing overseas clients. The price of cotton T-shirt sold to U.S. is now 10 percent more costly, the CNY has gained around 18 percent since 2005.

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china

China Cuts Stamp Tax to Revive Stock Market

In order to heal China's stock market; China reduced the trading cost for stock investors.

The stamp tax was cut from .3 percent to .1 percent; this attempt will create more confidence in the equity market.

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china

Oil Refiners to get Gov't Subsidies for Losses

Petro China Co and China petroleum and Chemical Corp (Sinopec) will receive subsides every month to compensate their losses from April 1.

Petro China Co and China petroleum and Chemical Corp (Sinopec) will receive subsides every month to compensate their losses from April 1. Sinopec declared that it lost 50 percent of its net profit the first quarter of the year. Even tough oil refiners have showed losses, domestic refined product prices are low.

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china

Export Slowdown in a Reasonable Zone

Even tough export growth has diminished, China's exports remain in a safe zone, said the Minister of Commerce Chen Deming last Tuesday.

Even tough export growth has diminished, China's exports remain in a safe zone, said the Minister of Commerce Chen Deming last Tuesday. Due to credit crisis, trade surplus of China has slender 10.8 percent to USD41.42 billion.

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china

Farm Produce Trade in Deficit in Jan-Feb

Last year China's foreign trade had a surplus; however, this year foreign trade went down.

Last year China's foreign trade had a surplus; however, this year foreign trade went down. Exports of farm products were reduced by the government to guarantee supply domestically.

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china

Possible Slowdown in China's GDP

Fan Gang, a member of the People's Bank of China, predicted a 1 percent slowdown in China's GDP due to the subprime mortgage crisis in the U.S. economy.

Fan Gang, a member of the People's Bank of China, predicted a 1 percent slowdown in China's GDP due to the subprime mortgage crisis in the U.S. economy. The subprime affected China's trade and investment but slower exports were also caused by a government's export policy shift.

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china

Foreign Investment Still Favors China

China remains a popular country for investment regardless of slow economic growth around the world.

China remains a popular country for investment regardless of slow economic growth around the world. China brought more than 4000 investors into its territory; they came from 56 different countries.

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china

China Becomes 3rd Machinery Equipment Supplier to Brazil

According to the vice president of the Brazilian machinery Builders' Association, Jose Velloso Dias Cardoso, China was 3 years ago the 15th supplier of machinery equipment of Brazil, today is the 3rd.

According to the vice president of the Brazilian machinery Builders' Association, Jose Velloso Dias Cardoso, China was 3 years ago the 15th supplier of machinery equipment of Brazil, today is the 3rd. The machinery equipment is gaining popularity owning to high quality and low prices.

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china

China, New Zealand Sign Free Trade Deal

The premier of China, Wen Jiabao, and the Prime Minister of New Zealand, Helen Clark, attended a welcome ceremony in Beijing where a free-trade agreement between both countries was signed.

The premier of China, Wen Jiabao, and the Prime Minister of New Zealand, Helen Clark, attended a welcome ceremony in Beijing where a free-trade agreement between both countries was signed. This is the first FTA of China with a developed country; China is New Zealand's third largest trading partner and fifth most valuable export market

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china

China to Ensure Bank Credit to Grain Producers

Grain producers will receive guaranteed loans from banks; this measure was taken by the China Banking Regulatory Commission (CBRC).

Grain producers will receive guaranteed loans from banks; this measure was taken by the China Banking Regulatory Commission (CBRC). The loans will stabilize the grain supply pressure in China.

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china

Yuan Appreciation More Rapid: Paulson

During his visit in China, US Treasury Secretary Henry Paulson acknowledged that the Yuan is appreciating more rapidly; he believes that this rapid appreciation is on the interest of China.

During his visit in China, US Treasury Secretary Henry Paulson acknowledged that the Yuan is appreciating more rapidly; he believes that this rapid appreciation is on the interest of China. However, many Chinese economists said that this prompt change in their currency will damage China's economy since it will affect exports and reduce employment.

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china

Tax Revenues Rise 23.8% Annually in Past 5 Years

This Tuesday, the deputy head of the State Administration for Taxation (SAT), Qian Guanlin, declared that from 2003 to 2007 China's tax revenue had raised 23.8 percent each year.

This Tuesday, the deputy head of the State Administration for Taxation (SAT), Qian Guanlin, declared that from 2003 to 2007 China's tax revenue had raised 23.8 percent each year. This increase is due to the growth of real state investment, development of industrial and commercial sectors, solid company profits and high levels of stock market transactions.

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china

World Rice Price Hikes 'Will Not Hurt Supply'

In accordance with the Premier of China, Wen Jiabao, China shouldn't be concerned about rising prices since it has plentiful rice supply to the point that it could be self-dependent.

In accordance with the Premier of China, Wen Jiabao, China shouldn't be concerned about rising prices since it has plentiful rice supply to the point that it could be self-dependent. Chinas central government has promoted agriculture with rising farm subsidies, constructing irrigation work and encouraging the use of technology.

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china

Steel Prices to Stay High This Year

Steel prices will continue to be high due to a constant demand and rising costs, per-tone price will be around 1,000 dollar soon.

Steel prices will continue to be high due to a constant demand and rising costs, per-tone price will be around 1,000 dollar soon. There will be a supply shortage caused by China government's effort to eliminate outdated capacity and an installment of newly-developed production that couldn't keep up with their demands.

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china

China's Economy Expected to Grow 10.7% in 2008

In accordance with the United Nations Commission, China's economy will remain healthy with a growth rate of 10.7 percent through this year.

In accordance with the United Nations Commission, China's economy will remain healthy with a growth rate of 10.7 percent through this year. There will be moderation in China's growth since there is a slow down in exports. Nonetheless, investment, increasing demand, spending power, and support from the government with low interest rates remain.

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china

Subprime Holdings Drag Down 2 China Banks

The Industrial & Commercial Bank of China and Bank of China were hurt by holdings in sub-prime sectors in the U.S.

The Industrial & Commercial Bank of China and Bank of China were hurt by holdings in sub-prime sectors in the U.S. 2.13 percent of the Bank of China's investments were in sub prime asset backed securities at the end of the 2007 and the Industrial & Commercial Bank of China had an exposure worth USD 1.23 billion during the same period. Despite the sub prime related exposures, both banks recorded higher fourth quarter earnings year on year.

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china

Shenhua Posts 17 percent rise in 2007 profit

Shenhua Energy, China's largest coal mining business, post a 16.6 percent rise in profits due to increased coal and electricity output.

Shenhua Energy, China's largest coal mining business, post a 16.6 percent rise in profits due to increased coal and electricity output. The production of coal, which provides 80 percent of China's power, went up 15.7 percent while the consumption of coal increased 7.9 percent.

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china

FDI up 75 percent in 1st two months

China attracted over USD 18 billion in FDI in January and February, an increase of 75.19 percent year on year.

China attracted over USD 18 billion in FDI in January and February, an increase of 75.19 percent year on year. The appreciation of the renminbi and the increase in the amount of projects were referred to as possible reasons for the stark jump in FDI.

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china

China Retail Sales up 20 percent in First Two Months

Domestic retail sales surged to CNY 1.74 trillion, an increase of 20.2 percent.

Domestic retail sales surged to CNY 1.74 trillion, an increase of 20.2 percent. Reflecting higher energy and commodity costs and increased sales, the figures were 5.5 percent higher year on year.

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china

Strong Chinese Yuan Attracts Foreign Investment

The Chinese Commerce Ministry revealed that foreign investment has grown 38.3 percent in the last year.

The Chinese Commerce Ministry revealed that foreign investment has grown 38.3 percent in the last year. This is partially due to the Chinese government allowing the Chinese yuan to appreciate 3 percent against the dollar since January. In addition, firms have begun to move to China in order to cut costs and tap into growing demand. Foreign companies have begun to look at China as a vibrant consumer market and less as a low cost manufacturing center.

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china

Thailand and Philippines Considered Most Corrupt Asian Economies according to Survey

According to the Political and Economic Risk Consultancy (PERC), the Philippines, Thailand, Indonesia and China are among the most corrupt Asian economies.

According to the Political and Economic Risk Consultancy (PERC), the Philippines, Thailand, Indonesia and China are among the most corrupt Asian economies. Singapore and Hong Kong retained their standing as the cleanest economies in Asia. The survey only covers 13 countries and does not include countries notorious for corruption such as Bangladesh and Myanmar. The poll consisted of nearly 1,400 expatriate businessmen and was conducted in January and February of this year.

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china

China to Research and Build 350km/h Bullet Train

The Chinese government is planning to start research on a 350 kilometer-per-hour train for the Beijing-Shanghai high speed railway, according to the country's science ministry and the railway ministry.

The Chinese government is planning to start research on a 350 kilometer-per-hour train for the Beijing-Shanghai high speed railway, according to the country's science ministry and the railway ministry. The two ministries signed an agreement on February 26th to collaborate on an upgrade to the present China Railway High-speed (CRH) trains. The proposed railway would cut travel times between the Chinese capital and the country's leading financial hub from 10 hours to 5 hours and double the transport capacity to 160 million passengers annually. The current train's top speed is 300 kilometers-per-hour and will be unveiled on the Beijing-Tianjin railway in August for the Beijing Olympics. The Beijing-Shanghai railway has been under discussion for nearly 10 years and has an estimated required investment of USD 21 billion. If completed, it would be the most expensive engineering project in the world.

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china

Top Rail Builder to Raise USD 3.1 billion in Shanghai IPO

China Railway Construction Corp, CRCC, could raise as much as USD 3.1 billion in its IPO.

China Railway Construction Corp, CRCC, could raise as much as USD 3.1 billion in its IPO. The company has built more than half of all the rail links built in China since 1949, totaling nearly 34,000 kilometers. CRCC's assets were worth 155 billion Yuan as of November 2007.

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china

China Launches 2nd West-to-East Gas Pipeline Project

China began work on a west to east pipeline which will transport natural gas from Turkmenistan to the Yangtze and Pearl River Deltas with an estimated capacity 30 billion cubic meters per year.

China began work on a west to east pipeline which will transport natural gas from Turkmenistan to the Yangtze and Pearl River Deltas with an estimated capacity 30 billion cubic meters per year. Construction is estimated at USD 20 billion.

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china

China’s CPI hits new high of 7.1 percent

Hitting the highest rate in a decade, China's inflation grew enormously to 7.1 percent.

Hitting the highest rate in a decade, China's inflation grew enormously to 7.1 percent. An 18.2 percent increase in food costs drove the CPI rise, according to the National Bureau of Statistics. Furthermore, pork prices have soared 58.8 percent in January prompting the government to provide incentives for the farmers to raise more pigs.

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china

China Seen as Good R&D;Location

A recent survey by the United Nations Conference on Trade and Development (UNCTAD) rated China as the most attractive developing nation for prospective R&D.

A recent survey by the United Nations Conference on Trade and Development (UNCTAD) rated China as the most attractive developing nation for prospective R&D. The high tech industry contributed $706b to China's economy in 2006 and accounted for 8 percent of GDP growth.

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china

Feng Shui Predictions for the Year of the Mouse

The new year in China means big business for Feng Shui experts as they dispense advice, advice often taken seriously by business and government officials.

The new year in China means big business for Feng Shui experts as they dispense advice, advice often taken seriously by business and government officials. The year of the mouse symbolizes a new beginning (mouse is the first of 12 animal signs) to many, for example during the previous 3 mouse years the Hong Kong stock market increased 232 percent, 30 percent, and 18 percent. Even for those that disbelieve any predictions, their influence can be widespread.

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china

China's Pig Problems

Increased pork prices in China have led to an increase in pig related thefts.

Increased pork prices in China have led to an increase in pig related thefts. Pork accounts for 65 percent of Chinese protein consumption and prices have been increasing, motivating criminals. The government has tapped the official pork reserve in an effort to meet the pork shortage.

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china

China Digs Out of the Snow

China has started making repairs and recovering from the bad weather experienced at the end of the Jan 2008.

China has started making repairs and recovering from the bad weather experienced at the end of the Jan 2008. Coal reserves have increased and transmission lines have been largely repaired. Calls to conserve power have gone out as not all repairs are complete for the holiday season.

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china

China and Australia Forging Ties

On Tuesday Feb 5, 2008 the Chinese and Australian foreign minsters began their first bilateral strategic discussion in Canberra, Australia.

On Tuesday Feb 5, 2008 the Chinese and Australian foreign minsters began their first bilateral strategic discussion in Canberra, Australia. Five issues were addressed during the first day: increasing political trust, increasing bilateral cooperation, improve cultural and educational exchanges, increased sensitivity to one another's issues, and strengthen efforts to promote regional peace and stability.

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china

China's Stocks Rise

After reassuring statements by government officials, China's stock markets increased by 8 percent Monday Feb 4, 2008.

After reassuring statements by government officials, China's stock markets increased by 8 percent Monday Feb 4, 2008. The Shanghei Composite Index increased 8.13 percent and the Shenzhen Composite increased 7.95 percent. These increases come as the government addressed recent weather related problems and approved two new stock funds.

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china

Alcoa's Rio Stake Has Wall St in Search of Motive

Alcoa Inc is acting more like a hedge fund these days rather than the largest U.S. Aluminum company

Alcoa Inc is acting more like a hedge fund these days rather than the largest U.S. Aluminum company. By making a $1.2 billion investment as part of Aluminum Corp of China's $14 billion purchase of a 9 percent stake in Rio Tinto Plc. Alcoa has in effect made another bet on China's voracious appetite for aluminum by getting even closer to the state-owned player. Rio is currently valued at about $126 billion. Alcoa's official line is the investment is a business decision that will improve shareholder value, nothing more, nothing less.

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china

Chinese Service Trade Association Founded

The Chinese government founded a service trade association Feb 1, 2008 in order to promote and regulate the country's service trade.

The Chinese government founded a service trade association Feb 1, 2008 in order to promote and regulate the country's service trade. China has grown to become a major worldwide played in service exports and imports, ranking 8th and 7th in each respectively in 2006.

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china

Chinese Housing Gets Pricy

China's housing prices are skyrocketing in major cities according to official data released Jan 30, 2008.

China's housing prices are skyrocketing in major cities according to official data released Jan 30, 2008. Translating the increase quarter by quarter into annual rates gives increases of 5.6, 6.3, 8.2, and 10.2 percent each quarter in 2007. These increases came despite government attempts to limit real estate price growth in order to protect lower income families.

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china

China Sets Oil Records

Unsurprisingly, China set records for crude oil production and consumption in 2007.

Unsurprisingly, China set records for crude oil production and consumption in 2007. Surprisingly, although consumption increased 7.3 percent, crude oil production only increased 1.6 percent - causing an increase of 14.7 percent in net crude oil imports. Almost half (46 percent) of China's crude oil is now imported.

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china

Ecomony and Economic Crime Grow Hand in Hand in China

As China's economy grew last year, so did economic crime, up 4.2 percent.

As China's economy grew last year, so did economic crime, up 4.2 percent. Leading the way, violations of company regulations increased 15.4 percent and financial misconduct increased 14.3 percent. The increase in economic crime came as bombings, arson, murder, rape, abductions and even traffic accidents declined in 2007.

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china

BMW to Increase Plant Capacity by 45 Percent in China

BMW, the world's biggest premium car maker, will raise its production capacity at its Chinese factory by 45 percent over the next few months to as many as 44,000 cars a year.

BMW, the world's biggest premium car maker, will raise its production capacity at its Chinese factory by 45 percent over the next few months to as many as 44,000 cars a year. BMW would aim to build on its volume growth in greater China this year after a 37 percent rise in 2007 sales to more than 61,000 cars. In mainland China, BMW boosted its sales by 42 percent last year to 51,588 cars, while in the Greater China region including Macau, Taiwan and Hong Kong, it moved 61,098 vehicles.

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china

China Buys Canadian Mines

China's government run Copper Bridge Acquisition Corp (CBAC) has purchased a majority stake in Canada's Northern Peru Copper (NPC), an owner of copper, gold and zinc mines.

China's government run Copper Bridge Acquisition Corp (CBAC) has purchased a majority stake in Canada's Northern Peru Copper (NPC), an owner of copper, gold and zinc mines. CBAC was formed by the Jiangxi Copper Corporation and China Minmetals, both state run entities. The NPC purchase grants CBAC access to an estimated 8.05 million tons of copper and 198 tons of gold.

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china

China Runs Low on Power

With China's largest annual holiday approaching, bad weather has caused the worst power shortage in history.

With China's largest annual holiday approaching, bad weather has caused the worst power shortage in history. Heavy snow has downed power lines and disrupted coal transportation just as hundreds of millions of Chinese citizens travel for the Lunar New Year holiday. The 70 gigawatt shortage (equivalent to the total output of the UK) has led the government to suspend coal exports and reopen mines declared unsafe last year

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china

Bad Weather for the Holidays in China.

Over $3b in economic losses have been caused by bad weather in China.

China's worst snowstorms in memory have come at a particularly bad time, hitting just as Lunar New Year holiday travel, estimated at 200m people, is picking up. The weather has caused 24 deaths and the evacuation of 827,000 people. Weather forecasts predict no relief. Economic losses to date are estimated to be at least $3b.

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china

Asian Markets Decline

Chinese markets fell Monday Jan 28 following losses in the US at the end of the previous week.

Chinese markets fell Monday Jan 28 following losses in the US at the end of the previous week. The Shanghei Composite Index declined 7.19 percent and the Shenzen Component Index declined 6.45 percent. Other Asian Markets also fell; the Nikkei 225 Index declined 3.97 percent and the Hang Seng Index declined 4.25 percent.

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china

Chinese Vehicle Production up 22.9 Percent in 2007

China produced 22.9 percent more vehicles in 2007 than in 2006.

China produced 22.9 percent more vehicles in 2007 than in 2006. The total number of vehicles produced was 9.04m, with 4.95m of these being passenger vehicles. Predictions for 2008 exceed 10m vehicles.

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china

Nokia Finds Success in China

Nokia has seen fast growth in the sales of mobile phones in China, a 38.6 percent increase in 2007.

Nokia has seen fast growth in the sales of mobile phones in China, a 38.6 percent increase in 2007. This increase brings the total number of Nokia phones sold in China to 70.7m. China represents Nokia's largest foreign market, their domination of the low-end market leads to such high sales.

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china

China Set to Withstand Global Economic Downturn

China's economy will grow more slowly in 2008, but will resist a dramatic slowdown caused by the US according to economists.

China's economy will grow more slowly in 2008, but will resist a dramatic slowdown caused by the US according to economists. China's exports to the US will decline, but exports to other countries and a strong domestic market will allow China to weather any global economic downturn. This robustness is aided by China's diversification; exports to the US now account for only 16 percent of total exports, down from 25 percent in 2001.

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china

Trade Between Philippines, Chinese Mainland Hits Record High in 2007

The trade volume between the Philippines and the Chinese mainland last year surged to a record high of 30.62 billion U.S. dollars

The trade volume between the Philippines and the Chinese mainland last year surged to a record high of 30.62 billion U.S. dollars. The 2007 trade volume surpassed the 30 billion-dollar goal for 2010 that was set in 2005 when Chinese President Hu Jingtao visited the Philippines, he said, adding that the average annual increase over the past seven years in bilateral trade between the two countries is at a high of at least 35 percent. Since the start of the 21st century, the vigorous growth trend between the two countries is very prominent. The Chinese is now the third biggest trading partner of the Philippines, and China as a whole, the biggest if Philippine trade with Hong Kong and Taiwan are included.

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china

China's Economy Grew 11.4 Percent in 2007

China's economy grew at a 11.4 percent rate in 2007, mainly due to exports and construction industry activity, and may now be the world's 4th largest.

China's economy grew at a 11.4 percent rate in 2007, mainly due to exports and construction industry activity, and may now be the world's 4th largest. Inflation was also high last year however, causing the government to take actions such as raising interest rates in order to slow grow to sustainable levels.

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china

Silver Lining for China in American Dark Cloud

The economic slowdown in the US may aid China's long term economic development by speeding the transition from export-driven to a consumer-driven economy.

The economic slowdown in the US may aid China's long term economic development by speeding the transition from export-driven to a consumer-driven economy. Several economists agree on this point, but they also warn that the government must improve the internal supply and distribution system to ease this process.

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china

China Running Low on Power

Bad winter weather is causing problems in power production for many regions in China.

Bad winter weather is causing problems in power production for many regions in China. Rationing of power is some areas has started and national coal reserves were down to an 8 day supply. The problem of increased demand due to cold weather is compounded by reduced hydroelectric power due to cold, coal transportation problems due to dangerous roads and reduced coal production due to recent mine closures.

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china

Indonesia to Diversify Export Partners

Indonesia is planning to diversify its export trade markets in 2008 according to Trade Minister Mari Elka Pangestu.

Indonesia is planning to diversify its export trade markets in 2008 according to Trade Minister Mari Elka Pangestu. This plan is driven by reduced demand from the US and will focus on exporting to China, India, Russia and the Middle East.

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china

China's Currency and Stocks Up

China's stock market gained back some of 2007's losses on Jan 23, 2008 after the 0.75 percent federal funds rate cut by the US government.

China's stock market gained back some of 2007's losses on Jan 23, 2008 after the 0.75 percent federal funds rate cut by the US government. The Shanghei Composite Index finished up 3.14 percent after losses of 7.2 and 5 percent the preceding days. The Chinese currency also set a new high against the dollar with even more highs expected to come in 2008.

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china

China's Machinery Manufacturing Sector Continues Growth

China experienced the fifth consecutive year of over 20 percent growth in machinery manufacturing in 2007 officials at the China Machinery Industry Federation (CMIF) said Jan 23, 2008.

China experienced the fifth consecutive year of over 20 percent growth in machinery manufacturing in 2007 officials at the China Machinery Industry Federation (CMIF) said Jan 23, 2008. This growth continues a trend begun in 2006 when China became a net exporter of machinery instead of a net importer. Motor vehicle manufacturing was also up 22 percent in 2007, exceeding 8 million vehicles for the first time.

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china

China Leads FDI Developing Nation Recipient List

Foreign direct investment (FDI) to China for 2007 was $74.7b, up 13.59 percent from 2006 and more than any other developing nation.

Foreign direct investment (FDI) to China for 2007 was $74.7b, up 13.59 percent from 2006 and more than any other developing nation. If financial sectors are included the increase was 13.8 percent to $82.7b. This increase comes despite lower investment in the first 11 months of 2007 from the the 15 original members of the EU and the US.

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china

Chinese and Asian Stock Markets Fall

Stock markets in China and the rest of Asia were down again Tuesday Jan 22, 2008, following losses the previous day.

Stock markets in China and the rest of Asia were down again Tuesday Jan 22, 2008, following losses the previous day. The Shanghei stock market composite index declined 7.22 percent, Hong Kong's Hang Seng index was down 8.65 percent and Japan's Nikkei 225 index lost 5.65 percent.

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china

China's Retail Sales of Consumer Goods Reach 8.9 Million Yuan in 2007

The Consumer goods retail sales in China have surged 17 percent to stood at 8.9 trillion yau, about 1.2 trillion US Dollars, in 2007.

The Consumer goods retail sales in China have surged 17 percent to stood at 8.9 trillion yau, about 1.2 trillion US Dollars, in 2007. The increase, which paled the national output growth, was significantly higher than the growth rate of retail sales of consumer goods in 2006, which gained 13.7 percent to 7.6 trillion yuan. Chinese consumers paid more for daily necessities like pork and edible oil in 2007 on price hikes, as the inflation indicative consumer price index has stayed well above the official critical mark of four percent and shot to an 11-year high of 6.9 percent in November last year. The government on Wednesday moved to restrict price hikes on key household commodities, including on grain, edible oils, meat, milk, eggs and liquefied petroleum gas.

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china

Coal Giant could raise $35.8B

China Coal Energy said it had received approval from the mainland stock regulator to go ahead with it's A-share offering in Shanghai

China Coal Energy said it had received approval from the mainland stock regulator to go ahead with it's A-share offering in Shanghai. The offering of 1.525 billion A shares could raise about HK$35.769 billion, based on the stock's Friday closing price of HK$23.45 in Hong Kong trading. The company also announced changes to its allocation plans for the proceeds of the A-share issue. The amount to be spent on a coal and chemical project in Erdos, Inner Mongolia was decreased from 13.859 billion yuan (HK$14.92 billion) to 4.158 billion yuan, while the amount to be spent on a coal and chemical project in Heilongjiang province was increased from 7.328 billion yuan to 17.029 billion yuan.

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china

China:Papua New Guinea Trade Relationship "Robust"

The bilateral trade volume between China and Papua New Guinea, estimated to be above $600m for 2007, demonstrate growing ties between these countries.

The bilateral trade volume between China and Papua New Guinea, estimated to be above $600m for 2007, demonstrate growing ties between these countries. The Chinese Ambassador to Papua New Guinea, Wei Ruixing, described the countries' relationship as "robust" and predicted increased investment in the future.

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china

Guangdong Sees GDP Soar 14.5%

Guangdong's economy has overtaken that of Taiwan for the first time following 14.5 percent growth last year

Guangdong's economy has overtaken that of Taiwan for the first time following 14.5 percent growth last year. Its GDP rose to 3.06 trillion yuan ($422 billion) last year, with a per capita figure of more than $4,000. Based on official figures for 2006, Guangdong's GDP for 2007 is expected to account for about 12.5 percent of the national total. In a government work report, Huang said Guangdong will continue to improve its investment environment, promote innovation and optimize the industrial structure to meet its GDP goal.

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china

China Sets Land Use Taxes With Eye to Agriculture

China has released land use tax guidelines as part of a program to make better use of arable land.

China has released land use tax guidelines as part of a program to make better use of arable land. Taxes for land use in regions with low levels of per capita farmland were set higher than in regions with above average farmland per capita. The goal of these standards is to preserve overall land available for agriculture and ensure wide distribution of such land.

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china

BoCom Given Nod to Buy into Jiangsu Bank

The Bank of Communications, China's 5th largest bank by assets, won regulatory approval to buy into a small sized bank in eastern China.

The Bank of Communications, China's 5th largest bank by assets, won regulatory approval to buy into a small sized bank in eastern China. This has been the first acquisition deal between two domestic banks. BoCom acquired a 10 percent stake in Changshu Rural Commercial Bank for 380 million yuan, making them the biggest shareholder.

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china

Korean Firms Quit China in Droves

South Korean enterprises in China find themselves up a creek without a paddle in the changing business environment, which went form bad to worse due to the toughening government regulations and decreasing incentives there.

South Korean enterprises in China find themselves up a creek without a paddle in the changing business environment, which went form bad to worse due to the toughening government regulations and decreasing incentives there. Korean companies in the country feel the need to leave because of the Chinese government decision to scrapping tax cuts for foreign enterprises and moving to oblige them to join the five major insurers. South Korean entrepreneurs in China are finding it increasingly difficult to liquidate their companies, as a growing number of local laborers as well as creditors see them as ''fly-by-night'' businessmen. One in every 10 South Korean companies in China is considering withdrawing from the country due to a deterioration in the business environment.

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china

China Changes Bank Reserve Ratio to Fight Inflation

In order to control inflation China's central bank increased the bank reserve ratio from 14.5% to 15% on Jan 16, 2008.

In order to control inflation China's central bank increased the bank reserve ratio from 14.5% to 15% on Jan 16, 2008. This ratio is the fraction of deposits that lenders must keep at the central bank as reserves and acts to provide stability and reduce liquidity. This move is in accord with the government's decision to move from a "prudent" monetary policy to a "tight" policy at the end of 2007.

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china

Decrease in China's Real Estate Sales to Start 2008

Major cities in China have experienced drops in real estate trades early in 2008.

Major cities in China have experienced drops in real estate trades early in 2008. For the first week Shanghei trades were down to 3,430 apartments, Chongqing was down 27%, Beijing was down 27% and Wuhan was down 24%. Prices fluctuating as well, but this may be because of the upcoming Spring Festival holiday rather than a sign of yearlong changes and prices are predicted to continue increasing long-term..

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china

Changes May be Ahead for Shanghei Stock Exchange

Changes to make the Shanghai Stock Exchange (SSE) more efficient have been recommended in a recent report by the SSE and Hong Kong's Taifook Securities Group.

Changes to make the Shanghai Stock Exchange (SSE) more efficient have been recommended in a recent report by the SSE and Hong Kong's Taifook Securities Group. Recommendations include changes to trading suspension rules, supervision of market irregularities and corporate disclosure. The changes would move the SSE towards a model used by the Hong Kong Stock Exchange.

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china

Misconceptions Found in Chinese Stock and Fund Investors

Recent surveys of the exploding population of private investors in China have revealed significant misconception about the risk involved.

Recent surveys of the exploding population of private investors in China have revealed significant misconceptions about the risk involved. Approximately 10% of new low and middle income Chinese investors do not consider that losing money is an option with stock and fund investments. This attitude is important because of the high rate of growth in the number of private investors - 2007 saw 10 times as new stock accounts opened compared to 2006.

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china

Ministers Say More Cooperation Between China and India Coming

China and India will cooperate economically more in the future according to statements at the China-India Economic, Trade and Investment Cooperation Summit in Beijing.

China and India will cooperate economically more in the future according to statements at the China-India Economic, Trade and Investment Cooperation Summit in Beijing. Current bilateral trade volume stands at $38.7b for 2008 and is growing at 34%. Statements by the Chinese Vice-Premier, Hui Liangyu, and the Indian Prime Minister, Manmohan Singh, indicated strong desire for increased cooperation and bilateral trade in the future.

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china

Vietnam Strives to Export More to China

Vietnam plans to strengthen export turnover to China, plans to increase to 4 billion in 2008

Vietnam plans to strengthen export turnover to China, plans to increase to 4 billion in 2008, 5.4 billion in 2010, and 11.1 billion in 2015, according to latest plan made by the Vietnamese Ministry of Industry and Commerce. It is advising the enterprises to intensify export of seafood, tropical fruits and vegetables, cashew nuts, rice, sliced manioc and cassava, electric wires and cables, and wood-based imitation antiques. The ministry is also instructing local firms to do business with stable well performing Chinese companies to facilitate export.

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china

China Revokes Export Licenses of Over 600 Toy Enterprises

More than 600 Chinese toy makers had their export licenses revoked by the State Administration for Quality Supervision and Inspection and Quarantine. (AQSIQ)

More than 600 Chinese toy makers had their export licenses revoked by the State Administration for Quality Supervision and Inspection and Quarantine. (AQSIQ) In response to food and toy scares, China launched a 4 month crackdown on product safety, they thoroughly inspected all 3,000 plus toy makers products for export. The goal is to have the overall quality of Chinese made toys improved and safety will be fully guaranteed.

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china

China's GDP Growth to Remain High, but Slow Slightly

The Chinese Academy of Sciences has predicted a 10.2% GDP growth rate and a 4.4% CPI increase for 2008.

The Chinese Academy of Sciences has predicted a 10.2% GDP growth rate and a 4.4% CPI increase for 2008. These rates are less than those for 2008 and are due to systematic internal factors in China and fluctuating global commodity prices.

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china

Changes Ahead for China's Mutual Funds

The Chinese government is planning to reduce the strict regulations on Chinese securities investment funds.

The Chinese government is planning to reduce the strict regulations on Chinese securities investment funds. Planned changes include allowing investment in gold, stock index and forex futures as well as stocks and bonds outside of China exchanges. A number of other changes designed to protect fund investors and allow the fund industry to become more market oriented will also be investigated.

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china

Gold Futures Debut on the Shanghai Futures Exchange

The Shanghai Futures Exchange began trading gold futures Jan 9, 2008.

The Shanghai Futures Exchange began trading gold futures Jan 9, 2008. A higher than anticipated contract size of 1000g was set and all contract prices finished higher in the first day of trading.

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china

Cambodia Blocks Taiwanese Business Group

The Cambodian government has blocked an attempt by the Taiwan External Trade Development Council to open a business representative office due to it's support of China's One-China policy.

The Cambodian government has blocked an attempt by the Taiwan External Trade Development Council to open a business representative office due to it's support of China's One-China policy.

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china

China's New Health Care Plan

China will create a national health service and promote equal access to public services under a new program called "Healthy China 2020."

China will create a national health service and promote equal access to public services under a new program called "Healthy China 2020." Chen Zhu, China's health minister, announced the program at the national Health Forum in Beijing. The initial goals of the program will be: reducing the burdensome cost of health care, bringing care to the rural poor, increasing the overall life expectancy and improving public health monitoring.

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china

Chinese Government Targets Farm Produce Prices

Increases in the cost of food commodities in China have caused the government to focus on reducing food prices in the coming year.

Increases in the cost of food commodities, including grains and oils, contributed to a CPI increase of 6.9%, China's highest in 11 years. Gao Hongbin, China's Vice Minister of Agriculture, stated that increased labor costs, higher rates of urbanization and higher world market prices all contributed to this increase. Gao then stated that the government would work to reduce the burden caused by these prices in the coming year via increased farm production and higher allowances for the urban poor.

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china

China to Establish Jumbo Passenger Aircraft Company

A deadline has been set for March by the Chinese government to establish its first jumbo passenger aircraft company.

A deadline has been set for March by the Chinese government to establish its first jumbo passenger aircraft company. The company would be capable of building aircraft with a take off weight of more than 100 tons, or planes with more than 150 seats. Currently, only the United States, Russia, France, Germany, Britain and Spain have the capability to build jumbo aircraft, with Boeing and Airbus taking a lion's share of sales in the international market.

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china

Yuan Soars since Break with Dollar

The Chinese Yuan has climbed 219 points to break the 7.32 mark with the central parity rate for the USD at 7.3079 according to the Chinese Foreign Exchange Trading System.

The Chinese Yuan has climbed 219 points to break the 7.32 mark with the central parity rate for the USD at 7.3079 according to the Chinese Foreign Exchange Trading System. This has been the biggest rise of the Chinese currency since China stopped pegging the Yuan to the USD on July 25, 2005. The total accumulative appreciation since then has exceeded 10 percent.

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china

China Predicts 30 Percent Growth Due to Tax Revenues

China's tax revenues are expected to surpass USD 668.8 billion, a 30 percent increase year on year.

China's tax revenues are expected to surpass USD 668.8 billion, a 30 percent increase year on year. This increase is one of the highest annual tax growth rates since the country adopted reform policies in 1978. The share of turnover tax in the total tax revenue structure dropped from 57.6 percent in 2002 to 49.5 percent in 2007.

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china

China’s First Domestic Regional Jet roll off the Assembly Line

Shanghai Aircraft Manufacturing Factory rolled out China's first home-grown regional jet, the ARJ21-700.

Shanghai Aircraft Manufacturing Factory rolled out China's first home-grown regional jet, the ARJ21-700. The ARJ21 jet's name, "Xiang Feng," meaning "Flying Phoenix" was also unveiled on the roll-out ceremony. It is planned to make its maiden flight in March and be delivered to the first customers in the third quarter of 2009 after it gets airworthiness certification in the first half of the same year. The ARJ21 program was formally approved by Chinese authorities in 2002, with a first-stage investment USD 667 million from the government.

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china

World Bank Study Finds China’s Economy Overestimated by 40 Percent

World Bank conducted a survey to rank 146 economies using a method concentrating on a country's purchasing power parity (PPP) and excludes exchange rate effects. According to this methodology, China's economy has been overestimated by 40 percent when compared to the old method. Despite this discrepancy, China still ranks as the world's second largest economy using the PPP methods. Controversy enters the picture when determining economic rankings using traditional market exchange rate methods â€" in this case, Japan ranks as the 2nd largest economy, behind the United States, while China would drop behind Germany.

World Bank conducted a survey to rank 146 economies using a method concentrating on a country's purchasing power parity (PPP) and excludes exchange rate effects. According to this methodology, China's economy has been overestimated by 40 percent when compared to the old method. Despite this discrepancy, China still ranks as the world's second largest economy using the PPP methods. Controversy enters the picture when determining economic rankings using traditional market exchange rate methods â€" in this case, Japan ranks as the 2nd largest economy, behind the United States, while China would drop behind Germany.

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china

World Bank Reports that China’s Economy is smaller than Originally Estimated

According to the World Bank, prior calculations overestimated the size of China's economy by about 40 percent.

According to the World Bank, prior calculations overestimated the size of China's economy by about 40 percent. The announcement came after the bank updated the way they calculate the country's gross domestic product (GDP). According to the World Bank's new research, China's economy is worth USD 5.33 trillion and is still the second largest after the United States. The United States is the largest economy with USD 12 trillion. The WB report found that five nations, the United States, China, Japan, Germany and India accounted for half of the world's GDP.

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china

China Consumer Inflation Jumps to Highest Level in 11 Years

China's high consumer inflation, which has recently hit its highest mark in 11 years, is primarily due to rising food costs.

China's high consumer inflation, which has recently hit its highest mark in 11 years, is primarily due to rising food costs. The Consumer Price Index jumped 6.9 percent from the year earlier according to the National Bureau of Statistics. The key items in the food market that are driving up prices are pork prices (18.2 percent jump), poultry prices (38.8 percent jump), and non food items jumped up 1.4 percent. Adding to the price pressure, the Producer Price Index, which measures inflation at the wholesale level, jumped 4.6 percent in November, the biggest monthly increase in more than two years.

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china

China Government to keep the Consumer Prices Index in Check

China's consumer price index (CPI), the barometer for inflation, gained 6.5 percent year-on-year in October, matching the 10-year record in August.

China's consumer price index (CPI), the barometer for inflation, gained 6.5 percent year-on-year in October, matching the 10-year record in August. The top national economic planner in China yesterday explained that China's consumer faces greater pressure but that a prudent fiscal policy and tight monetary measure would head off any serious inflation. China will encourage production of life necessities such as grain, edible oil and meat in order to stabilize the prices and curb inflation.

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china

China Leaders Gather to Discuss Economic Policy for 2008

The Central Economic Work Conference began on Monday and China's top leaders gathered to discuss economic policy and ways to avoid overheating China's economy, curb inflation, and address the soaring trade surplus.

The Central Economic Work Conference began on Monday and China's top leaders gathered to discuss economic policy and ways to avoid overheating China's economy, curb inflation, and address the soaring trade surplus. The meeting will help flush out strategies and resolutions for the future. China's economy is expected to expand by 11.5 percent this year because of increases in investment spending. A major focus of the meeting will be curbing recent inflation. Due to increased food prices, inflation is currently expected to be 4.5 percent. The meeting will also include a discussion on how to improve people's lives in China and will focus on low-income families.

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china

China and EU Working Together to Avoid Euro Fluctuations

China and the European countries using the Euro will work together to try and avoid fluctuations of foreign exchange rates.

China and the European countries using the Euro will work together to try and avoid fluctuations of foreign exchange rates. Both sides have agreed that they need to work together to avoid big fluctuations in the currency market while contributing to the orderly adjustment of global imbalances. These agreements were the result of a meeting between China's central bank governor Zhou Xiaochuan and a group of senior officials of the EU during their tour of China.

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china

France and China Solidify Relations over USD 30 Billion Deal

China and France signed a trade deal yesterday worth nearly USD 30 billion on items that range from aircraft carriers to nuclear reactors.

China and France signed a trade deal yesterday worth nearly USD 30 billion on items that range from aircraft carriers to nuclear reactors. China has used these agreements to highlight its effort to reduce its trade surplus to France. The largest agreement was for the purchase of 160 commercial passenger jets from Airbus and is worth USD 17.4 billion. The sale of 2 nuclear reactors from French state-owned Areva, is worth USD 11.9 billion.

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china

China to Deregulate Coal Prices in 2008

China will further deregulate cola prices and trading in 2008 after starting deregulation earlier this year.

China will further deregulate cola prices and trading in 2008 after starting deregulation earlier this year. The deregulation will allow producers and users to negotiate coal prices freely. The National Development and Reform Commission (NDRC) expect the prices to fluctuate and reflect the current price and demand for coal. This is a drastic change from the state-regulated environment which suppressed prices. China is the world's largest coal producer and consumer with 67 percent of their energy being supplied by coal. China has also shifted from being a coal exporter, to being an importer mainly from Indonesia, Vietnam, Australia, and Mongolia.

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china

Taiwan Blocks Chinese WTO Judge

Taiwan acted to prevent the appointment of a Chinese judge to the World Trade Organization appellate court, the court that rules on trade disputes between member nations.

Taiwan acted to prevent the appointment of a Chinese judge to the World Trade Organization appellate court, the court that rules on trade disputes between member nations. The block was via a procedural move, the removal of all court considerations, and was unexpected. In light of the Chinese government's official policy towards Taiwan (as a state subject to Chinese rule) this move is provocative.

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china

China to Stick with U.S. Dollar as Main Foreign Currency

China has announced that it will not be changing its foreign reserves policy that focuses on the U.S. dollar.

China has announced that it will not be changing its foreign reserves policy that focuses on the U.S. dollar. China currently holds USD 1.43 trillion worth of foreign exchange reserves and the U.S. dollar makes up most of the majority of it. China bases its decision on a number of current factors which include the nation's security, potential requital and liquidity. The dollar is also the main foreign currency because of its ability to be used in trade and foreign direct investment in the virtual economy.

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china

China Consumer Inflation Hits 11 Year High

On Tuesday, official figures reported that China consumer inflation hit an 11 year high due to rising food prices.

On Tuesday, official figures reported that China consumer inflation hit an 11 year high due to rising food prices. The National Bureau of Statistics said in statement on their website that the Consumer Price Index (CPI) rose 6.5 percent from October a year ago and this rise might increase the possibility for a sixth interest rate hike this year. The Producer Price Index (PPI) also jumped 3.2 percent. These increases indicate a domino effect of price pressure from the food sector to other parts of the economy.

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china

Hong Kong Shipper to Expand Fleet Due to Rising Imports

Sinotrans Shipping Ltd. intends to quadruple its shipping fleet in the next 5 years because of China's rising commodities imports.

Sinotrans Shipping Ltd. intends to quadruple its shipping fleet in the next 5 years because of China's rising commodities imports. The shipper plans to expand its fleet because China's imports of coal and iron ore have helped cause dry-bulk shipping rates to sky rocket. The shipper also plans to double its oil tanker fleet over the next five years. Sinotrans Shipping had a fleet of 34 ships, comprising 26 dry-bulk vessels, three oil tankers and five container vessels as of June 30.

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china

Natural Gas Pipeline Agreement Signed Between China and Kazakhstan

China and Kazakhstan signed an agreement on Thursday in Astana that outlines the plans for building and maintaining a natural-gas pipeline between China and Kazakhstan.

China and Kazakhstan signed a contract on Thursday in Astana that outlines the plans for building and maintaining a natural-gas pipeline between China and Kazakhstan. The China National Petroleum Cooperation and the Kazakhstan National Petroleum and Natural Gas Co. signed the contract with Chinese Vice Premier Wu Yi and Kazak Prime Minister Karim Masimov in attendance.

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china

China Bank Card Holders Total More Than 1.3 Billion

By September of this year, Chinese banks had issued 1.3 billion debit, credit and semi-credit cards.

By September of this year, Chinese banks had issued 1.3 billion debit, credit and semi-credit cards. There are 183 banks in China issuing bank cards that can be used at 1.08 million points of sale. The credit card market is mainly dominated by large banks with regional institutions controlling only 9 percent of the market. A recent Nielsen Company report indicated that bank cards were quickly spreading throughout China as the younger generations move from cash to credit as the main form of retail, cash withdrawal and installment payment.

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china

China’s Households Predicted to Have Annual Income Over USD 8,047 by 2020

The Beijing reported on Monday that by 2020 55 percent of Chinese households will earn over USD 8,047 after inflation by 2020.

The Beijing reported on Monday that by 2020 55 percent of Chinese households will earn over USD 8,047 after inflation by 2020. Zheng Xinli, director of the Policy Research Office of the Communist Party of China Central Committee predicts that 2 percent of Chinese households will have an income of over USD 26,825. Zheng continued to predict that the middle income households (USD 8,047 to USD 26,825) will make up the majority of the Chinese people and help eliminate poverty.

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china

Chinese Consumers Increase Credit Card Use

According to a survey by the Nielsen Company, Chinese consumers shopping habits have changed and the use of credit cards has become more pervasive.

According to a survey by the Nielsen Company, Chinese consumers shopping habits have changed and the use of credit cards has become more pervasive. The Nielsen Company's annual Personal Finance Monitor (PFM) reported that most credit card holders in China prefer to use their credit cards for cashless shopping. The report was based on 11,500 Chinese consumers in 18 cities. The report also indicated that consumers between 18 and 24 are the most active credit card users. The rising use of credit cards is a shift away from prior shopping and saving habits and illustrates the adoption of Western attitudes by the Chinese youth.

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china

764 Toy Factories in Southern China Banned From Exporting Products

764 Toy Factories in Guangdong province have been banned from exporting "shoddy products" after a 4 month long crackdown on faulty exports.

764 Toy Factories in Guangdong province have been banned from exporting "shoddy products" after a 4 month long crackdown on faulty exports. An additional 690 factories were instructed to renovate their plants or plant quality. The quality control crackdown has been extremely hard on Guangdong, where 5,000 toy manufacturers account for roughly 80 percent of China's toy exports.

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china

The Bank of China Posts 40 Percent Profit

The Bank of China has reported a profit boost by 40 Percent (USD 6.1 billion) in the first nine months of the year.

The Bank of China (BO) has reported a profit boost by 40 Percent (USD 6.1 billion) in the first nine months of the year. The BOC contributed its increase to net interest income and their earnings from intermediary services. The Industrial and Commercial Bank of China (ICBC), the rival of BOC and China's largest lender, reported a 66 percent increase in the first nine months of this year.

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china

China’s Consumer Price Index Grows in 2007

According to an official at the National Development and Reform Commission, China's consumer price index (CPI) is expected to grow by 3 percent or more in 2007.

According to an official at the National Development and Reform Commission, China's consumer price index (CPI) is expected to grow by 3 percent or more in 2007. China's CPI rose 6.5 percent in August signaling the highest inflation China has faced since 1996. The rapid inflation growth has been linked to increases in grain prices, the international oil and crude prices, and China's growing production costs. It is expected that market prices will continue to stay high for the foreseeable future.

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china

Chinese Steelmaker Doubles the Capacity of Port

Baosteel, China's largest steel manufacturer, has completed work on a project to double the capacity of Majishan Port.

Baosteel, China's largest steel manufacturer has completed work on a project to double the capacity of Majishan Port. The enlargement allows for berths of ships with 10,000 to 300,000 dwt (dead weight tonnage) and is expected to boost the ports capacity from 26 million tons to 50 million tons per year. Baosteel expanded the port in order to facilitate iron ore imports for steel companies along the Yangtze.

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china

Chinese Pension Fund Consider Stake in US Equity Firm

The Chinese Social Security Fund (SSF) held primary talks with Carlyle, KKR, and TPG about purchasing a minority stake of up to 9.9 percent in one of the firms.

The Chinese Social Security Fund (SSF), which holds about USD 61.5 billion in assets, held primary talks with Carlyle, KKR, and TPG about purchasing a minority stake of up to 9.9 percent in one of the firms. SSF would not be the first Chinese fund looking to make an investment in US financial firms. China's Citic Securities and Bear Stearns of the US recently revealed plans to invest USD 1 billion in each other. This development is surprising after China Investment Corp's considerable investment loss in US equity firm Blackstone.

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china

Weak USD Pushes Yuan to New High

China's Yuan soared to a new record high against the United State's dollar as speculators expect that there will be an additional interest rate cut by the Federal Reserve.

China's Yuan soared to a new record high against the United State's dollar as speculators expect that there will be an additional interest rate cut by the Federal Reserve. The People's Bank of China (PBOC) set the Yuan at 7.4718 relative to the dollar. The rate cut would be concerned with the overnight lending rate between banks and is expected to be at least a quarter percentage points on October 31 from the current 4.75 percent. This is prompting investors to seek higher yielding assets overseas.

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china

Chinese Economy Expands by 11.5 Percent

The Chinese economy grew by a staggering 11.5 percent in the third quarter, staying on track to overtake Germany as the world's third largest economy, according to data reported Thursday.

The growth of the Chinese economy by 11.5 percent beat prior economist's predictions, but was below the 11.9 percent increase the previous quarter. The Chinese government wants to maintain the growth but is worried that overexpansion could start a financial crisis. Beijing also has imposed economic curbs ranging from a ban on building new luxury villas to taxes meant to discourage exports of steel and other products deemed too dirty or energy-intensive. China is on track to overtake Germany in December or early in 2008 as the world's third-largest economy after the United States and Japan. But per capita income for China's population of 1.3 billion people will still be far smaller than that of those economies.

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NDRC Predicts China's Economy to Expand 11.5 Percent in 2007

According to Wang Xioaoguang, an economist at the National Development and Reform Commission (NDRC), China's economy may expand 11.5 percent and the inflation rate will be 4.3 percent this year.

Wang Xioaoguang from the National Development and Reform Commission (NDRC) will likely slow in the second half of the year as industrial production and exports slow. China may have a USD 257 billion trade surplus this year as exports expand by 24 percent, outpacing import growth by 4 percent. China wants to slow economic growth, cut its trade surplus and curb decade-high inflation to prevent the economy from overheating. The economy expanded 11.9 percent in the second quarter, the fastest pace in almost a decade.

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china

Nepal, China Discuss Expansion of Economic Ties

The Nepalese Ambassador to China Tanka Karki, the Nepalese Consul General to the Tibet Autonomous Region of China, N.P. Upadhyaya and representatives of the Nepal-China Chamber of Commerce and Industry have met for discussions on the expansion of economic and trade relations between the two countries.

The Nepalese Ambassador to China Tanka Karki, the Nepalese Consul General to the Tibet Autonomous Region of China, N.P. Upadhyaya and representatives of the Nepal-China Chamber of Commerce and Industry have met for discussions on the expansion of economic and trade relations between the two countries. Particular topics that were touched included increasing Nepalese exports to China, expansion of the Tibet Railway and the resolution visa issues Nepalese industrialists and businessmen are facing while traveling to Tibet and Hong Kong for business purposes.

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china

KFC Changes From Nestle to Mengniu

KFC displays a vote of confidence in Chinese product quality by replacing Nestle products with Mengniu products.

KFC will replace Nestle dairy products with Mongolia Mengniu Dairy Industry (Group) products in KFC's 2,000 stores in China starting next year. KFC is demonstrating its desire to localize in China, according to Mark Chu, KFC brand general manager with Yum! Brands Inc. This year marks the 20th anniversary of KFC's entry into China, which contributes around 20 percent of its sales revenue worldwide. Currently, more than 90 percent of KFC's products are localized.

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china

United States Asks For WTO Probe of China Media Restrictions

The United States will ask for a formal investigation of Chinese restrictions on the sale of American movies, music and books.

The United States request for a WTO probe into Chinese restrictions of American movies, music and books will be the fourth World Trade Organization case that Washington has requested against Beijing in a year. The case will be of considerable interest to Hollywood studios, Apple Inc.'s iTunes store and other media providers. China has the right to block the WTO investigation later this month. The U.S. government has brought a series of complaints to the global commerce body since last year amid pressure from Congress to do something about America's soaring trade deficits and lost manufacturing jobs, which critics blame in part on unfair trade practices by foreign nations. The U.S. trade deficit set a record for the fifth consecutive year in 2006 at USD 765.3 billion. The imbalance with China grew to USD 232.5 billion, the highest ever with a single country.

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Pakistan's FDI likely to be Boosted by Arab, Chinese Investments

The United Nations report on World Investment 2007 states that investments from especially Saudi Arabia, United Arab Emirates and China will boost Pakistan's FDI results.

The United Nations report on World Investment 2007 states that investments from especially Saudi Arabia, United Arab Emirates and China will boost Pakistan's FDI results. The country currently ranks tenth amongst the top South, East, and Southeast Asian recipients of FDI.

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china

China's Economy to Grow 11.5 Percent This Year

The Chinese economy is expected to expand 11.5 percent, the fastest it has grown since 1994. This expansion is due to expanding exports, increased consumption and investment.

The massive expansion of the economy will be driven in the first half of 2008 by the Olympic Games in August, before slowing down in the second half of the year. In order to sustain lasting growth, Wang Xiaoguang, a senior economist at the Macroeconomic Research Institute, contends that the government should continue to tighten the monetary policy with frequent, small interest rates.

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Bear Sterns Finds Partner in China's Citic

In attempt to build a partnership between Asia and America, Bear Sterns is making a deal with Citic Securities, a Chinese investment bank.

In attempt to build a partnership between Asia and America, Bear Sterns is making a deal with Citic Securities, a Chinese investment bank. Each bank is planning on buying stake in the other. Citic will eventually gain a 6 percent stake in Bear Sterns by investing USD1 billion and Bear will invest the same amount to gain a 2 percent stake. It is likely that politicians will look closely into the deal as a foreign investor will have a stake in one of the largest banks in America. The deal is beneficial to both banks as it will allow Citic to expand west perhaps surpassing its competition and Bear will recover from its previous losses and expand into the booming Asian market.

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IMF Advises China to Rebalance Economy

An International Monetary Fund official has said China needs to reform its economy if they want to create sustainable growth.

An International Monetary Fund official has said China needs to reform its economy if they want to create sustainable growth. As the economy is highly dependent on exports and investments, David Burton, IMF director of Asia and the Pacific, has said they need to rebalance the growth. Both the United States and IMF have discussed with China the need for them to promote and build domestic demand to alleviate the pressure on exports. Furthermore, both the IMF and US believe the yuan is undervalued and the IMF is creating new guidelines with the goal of pressuring countries to not manipulate their currencies to gain trade advantages.

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Chinese Communist Congress Discusses New Economic Leaders

Rumors are flying as to who will lead the ever expanding Chinese economy.

As the Chinese Communist Party congress is set to meet, rumors are flying as to who will lead the ever expanding Chinese economy. The central bank governor is due to transfer and two vice premierships are open. The new comers will have to deal with the Chinese economy, which faces high inflation at home, discontent growing from the United States regarding trade and uncontrollable growth. The top candidates to receive governor of the People's Bank of China are a former official and banker, Guo, and chairman of China's securities regulator, Shang Fulin.

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IMF increases China’s Growth Forecast

China's growth forecast grows from 11.2 percent to 11.5 percent.

China's growth forecast grows from 11.2 percent to 11.5 percent. The International Monetary Fund raised the forecast as a result of China's economy expanding, spurred by an increase in exports, by 11.9 percent in the second quarter. Concerned with a potential financial crisis, Chinese government officials have raised interest rates five times this year. China is under pressure from the WTO and IMF as an IMF report expressed its concern over overinvestment. The United States offered a complaint to the WTO disclosing the discontent over the controls China uses to undervalue to yuan providing Chinese traders with an advantage.

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Chinese Car Exports Soar

The Chinese car manufacturing industry is flourishing as sales have risen 24 percent in the first three quarters.

The Chinese car manufacturing industry is flourishing as sales have risen 24 percent in the first three quarters. By the end of the year, the China Association of Automobile Manufacturers is expecting record sales of CNY8.5 million. The sale of 4.85 million passenger vehicles generously supported the percentage increase. The top brands that top China's growing sales are: Jetta (FAW-Volkswagen), Santana (Shanghai Volkswagen), Buick Excelle (Shanghai General Motors), Camry (Guangzhou Honda), QQ (Anhui Chery), and Xiali (FAW Tianjin).

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China's Export Fair Popular Among Foreign Investors

Despite the possibility of receiving unsafe and substandard, numerous businessmen have attended China's largest export fair.

Despite the possibility of receiving unsafe and substandard, numerous businessmen have attended China's largest export fair. Experts attribute the low profit margins and pressure from foreign investors to reduce the prices has driven manufacturers to cut costs and corners. Although the bad quality and recalls have not hurt the economy in China, the government has taken the quality problem seriously. As the Communist Party Congress will meet this year, the President has promised to address the issue.

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State Owned PetroChina Becomes No. 2

State Owned PetroChina rose above General Electric Co., to become the world's second largest company.

State Owned PetroChina rose above General Electric Co., to become the world's second largest company. The largest company, with USD518 billion, is Exxon Mobil Corp. The stock in the company has increased 14-fold since it first become publicly traded in 2000. Berkshire Hathaway, owned by US billionaire Warren Buffett, has be steadily decreasing its stake in PetroChina. While striving to be number one, PetroChina will more than likely spend more than Exxon and Shell in attempt to expand its refineries and dig deeper for more oil.

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china

Chinese Government to Create Virtual Marketplace

Chinese officials are laying out plans to create a virtual world, entitled Beijing Cyber Recreation District.

Chinese officials are laying out plans to create a virtual world, entitled Beijing Cyber Recreation District. The plan is to connect Chinese manufacturers to the individual customer, allowing a person to order a custom made good and have it sent directly to their home. Toyota Motor Corp. had a similar plan in the 1950's, to eliminate the middle man, known as just-in-time. With the problems China has been facing due to quality concerns it produces, it is unlikely that Chinese retailers will be sending much directly to consumers anytime soon.

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Japanese Food Processors Might Relocate from China to Thailand

According to the chairman of the Food Processing Industry Club of the Federation of Thai Industries, Japanese food processing companies that had relocated from Thailand to China in the past might return to Thailand.

According to the chairman of the Food Processing Industry Club of the Federation of Thai Industries, Japanese food processing companies that had relocated from Thailand to China, might return to Thailand. Growing concerns about chemical contamination and safety of food items produced in China could, in combination with the Japan-Thai Free Trade Agreement taking effect next month, be very beneficial for Thailand.

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Chinese Trade Surplus Causes Speculation from Critics

China's trade surplus from January through September reached a massive USD 185.7 billion.

China's trade surplus from January through September reached a massive USD 185.7 billion. Critics of China's policies are anxious to see if the currency can rise in value. Many think that China keeps it's currency low in order to make its exporters competitive. While some in the US congress have called for sanctions, the US government issues a complaint against China to the World Trade Organization. Exports to the European Union increased 30.8 percent, increasing quicker than exports to the United States. Citigroup economist Huang Yiping has said, "The rise of the European market is good news for sustaining Chinese export growth, but in the end it might prompt Europe to be more actively engaged in pressing on China's currency."

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China to be Investigated by World Trade Organization

The United States will ask for its forth formal investigation from the World Trade Organization to look into Chinese restrictions on US movie, music and books.

The United States will ask for its forth formal investigation from the World Trade Organization to look into Chinese restrictions on US movie, music and books. The other trade disputes the United States has with China involve China illegally disrupting the import of auto parts, piracy and the government providing subsidies to several Chinese industries. In response to the US complaints, China has complained about the anti-dumping duties the US has on paper imports from China. In June and July, the US and China held consultations regarding Chinese rules about cinema rights and music downloading. By 2008, the WTO is expected to make the decision that an illegal tax system in China is used to block foreign made auto-parts. Other ruling on disputes placed by the United States are not expected to be resolved until the earliest, next year.

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EU - China end textile Quota Restrictions

China and the European Union have decided to replace quota restrictions with a surveillance system to monitor trade flow.

China and the European Union have decided to replace quota restrictions with a surveillance system to monitor trade flow. They will end quota restrictions on Chinese textile imports in 2008, which were put in place in June 2005. The surveillance system will run for one year after the quota restrictions have been removed. Peter Mandelson, EU Trade Commissioner has said, "I welcome this further step in the cooperation between the EU and China in ensuring a smooth transition to free trade in textiles."

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Increase in Chinese Property Values and Market Results in Billionaires

China now is home to 106 billionaires, second only to the United States.

As the market doubles and property prices soar, the rich Chinese have seen their wealth grow. China now is home to 106 billionaires, second only to the United States. At the top of the list in China is Yang Huiyaun, the 26 year old daughter of a real estate tycoon. The economic boom has brought in numerous opportunities, especially in real estate, where 13 of the top 20 billionaires are investing. The property prices in China have risen 8.2 percent since last year. Share prices in the Shanghai Composite Index as well as Hong Kong's Hang Seng have seen numerous highs and record closings.

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New Export Requirements Burden Chinese Toy Suppliers

Chinese toy producers are feeling the burden of Beijing's crack down on exports.

Chinese toy producers are feeling the burden of Beijing's crack down on exports. The government has called for more testing due to the recent finding of lead in some paints used on toys. Previously, producers would ship the toys right off the production line, now they are forced to wait around 2-3 weeks for testing to be done before they are allowed to export. While toy producers would normally be in its most prominent season, they are, in turn, laying off employees. Also due to the wait time on exports, producers are facing a credit crunch as they normally do not get paid until the customer receives the toy. Although there is a current burden, the increased testing will weed out the bad toy makers and allow the stronger ones to thrive.

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India Trumps China in Overseas Mergers and Acquisitions

India has outperformed any competitor in overseas mergers and acquisitions within the Asia Pacific Region, in particular China. Indian companies have realized a stunning overseas M&A growth rate of 126 percent in comparison to 36 percent growth throughout the overall growth in Asia Pacific. China holds the second place, having realized a growth rate of 82 percent.

India has outperformed any competitor in overseas mergers and acquisitions within the Asia Pacific Region, in particular China. Indian companies have realized a stunning overseas M&A growth rate of 126 percent in comparison to 36 percent growth throughout the overall growth in Asia Pacific. China holds the second place, having realized a growth rate of 82 percent.

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Foreign Investment not Hindered by China's Anti-Monopoly Legislation

The National People's Congress approved legislation of an anti-monopoly law, which legislators believe will not hinder foreign investment.

The National People's Congress approved legislation of an anti-monopoly law, which legislators believe will not hinder foreign investment. Mergers of foreign and Chinese businesses that the government feels jeopardizes "national security or public interest" will be checked, as it will soon be required by the law. It is thought that the law will prevent potential monopolies in state owned ventures such as petroleum, mail services, telecommunication, and tobacco. China is now one of eighty countries that has an anti-monopoly law.

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China's Steel Production Expanding Slowly In Coming Years

China's steel output is expected to expand slowly in near future. According to some industry analysts, China's steel productions is expected to reach up to 490 million tonnes in 2007

China's steel output is expected to expand slowly in near future. According to some industry analysts, China's steel productions is expected to reach up to 490 million tonnes in 2007 and will continue to increase further to 530 million tonnes in 2008. CVRD, the iron ore suppliers for Baosteel, may find an opportunity to increase its price next year, depending on China's increasing demand and productions cost. A steady growth in China's steel production has also set off other steel manufacturers to produce more steel materials in order to meet China's market demand.

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china

Mainland China Investors Pick up Where Foreigners Left Off

Typically when foreign investors pulled out of the Hang Seng index it would drop; however, this is not the case as of recently.

Typically when foreign investors pulled out of the Hang Seng index it would drop; however, this is not the case as of recently. Foreign investors have been reducing their holding but the market has not fallen. The shares have rebounded and Chinese investors are quickly becoming players in the stock market. Aloca International (Asia) Ltd., a US-based strategic investor, sold it's entire holding for HKD17.34 billion in Aluminum Corp of China Ltd. As international investors are cashing out and mainland funds flow into the market, analysts say the structure will change gradually. The "through train" plan, which is predicted to bring in USD150 billion in three years, will also support this change as it allows individual mainland investors to invest in Hong Kong.

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Oil Imports in China Reach a 10-Year High

Imports of gasoline in China reached 45,000 tons last month, a ten year high.

Imports of gasoline in China reached 45,000 tons last month, a ten year high. Due to previous shortfalls, The National Development and Reform Commission required, in order to ensure domestic supply, the two state owned oil companies of China National Petroleum Corporation and Sinopec Group to increase oil refining and reduce exports of refines oil. The summer saw shortages in oil due to the prices in the international market. It is predicted that after the strong demand as a result of the summer subsides, China's exports and imports in oil will drop.

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First Steps Towards Free Trade Agreement between India, China

According to an announcement by the China's Ministry of Commerce, a meeting between officials of both countries is scheduled for next month. After joint studies of general feasibility and an agreement on required supportive measures, a decision about whether or not to start talks about a free trade agreement is expected to take place as soon as the studies are concluded.

According to an announcement by the China's Ministry of Commerce, a meeting between officials of both countries is scheduled for next month. After joint studies of general feasibility and an agreement on required supportive measures, a decision about whether or not to start talks about a free trade agreement is expected to take place as soon as the studies are concluded.

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Buffett Reduces Stake in PetroChina

Iinvestor Warren Buffett reduces his stake in shares of PetroChina from 8.21 percent to 7.99 percent.

At the urging of investors and human rights activists, investor Warren Buffett reduces his stake in shares of PetroChina from 8.21 percent to 7.99 percent. China National Petroleum Corp., PetroChina's parent company, signed a 20 year deal with Sudan which sparked the activists discontent. Analysts, however, are not shocked by the reduction as PetroChina shares ended Friday at a record HK$14.74. Berkshire Hathaway, Buffett's company, still remains PetroChina's second-largest shareholder.

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Mortgage Rates Rise in China

Chinese policy makers raised mortgage rates and increased down payments needed to finance the purchase of a second home.

In attempt to cool down the property market, Chinese policy makers raised mortgage rates and increased down payments needed to finance the purchase of a second home. The loan rate will be 1.1 times the benchmark lending rate and the minimum down payment for a second home will be 40 percent, up from the previous 30 percent. Residential property prices rose 8.2 percent in China's largest cities. It is hoped that the change will curb the rising property prices.

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china

China Developing Nuclear Power

The once peaceful village of Wentuozi will soon be home to the Hongyanhe Nuclear Power Plant, the only power plant in China that will start four gigawatt level generating units at the same time.

The once peaceful village of Wentuozi will soon be home to the Hongyanhe Nuclear Power Plant, the only power plant in China that will start four gigawatt level generating units at the same time. Although previously nuclear power only accounted for 2.3 percent of the total power production, things appear to be changing as it has great potential in China's long-term development. China launched the Medium- and-Long Term Plan of Nuclear Power Development in 2005 which goals include starting construction of three nuclear power plants a year. China National Nuclear corp. and China Guangdong Nuclear Power Group have already begun to intensify investment in their expansion. As a result of nuclear power development, nuclear power equipment manufacturing as well as other related industries will have huge business opportunities. It is expected that by 2020 nearly 300 billion yuan will be invested into nuclear power construction.

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Xinxin Minining Aims To Raise US$501 Million in Honk Kong IPO

Xinjiang Xinxin Mining Industry Co., China's second-largest producer of nickel cathode, may raise as much as HK$3.9 billion (US$501 million) in a Hong Kong initial public offering, according to a sharesale document.

Xinjiang Xinxin Mining Industry Col, China's second-largest producer of nickel cathode, may raise as much as HK$3.9 billion (US$501 million) in a Hong Kong initial public offering, according to a sharesale document. Xinxin is a state backed company, based in the northwestern province of Xinjiang. It is expanding to meet growing demand from steel producers in the world's fastest growing global economy. China accounts for 24 percent of global demand for the metal used mainly for making stainless steel, according to an August 25 report fro Guotai Junan Securities (Hong Kong) Ltd. China produces one third of the world's steel and may increase output of the metal by 14 percent to 480 million tons ths year, so stated the China Iron and Steel Association back on July 30.

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Philippines Freezes Two more Contracts with China

After the Philippine Government just recently had suspended two contracts with China on the controversial Broadband Network Deal and the Cyber Education Project, Department of Agriculture's Secretary, Arthur C. Yap, has temporarily suspended

After the Philippine Government just recently had suspended two contracts with China on the controversial Broadband Network Deal and the Cyber Education Project, Department of Agriculture's Secretary, Arthur C. Yap, has temporarily suspended two more agreements. One of the agreements concerns the lease of about 1.4 million hectares land in the Philippines by China to grow crops for local and Chinese consumption. The other agreement concerns lease of Philippine land by China in order to establish an undetermined number of power plants.

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china

Philippines' Jollibee to Take Over Second Chinese Chain

Philippines-based Jollibee Food Corporation (JFC) has announced to take over their second Chinese restaurant chain. After having acquired Yonghe King a few years ago, the new chain, Hong-zhuangyuan, is expected by the company to increase market coverage and presence in China.

Philippines-based Jollibee Food Corporation (JFC) has announced to take over their second Chinese restaurant chain. After having acquired Yonghe King a few years ago, the new chain, Hong-zhuangyuan, is expected to increase market coverage and presence in China.

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china

Microsoft Seeks Replacement For Microsoft China Head

Yesterdy, Microsoft Corp. announced that Tim Chen has resigned as head of Microsoft China. Chen joined Microsoft in 2003 -- he has been appointed as China's chief executive of the National Basketball Association.

Yesterday, Microsoft Corp. announced that Tim Chen has resigned as head of Microsoft China. Chen joined Microsoft in 2003 -- he has been appointed as China's chief executive of the National Basketball Association. Chen's major achievement was to push the authorized Windows adoption among branded personal computers in China, which has brought Microsoft million of dollars. During the past five years, Microsoft China's revenue has grown more rapidly than any other market in the world. The company more than doubled its employee base to a total of more than 3,200. For the period 2006-2011, Microsoft plans to invest US$100 million in Chinese software companies, proivde US$100 million in software and development and services porjects and to provide 80,000 people with IT skills training.

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China Freezes Prices to Curb Inflation

After food prices had hit an annual growth rate of 18.2 percent last months, the Chinese National Development and Reform Commission has announced that there will no price adjustment measures be taken on government controlled goods throughout the remaining months of this year.

After food prices had hit an annual growth rate of 18.2 percent last months, the Chinese National Development and Reform Commission has announced that there will no price adjustment measures be taken on government controlled goods throughout the remaining months of this year. Furthermore, Beijing has instructed regional officials to monitor the prices of other goods such as meat and eggs.

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China's Wedding Industry Accounts for 13 Percent of GDP

A recently published survey conducted by the Ministry of Commerce and China Wedding Expo reports that China's wedding industry has become an important economic factor. In 2006 the sector had accounted for 13.36 percent of a CNY 21.09 trillion GDP.

A recently published survey conducted by the Ministry of Commerce and China Wedding Expo reports that China's wedding industry has become an important economic factor. In 2006 the sector had accounted for 13.36 percent of a CNY 21.09 trillion GDP, serving over 76 businesses, both directly and indirectly.

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ADB States China's Inflation To Hit 4.2 Percent In 2007

The Asia Development Bank on Monday stated that China's inflation in 2007 is expected to rise to 4.2%, due to soaring food prices, well above the government target.

The Asia Development Bank on Monday stated that China's inflation in 2007 is expected to rise to 4.2%, due to soaring food prices, well above the government target. The Asia Development Bank also raised its inflation forecast for next year to 3.8% from 2.2% as porce reforms in the state-controlled public utility sector are likely to help keep overall inflation hight.

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china

China's ICBC and Malaysia's CIMB interested in Thai ACL Bank Shares

Malaysia's Investment Bank CIMB and China's ICBC bank have shown interest in stakes in Bangkok Bank's shares of Thai ACL Bank. According to Central Bank's regulations, Bangkok Bank is required to reduce its share in ACL Bank to a maximum of 10 percent, as both firms are players in the same sector.

Malaysia's Investment Bank CIMB and China's ICBC bank have shown interest in stakes in Bangkok Bank's shares of Thai ACL Bank. According to Central Bank's regulations, Bangkok Bank is required to reduce its share in ACL Bank to a maximum of 10 percent, as both firms are players in the same sector. Still, in case the acquisitions will be finalizes, they will be subject to approval by the Thai Finance Ministry as foreign companies' stakes are generally not allowed to exceed 5 percent.

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china

China: Exports Slow Down in August.

Growth of Chinese exports have slowed down in August. Recent exports totaled USD 111.36 billion, representing an increase by 22.7 percent from a year earlier. However, in a year-on-year comparison in July, figures had slowed down from 34.2 percent growth.

Growth of Chinese exports have slowed down in August. Recent exports totaled USD 111.36 billion, representing an increase by 22.7 percent from a year earlier. However, in a year-on-year comparison in July, figures had slowed down from 34.2 percent growth. One reason for the slowdown is, besides a very high base for comparison, that many exporters had scheduled shippings in the earlier months of this year as the Chines Government cut down the export tax rebate.

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China issues USD 27 Million in T-Bonds

As the Chinese Ministry of Finance has announced, it is going to issue CNY 200 billion (USD 26.7 million)in 10 year bonds to finance the country's new foreign exchange investment firm.

As the Chinese Ministry of Finance has announced, it is going to issue CNY 200 billion (USD 26.7 million)in 10 year bonds to finance the country's new foreign exchange investment firm. The CNY 200 billion are the second tranche of a total amount of CNY 1.55 trillion. Per a decision of China's top legislature the income generated by selling these particular bonds shall be used to buy USD 200 billion of forex reserve.

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china

North Korea Openly Invites Inspections of Nuclear Sites

According to statements made at the Asia-Pacific summit in Sydney by U.S. Assistant Secretary of State Christopher Hill, North Korea has invited experts from the U.S., China and Russia to survey disabled or soon to be disabled nuclear sites. The inspectors will travel to North Korea on September 11-15 examine the progress being made to identify and dismantle the communist country's nuclear facilities. In July, North Korea shut down its Yongbyon nuclear reactor and allowed international nuclear inspectors in the country for the first time in 5 years in exchange for energy and economic assistance.

According to statements made at the Asia-Pacific summit in Sydney by U.S. Assistant Secretary of State Christopher Hill, North Korea has invited experts from the U.S., China and Russia to survey disabled or soon to be disabled nuclear sites. The inspectors will travel to North Korea on September 11-15 to examine the progress being made to identify and dismantle the communist country's nuclear facilities. In July, North Korea shut down its Yongbyon nuclear reactor and allowed international nuclear inspectors in the country for the first time in 5 years in exchange for energy and economic assistance.

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china

Disclosure of Cooperation Details at Shanghai Stock Exchange

The Shanghai Stock Exchange (SSE) has recently published new guidelines, according to which all listed companies need to disclose major contracts and Chinese-foreign Investments. The company report to the SSE needs to contain information about the type and timeline of the contract, conditions, procedures, and third parties involved. Further, the companies need to provide information about exchange figures for the last 3 years for themselves as well as their partner companies, anticipated necessities to apply for loans and support for production and technical capabilities.

The Shanghai Stock Exchange (SSE) has recently published new guidelines, according to which all listed companies need to disclose major contracts and Chinese-foreign Investments. The company report to the SSE needs to contain information about the type and time line of the contract, conditions, procedures, and third parties involved. Further, the companies need to provide information about exchange figures for the last 3 years for themselves as well as their partner companies, anticipated necessities to apply for loans and support for production and technical capabilities.

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China’s CPI Expected to Stabilize

China's vice minister of the National Development and Reform Commission has mollified concerns about the rising Consumer Price Index (CPI). He expects the CPI to stabilize as soon as the prices for pork stabilize. The Index had previously risen to a 10 year high of 5.6 percent, mostly driven by food prices.

China's vice minister of the National Development and Reform Commission has mollified concerns about the rising Consumer Price Index (CPI). He expects the CPI to stabilize as soon as the prices for pork stabilize. The Index had previously risen to a 10 year high of 5.6 percent, mostly driven by food prices.

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china

China, Turkmenistan with common Gas Pipeline

After having signed a previous agreement to build a common gas pipeline, China and Turkmenistan have taken first steps of implementation. China has received a license from the Turkmen President allowing its national oil and gas corporation to prospect and develop the Bagtyyarlyk gas deposit. The completion of the pipeline is scheduled for 2009. As of that date, Turkmenistan has agreed to provide China with 30 billion cubic meters of gas annually for a term of 30 years.

After having signed a previous agreement to build a common gas pipeline, China and Turkmenistan have taken first steps of implementation. China has received a license from the Turkmen President allowing its national oil and gas corporation to prospect and develop the Bagtyyarlyk gas deposit. The completion of the pipeline is scheduled for 2009. As of that date, Turkmenistan has agreed to provide China with 30 billion cubic meters of gas annually for a term of 30 years.

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china

China: Anti-Monopoly Law to Protect Economic Security

China's highest legislative organ, the Standing Committee of the National People's Congress has passed a new competition law to protect the country's economic security.

China's highest legislative organ, the Standing Committee of the National People's Congress has passed a new competition law to protect the country's economic security. According to the law, which will come into effect as of August 2008, all acquisitions of Chinese companies by foreign investors need to pass a stringent review by the Ministry of Commerce, whether or not the purchase effects national economic security, takes place in key sectors or causes a transfer of the operating rights of famous domestic brands.

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china

China Builds Hospital in East Timor

China has assisted in the reconstruction of East Timor, including financing the construction of the Presidential Palace and training civil staff. Now a Chinese state company, China Metallurgical Construction, is planning on building a hospital in Suai, a district in East Timor.

China has assisted in the reconstruction of East Timor, including financing the construction of the Presidential Palace and training civil staff. Now a Chinese state company, China Metallurgical Construction, is planning on building a hospital in Suai, a district in East Timor.

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china

China's First Feeder Aircraft to Take Off

China's first feeder aircraft produced on own intellectual property rights is expected to leave production by the end of this year.

China's first feeder aircraft produced on own intellectual property rights is expected to leave production by the end of this year. The debut flight of the ARJ21 is anticipated for March 2008, distribution is scheduled to start in the third quarter of 2008.

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Laos and China to Work on Bilateral Ties

Laos and China plan to take advantage of the potential benefits of cooperating in several different areas including trade, energy, infrastructure, agriculture, and human resources. The two countries signed six deals in the hopes that the economic growth of the two countries can supplement each other and provide increased benefits for the people of both countries.

Laos and China plan to take advantage of the potential benefits of cooperating in several different areas including trade, energy, infrastructure, agriculture, and human resources. The two countries signed six deals in the hopes that the economic growth of both nations can supplement each other and provide increased benefits for the people of both countries.

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Philippines: Raising Quality Issue of Chinese Products

The Philippines will informally raise the question of how to proceed in regards to the issue of the quality of Chinese foods and other products. The Bureau of Food and Drugs has reported that a Chinese brand of candy has been tainted with formaldehyde. In a meeting with other member countries of ASEAN (Association of South Eastern Asian Nations), Trade Secretary Peter B. Favila will express the Philippines' concerns to his fellow economic ministers and will discuss how to proceed in these matters.

The Philippines will informally raise the question of how to proceed in regards to the issue of the quality of Chinese foods and other products. The Bureau of Food and Drugs has reported that a Chinese brand of candy has been tainted with formaldehyde. In a meeting with other member countries of ASEAN (Association of South Eastern Asian Nations), Trade Secretary Peter B. Favila will express the Philippines' concerns to his fellow economic ministers and will discuss how to proceed in these matters.

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Hovid Bhd to Expand Into Macau, Hong Kong

Hovid Bhd, a Malaysian pharmaceutical company, will expand its presence into Macau and Hong Kong. The company said that rather than depending upon a distributor, it will set up a joint-venture company.

Hovid Bhd, a Malaysian pharmaceutical company, will expand its presence into Macau and Hong Kong. The company said that rather than depending upon a distributor, it will set up a joint-venture company. As China is the ninth largest pharmaceutical market in the world, it is a good choice for Hovid's expansion.

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Hong Kong Shares Rise Boosted By Investors From Mainland China

Hong Kong stocks jumped on Wednesday, as investors from mainland China bought up more China concept stocks, just two days after Beijing removed restrictions and allowed its citizens to directly invest in stocks listed in Hong Kong. Hong Kong-listed China stocks advanced 3.2 percent on expectations that mainland China investors would buy companies trading at steep discounts relative to their mainland counterparts.

Hong Kong stocks jumped on Wednesday, as investors from mainland China bought up more China concept stocks, just two days after Beijing removed restrictions and allowed its citizens to directly invest in stocks listed in Hong Kong. Hong Kong-listed China stocks advanced 3.2 percent on expectations that mainland China investors would buy companies trading at steep discounts relative to their mainland counterparts.

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Chinese Companies Seeking Local Jakarta Joint Venture Partners For Factories To Produce Technical Equipment

At least five Chinese companies are exploring the possibility of entering into joint ventures with partners to build factories to pruduce technical equipment for both local and international markets.. This announcement was made on Monday by Wang Qing Jang, senior director for Shanghai's foreign economic relations and trade commission. Speaking at a media conference to mark the sixth Chinese technical equipment exhibition in Jakarta, Jang stated the Chinese companies would make use of the exhibition to met and discuss with local partners interesting in cooperating with them.

At least five Chinese companies are exploring the possibility of entering into joint ventures with partners to build factories to pruduce technical equipment for both local and international markets.. This announcement was made on Monday by Wang Qing Jang, senior director for Shanghai's foreign economic relations and trade commission. Speaking at a media conference to mark the sixth Chinese technical equipment exhibition in Jakarta, Jang stated the Chinese companies would make use of the exhibition to met and discuss with local partners interesting in cooperating with them.

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Mainland China Investment in Hong Kong Stock Market Predicted to be HK $300 Billion

Now that mainland China has allowed it's citizens to invest in Hong Kong stocks, financial analysts predict a mulitbilliondollar influx of capital. On Monday, the State Administration of Foreign Exchange said mainlanders will be allowed to invest in Hong Kong-listed stocks via the Tianjin branch of Bank of China. The program will be extended to Shanghai next. Deutsche Bank estimates that fund flows from the mainland into Hong Kong equities will double to USD $40 billion (HK $312 billion) between July of this year and June 2008.

Now that mainland China has allowed it's citizens to invest in Hong Kong stocks, financial analysts predict a mulitbilliondollar influx of capital. On Monday, the State Administration of Foreign Exchange said mainlanders will be allowed to invest in Hong Kong-listed stocks via the Tianjin branch of Bank of China. The program will be extended to Shanghai next. Deutsche Bank estimates that fund flows from the mainland into Hong Kong equities will double to USD $40 billion (HK $312 billion) between July of this year and June 2008.

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Hong Kong's Wharf Holdings Exceeds Expectations by HKD 2.49 Billion

Hong Kong commercial landlord, Wharf Ltd., said Wednesday that it had seen a 38 percent increase in first half underlying profit, gaining HKD 730 million. The company rose from HKD 1.9 billion to HKD 2.63 billion, overshooting analysts' estimates by more than HKD 2.49 billion. Representatives from Wharf Ltd. said the gains were most likely due to sea-cargo demand and China property sales.

Hong Kong commercial landlord, Wharf Ltd., said Wednesday that it had seen a 38 percent increase in first half underlying profit, gaining HKD 730 million. The company rose from HKD 1.9 billion to HKD 2.63 billion, overshooting analysts' estimates by more than HKD 2.49 billion. Representatives from Wharf Ltd. said the gains were most likely due to sea-cargo demand and China property sales.

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Uzbek President Islam Karimov Convenes with PRC’s President

On Wednesday, Uzbek President Islam Karimov arrived in Bishkek, Kyrgyzstan to participate in the Bishkek summit of the Shanghai Cooperation Organization (SCO) that is to be held on August 16, 2007. Still, President Islam Karimov's early arrival allowed him to hold talks with President of the People's Republic of China Hu Jintao, to which they discussed the state and perspectives of bilateral relations, as well as cooperation within the SCO.

On Wednesday, Uzbek President Islam Karimov arrived in Bishkek, Kyrgyzstan to participate in the Bishkek summit of the Shanghai Cooperation Organization (SCO) that is to be held on August 16, 2007. Still, President Islam Karimov's early arrival allowed him to hold talks with President of the People's Republic of China Hu Jintao, to which they discussed the state and perspectives of bilateral relations, as well as cooperation within the SCO.

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Industrial Output Growth Slows in China

The statistics bureau announced that China's industrial production rose 18 percent in July, 1.4 percent less than June's 19.4 percent. Last month's slowing of industrial output growth in China was the first decline in three months and is largely due to cuts to export incentives. Experts believe news of the slowdown will not ease government concern that the Chinese economy may be overheating.

The statistics bureau announced that China's industrial production rose 18 percent in July, 1.4 percent less than June's 19.4 percent. Last month's slowing of industrial output growth in China was the first decline in three months and is largely due to cuts to export incentives. Experts believe news of the slowdown will not ease government concern that the Chinese economy may be overheating.

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Shanghai Cooperation Organization Keen on Turkmenistan Membership

According to a deputy Russian foreign minister, the Shanghai Cooperation Organization (SCO) is interested in involving energy-rich Turkmenistan in its activities. The SCO has offered Turkmen President Gurbanguly Berdymukhammedov an invitation to attend Thursday's meeting in the Kyrgyzstan capital of Bishkek. The possibility of establishing an energy club will be touched upon by the heads of state from Kazakhstan, China, Russia, Tajikistan, Uzbekistan, and Kyrgyzstan. Pakistan, India, Mongolia, and Iran will be in attendance as well, considering the four nations role in the SCO, which is observer status.

According to a deputy Russian foreign minister, the Shanghai Cooperation Organization (SCO) is interested in involving energy-rich Turkmenistan in its activities. The SCO has offered Turkmen President Gurbanguly Berdymukhammedov an invitation to attend Thursday's meeting in the Kyrgyzstan capital of Bishkek. The possibility of establishing an energy club will be touched upon by the heads of state from Kazakhstan, China, Russia, Tajikistan, Uzbekistan, and Kyrgyzstan. Pakistan, India, Mongolia, and Iran will be in attendance as well, considering the four nations role in the SCO, which is observer status.

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China Borrows From ADB to Fund Road Project with Vietnam

China will borrow USD 300 million from the Asian Development Bank to build connecting roads to Vietnam, according to ADB. The whole operation is estimated to cost USD 1.57 billion, which will go towards building roads in the southwestern region of Guangxi. ADB said the construction of roads is important to that region because much of the poverty in that area is caused by poor transport infrastructure.

China will borrow USD 300 million from the Asian Development Bank to build connecting roads to Vietnam, according to ADB. The whole operation is estimated to cost USD 1.57 billion, which will go towards building roads in the southwestern region of Guangxi. ADB said the construction of roads is important to that region because much of the poverty in that area is caused by poor transport infrastructure.

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First Half of 2007 Meant Large Profits for Chinese Automakers

Despite price cuts and intense competition, profits for China's automobile industry in the first six months of 2007 rose 65.79% from the same period in 2006. One of China's independent automakers, Chery, boasted a 210.63 percent rise in profits. 14 of 16 major automakers had larger business revenue this year, perhaps pointing to a bright future for automobile manufacturers in China.

Despite price cuts and intense competition, profits for China's automobile industry in the first six months of 2007 rose 65.79% from the same period in 2006. One of China's independent automakers, Chery, boasted a 210.63 percent rise in profits. 14 of 16 major automakers had larger business revenue this year, perhaps pointing to a bright future for automobile manufacturers in China.

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China to Develop Satellite Project with Lao Government

A Chinese company has expressed interest in developing a satellite project in collaboration with the Lao government. China Asia Pacific Mobile Technology Satellite Co. Ltd (China-APMT) wants to develop a satellite ground station in Laos to be a service hub in domestic and international regions. The project will help Laos with socio-economic development and will establish Laos as a main satellite provider in the sub-region. A cooperation agreement will be signed by the two government which will allow Lao communications system and the ground satellite station to be developed as well as the training and technology transfer sector.

A Chinese company has expressed interest in developing a satellite project in collaboration with the Lao government. China Asia Pacific Mobile Technology Satellite Co. Ltd (China-APMT) wants to develop a satellite ground station in Laos to be a service hub in domestic and international regions. The project will help Laos with socio-economic development and will establish Laos as a main satellite provider in the sub-region. A cooperation agreement will be signed by the two government which will allow Lao communications system and the ground satellite station to be developed as well as the training and technology transfer sector.

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China's Inflation Rate Highest in 10 Years

The National Bureau of Statistics said today that consumer prices jumped 5.6 percent in July from a year earlier, the highest rate in more than 10 years. The news has resulted in speculation that the government may raise borrowing costs for a fourth time this year. Experts say that a temporary surging of food prices has been largely responsible for the high figure, and they believe that inflation should come down rapidly.

The National Bureau of Statistics said today that consumer prices jumped 5.6 percent in July from a year earlier, the highest rate in more than 10 years. The news has resulted in speculation that the government may raise borrowing costs for a fourth time this year. Experts say that a temporary surging of food prices has been largely responsible for the high figure, and they believe that inflation should come down rapidly.

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China's Trade Surplus Up 67 Percent From a Year Earlier

China's trade surplus shot up to USD 24.4 billion in July, up 67 percent from USD 14.6 billion last July. The month's surplus is the second-highest on record, beat only by June's trade surplus of USD 26.9 billion. With exports from China continuing to increase at record speed, U.S. Treasury Secretary Henry Paulson's case for China to hasten the appreciation of the yuan may gain some ground.

China's trade surplus shot up to USD 24.4 billion in July, up 67 percent from USD 14.6 billion last July. The month's surplus is the second-highest on record, beat only by June's trade surplus of USD 26.9 billion. With exports from China continuing to increase at record speed, U.S. Treasury Secretary Henry Paulson's case for China to hasten the appreciation of the yuan may gain some ground.

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HSBC to Build Brand in Rural China

Hong Kong's HSBC will be building a rural bank in China after obtaining regulatory approval. The move will help boost the economies in rural communities, which often had difficulty accessing credit. The government also hopes it will stimulate investment and reduce the income gap. Chairman of HSBC, Stephen Green, said Thursday: "We appreciate this opportunity to further extend HSBC's presence in China and capitalize on the new opportunities in the country's underbanked rural market."

Hong Kong's HSBC will be building a rural bank in China after obtaining regulatory approval. The move will help boost the economies in rural communities, which often had difficulty accessing credit. The government also hopes it will stimulate investment and reduce the income gap. Chairman of HSBC, Stephen Green, said Thursday: "We appreciate this opportunity to further extend HSBC's presence in China and capitalize on the new opportunities in the country's underbanked rural market."

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HSBC Wins Approval to Start Rural Bank in China

HSBC Holdings Plc is the first foreign firm to be approved to start a rural bank in China. The HSBC Rural Bank will be in central China's Hubei Province and initially have as many as 25 employees. The bank should be established by year's end, and it will serve to help develop China's rural economy, a central focus of Chinese President Hu Jintao's policy.

HSBC Holdings Plc is the first foreign firm to be approved to start a rural bank in China. The HSBC Rural Bank will be in central China's Hubei Province and initially have as many as 25 employees. The bank should be established by year's end, and it will serve to help develop China's rural economy, a central focus of Chinese President Hu Jintao's policy.

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Businesses Hope Indonesia-China Relation Remains Good

Business organizations in Indonesia hope, despite the recent trade conflict between China and Indonesia, that both countries still maintain their bilateral economic cooperation. An official of the Indonesian Chamber of Commerce and Industry said China and Indonesia could develop a beneficial relationship in various economic sectors to be competitive in the global market. One particular sector is manufacturing, in which China with its cheap supply of labor can cooperate with Indonesia that has cheap supply of raw materials.

Business organizations in Indonesia hope, despite the recent trade conflict between China and Indonesia, that both countries still maintain their bilateral economic cooperation. An official of the Indonesian Chamber of Commerce and Industry said China and Indonesia could develop a beneficial relationship in various economic sectors to be competitive in the global market. One particular sector is manufacturing, in which China with its cheap supply of labor can cooperate with Indonesia that has cheap supply of raw materials.

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Wealth Gap Widens Throughout Asia

According to the Key Indicators 2007 report of the Asian Development Bank (ADB) relative inequality between the rich and the poor, referred to as the "wealth gap", has increased in many Asian countries. First and foremost Nepal and China, but as well India, Cambodia and Sri Lanka were not able to antagonize the inequality. As main reasons for the development, the report states the discrepancy in investment between urban and rural areas as well as government policies which deterred private investment, especially in the hinterlands.

According to the Key Indicators 2007 report of the Asian Development Bank (ADB) relative inequality between the rich and the poor, referred to as the "wealth gap", has increased in many Asian countries. First and foremost Nepal and China, but as well India, Cambodia and Sri Lanka were not able to antagonize the inequality. As main reasons for the development, the report states the discrepancy in investment between urban and rural areas as well as government policies which deterred private investment, especially in the hinterlands.

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China Revises Rules on Foreign Property Investing

In order to control soaring property prices and slow down the booming economy, China is banning foreign investors from borrowing offshore. The rule is meant to prevent foreign property investors from seeking loans with lower interest rates outside of China. With the government advising Chinese banks to stop lending for land purchases, this new revision could have a large impact on real estate investment in China.

In order to control soaring property prices and slow down the booming economy, China is banning foreign investors from borrowing offshore. The rule is meant to prevent foreign property investors from seeking loans with lower interest rates outside of China. With the government advising Chinese banks to stop lending for land purchases, this new revision could have a large impact on real estate investment in China.

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No Trade War Between Indonesia and China

The Indonesian Minster of Economic Affairs, Boediono, said that there is no trade war between Indonesia and China following these incidents: a ban of aquatic product from Indonesia, and ban of candies from China. The quarantine officials of both countries found that the imported products contained dangerous substances. In addition, Boediono said that these are common issues in trading between countries, and he hoped that both countries could give and receive explanations in order to resolve the trade issue between China and Indonesia.

The Indonesian Minster of Economic Affairs, Boediono, said that there is no trade war between Indonesia and China following these incidents: a ban of aquatic product from Indonesia, and ban of candies from China. The quarantine officials of both countries found that the imported products contained dangerous substances. In addition, Boediono said that these are common issues in trading between countries, and he hoped that both countries could give and receive explanations in order to resolve the trade issue between China and Indonesia.

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China to Set Up Steel Plant in Vietnam

China's Shengli Investment and Development Limited Company signed a contract to set up a USD 130 million steel processing facility in northern Vietnam. Once it is built, the steel plant will produce up to two million tons of steel per year. Korean and Indian companies have also partnered with Vietnam to build several large steel projects.

China's Shengli Investment and Development Limited Company signed a contract to set up a USD 130 million steel processing facility in northern Vietnam. Once it is built, the steel plant will produce up to two million tons of steel per year. Korean and Indian companies have also partnered with Vietnam to build several large steel projects.

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ROK: Six Party Economic Working Group Meeting Opens

The six-party working group (South Korea, North Korea, Japan, China, Russia, and Japan) on economic and energy aid to North Korea opened in the truce village of Panmunjeom, South Korea on Tuesday. At the meeting North Korea is expected to talk about what it wants to receive in return for implementing second-phase measure to disable its nuclear facilities. North Korea will be given economic and energy aid equivalent to 950 thousand tons of heavy fuel oil if it completes the nuclear facilities' disablement under February's denuclearization agreement.

The six-party working group (South Korea, North Korea, Japan, China, Russia, and Japan) on economic and energy aid to North Korea opened in the truce village of Panmunjeom, South Korea on Tuesday. At the meeting North Korea is expected to talk about what it wants to receive in return for implementing second-phase measure to disable its nuclear facilities. North Korea will be given economic and energy aid equivalent to 950 thousand tons of heavy fuel oil if it completes the nuclear facilities' disablement under February's denuclearization agreement.

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China Acknowledges Lack of Competitive Brands

Chinese experts and officials have been concerned with the performance of domestic brands and are presently asking for the government to recognize this growing problem. Though products with domestic brands have contributed over 25 percent to China's economic growth, a Chinese brand has never been listed in the top 100 global brands in Business Week. Chinese products are often made for overseas firms, and many domestic brands have been bought out by foreign companies.

Chinese experts and officials have been concerned with the performance of domestic brands and are presently asking for the government to recognize this growing problem. Though products with domestic brands have contributed over 25 percent to China's economic growth, a Chinese brand has never been listed in the top 100 global brands in Business Week. Chinese products are often made for overseas firms, and many domestic brands have been bought out by foreign companies.

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Mutual Imports Ban Threatens Indonesia - China Relation

The Indonesia-China Institute of Cultural and Socio-Economic Cooperation Chairman said that the Indonesia - China bilateral cooperation which is based on strategic partnership could be threatened if the government of two countries don't resolve this mutual import ban soon. Around 2 weeks ago, the Indonesian Drugs and Food Control Agency found candies imported from China containing formaldehyde. In addition, the Chinese Quarantine Agency announced a ban on Indonesian fishery products imports because the products contain dangerous substances such as mercury and cadmium.

The Indonesia-China Institute of Cultural and Socio-Economic Cooperation Chairman said that the Indonesia - China bilateral cooperation which is based on strategic partnership could be threatened if the government of two countries don't resolve this mutual import ban soon. Around 2 weeks ago, the Indonesian Drugs and Food Control Agency found candies imported from China containing formaldehyde. In addition, the Chinese Quarantine Agency announced a ban on Indonesian fishery products imports because the products contain dangerous substances such as mercury and cadmium.

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Slower Growth of Food Prices, Better CPI Outlook in China

Yao Jingyuan, Chief Economist of the National Bureau of Statistics, said food prices that soared in the first half of the year will be effectively curbed and the CPI will rise less than 4 percent in 2007. Foodstuff prices had risen 7.6 percent in the first 6 months of 2007, but, with supply currently greater than demand, growth in food prices should slow.

Yao Jingyuan, Chief Economist of the National Bureau of Statistics, said food prices that soared in the first half of the year will be effectively curbed and the CPI will rise less than 4 percent in 2007. Foodstuff prices had risen 7.6 percent in the first 6 months of 2007, but, with supply currently greater than demand, growth in food prices should slow.

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The Bank for International Settlements’ Report: Potential Global Crisis

This report is based on the Bank for International Settlements' 77th Annual Report released June 24, 2007 in Basel, Switzerland.


The Bank for International Settlements (BIS) forecasts all manner of dismal future trends in its 77th Annual Report. The BIS telegraphs through their report that current global growth is not sustainable and there is a strong probability that the credit boom may ignite a long-lasting global crisis not unlike that of the Great Depression of the 1930s or the East Asian Financial Crisis of the 1990s.

The Bank (BIS) states that recently "real growth has been maintained around levels that are among the highest recorded" and "despite significant upward shocks to most commodity prices, underlying inflation levels have generally remained subdued." The Bank also affirms that "real interest rates and risk premia of all sorts have remained uncharacteristically low" and "global trade imbalances have thus far been easily financed and exchange rates have been generally quite stable." Although some economists believe that this exuberant growth is sustainable, the BIS addresses certain issues in the current global economy that could possibly lead to serious problems in the near future.

Although inflationary pressures are suppressed right now, the threat of global inflation is real as growth in industrialized countries is slowing and growth in developing countries is rapidly increasing. The Annual Report highlights the Chinese government's failed attempts to slow growth by tightening monetary policies perpetuating "robust broad money and credit growth" that could increase inflationary pressure and has "raised questions for some central banks about sustainable growth." Currently, lenders are increasingly willing to extend risky credit to corporations with inflated debt levels. In addition to increased sovereign, corporate and personal credit around the world, the cost of raw materials is increasing, which will only add to global inflationary pressure. Despite the signaling of these cautionary markers in the Annual Report, the long-term effects of this credit boom are unknown.

Another important uncertainty in the global market is the effect of the all-time high ratio of house prices to rents in the United States. According to the BIS, wages are not increasing sufficiently to support the increase in consumer spending and investment, citizens are increasing personal debt, and mortgage rates continue to rise. If housing prices decline there may be steep deceleration in US growth and dire consequences for social infrastructure. The United States economy still has a large impact on the world economy and any downturn in the US housing market could have significant effects on global growth. According to the United Nations' "World Economic Situation and Prospects 2007," the occurrence of a plunge in US housing prices will considerably weaken global growth and cause problems in financial markets around the world.

The Bank comments that global trade imbalances are important medium-term uncertainties. Many economists believe that the US external imbalance is unsustainable and will eventually adjust. According to the Annual Report, the uncertainty lies in the possibility of "large and perhaps abrupt movements in exchange rates" or whether "capital inflows needed to finance such deficits will be available" in the future.

The Bank asserts two reasons to explain how public sector inflows may become unreliable. First, country currencies may rise as a result of government "hands-off" policies rooted in distorted beliefs regarding effects of government intervention. Second, current holders of large reserves of US dollars may start to favor reserves in other currencies.

The Bank acknowledges that many people believe "individual asset price increases are justified and therefore more likely to be sustainable" but it also portends that "market reaction to good news might have become irrationally exuberant." If the latter is the case, purchasers of risky investments could be vulnerable in the long run. Banks, global players, and companies have been encouraged to invest in risky instruments based on low expected loss, but there is a probability of an unwelcome shock that would have massive consequences.

Based on the above excerpts from the Annual Report and the economic analysis of all the issues affecting the conclusions stated in the report, it appears that the global economy is vulnerable and growth may not be sustained.

This report is based on the Bank for International Settlements' 77th Annual Report released June 24, 2007 in Basel, Switzerland.


The Bank for International Settlements (BIS) forecasts all manner of dismal future trends in its 77th Annual Report. The BIS telegraphs through their report that current global growth is not sustainable and there is a strong probability that the credit boom may ignite a long-lasting global crisis not unlike that of the Great Depression of the 1930s or the East Asian Financial Crisis of the 1990s.

The Bank (BIS) states that recently "real growth has been maintained around levels that are among the highest recorded" and "despite significant upward shocks to most commodity prices, underlying inflation levels have generally remained subdued." The Bank also affirms that "real interest rates and risk premia of all sorts have remained uncharacteristically low" and "global trade imbalances have thus far been easily financed and exchange rates have been generally quite stable." Although some economists believe that this exuberant growth is sustainable, the BIS addresses certain issues in the current global economy that could possibly lead to serious problems in the near future.

Although inflationary pressures are suppressed right now, the threat of global inflation is real as growth in industrialized countries is slowing and growth in developing countries is rapidly increasing. The Annual Report highlights the Chinese government's failed attempts to slow growth by tightening monetary policies perpetuating "robust broad money and credit growth" that could increase inflationary pressure and has "raised questions for some central banks about sustainable growth." Currently, lenders are increasingly willing to extend risky credit to corporations with inflated debt levels. In addition to increased sovereign, corporate and personal credit around the world, the cost of raw materials is increasing, which will only add to global inflationary pressure. Despite the signaling of these cautionary markers in the Annual Report, the long-term effects of this credit boom are unknown.

Another important uncertainty in the global market is the effect of the all-time high ratio of house prices to rents in the United States. According to the BIS, wages are not increasing sufficiently to support the increase in consumer spending and investment, citizens are increasing personal debt, and mortgage rates continue to rise. If housing prices decline there may be steep deceleration in US growth and dire consequences for social infrastructure. The United States economy still has a large impact on the world economy and any downturn in the US housing market could have significant effects on global growth. According to the United Nations' "World Economic Situation and Prospects 2007," the occurrence of a plunge in US housing prices will considerably weaken global growth and cause problems in financial markets around the world.

The Bank comments that global trade imbalances are important medium-term uncertainties. Many economists believe that the US external imbalance is unsustainable and will eventually adjust. According to the Annual Report, the uncertainty lies in the possibility of "large and perhaps abrupt movements in exchange rates" or whether "capital inflows needed to finance such deficits will be available" in the future.

The Bank asserts two reasons to explain how public sector inflows may become unreliable. First, country currencies may rise as a result of government "hands-off" policies rooted in distorted beliefs regarding effects of government intervention. Second, current holders of large reserves of US dollars may start to favor reserves in other currencies.

The Bank acknowledges that many people believe "individual asset price increases are justified and therefore more likely to be sustainable" but it also portends that "market reaction to good news might have become irrationally exuberant." If the latter is the case, purchasers of risky investments could be vulnerable in the long run. Banks, global players, and companies have been encouraged to invest in risky instruments based on low expected loss, but there is a probability of an unwelcome shock that would have massive consequences.

Based on the above excerpts from the Annual Report and the economic analysis of all the issues affecting the conclusions stated in the report, it appears that the global economy is vulnerable and growth may not be sustained.

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Corporate Social Responsibility: The Asian Impact

Over the years, Asian companies have begun to realize the significant effects that corporate social responsibility can have on businesses, employees and stakeholders alike. The move towards building more socially responsible enterprises has been gradually gaining momentum across the region. In recent years, many Asian governments have initiated a series of measures aimed at encouraging private organizations to participate more effectively in community development projects. This, they believe, will not only help raise the economic welfare of the local populace but also result in a more equitable distribution of domestic economic resources. Such steps are critical if the end goal of preventing the lopsided concentration of economic power in the region and ultimately promoting social stability are to be achieved in the near future.

CSR: The story so far

Corporate social responsibility (CSR) is not an entirely unknown concept in the Asian region. In the past, national leaders like Indira Gandhi of India and Lee Kuan Yew of Singapore, have stressed that local businesses should act with a greater sense of responsibility and consider the social, moral and environmental consequences of their enterprises and their resultant effects on the safety and well-being of the communities which they serve. However, the overall record of many countries on the ethical business front has been disappointing. This has been attributed to factors like poor work conditions prevalent in many factories existing in the low-cost manufacturing hubs of the region and the lack of concerted efforts on the part of local governments to enforce stricter compliance standards for both domestic and foreign companies. In recent years, much criticism has been directed toward developed countries for using developing nations as a dumping ground for "e-waste" and other environmentally hazardous materials. There has been a spike in the number of mass protests and demonstrations being staged by international and local human rights groups to highlight the abysmal work conditions and massive exploitation of human labor being carried out in particular countries. Also, certain organizations like India's ICICI (Industrial Credit and Investment Corporation of India) are already leading the way in terms of incorporating more employee-centric policies and promoting a greater degree of transparency in their financial reporting and public accountability standards. These organizations clearly believe that the private sector should play a greater role in improving infrastructure, health and safety standards in the local economies and act as a catalyst in the broader economic development process. Even corporate heavyweights like Nike have started implementing better corporate standards in Indonesia after the backlash they received in the international news media over the unfair labor standards..

Future of CSR in the region

Despite all the above measures, the overall success on the CSR front remains largely limited. There are several corporations who believe that advancing the greater common good and realizing bigger profits are mutually exclusive goals. Also, questions have been raised about the efficacy of the CSR initiatives undertaken by the companies in the region. It is believed that the kind of CSR that merely goes through the motions, delivering no new resources to worthy causes gives the firm's workers or customers no good reason to think more highly of it (perhaps the opposite) and may ultimately involve a net loss of welfare. This occurs when the costs of enforcing the requisite CSR measures outweigh the overall social welfare gains realized. Therefore, organizations that desperately want to be perceived in a flattering light by the general public must rationally consider the potential costs and resultant benefits arising from the various socially responsible initiatives that are implemented. Only then can corporate social responsibility truly fulfill its role of achieving a fairer distribution of resources, thereby disseminating the benefits of social welfare across the various strata of society across the Asian region.

Over the years, Asian companies have begun to realize the significant effects that corporate social responsibility can have on businesses, employees and stakeholders alike. The move towards building more socially responsible enterprises has been gradually gaining momentum across the region. In recent years, many Asian governments have initiated a series of measures aimed at encouraging private organizations to participate more effectively in community development projects. This, they believe, will not only help raise the economic welfare of the local populace but also result in a more equitable distribution of domestic economic resources. Such steps are critical if the end goal of preventing the lopsided concentration of economic power in the region and ultimately promoting social stability are to be achieved in the near future.

CSR: The story so far

Corporate social responsibility (CSR) is not an entirely unknown concept in the Asian region. In the past, national leaders like Indira Gandhi of India and Lee Kuan Yew of Singapore, have stressed that local businesses should act with a greater sense of responsibility and consider the social, moral and environmental consequences of their enterprises and their resultant effects on the safety and well-being of the communities which they serve. However, the overall record of many countries on the ethical business front has been disappointing. This has been attributed to factors like poor work conditions prevalent in many factories existing in the low-cost manufacturing hubs of the region and the lack of concerted efforts on the part of local governments to enforce stricter compliance standards for both domestic and foreign companies. In recent years, much criticism has been directed toward developed countries for using developing nations as a dumping ground for "e-waste" and other environmentally hazardous materials. There has been a spike in the number of mass protests and demonstrations being staged by international and local human rights groups to highlight the abysmal work conditions and massive exploitation of human labor being carried out in particular countries. Also, certain organizations like India's ICICI (Industrial Credit and Investment Corporation of India) are already leading the way in terms of incorporating more employee-centric policies and promoting a greater degree of transparency in their financial reporting and public accountability standards. These organizations clearly believe that the private sector should play a greater role in improving infrastructure, health and safety standards in the local economies and act as a catalyst in the broader economic development process. Even corporate heavyweights like Nike have started implementing better corporate standards in Indonesia after the backlash they received in the international news media over the unfair labor standards..

Future of CSR in the region

Despite all the above measures, the overall success on the CSR front remains largely limited. There are several corporations who believe that advancing the greater common good and realizing bigger profits are mutually exclusive goals. Also, questions have been raised about the efficacy of the CSR initiatives undertaken by the companies in the region. It is believed that the kind of CSR that merely goes through the motions, delivering no new resources to worthy causes gives the firm's workers or customers no good reason to think more highly of it (perhaps the opposite) and may ultimately involve a net loss of welfare. This occurs when the costs of enforcing the requisite CSR measures outweigh the overall social welfare gains realized. Therefore, organizations that desperately want to be perceived in a flattering light by the general public must rationally consider the potential costs and resultant benefits arising from the various socially responsible initiatives that are implemented. Only then can corporate social responsibility truly fulfill its role of achieving a fairer distribution of resources, thereby disseminating the benefits of social welfare across the various strata of society across the Asian region.

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China's Reformed Tax Code: Striving For More Than Just Growth

The Chinese economy has witnessed spectacular economic gains over the past two decades. Several factors like the integration of the nation's domestic economy with the world markets, sound infrastructure, high productivity growth rates, and the recent membership of the WTO have greatly helped the process of rapid economic growth. These factors aside, a complete overhaul of the country's financial system is desperately needed if China hopes to realize long-term stability and sustainable growth of domestic output and employment. In particular, financial sector reforms would help achieve balanced economic growth and result in a more equitable distribution of the nation's productive resources.

The benefits of financial sector reforms

Currently, China's economy has access to an abundant supply of cheap domestic capital. This has primarily been attributed to its high national savings rate amounting to approximately half of the gross domestic product; however the crucial problem arises because of the inability of the financial intermediaries to effectively allocate these savings to their most efficient end-users. Moreover, most of the resources available for investment have been concentrated in relatively unproductive sectors such as steel, cement, etc., which may result in the build-up of excess capacity in the nation. Because of the lax lending practices of Chinese Banks, many loans are available to the poorly performing domestic state enterprises. This factor, in turn, has compelled the government to spend huge sums of money in order to reduce the levels of non-performing loans currently plaguing China's financial sector.

Extending greater funding to the highly profitable private sector in the nation would generate a significantly higher return for the same amount of investment, thus raising China's GDP by up to USD 259 billion, or 13 percent a year. Beyond growth rates, such wide-ranging financial sector reforms would generate higher returns for the average Chinese investor, leading to better living standards and higher consumption in the nation.

Areas of improvement

The Chinese government has initiated a series of measures as part of the broader financial sector reform process. Recently, there has been some degree of progress in improving bank supervision and disposing of the existing nonperforming loans. Steps have also been taken to tighten corporate governance standards in the banking sector. Additionally, it is imperative to establish time-bound restructuring programs whereby Chinese banks can be held accountable for their performance levels, especially with respect to meeting their stated targets. China's recent interest rate liberalization is gradually helping domestic banks to make more commercially oriented lending decisions under which loans are extended to the most efficient users of funds. Also, development of the broader financial sector (including the equity and debt markets) would provide healthy competition to the banks by giving both domestic savers and corporate borrowers access to a broad range of investment and borrowing opportunities.

Still, the path ahead is laden with challenges. The primary among them is the fixed exchange rate regime currently existing in China. Because of the sharp influx of capital inflows into China, the government is compelled to keep interest rates low in order to stem the resultant pressures for appreciation in the domestic economy. This in turn leads to cheap financing becoming readily available to companies and banks, forcing the government to take steps to control the rapid growth in the supply of capital. This becomes problematic because the principal goal of the banking restructuring process is to enable the banks and the state enterprises to respond effectively to the market incentives. In addition, higher interest rates would limit the amount of funding to the most unprofitable enterprises in both the private and public sector. Therefore, to effectively realize the overall gains that such a broad financial restructuring process entails, the Chinese policymakers have to take much stronger steps to deal with the challenges arising in the financial-sector development process.

The Chinese economy has witnessed spectacular economic gains over the past two decades. Several factors like the integration of the nation's domestic economy with the world markets, sound infrastructure, high productivity growth rates, and the recent membership of the WTO have greatly helped the process of rapid economic growth. These factors aside, a complete overhaul of the country's financial system is desperately needed if China hopes to realize long-term stability and sustainable growth of domestic output and employment. In particular, financial sector reforms would help achieve balanced economic growth and result in a more equitable distribution of the nation's productive resources.

The benefits of financial sector reforms

Currently, China's economy has access to an abundant supply of cheap domestic capital. This has primarily been attributed to its high national savings rate amounting to approximately half of the gross domestic product; however the crucial problem arises because of the inability of the financial intermediaries to effectively allocate these savings to their most efficient end-users. Moreover, most of the resources available for investment have been concentrated in relatively unproductive sectors such as steel, cement, etc., which may result in the build-up of excess capacity in the nation. Because of the lax lending practices of Chinese Banks, many loans are available to the poorly performing domestic state enterprises. This factor, in turn, has compelled the government to spend huge sums of money in order to reduce the levels of non-performing loans currently plaguing China's financial sector.

Extending greater funding to the highly profitable private sector in the nation would generate a significantly higher return for the same amount of investment, thus raising China's GDP by up to USD 259 billion, or 13 percent a year. Beyond growth rates, such wide-ranging financial sector reforms would generate higher returns for the average Chinese investor, leading to better living standards and higher consumption in the nation.

Areas of improvement

The Chinese government has initiated a series of measures as part of the broader financial sector reform process. Recently, there has been some degree of progress in improving bank supervision and disposing of the existing nonperforming loans. Steps have also been taken to tighten corporate governance standards in the banking sector. Additionally, it is imperative to establish time-bound restructuring programs whereby Chinese banks can be held accountable for their performance levels, especially with respect to meeting their stated targets. China's recent interest rate liberalization is gradually helping domestic banks to make more commercially oriented lending decisions under which loans are extended to the most efficient users of funds. Also, development of the broader financial sector (including the equity and debt markets) would provide healthy competition to the banks by giving both domestic savers and corporate borrowers access to a broad range of investment and borrowing opportunities.

Still, the path ahead is laden with challenges. The primary among them is the fixed exchange rate regime currently existing in China. Because of the sharp influx of capital inflows into China, the government is compelled to keep interest rates low in order to stem the resultant pressures for appreciation in the domestic economy. This in turn leads to cheap financing becoming readily available to companies and banks, forcing the government to take steps to control the rapid growth in the supply of capital. This becomes problematic because the principal goal of the banking restructuring process is to enable the banks and the state enterprises to respond effectively to the market incentives. In addition, higher interest rates would limit the amount of funding to the most unprofitable enterprises in both the private and public sector. Therefore, to effectively realize the overall gains that such a broad financial restructuring process entails, the Chinese policymakers have to take much stronger steps to deal with the challenges arising in the financial-sector development process.

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China's Energy Crunch

It is well documented that China's energy demand has been increasing rapidly and at a pace that some say is unsustainable. A study released by the Netherlands Environmental Assessment Agency said that in 2006 China had already taken over the United States as the largest emitter of carbon dioxide: the byproduct of fossil fuel combustion and the greenhouse gas best known for its significant effect on global warming.

China is much less efficient too. For every U.S. dollar of GDP, China uses three times more energy than the global average and 4.7 times that in the United States. In the near future, energy demand will only continue to grow alongside standards of living, as per capita energy consumption is still only one-eighth that of the United States. The alarming fact of all this is that China would exceed total worldwide carbon emissions by 22 percent if it reached the per-capita energy consumption levels of the United States.

Energy Demand

The energy problem derives largely from the fact that much of China's output comes from energy intensive industries. Known as the "factory to the world," China has the largest coal consumption of any country in the world by an extensive margin, consuming 40 percent of the world's coal and nearly twice that of U.S. consumption. Coal generates 80 percent of China's electricity and 65 percent of all energy consumption, supplying nearly all of China's heavy industries.

As the growing middle class buys more cars, demand for oil has also seen a sharp rise. Indeed, China has become the third largest market for automobiles. This rapid expansion will only continue, as forecasts expect this number to increase six-fold by 2020. An oil exporter fifteen years ago, China now ranks as the world's third largest importer. The number of automobiles in the country has tripled since 1995, making car purchases a very large portion of economic activity.

The Problem

China's large appetite for energy can have detrimental effects to consumers and the global environment. On the consumer side, air pollution made respiratory and heart disease the number one cause of mortality in China at 400,000 resulting deaths in 2004. Anecdotal reports liken inhaling China's air near industrial epicenters is equivalent to smoking two and a half packs of cigarettes per day. This can be largely attributed to rapidly increasing use of automobiles that run on dirty fuels brimming with high sulfur content.

China's environmental spillovers also affect the global community. Already, China's emission pollutants such as sulfur are floating to neighboring countries. The global problem, of which China is in the spotlight, is that the environment will not be able to continue absorbing greenhouse gases resulting in an increase in global temperatures. While it is difficult to determine the magnitude of the effect of global warming on extreme weather changes, rising global temperatures do lead to glacial retreat and a worldwide rise in sea-level. Being the largest emitter of greenhouse gases, China has an environmental obligation to use energy more efficiently.

What is Being Done

China is fully aware of the climate change problem and is taking steps to mitigate its effects. Outlined in their most recent 5 year plan, China hopes to improve its environmental situation through improvements in energy intensity. China's first national strategy on climate change, introduced June 4, 2007, set out to further develop energy efficiency through reforestation, public education and improving regulatory enforcement. While making no formal reduction guarantee, China hopes to improve energy efficiency by 20 percent by 2010.

Air quality is one of the main objectives. China is making efforts to increase the efficiency of automobiles through higher fuel economy standards and a new 20 percent tax on automobiles with low gas mileage and emissions standards. China's fuel economy standards are higher than those of the United States. China has improved mass transit, making it more effective and efficient in order to provide consumers a feasible alternative to automobiles. These steps will certainly reduce emissions and may even reduce oil demand in the transportation sector. China has also been making the transition to natural gas and has put pollution control devices on coal power plants to control SOx and NOx, the main causes of smog and acid rain. Fuel Tech, an international leader in air pollution control and boiler fireside and fuel treatment, has worked extensively with China in improving energy efficiency through emissions reduction. As China's Vice Premier noted at an energy conference in Beijing, "Energy efficiency is not just one of our core strategies; it has to be the core energy strategy."

What Needs To Be Done

Despite China's efforts, investment in energy efficiency as a percentage of total energy sector investment has dropped considerably over the past two decades to one-third of the level it spent at its peak in 1983. China needs to continue promoting renewable energy and adopt carbon sequestration methods.

Furthermore, China needs to continue discussions with the international community on how they can work together to combat climate change. An international market-based approach, akin to the European Union's Emissions Trading Scheme (ETS), could be one solution. While price volatility in ETS has caused some concern over its viability, the addition of China and other countries into the fold will increase the number of market players and thus reduce volatility.

In the absence of an international agreement, China should pursue a carbon tax. Most estimates find that a USD 20 to 25 price per ton of carbon dioxide would reduce climate change to sustainable levels. Through what is called the revenue recycling effect, China could use the funds generated from a carbon tax to improve health care, the pension system, or to re-invest the money into clean energy technologies.

 

It is well documented that China's energy demand has been increasing rapidly and at a pace that some say is unsustainable. A study released by the Netherlands Environmental Assessment Agency said that in 2006 China had already taken over the United States as the largest emitter of carbon dioxide: the byproduct of fossil fuel combustion and the greenhouse gas best known for its significant effect on global warming.

China is much less efficient too. For every U.S. dollar of GDP, China uses three times more energy than the global average and 4.7 times that in the United States. In the near future, energy demand will only continue to grow alongside standards of living, as per capita energy consumption is still only one-eighth that of the United States. The alarming fact of all this is that China would exceed total worldwide carbon emissions by 22 percent if it reached the per-capita energy consumption levels of the United States.

Energy Demand

The energy problem derives largely from the fact that much of China's output comes from energy intensive industries. Known as the "factory to the world," China has the largest coal consumption of any country in the world by an extensive margin, consuming 40 percent of the world's coal and nearly twice that of U.S. consumption. Coal generates 80 percent of China's electricity and 65 percent of all energy consumption, supplying nearly all of China's heavy industries.

As the growing middle class buys more cars, demand for oil has also seen a sharp rise. Indeed, China has become the third largest market for automobiles. This rapid expansion will only continue, as forecasts expect this number to increase six-fold by 2020. An oil exporter fifteen years ago, China now ranks as the world's third largest importer. The number of automobiles in the country has tripled since 1995, making car purchases a very large portion of economic activity.

The Problem

China's large appetite for energy can have detrimental effects to consumers and the global environment. On the consumer side, air pollution made respiratory and heart disease the number one cause of mortality in China at 400,000 resulting deaths in 2004. Anecdotal reports liken inhaling China's air near industrial epicenters is equivalent to smoking two and a half packs of cigarettes per day. This can be largely attributed to rapidly increasing use of automobiles that run on dirty fuels brimming with high sulfur content.

China's environmental spillovers also affect the global community. Already, China's emission pollutants such as sulfur are floating to neighboring countries. The global problem, of which China is in the spotlight, is that the environment will not be able to continue absorbing greenhouse gases resulting in an increase in global temperatures. While it is difficult to determine the magnitude of the effect of global warming on extreme weather changes, rising global temperatures do lead to glacial retreat and a worldwide rise in sea-level. Being the largest emitter of greenhouse gases, China has an environmental obligation to use energy more efficiently.

What is Being Done

China is fully aware of the climate change problem and is taking steps to mitigate its effects. Outlined in their most recent 5 year plan, China hopes to improve its environmental situation through improvements in energy intensity. China's first national strategy on climate change, introduced June 4, 2007, set out to further develop energy efficiency through reforestation, public education and improving regulatory enforcement. While making no formal reduction guarantee, China hopes to improve energy efficiency by 20 percent by 2010.

Air quality is one of the main objectives. China is making efforts to increase the efficiency of automobiles through higher fuel economy standards and a new 20 percent tax on automobiles with low gas mileage and emissions standards. China's fuel economy standards are higher than those of the United States. China has improved mass transit, making it more effective and efficient in order to provide consumers a feasible alternative to automobiles. These steps will certainly reduce emissions and may even reduce oil demand in the transportation sector. China has also been making the transition to natural gas and has put pollution control devices on coal power plants to control SOx and NOx, the main causes of smog and acid rain. Fuel Tech, an international leader in air pollution control and boiler fireside and fuel treatment, has worked extensively with China in improving energy efficiency through emissions reduction. As China's Vice Premier noted at an energy conference in Beijing, "Energy efficiency is not just one of our core strategies; it has to be the core energy strategy."

What Needs To Be Done

Despite China's efforts, investment in energy efficiency as a percentage of total energy sector investment has dropped considerably over the past two decades to one-third of the level it spent at its peak in 1983. China needs to continue promoting renewable energy and adopt carbon sequestration methods.

Furthermore, China needs to continue discussions with the international community on how they can work together to combat climate change. An international market-based approach, akin to the European Union's Emissions Trading Scheme (ETS), could be one solution. While price volatility in ETS has caused some concern over its viability, the addition of China and other countries into the fold will increase the number of market players and thus reduce volatility.

In the absence of an international agreement, China should pursue a carbon tax. Most estimates find that a USD 20 to 25 price per ton of carbon dioxide would reduce climate change to sustainable levels. Through what is called the revenue recycling effect, China could use the funds generated from a carbon tax to improve health care, the pension system, or to re-invest the money into clean energy technologies.

 

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china

China’s financial sector reforms: The Story So Far

The Chinese economy has witnessed spectacular economic gains over the past two decades. Several factors like the integration of the nation's domestic economy with the world markets, sound infrastructure, high productivity growth rates, and the recent membership of the WTO have greatly helped the process of rapid economic growth. These factors aside, a complete overhaul of the country's financial system is desperately needed if China hopes to realize long-term stability and sustainable growth of domestic output and employment. In particular, financial sector reforms would help achieve balanced economic growth and result in a more equitable distribution of the nation's productive resources.

The benefits of financial sector reforms

Currently, China's economy has access to an abundant supply of cheap domestic capital. This has primarily been attributed to its high national savings rate amounting to approximately half of the gross domestic product; however the crucial problem arises because of the inability of the financial intermediaries to effectively allocate these savings to their most efficient end-users. Moreover, most of the resources available for investment have been concentrated in relatively unproductive sectors such as steel, cement, etc., which may result in the build-up of excess capacity in the nation. Because of the lax lending practices of Chinese Banks, many loans are available to the poorly performing domestic state enterprises. This factor, in turn, has compelled the government to spend huge sums of money in order to reduce the levels of non-performing loans currently plaguing China's financial sector.

Extending greater funding to the highly profitable private sector in the nation would generate a significantly higher return for the same amount of investment, thus raising China's GDP by up to USD 259 billion, or 13 percent a year. Beyond growth rates, such wide-ranging financial sector reforms would generate higher returns for the average Chinese investor, leading to better living standards and higher consumption in the nation.

Areas of improvement

The Chinese government has initiated a series of measures as part of the broader financial sector reform process. Recently, there has been some degree of progress in improving bank supervision and disposing of the existing nonperforming loans. Steps have also been taken to tighten corporate governance standards in the banking sector. Additionally, it is imperative to establish time-bound restructuring programs whereby Chinese banks can be held accountable for their performance levels, especially with respect to meeting their stated targets. China's recent interest rate liberalization is gradually helping domestic banks to make more commercially oriented lending decisions under which loans are extended to the most efficient users of funds. Also, development of the broader financial sector (including the equity and debt markets) would provide healthy competition to the banks by giving both domestic savers and corporate borrowers access to a broad range of investment and borrowing opportunities.

Still, the path ahead is laden with challenges. The primary among them is the fixed exchange rate regime currently existing in China. Because of the sharp influx of capital inflows into China, the government is compelled to keep interest rates low in order to stem the resultant pressures for appreciation in the domestic economy. This in turn leads to cheap financing becoming readily available to companies and banks, forcing the government to take steps to control the rapid growth in the supply of capital. This becomes problematic because the principal goal of the banking restructuring process is to enable the banks and the state enterprises to respond effectively to the market incentives. In addition, higher interest rates would limit the amount of funding to the most unprofitable enterprises in both the private and public sector. Therefore, to effectively realize the overall gains that such a broad financial restructuring process entails, the Chinese policymakers have to take much stronger steps to deal with the challenges arising in the financial-sector development process.

The Chinese economy has witnessed spectacular economic gains over the past two decades. Several factors like the integration of the nation's domestic economy with the world markets, sound infrastructure, high productivity growth rates, and the recent membership of the WTO have greatly helped the process of rapid economic growth. These factors aside, a complete overhaul of the country's financial system is desperately needed if China hopes to realize long-term stability and sustainable growth of domestic output and employment. In particular, financial sector reforms would help achieve balanced economic growth and result in a more equitable distribution of the nation's productive resources.

The benefits of financial sector reforms

Currently, China's economy has access to an abundant supply of cheap domestic capital. This has primarily been attributed to its high national savings rate amounting to approximately half of the gross domestic product; however the crucial problem arises because of the inability of the financial intermediaries to effectively allocate these savings to their most efficient end-users. Moreover, most of the resources available for investment have been concentrated in relatively unproductive sectors such as steel, cement, etc., which may result in the build-up of excess capacity in the nation. Because of the lax lending practices of Chinese Banks, many loans are available to the poorly performing domestic state enterprises. This factor, in turn, has compelled the government to spend huge sums of money in order to reduce the levels of non-performing loans currently plaguing China's financial sector.

Extending greater funding to the highly profitable private sector in the nation would generate a significantly higher return for the same amount of investment, thus raising China's GDP by up to USD 259 billion, or 13 percent a year. Beyond growth rates, such wide-ranging financial sector reforms would generate higher returns for the average Chinese investor, leading to better living standards and higher consumption in the nation.

Areas of improvement

The Chinese government has initiated a series of measures as part of the broader financial sector reform process. Recently, there has been some degree of progress in improving bank supervision and disposing of the existing nonperforming loans. Steps have also been taken to tighten corporate governance standards in the banking sector. Additionally, it is imperative to establish time-bound restructuring programs whereby Chinese banks can be held accountable for their performance levels, especially with respect to meeting their stated targets. China's recent interest rate liberalization is gradually helping domestic banks to make more commercially oriented lending decisions under which loans are extended to the most efficient users of funds. Also, development of the broader financial sector (including the equity and debt markets) would provide healthy competition to the banks by giving both domestic savers and corporate borrowers access to a broad range of investment and borrowing opportunities.

Still, the path ahead is laden with challenges. The primary among them is the fixed exchange rate regime currently existing in China. Because of the sharp influx of capital inflows into China, the government is compelled to keep interest rates low in order to stem the resultant pressures for appreciation in the domestic economy. This in turn leads to cheap financing becoming readily available to companies and banks, forcing the government to take steps to control the rapid growth in the supply of capital. This becomes problematic because the principal goal of the banking restructuring process is to enable the banks and the state enterprises to respond effectively to the market incentives. In addition, higher interest rates would limit the amount of funding to the most unprofitable enterprises in both the private and public sector. Therefore, to effectively realize the overall gains that such a broad financial restructuring process entails, the Chinese policymakers have to take much stronger steps to deal with the challenges arising in the financial-sector development process.

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China's Central Bank to Start Deposit Insurance Plan

The People's Bank of China declared its intentions to increase public confidence in its financial system by setting up deposit insurance. The bank announced it will cooperate with the U.S. Federal Deposit Insurance Corp. as it works to guarantee savings and protect depositors from bankrupt banks.

The People's Bank of China declared its intentions to increase public confidence in its financial system by setting up deposit insurance. The bank announced it will cooperate with the U.S. Federal Deposit Insurance Corp. as it works to guarantee savings and protect depositors from bankrupt banks.

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Worst Loss in Four Weeks for Chinese Stock Indices

After a record-high open of 4488.77 points, the Shanghai Composite Index fell as low as 4284.87 before closing at 4300.56 on Wednesday. The 3.81 percent loss on the day was the index's largest since July 5. Over the past month, the index had surged from 3600 to an all-time high above 4500.

After a record-high open of 4488.77 points, the Shanghai Composite Index fell as low as 4284.87 before closing at 4300.56 on Wednesday. The 3.81 percent loss on the day was the index's largest since July 5. Over the past month, the index had surged from 3600 to an all-time high above 4500.

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China's Central Bank to Tighten Real Estate Credit

According to China's Central Bank's Shanghai headquarters, the Central Bank will strengthen supervision on credit flows of both real estate developers and house buyers. Additionally, one report from Standard Chartered Bank points out that most Asian economies, including China, are far away from severe excessive liquidity but they need to curb inflation by tightening credit controls.

According to China's Central Bank's Shanghai headquarters, the Central Bank will strengthen supervision on credit flows of both real estate developers and house buyers. Additionally, one report from Standard Chartered Bank points out that most Asian economies, including China, are far away from severe excessive liquidity but they need to curb inflation by tightening credit controls.

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Shanghai Composite Index Mostly Unaffected by Reserve Ratio Hike

The People's Bank of China's decision to raise the reserve ratio to 12 percent yesterday had only a slight effect on the Shanghai Composite Index's opening this morning. The index opened at 4432.27, 8 points lower than its close yesterday. However, it quickly rebounded and hit a new high of 4476 in the afternoon.

The People's Bank of China's decision to raise the reserve ratio to 12 percent yesterday had only a slight effect on the Shanghai Composite Index's opening this morning. The index opened at 4432.27, 8 points lower than its close yesterday. However, it quickly rebounded and hit a new high of 4476 in the afternoon.

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China to Increase Bank Reserve Ratio

According to an announcement from the PRC's central bank, China will increase the reserve requirement ratio by 0.5 percentage points to 12 percent for commercial banks from August 15 in order to control excess liquidity. Some economists believe that the ratio will reach as high as 15 percent by the end of this year.

According to an announcement from the PRC's central bank, China will increase the reserve requirement ratio by 0.5 percentage points to 12 percent for commercial banks from August 15 in order to control excess liquidity. Some economists believe that the ratio will reach as high as 15 percent by the end of this year.

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Sout Korea: Trade Balance with US, China, Japan Declines

The Korean trade balance with the United States, China, and Japan is weakening although its overall trade situation remains strong. The Korea Custom Service has reported the increase in South Korea's trade deficit with Japan, the decrease in nation's trade surplus with China, and also declines in the US bound exporting rate.

The Korean trade balance with the United States, China, and Japan is weakening although its overall trade situation remains strong. The Korea Custom Service has reported the increase in South Korea's trade deficit with Japan, the decrease in nation's trade surplus with China, and also declines in the US bound exporting rate.

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Myanmar's Jade Market Sees Success at Recent Emporium

Myanmar's Myanma Gems Enterprise sold 4300 jade lots at a sale emporium this month, a record number attributed to a high turnout of Chinese buyers. A company official said last week: "This is the biggest jade sale in terms of the number of lots sold and money made in the history of these emporiums." Despite the sale's success, the official said the company barely sold 10 percent of gem lots on offer and fewer than were sold in March.

Myanmar's Myanma Gems Enterprise sold 4300 jade lots at a sale emporium this month, a record number attributed to a high turnout of Chinese buyers. A company official said last week: "This is the biggest jade sale in terms of the number of lots sold and money made in the history of these emporiums." Despite the sale's success, the official said the company barely sold 10 percent of gem lots on offer and fewer than were sold in March.

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Hong Kong Sees Tourism Boost

Hong Kong has seen a 6.8 increase in tourism since the previous year, receiving 13.03 million visitors just in the first six months of 2007. According to a statement given by the Tourism Board, over half the tourists come from China. The statement also said that growth this year had been slower than the same period last year, which was 4.3 percent higher.

Hong Kong has seen a 6.8 increase in tourism since the previous year, receiving 13.03 million visitors just in the first six months of 2007. According to a statement given by the Tourism Board, over half the tourists come from China. The statement also said that growth this year had been slower than the same period last year, which was 4.3 percent higher.

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Asian Stocks Plunge as US Housing Slump Deepens

Asian stocks extended a rout that erased USD 1.3 trillion in global market value yesterday, as the Morgan Stanley Capital International Asia-Pacific Index slipped 3 percent to hit 154.45 at 7:33 pm in Tokyo. It is the index's largest decline since March 5 and worst weekly performance of the year. All markets in the region declined with the exception of China. Japan's Nikkei 225 Stock Average fell 2.4 percent, while the benchmark indices of South Korea (Kospi) and Taiwan (Taiex) both dropping more than 4 percent.

Asian stocks extended a rout that erased USD 1.3 trillion in global market value yesterday, as the Morgan Stanley Capital International Asia-Pacific Index slipped 3 percent to hit 154.45 at 7:33 pm in Tokyo. It is the index's largest decline since March 5 and worst weekly performance of the year. All markets in the region declined with the exception of China. Japan's Nikkei 225 Stock Average fell 2.4 percent, while the benchmark indices of South Korea (Kospi) and Taiwan (Taiex) both dropping more than 4 percent.

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Sale of Japanese Rice in China Resumes After 4-year Ban

Following China's lifting of a ban on rice imports from Japan, Koshihikari and Hitomebore rice hit the shelves in this morning in Beijing and Shanghai. It is a truly beneficial development for Japanese rice farmers, as China is the number one rice consumer in the world. Japanese rice tends to be aimed towards China's high-income bracket.

Following China's lifting of a ban on rice imports from Japan, Koshihikari and Hitomebore rice hit the shelves in this morning in Beijing and Shanghai. It is a truly beneficial development for Japanese rice farmers, as China is the number one rice consumer in the world. Japanese rice tends to be aimed towards China's high-income bracket.

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Pakistan, China Trade Ties Will Continue to Grow

According to Consular General of Republic of China, Chen Shan, the commercial and trade ties will continue to grow further despite recent problems in business and trade dealings with Pakistan. He went on to say that he has observed huge economic progress in the country's major cities, particularly Karachi, where many commercial, constructional and trading activities have flourished. The Consular General pledged to facilitate the Pakistani business community on their visits to China so the two countries can further strengthen their economic ties.

According to Consular General of Republic of China, Chen Shan, the commercial and trade ties will continue to grow further despite recent problems in business and trade dealings with Pakistan. He went on to say that he has observed huge economic progress in the country's major cities, particularly Karachi, where many commercial, constructional and trading activities have flourished. The Consular General pledged to facilitate the Pakistani business community on their visits to China so the two countries can further strengthen their economic ties.

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Macau, China and Hong Kong Earn Currency Rating Upgrades

Moody's Investors Service, the international ratings agency, announced Thursday that it is upgrading the currency ratings for China, Hong Kong and Macau. China's long-term foreign currency bonds were upgraded from "A1" to "A2", mainly due to the strength of its external payments position and its continued progress in economic reform. Hong Kong's foreign and domestic currency bond ratings were upgraded from "Aa2" to "Aa3", and Macau's foreign and local currency government issuer ratings were upgraded from "Aa3" to "A1".

Moody's Investors Service, the international ratings agency, announced Thursday that it is upgrading the currency ratings for China, Hong Kong and Macau. China's long-term foreign currency bonds were upgraded from "A1" to "A2", mainly due to the strength of its external payments position and its continued progress in economic reform. Hong Kong's foreign and domestic currency bond ratings were upgraded from "Aa2" to "Aa3", and Macau's foreign and local currency government issuer ratings were upgraded from "Aa3" to "A1".

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Mainland Insurers Can Now Increase Investment Overseas

The China Insurance Regulatory Commission announced new rules this week that allow mainland insurers to increase investment in overseas assets in an effort to take pressure off the yuan to appreciate faster and to help lift returns. According to Chan Yuk-keung, fund manager at Phillip Capital Management: "Rule changes are positive for the insurance sector."

The China Insurance Regulatory Commission announced new rules this week that allow mainland insurers to increase investment in overseas assets in an effort to take pressure off the yuan to appreciate faster and to help lift returns. According to Chan Yuk-keung, fund manager at Phillip Capital Management: "Rule changes are positive for the insurance sector."

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China to Adjust Resource and Energy Tax Policies

According to the Ministry of Finance, China will continue to adjust resource and energy tax policies in the second half of this year by incentive-based fiscal measures. Experts believe that the purposes are part of efforts to minimize carbon emissions and rein in the country's soaring demand for imported resources.

According to the Ministry of Finance, China will continue to adjust resource and energy tax policies in the second half of this year by incentive-based fiscal measures. Experts believe that the purposes are part of efforts to minimize carbon emissions and rein in the country's soaring demand for imported resources.

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China: Investors Begin to Avoid Stock Market Amid Volatility

The China Securities Depository and Clearing Co Ltd. reports that, influenced by the volatility of the stock market, the number of newly opened trading accounts in China has sharply declined. There were 66,100 A-share accounts opened on Friday, which is the second consecutive day where the number of new accounts opened daily was less than 70,000. Investors began to lose confidence in the stock market when China tripled the stamp tax for stock transactions amid a spate of government measures to cool the equity market.

The China Securities Depository and Clearing Co Ltd. reports that, influenced by the volatility of the stock market, the number of newly opened trading accounts in China has sharply declined. There were 66,100 A-share accounts opened on Friday, which is the second consecutive day where the number of new accounts opened daily was less than 70,000. Investors began to lose confidence in the stock market when China tripled the stamp tax for stock transactions amid a spate of government measures to cool the equity market.

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China Grants Line of Credit to Nepal

The Chinese government has offered NPR 8 billion line of credit to Nepal in order to increase economic growth and create more business opportunities in Nepal. China hopes that this loan will foster trade and strengthen bilateral relations between Nepal and China.

The Chinese government has offered NPR 8 billion line of credit to Nepal in order to increase economic growth and create more business opportunities in Nepal. China hopes that this loan will foster trade and strengthen bilateral relations between Nepal and China.

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Chinese Trade and Investment Delegation Visits Sri Lanka

According to the Sri Lanka Board of Investment (BOI), a Chinese trade and investment delegation is currently visiting Sri Lanka and is eager to explore investment possibilities, particularly in the construction sector. Such visits have prompted the BOI to consider developing special investment zones dedicated to specific countries such as China and India. The BOI hopes to appeal to the Chinese investors by touting the market access they would receive due to Sri Lanka's free trade deals with India and Pakistan, as well as their GSP Plus agreement with the European Union.

According to the Sri Lanka Board of Investment (BOI), a Chinese trade and investment delegation is currently visiting Sri Lanka and is eager to explore investment possibilities, particularly in the construction sector. Such visits have prompted the BOI to consider developing special investment zones dedicated to specific countries such as China and India. The BOI hopes to appeal to the Chinese investors by touting the market access they would receive due to Sri Lanka's free trade deals with India and Pakistan, as well as their GSP Plus agreement with the European Union.

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China: Regulator Controls Credit Growth Below 15 Percent for 2007

Due to China's overheating economic development, the Chinese banking regulator will control the growth of newly-added bank loans this year to no more than 15 percent in a bid to slow down the risky economic growth. According to the People's Bank of China, bank loans have reached CNY 2.54 (USD 335.5 billion) in the first half of this year, up 16.9 percent.

Due to China's overheating economic development, the Chinese banking regulator will control the growth of newly-added bank loans this year to no more than 15 percent in a bid to slow down the risky economic growth. According to the People's Bank of China, bank loans have reached CNY 2.54 (USD 335.5 billion) in the first half of this year, up 16.9 percent.

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China and Bangladesh Agree to Strengthen Bilateral Trade

The Dhaka Chamber of Commerce and Industry (DCCI) and the Chinese Embassy in Dhaka organized a business meeting to discuss the future of Bangladesh-China bilateral trade. Chinese companies signed agreements with twelve Bangladeshi companies to purchase goods worth USD 53 million. If the pace of trade continues, the two countries hope that trade will reach USD 5 billion by 2010.

The Dhaka Chamber of Commerce and Industry (DCCI) and the Chinese Embassy in Dhaka organized a business meeting to discuss the future of Bangladesh-China bilateral trade. Chinese companies signed agreements with twelve Bangladeshi companies to purchase goods worth USD 53 million. If the pace of trade continues, the two countries hope that trade will reach USD 5 billion by 2010.

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London's RAB Capital to Expand into Hong Kong

RAB Capital, a top hedge fund manager, will soon open its first foreign office in Hong Kong in an effort to expand into China's driving market and take advantage of the surplus of money in the region. RAB is headquartered in London, but has plans to grow beyond Europe.

RAB Capital, a top hedge fund manager, will soon open its first foreign office in Hong Kong in an effort to expand into China's driving market and take advantage of the surplus of money in the region. RAB is headquartered in London, but has plans to grow beyond Europe.

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Pakistan Focused on Roadmap for Enhancing Trade with China

Pakistan's Commerce Ministry welcomed a trade delegation under Chinese Assistant Trade Minister Wang Chao with a number of Chinese traders and importers present, expressing its desire to create a roadmap for the enhancement of trade with China. Chinese imports from Pakistan in 2006 were valued at USD 462 million, a 32 percent increase from 2005.

Pakistan's Commerce Ministry welcomed a trade delegation under Chinese Assistant Trade Minister Wang Chao with a number of Chinese traders and importers present, expressing its desire to create a roadmap for the enhancement of trade with China. Chinese imports from Pakistan in 2006 were valued at USD 462 million, a 32 percent increase from 2005.

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Surging Chinese Metal Demand Pushes Copper to 2-month High

Renewed speculation that China, the world's largest metal consumer, will experience further growth in demand for copper pushed the commodity's price to a 2-month high on the New York Mercantile Exchange's Comex division. Copper futures for September delivery rose 4.35 cents, or 1.2 percent, to USD 3.7055 a pound. The intra-day high of USD 3.725 is the highest since May 9. In the first 4 months of 2007, Chinese demand for copper exceeded supply by 265,000 tons.

Renewed speculation that China, the world's largest metal consumer, will experience further growth in demand for copper pushed the commodity's price to a 2-month high on the New York Mercantile Exchange's Comex division. Copper futures for September delivery rose 4.35 cents, or 1.2 percent, to USD 3.7055 a pound. The intra-day high of USD 3.725 is the highest since May 9. In the first 4 months of 2007, Chinese demand for copper exceeded supply by 265,000 tons.

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Chinese Bonds May Drop Further on Tax Cut, Rate Hike Concerns

According to Galaxy Securities Co., should the Chinese central bank move forward with an interest rate hike and a tax cut on deposit income, Chinese bonds would take yet anothr hit in value. Chinese bonds have already earned the reputation of Asia's worst performers this year, with the bond market slumping 2.6 percent on a pair of interest rate hikes and five hikes of the banking system's reserve requirement.

According to Galaxy Securities Co., should the Chinese central bank move forward with an interest rate hike and a tax cut on deposit income, Chinese bonds would take yet anothr hit in value. Chinese bonds have already earned the reputation of Asia's worst performers this year, with the bond market slumping 2.6 percent on a pair of interest rate hikes and five hikes of the banking system's reserve requirement.

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Standard Chartered of China Raises Yuan Forecast

As China seeks to cool its economy and continue preventing its record trade surplus from further expanding, Standard Chartered Plc (China) is predicting that the yuan could see a rise of 1.9 percent to 7.42 by the end of 2007. Standard Chartered added that the yuan could hit 7.0 by the end of 2008. Previous forecasts released by Standard Chartered saw the yuan expanding to 7.49 this year and 7.18 next year.

As China seeks to cool its economy and continue preventing its record trade surplus from further expanding, Standard Chartered Plc (China) is predicting that the yuan could see a rise of 1.9 percent to 7.42 by the end of 2007. Standard Chartered added that the yuan could hit 7.0 by the end of 2008. Previous forecasts released by Standard Chartered saw the yuan expanding to 7.49 this year and 7.18 next year.

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China Aims to Curb Asset Bubbles, Reduces Interest Income Tax

With the intent of encouraging saving and curbing asset bubbles in its red hot economy, China has reduced its interest income tax to 5 percent from 20 percent. China experienced its most rapid growth rate in 12 years last quarter, and the tax cut will go into effect on August 15. The stock market's benchmark index, the CSI 300, has climbed 95 percent this year, and such an immediate rate cut suggests that the government is uncomfortable with the current level of the market.

With the intent of encouraging saving and curbing asset bubbles in its red hot economy, China has reduced its interest income tax to 5 percent from 20 percent. China experienced its most rapid growth rate in 12 years last quarter, and the tax cut will go into effect on August 15. The stock market's benchmark index, the CSI 300, has climbed 95 percent this year, and such an immediate rate cut suggests that the government is uncomfortable with the current level of the market.

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Hong Kong: China Dragon Fund Rose 20 Percent After Market Debut

The HSBC China Dragon Fund has experienced gains after its market debut on Friday, at which it made a USD 415 million public offering. The fund ended at HKD 12 per unit, up HKD 2 from its HKD 10 offering price. Many investors are eying the fund as a means to tap into China's long-term economic growth, according to a strategist at Phillip Capital Management (HK) Ltd. The Chinese equity fund, which plans to invest in Chinese A shares, was launched by HSBC Investment.

The HSBC China Dragon Fund has experienced gains after its market debut on Friday, at which it made a USD 415 million public offering. The fund ended at HKD 12 per unit, up HKD 2 from its HKD 10 offering price. Many investors are eying the fund as a means to tap into China's long-term economic growth, according to a strategist at Phillip Capital Management (HK) Ltd. The Chinese equity fund, which plans to invest in Chinese A shares, was launched by HSBC Investment.

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Accelerated Growth Pushes CSI 300 to July High

Reports showing significant growth acceleration in China pushed the benchmark CSI 300 Index to its highest point this month. The index gained 164.89 points, or 4.3 percent, to close at 3,971.88, Friday's highest fluctuation of all markets included in global benchmarks and the greatest advance in the Asia-Pacific region. Of the index's 300 members, 296 experienced gains.

Reports showing significant growth acceleration in China pushed the benchmark CSI 300 Index to its highest point this month. The index gained 164.89 points, or 4.3 percent, to close at 3,971.88, Friday's highest fluctuation of all markets included in global benchmarks and the greatest advance in the Asia-Pacific region. Of the index's 300 members, 296 experienced gains.

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China Increases Benchmark Interest Rate

According to an announcement from the central bank, China will increase one-year deposit and loan interest rates by 27 basis points to 3.33 percent and 6.84 percent respectively as of July 21. The People's Bank of China says that the reason for raising interest rates is to "rationalize the growth of lending and investment, adjust and stabilize expectancy of inflation and maintain price stability".

According to an announcement from the central bank, China will increase one-year deposit and loan interest rates by 27 basis points to 3.33 percent and 6.84 percent respectively as of July 21. The People's Bank of China says that the reason for raising interest rates is to "rationalize the growth of lending and investment, adjust and stabilize expectancy of inflation and maintain price stability".

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Asia's Regional Benchmark Rises on Metal Prices, Earnings Reports

The Morgan Stanley Capital International Asia-Pacific Index gained by 0.8 percent on Friday to close at 159.96, which exceeded the previous record close of 159.50 on July 13. China's CSI 300 Index out-performed all other indexes in the region with a 4.3 surge, with all other markets open for trading advancing as well. The region's top performers were paced by LG Electronics Inc., Ranbaxy Laboratories Ltd., BHP Billiton, and Nippon Steel Corp.

 

The Morgan Stanley Capital International Asia-Pacific Index gained by 0.8 percent on Friday to close at 159.96, which exceeded the previous record close of 159.50 on July 13. China's CSI 300 Index out-performed all other indexes in the region with a 4.3 surge, with all other markets open for trading advancing as well. The region's top performers were paced by LG Electronics Inc., Ranbaxy Laboratories Ltd., BHP Billiton, and Nippon Steel Corp.

 

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Pakistani Firms Sign 15 Deals with Chinese Trade Delegation

A visiting Chinese Trade Mission inked deals with 15 Pakistani firms on Thursday, mostly related to the import of goods such as cotton and chrome ore. On-the-spot purchase orders were placed by the Chinese business groups, with the deals expected by the Pakistani government to exceed USD 1 billion in value.

A visiting Chinese Trade Mission inked deals with 15 Pakistani firms on Thursday, mostly related to the import of goods such as cotton and chrome ore. On-the-spot purchase orders were placed by the Chinese business groups, with the deals expected by the Pakistani government to exceed USD 1 billion in value.

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Asian Stocks Rise for First Time in Four Days

Asian stocks gained for the first time in four days, as price gains in copper, gold and oil helped BHP Billiton Ltd. and Zijin Mining Group Co. pace risers on the day. Growing demand in emerging markets, particularly China, continues to drive the global economy and corporate profits. The Morgan Stanley Capital International Asia-Pacific Index advanced 0.6 percent to close at 158.69, with 9 of 10 industry groups rising. The Jakarta Composite index led all index gains in the region with a jump of 1.7 percent. The Karachi Stock Exchange 100 Index (KSE 100) lost 3.4 percent, the sharpest decline in the region.

Asian stocks gained for the first time in four days, as price gains in copper, gold and oil helped BHP Billiton Ltd. and Zijin Mining Group Co. pace risers on the day. Growing demand in emerging markets, particularly China, continues to drive the global economy and corporate profits. The Morgan Stanley Capital International Asia-Pacific Index advanced 0.6 percent to close at 158.69, with 9 of 10 industry groups rising. The Jakarta Composite index led all index gains in the region with a jump of 1.7 percent. The Karachi Stock Exchange 100 Index (KSE 100) lost 3.4 percent, the sharpest decline in the region.

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China Sells USD 6.6 Billion US Treasury Bonds in May

According to statistics from the US Treasury Department, the Chinese government has sold a net USD 6.6 billion of US treasury bonds in May, which is the second drop in China's holdings of US T-bonds. Experts believe that the reason for selling bonds is that China tries to diversify its forex investment channels for higher returns. However, China is unlikely to sell US T-bonds on a large scale.

According to statistics from the US Treasury Department, the Chinese government has sold a net USD 6.6 billion of US treasury bonds in May, which is the second drop in China's holdings of US T-bonds. Experts believe that the reason for selling bonds is that China tries to diversify its forex investment channels for higher returns. However, China is unlikely to sell US T-bonds on a large scale.

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China's GDP Rises 11.5 Percent

According to official figures issued on Thursday, China's gross domestic product (GDP) increased 11.5 percent in the first half of the year. Li Xiaochao, spokesman of National Bureau of Statistics announces that the domestic demand has kept in good condition since the beginning of the year.

According to official figures issued on Thursday, China's gross domestic product (GDP) increased 11.5 percent in the first half of the year. Li Xiaochao, spokesman of National Bureau of Statistics announces that the domestic demand has kept in good condition since the beginning of the year.

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Myanmar Does Not Support Taiwan UN Membership

The military-backed government of Myanmar announced last week that they do not support United Nations membership for Taiwan. According to a statement issued by the Ministry of Foreign Affairs, the government believes such action would increase tension between Taiwan and China and possibly put the stability of the region into jeopardy. "As a nation which has steadfastly nurtured the friendly relations with the People's Republic of China, the Union of Myanmar has consistently adhered to the principle of ‘One China Policy' and regards Taiwan as an integral part of China," the statement said.

The military-backed government of Myanmar announced last week that they do not support United Nations membership for Taiwan. According to a statement issued by the Ministry of Foreign Affairs, the government believes such action would increase tension between Taiwan and China and possibly put the stability of the region into jeopardy. "As a nation which has steadfastly nurtured the friendly relations with the People's Republic of China, the Union of Myanmar has consistently adhered to the principle of ‘One China Policy' and regards Taiwan as an integral part of China," the statement said.

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US Arranges Consultation with Chinese on Food Safety

China and the United States will hold a five-day meeting in Beijing on July 31 to discuss the detention of four kinds of China's seafood exports by the US and to set up of a collaboration mechanism on food safety. The Food and Drug Administration (FDA) of the United States will join the consultation.

China and the United States will hold a five-day meeting in Beijing on July 31 to discuss the detention of four kinds of China's seafood exports by the US and to set up of a collaboration mechanism on food safety. The Food and Drug Administration (FDA) of the United States will join the consultation.

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Singapore-China Free Trade Agreement Realistic in 1-2 Years

The deputy prime minister of Singapore reports that a free trade agreement with China may be reached within 1 to 2 years time, with a fourth round of talks slated for September. Bilateral trade between the two hit USD 40.85 billion in 2006. China is Singapore's third-largest trading partner, while Singapore is China's seventh-largest.

The deputy prime minister of Singapore reports that a free trade agreement with China may be reached within 1 to 2 years time, with a fourth round of talks slated for September. Bilateral trade between the two hit USD 40.85 billion in 2006. China is Singapore's third-largest trading partner, while Singapore is China's seventh-largest.

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Asia-Pacific Index Declines for Third Consecutive Day

The Morgan Stanley Capital International Asia-Pacific Index slid 1 percent to close at 175.54 on Wednesday, a cumulative three-day decline of 1.2 percent. Only the markets of China, India, and the Philippines rose, with Japan's Nikkei 225 Stock Average sliding 1.1 percent and South Korea's Kospi index declining 1 percent. Concerns that losses at Bear Stearns Cos. hedge funds will prompt a shift in favor from equities to government bonds has been a major influence on the longest losing streak in 2 months.

The Morgan Stanley Capital International Asia-Pacific Index slid 1 percent to close at 175.54 on Wednesday, a cumulative three-day decline of 1.2 percent. Only the markets of China, India, and the Philippines rose, with Japan's Nikkei 225 Stock Average sliding 1.1 percent and South Korea's Kospi index declining 1 percent. Concerns that losses at Bear Stearns Cos. hedge funds will prompt a shift in favor from equities to government bonds has been a major influence on the longest losing streak in 2 months.

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Hong Kong Beauty Service Group to Expand After Profit Jump

The largest beauty salon service group in Hong Kong, Modern Beauty Salon Holdings, has announced its plans to expand with 12 new centers in Hong Kong, and 20 more in the mainland. Plans were made after the company reported a 45 percent jump in net profit and a 23 percent rise in revenue for the 2006 fiscal year. Chief Executive of the company, Joyce Tsang Yue, believes the good business was due to expansion and a rise in customers' spending.

The largest beauty salon service group in Hong Kong, Modern Beauty Salon Holdings, has announced its plans to expand with 12 new centers in Hong Kong, and 20 more in the mainland. Plans were made after the company reported a 45 percent jump in net profit and a 23 percent rise in revenue for the 2006 fiscal year. Chief Executive of the company, Joyce Tsang Yue, believes the good business was due to expansion and a rise in customers' spending.

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China's Stock Index Rises 1.96 Percent

Because insurers are able to double their share of assets invested in the stock market, Chinese stocks' turnover on the major indices reached 94.3 billion yuan, larger than that of yesterday. According to the statistics, the Shanghai Composite Index increased 1.96 percent to 3,896.19, and the Shenzhen Component Index ended at 12,759.98, up 428.79 points or 3.48 percent.

Because insurers are able to double their share of assets invested in the stock market, Chinese stocks' turnover on the major indices reached 94.3 billion yuan, larger than that of yesterday. According to the statistics, the Shanghai Composite Index increased 1.96 percent to 3,896.19, and the Shenzhen Component Index ended at 12,759.98, up 428.79 points or 3.48 percent.

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China: More Insurance Funds Invest in Stock Market

According to a plan that is expected to be issued at an insurance working conference, China will allow insurance companies to invest 10 percent of their assets in the stock market. However, industry insiders say that insurance companies will stick to their investment principles, pursuing long-term and stable returns and not buying stocks immediately at a large scale.

According to a plan that is expected to be issued at an insurance working conference, China will allow insurance companies to invest 10 percent of their assets in the stock market. However, industry insiders say that insurance companies will stick to their investment principles, pursuing long-term and stable returns and not buying stocks immediately at a large scale.

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Kyrgyzstan Bidding for Inclusion in Chinese-Central Asian Pipeline

Kyrgyzstan is showing its interest in being the transit country for a proposed pipeline that would transport Turkmen and Uzbek energy to China. Though the mountainous terrain of Kyrgyzstan makes them an expensive option, the project would be granted financial backing from the Asian Development Bank (ADB) and the basic infrastructure is already in place. Confidence that Kyrgyz authorities will not use their advantageous position as a political bargaining chip may is expected to help move the project forward.

Kyrgyzstan is showing its interest in being the transit country for a proposed pipeline that would transport Turkmen and Uzbek energy to China. Though the mountainous terrain of Kyrgyzstan makes them an expensive option, the project would be granted financial backing from the Asian Development Bank (ADB) and the basic infrastructure is already in place. Confidence that Kyrgyz authorities will not use their advantageous position as a political bargaining chip may is expected to help move the project forward.

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China Wants Turkmen Natural Gas

Heads of State from Turkmenistan and China are meeting tomorrow to discuss the possibility of Turkmenistan exporting natural gas to China. This new pipeline would be another avenue of Central Asian gas to China; Beijing is also in talks with Kazakhstan and Uzbekistan about natural gas pipelines. Turkmenistan has also promised a gas pipeline to Russia, and is negotiating with the United States, Europe, and Pakistan.

Heads of State from Turkmenistan and China are meeting tomorrow to discuss the possibility of Turkmenistan exporting natural gas to China. This new pipeline would be another avenue of Central Asian gas to China; Beijing is also in talks with Kazakhstan and Uzbekistan about natural gas pipelines. Turkmenistan has also promised a gas pipeline to Russia, and is negotiating with the United States, Europe, and Pakistan.

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Hong Kong Port Traffic Increases Before Tax Rebate Cut

Hong Kong port operators have seen a 19 percent jump in container volume in June as Chinese exporters send out shipments before a tax rebate cut. The cut, made by the Chinese government, was to curb the country's record trade surplus. According to figures on the Port Development Council's website, the value of China's exports has increased by a massive 27 percent.

Hong Kong port operators have seen a 19 percent jump in container volume in June as Chinese exporters send out shipments before a tax rebate cut. The cut, made by the Chinese government, was to curb the country's record trade surplus. According to figures on the Port Development Council's website, the value of China's exports has increased by a massive 27 percent.

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Malaysia Looks to India and China for Agricultural Exports

Due to their large populations, the Malaysian government is looking at China and India to be its next destinations for its agricultural exports. China and India have a combined growth rate of 8 percent and a joint population of 2.5 billion people. Malaysia hopes to focus on product development, competitive marketability, and promotion of quality in order to gain a larger market share. Future plans also include venturing into Latin American, African, and Russian markets.

Due to their large populations, the Malaysian government is looking at China and India to be its next destinations for its agricultural exports. China and India have a combined growth rate of 8 percent and a joint population of 2.5 billion people. Malaysia hopes to focus on product development, competitive marketability, and promotion of quality in order to gain a larger market share. Future plans also include venturing into Latin American, African, and Russian markets.

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China Mobile Gives Hang Seng Index a Boost

China Mobile, a leading telecom giant, jumped 3.67 percent Friday, pushing the Hang Seng Index forward 140 index points. The HSI closed Thursday at 22,809.02, down from its all-time high close of 22,885.84 on Tuesday. Some analysts, including Eugene Law Sheung-pui, believe the HSI will not break 23,000. "The room for further run-up [for the blue chips and the H-share index] is limited. People were seen to cash out at the highs," said Law.

China Mobile, a leading telecom giant, jumped 3.67 percent Friday, pushing the Hang Seng Index forward 140 index points. The HSI closed Thursday at 22,809.02, down from its all-time high close of 22,885.84 on Tuesday. Some analysts, including Eugene Law Sheung-pui, believe the HSI will not break 23,000. "The room for further run-up [for the blue chips and the H-share index] is limited. People were seen to cash out at the highs," said Law.

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China's FDI Rise 21.91 Percent in June

According to the Ministry of Commerce, China's foreign direct investments (FDI) have increased by USD 6.63 billion in June, up 21.91 percent year on year. Low manufacturing costs and a pool of 1.3 billion potential consumers are two main reasons for foreign firms to set up operations in China. According to the statistics, there were 18,683 new foreign-invested enterprises in the first six months of 2007, down 5.4 percent from a year earlier, with 3,611 enterprises established in June, a decrease of 11.73 percent.

According to the Ministry of Commerce, China's foreign direct investments (FDI) have increased by USD 6.63 billion in June, up 21.91 percent year on year. Low manufacturing costs and a pool of 1.3 billion potential consumers are two main reasons for foreign firms to set up operations in China. According to the statistics, there were 18,683 new foreign-invested enterprises in the first six months of 2007, down 5.4 percent from a year earlier, with 3,611 enterprises established in June, a decrease of 11.73 percent.

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China: Forex Reserves Hit USD1.33 Trillion

People's Bank of China announces that China's foreign exchange reserves have increased by USD 40 billion in June, up 41.6 percent, and reached USD 1.33 trillion. Zhao Xijun, a finance professor at Renmin University of China, believes that capital influx in anticipation of a rising yuan and the strong growth in foreign trade surplus supports the forex reserves rising.

People's Bank of China announces that China's foreign exchange reserves have increased by USD 40 billion in June, up 41.6 percent, and reached USD 1.33 trillion. Zhao Xijun, a finance professor at Renmin University of China, believes that capital influx in anticipation of a rising yuan and the strong growth in foreign trade surplus supports the forex reserves rising.

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New World Development Store Debut Constrained by Profit-Taking

After debuting in Hong Kong, shares of China's New World Department Store Ltd. (0825.HK) rose 2.6 percent on Thursday. Shares rose steadily Thursday morning by 18 percent, but evened out in the afternoon on profit-taking in line with the broader market, closing at HKD 5.95 (USD 0.761). Michael Chung, fund manager at Iventure Investment Management Ltd., said Thursday "Given New World Department's operating track record is not as good as Parkson Retail, its IPO pricing is quite aggressive, which is close to its fair value."

After debuting in Hong Kong, shares of China's New World Department Store Ltd. (0825.HK) rose 2.6 percent on Thursday. Shares rose steadily Thursday morning by 18 percent, but evened out in the afternoon on profit-taking in line with the broader market, closing at HKD 5.95 (USD 0.761). Michael Chung, fund manager at Iventure Investment Management Ltd., said Thursday "Given New World Department's operating track record is not as good as Parkson Retail, its IPO pricing is quite aggressive, which is close to its fair value."

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Taipei Levies Tax to Protect Domestic Shoe Industry

To protect the domestic shoe industry, Taiwan's Ministry of Finance will levy an anti-dumping tax of 43.46 percent on footwear imported from China. The restriction will last until March 15, 2012. The ministry believes that the tax will not have a negative impact on the nation's economy.

To protect the domestic shoe industry, Taiwan's Ministry of Finance will levy an anti-dumping tax of 43.46 percent on footwear imported from China. The restriction will last until March 15, 2012. The ministry believes that the tax will not have a negative impact on the nation's economy.

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Taiwan to Allow Medical Visits from China

In an effort to bring in foreign currency and promote its image, Taiwan will allow direct visits from overseas Chinese for medical purposes. Within three years, it plans to have 100,000 foreign medical visitors, create 3,500 jobs, and generate NTD 7 billion (USD 212 million) in revenue . It is unclear how China will respond.

In an effort to bring in foreign currency and promote its image, Taiwan will allow direct visits from overseas Chinese for medical purposes. Within three years, it plans to have 100,000 foreign medical visitors, create 3,500 jobs, and generate NTD 7 billion (USD 212 million) in revenue . It is unclear how China will respond.

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China Opens Reinsurance Market

According to a report from China Insurance Regulatory Commission, China will encourage non-state investors to engage into the reinsurance market and bring in more big foreign reinsurers with expertise in health, agricultural as well as medicare insurance businesses. In order to boost the reinsurance sector, China has invested USD 4 billion into China Reinsurance to pave the way for the top reinsurer to bring in foreign strategic investors and eventually launch a public listing.

According to a report from China Insurance Regulatory Commission, China will encourage non-state investors to engage into the reinsurance market and bring in more big foreign reinsurers with expertise in health, agricultural as well as medicare insurance businesses. In order to boost the reinsurance sector, China has invested USD 4 billion into China Reinsurance to pave the way for the top reinsurer to bring in foreign strategic investors and eventually launch a public listing.

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China: Interest Rate Might Rise This Month

Based on a monthly report issued yesterday by Bank of China (BOC), China's central bank is likely to increase the interest rate this month, and meanwhile the Ministry of Finance might also cancel or cut the interest tax. Experts believe that these measures aim to cooling down nation's overheated economy.

Based on a monthly report issued yesterday by Bank of China (BOC), China's central bank is likely to increase the interest rate this month, and meanwhile the Ministry of Finance might also cancel or cut the interest tax. Experts believe that these measures aim to cooling down nation's overheated economy.

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china

China Expresses Interest in Brunei’s Shipping Industry

Yu Dingcheng, Deputy Director General at the Department of Commerce of Yunnan Province China, sees huge potential in Brunei's shipping industry and thinks the sultanate exhibits important facets conducive to developing a booming shipping industry. He further stated that the deep waters around the island provides the sultanate with an advantage in attracting large vessels which can lead it to become a hub for shipment traffic connecting Asia to America and the Middle East.

Yu Dingcheng, Deputy Director General at the Department of Commerce of Yunnan Province China, sees huge potential in Brunei's shipping industry and thinks the sultanate exhibits important facets conducive to developing a booming shipping industry. He further stated that the deep waters around the island provides the sultanate with an advantage in attracting large vessels which can lead it to become a hub for shipment traffic connecting Asia to America and the Middle East.

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Uzbekistan Hosts Sino-Uzbek Business Forum

The Uzbekistan Chamber of Commerce and the Chinese Committee for Promoting International Trade together organized a business forum in the Uzbek capital of Tashkent. Representatives from governmental ministries and private companies in the agriculture, banking, energy, and transport sectors took part in developing a dialogue with respect to investment and cooperation. While many Chinese investments firms already operate in Uzbekistan in the realm of light industry, processing agriculture products, and information technology, both sides are interested in exploring new ways of expanding their bilateral relationship.

The Uzbekistan Chamber of Commerce and the Chinese Committee for Promoting International Trade together organized a business forum in the Uzbek capital of Tashkent. Representatives from governmental ministries and private companies in the agriculture, banking, energy, and transport sectors took part in developing a dialogue with respect to investment and cooperation. While many Chinese investments firms already operate in Uzbekistan in the realm of light industry, processing agriculture products, and information technology, both sides are interested in exploring new ways of expanding their bilateral relationship.

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China: Industrial Figures Illustrate Four Economic Highlights

Experts have concluded four highlights from a series of China's industrial figures issued by the National Bureau of Statistics (NBS). The first highlight is that self financing becomes the most significant factor to drive profits growth; the second is that because of the growing gap between heavy and light industries, the situation is not conducive to saving energy and reducing the emission of pollutants; third, the state owned and private enterprises show higher profits; and fourth, urban investment in central and western regions is growing faster than in the east.

Experts have concluded four highlights from a series of China's industrial figures issued by the National Bureau of Statistics (NBS). The first highlight is that self financing becomes the most significant factor to drive profits growth; the second is that because of the growing gap between heavy and light industries, the situation is not conducive to saving energy and reducing the emission of pollutants; third, the state owned and private enterprises show higher profits; and fourth, urban investment in central and western regions is growing faster than in the east.

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China's CPI to Pass 4 Percent in June

According to a report from China Business News, China's Consumer Price Index (CPI) in June is likely to pass 4 percent on the back of high food prices, marking yet another strong acceleration in inflation since October 2004. Analysts believe that the Chinese government might implement new monetary measures to subside the hiking inflation rate in the near future.

According to a report from China Business News, China's Consumer Price Index (CPI) in June is likely to pass 4 percent on the back of high food prices, marking yet another strong acceleration in inflation since October 2004. Analysts believe that the Chinese government might implement new monetary measures to subside the hiking inflation rate in the near future.

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China: Monthly Trade Surplus Hits Record

According to the General Administration of Customs, China's trade surplus in June set a new high of USD 26.91 billion, up 85.5 percent from the same month in 2006. In order to control the surging trade surplus, the Chinese government has encouraged companies to curb exports of products that are related to vast amounts of energy consumption and serious pollution during their production processes, and expand imports of high-tech goods.

According to the General Administration of Customs, China's trade surplus in June set a new high of USD 26.91 billion, up 85.5 percent from the same month in 2006. In order to control the surging trade surplus, the Chinese government has encouraged companies to curb exports of products that are related to vast amounts of energy consumption and serious pollution during their production processes, and expand imports of high-tech goods.

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Chinese Import Decline Ends 8-Session Copper Rally

Chinese copper and copper-product imports fell to 212,471 metric tons in June from 220,561 tons in May, and the drop in demand from the world's largest copper consumer led to the end of an 8-session copper rally in New York. China's local copper stockpiles have grown recently, and analysts do not expect the level of buying present early in the year to pick up at any point in the near future. Copper futures for September delivery fell 1.5 cents, or 0.4 percent, to $3.6145 a pound on the New York Mercantile Exchange's Comex division.

Chinese copper and copper-product imports fell to 212,471 metric tons in June from 220,561 tons in May, and the drop in demand from the world's largest copper consumer led to the end of an 8-session copper rally in New York. China's local copper stockpiles have grown recently, and analysts do not expect the level of buying present early in the year to pick up at any point in the near future. Copper futures for September delivery fell 1.5 cents, or 0.4 percent, to $3.6145 a pound on the New York Mercantile Exchange's Comex division.

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Malaysia-Shenzhen Trade to Reach USD 8 Billion

With a 30 percent growth in the first five months of this year, experts are expecting a total of USD 8 billion in trade between Malaysia and Shenzhen, China. Last year's trade hit USD 6 billion, over half of the total trade between Malaysia and the Guangdong province. Malaysia's ambassador to China believes that Malaysia has a lot to learn from Shenzhen's free trade zone and its dedicated focus on industry.

With a 30 percent growth in the first five months of this year, experts are expecting a total of USD 8 billion in trade between Malaysia and Shenzhen, China. Last year's trade hit USD 6 billion, over half of the total trade between Malaysia and the Guangdong province. Malaysia's ambassador to China believes that Malaysia has a lot to learn from Shenzhen's free trade zone and its dedicated focus on industry.

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Japan to Propose GDP-linked Global Energy Index

In hopes of persuading major greenhouse gas emitters such as China, India and the United States to drop their resistance towards emissions reduction targets, Japan will propose a new international framework that would allow countries to increase their energy consumption as their GDP grows. Japan hopes it can get these major emitters on board before next year's G-8 summit in Hokkaido.

In hopes of persuading major greenhouse gas emitters such as China, India and the United States to drop their resistance towards emissions reduction targets, Japan will propose a new international framework that would allow countries to increase their energy consumption as their GDP grows. Japan hopes it can get these major emitters on board before next year's G-8 summit in Hokkaido.

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China and Singapore Increase Funding for Suzhou Industrial Park

In an effort to increase the international competitiveness of the Suzhou Industrial Park (SIP), China and Singapore have agreed to increase research and development by 40 percent. These two nations reached this decision recently at the 9th meeting of the steering committee for the project, and both parties believe that such a funding increase will both help the project reach their goals for 2014 and greatly boost both countries' GDPs.

In an effort to increase the international competitiveness of the Suzhou Industrial Park (SIP), China and Singapore have agreed to increase research and development by 40 percent. These two nations reached this decision recently at the 9th meeting of the steering committee for the project, and both parties believe that such a funding increase will both help the project reach their goals for 2014 and greatly boost both countries' GDPs.

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CSI 300 Posts Largest Fluctuation Among Global Benchmarks

China's CSI 300 Index jumped 111.02 points on Monday, or 3 percent, to close at 3,821.30. It was the biggest fluctuation among all leading global benchmark indexes and comes on the heels of a 4.9 percent jump on July 6. The Chinese government has announced that it will limit the sale of state-controlled shares once holding periods expire.

China's CSI 300 Index jumped 111.02 points on Monday, or 3 percent, to close at 3,821.30. It was the biggest fluctuation among all leading global benchmark indexes and comes on the heels of a 4.9 percent jump on July 6. The Chinese government has announced that it will limit the sale of state-controlled shares once holding periods expire.

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China to Allow Trusts, Insurers into Interbank Market

According to an announcement by China's central bank, China will permit trust companies, financial leasing firms and insurers to borrow from each other in the interbank market for the first time. China's interbank market was established in 1996 and it had 730 members, including domestic and foreign banks as well as securities firms, with CNY 2.15 trillion (USD 283 billion) trading in 2006.

According to an announcement by China's central bank, China will permit trust companies, financial leasing firms and insurers to borrow from each other in the interbank market for the first time. China's interbank market was established in 1996 and it had 730 members, including domestic and foreign banks as well as securities firms, with CNY 2.15 trillion (USD 283 billion) trading in 2006.

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China Ends Encouragement of Exporters to Remit Forex

According to the State Administration of Foreign Exchange (SAFE), the Chinese government will repeal a set of rules which provided incentives for exporters to bring home as much foreign currency as they could and at the same time the government will implement another policy to ease capital inflows. Economists believe that it will be difficult for the central bank to control growth in money supply with too many inflows of foreign currency from the trade surplus and investment.

According to the State Administration of Foreign Exchange (SAFE), the Chinese government will repeal a set of rules which provided incentives for exporters to bring home as much foreign currency as they could and at the same time the government will implement another policy to ease capital inflows. Economists believe that it will be difficult for the central bank to control growth in money supply with too many inflows of foreign currency from the trade surplus and investment.

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Morgan Stanley Asia-Pacific Index Recovers on Monday

As a number of Asia-Pacific's exchanges surged on Monday, Morgan Stanley's International Asia-Pacific Index jumped 1.1 percent to 157.95, recovering from a 0.1 percent slip on July 6. Japan's Nikkei 225 hit a seven-year high, South Korea's Kospi hit a fourth straight high, Taiwan's Taiex realized a sixth straight day of gains, and Singapore's Straits Times hit an eleven-week high. Benchmarks climbed everywhere in the region except in the Philippines, where the SET Index fell. China's CSI 300 paced all benchmark gains.

As a number of Asia-Pacific's exchanges surged on Monday, Morgan Stanley's International Asia-Pacific Index jumped 1.1 percent to 157.95, recovering from a 0.1 percent slip on July 6. Japan's Nikkei 225 hit a seven-year high, South Korea's Kospi hit a fourth straight high, Taiwan's Taiex realized a sixth straight day of gains, and Singapore's Straits Times hit an eleven-week high. Benchmarks climbed everywhere in the region except in the Philippines, where the SET Index fell. China's CSI 300 paced all benchmark gains.

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First Drop in a Week on International Asia-Pacific Index

The Morgan Stanley Capital International Asia-Pacific Index dropped for the first time in seven days on Friday, fueled by speculation that a rise in bond yields will lure money away from the equity market. Though China's CSI 300 posted its biggest gain in five months, the benchmark indexes of Japan, Australia, the Philippines, New Zealand, and Sri Lanka all slipped. South Korea's Kospi Index climbed 6.7 percent this week, and Thailand's SET Index posted its largest weekly gain in four years.

The Morgan Stanley Capital International Asia-Pacific Index dropped for the first time in seven days on Friday, fueled by speculation that a rise in bond yields will lure money away from the equity market. Though China's CSI 300 posted its biggest gain in five months, the benchmark indexes of Japan, Australia, the Philippines, New Zealand, and Sri Lanka all slipped. South Korea's Kospi Index climbed 6.7 percent this week, and Thailand's SET Index posted its largest weekly gain in four years.

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Hong Kong Tax Policy Expired, Not Revoked, For Mainland Firms

Preferential tax policies for the first mainland firms on the Hong Kong Stock Exchange have expired, but have not been cancelled. In 1993, the Ministry of Finance and the State Administration of Taxation granted reduced tax rates to companies like Sinopec Yizheng, Beiren Printing, and Sinopec Shanghai Petrochem. According to Shanghai Petrochem, the group of companies is unable to confirm whether the Ministry of Finance will continue the policy.

Preferential tax policies for the first mainland firms on the Hong Kong Stock Exchange have expired, but have not been cancelled. In 1993, the Ministry of Finance and the State Administration of Taxation granted reduced tax rates to companies like Sinopec Yizheng, Beiren Printing, and Sinopec Shanghai Petrochem. According to Shanghai Petrochem, the group of companies is unable to confirm whether the Ministry of Finance will continue the policy.

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Singapore Dollar Hailed as One of World's Strongest Currencies

Investment guru Jim Rogers, co-founder of the Quantum Fund, is hailing the Singapore dollar as one of the world's strongest currencies, though he warns investors that the city-state's market is currently quite expensive. Rogers also reported that depreciations of the US dollar is increasing concern that the Chinese renminbi could become the world's reserve currency.

Investment guru Jim Rogers, co-founder of the Quantum Fund, is hailing the Singapore dollar as one of the world's strongest currencies, though he warns investors that the city-state's market is currently quite expensive. Rogers also reported that depreciations of the US dollar is increasing concern that the Chinese renminbi could become the world's reserve currency.

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China: Shanghai Index Plunges 5.25 Percent

Due to lack of confidence and worries about further tightening policies, Chinese stocks dropped sharply and kept declining trend. According to the statistics, the Shanghai Composite Index closed at 3,615.87, falling 200.29 points or 5.25 percentage points and the Shenzhen Component Index ended at 11,783.58, 725.56 points down. Although Ministry of Finance announced that the issuance of US$200 billion yuan special bonds didn't aim at cooling the stock market, investors still fell into panic selling.

Due to lack of confidence and worries about further tightening policies, Chinese stocks dropped sharply and kept declining trend. According to the statistics, the Shanghai Composite Index closed at 3,615.87, falling 200.29 points or 5.25 percentage points and the Shenzhen Component Index ended at 11,783.58, 725.56 points down. Although Ministry of Finance announced that the issuance of US$200 billion yuan special bonds didn't aim at cooling the stock market, investors still fell into panic selling.

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China to Become South Korea's Largest Importer

Korea's Ministry of Commerce, Industry and Energy predict that China will surpass Japan as South Korea's largest importer by the end of this year due to increased demand for steel and electronic parts. In the first half of the year, imports from China increased by 36.3 percent to USD 28.7 billion while imports from Japan amassed to USD 26.5 billion.

Korea's Ministry of Commerce, Industry and Energy predict that China will surpass Japan as South Korea's largest importer by the end of this year due to increased demand for steel and electronic parts. In the first half of the year, imports from China increased by 36.3 percent to USD 28.7 billion while imports from Japan amassed to USD 26.5 billion.

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Planned Share Sales Cause Chinese Stocks to Tumble

Concern regarding the planned sale of USD 20 billion in shares led Chinese stocks to fall the most in a month. The move is seen as an attempt by regulators to control speculation in Asia's best-performing stock market. With losses paced by China Petroleum & Chemical Corp. and Baoshan Iron & Steel Co., the CSI 300 Index fell 206.15 points, or 5.5 percent, to close at 3,537.44. Regardless of the slump, the CSI 300 is still up 73 percent on the year.

Concern regarding the planned sale of USD 20 billion in shares led Chinese stocks to fall the most in a month. The move is seen as an attempt by regulators to control speculation in Asia's best-performing stock market. With losses paced by China Petroleum & Chemical Corp. and Baoshan Iron & Steel Co., the CSI 300 Index fell 206.15 points, or 5.5 percent, to close at 3,537.44. Regardless of the slump, the CSI 300 is still up 73 percent on the year.

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Fueled by Chipmakers, Asian Securities on Six-day Rise

Samsung Electronics Co. and BHP Billiton Ltd. led the way as Asian stocks rose for a sixth straight day, reflecting the current strength and rising prices of computer chips and metals. The Morgan Stanley Capital International Asia-Pacific Index gained 0.5 percent to hit a record of 156.67 at 8:03 PM in Tokyo, and the region's leading benchmark index, the Nikkei 225, rose 0.3 percent. China's CSI 300 Index paced losers as questions swirled concerning the impact of new share sales. The markets of Singapore, Malaysia, Thailand, India, Sri Lanka and New Zealand also took losses on the day.

Samsung Electronics Co. and BHP Billiton Ltd. led the way as Asian stocks rose for a sixth straight day, reflecting the current strength and rising prices of computer chips and metals. The Morgan Stanley Capital International Asia-Pacific Index gained 0.5 percent to hit a record of 156.67 at 8:03 PM in Tokyo, and the region's leading benchmark index, the Nikkei 225, rose 0.3 percent. China's CSI 300 Index paced losers as questions swirled concerning the impact of new share sales. The markets of Singapore, Malaysia, Thailand, India, Sri Lanka and New Zealand also took losses on the day.

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With Lower Costs, Russian Oil Again Going to China through Mongolia

On May 30, Russian oil company Rosneft had declared it would not be able to continue to send oil to China through Mongolia due to the high transportation cost. However, after Russian Railways granted a 22 percent tariff discount and China's UNIPEC settled for price changes, Rosneft has agreed to transport 200,000 metric tons of oil monthly to China via rail through Mongolia. The Russian-Mongolian company Ulan-Bator Railway is expected to reduce its tariff in the coming days as well, allowing Rosneft to finalize the deal.

On May 30, Russian oil company Rosneft had declared it would not be able to continue to send oil to China through Mongolia due to the high transportation cost. However, after Russian Railways granted a 22 percent tariff discount and China's UNIPEC settled for price changes, Rosneft has agreed to transport 200,000 metric tons of oil monthly to China via rail through Mongolia. The Russian-Mongolian company Ulan-Bator Railway is expected to reduce its tariff in the coming days as well, allowing Rosneft to finalize the deal.

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Merrill Lynch: Strong Emerging Markets

According to Merrill Lynch, emerging markets grew 16.1 percent in the first six months of 2007 while developed markets grew 8 percent. Asia equities rose 17.3 percent and were led by China and South Korea. The industrials and material sectors were the best performers while the consumer staples and IT sectors were the worst performers.

According to Merrill Lynch, emerging markets grew 16.1 percent in the first six months of 2007 while developed markets grew 8 percent. Asia equities rose 17.3 percent and were led by China and South Korea. The industrials and material sectors were the best performers while the consumer staples and IT sectors were the worst performers.

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Indonesian Government Cracks Down on Illegal Timber Exports

The Indonesian government cracked down on its smugglers feeding China's demand for timber. Lumber prices in China surged as the government's efforts had an immediate impact. The previous crackdown occurred two years ago and the Indonesian government continues to take illegal timber exports seriously.

The Indonesian government cracked down on its smugglers feeding China's demand for timber. Lumber prices in China surged as the government's efforts had an immediate impact. The previous crackdown occurred two years ago and the Indonesian government continues to take illegal timber exports seriously.

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Wider Access for Macau in Mainland China

An agreement granting wider access to Mainland China's market for Macau-based companies was signed yesterday by Liao Xiaoqi, Vice-Minister of Commerce, and Tam Pak-yuen, the economy and finance officer of the Macau SAR government. The agreement, which is the fourth supplement to the free trade agreement CEPA signed by Mainland China, Hong Kong and Macao in June 2003, shall take effect as of January 1st, 2008 and will open 11 additional areas to Macau businesses, such as sports, the environment, translation and public utilities.

An agreement granting wider access to Mainland China's market for Macau-based companies was signed yesterday by Liao Xiaoqi, Vice-Minister of Commerce, and Tam Pak-yuen, the economy and finance officer of the Macau SAR government. The agreement, which is the fourth supplement to the free trade agreement CEPA signed by Mainland China, Hong Kong and Macao in June 2003, shall take effect as of January 1st, 2008 and will open 11 additional areas to Macau businesses, such as sports, the environment, translation and public utilities.

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Two Chinese Companies Seep Into Singapore Market

A Chinese confectionery company and oil and gas service provider have begun offering IPOs, illustrating China's efforts to expand globally. Although nearly 200 million shares will be offered between them, only a fraction of these shares will be open to the public.

A Chinese confectionery company and oil and gas service provider have begun offering IPOs, illustrating China's efforts to expand globally. Although nearly 200 million shares will be offered between them, only a fraction of these shares will be open to the public.

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"China Dollar" shapes US Financial Market

According to Wang Chen from China Securities Times, experts believe that due to China's current actions on US bonds, more Chinese funds will flow into the United States in a long-term trend and might help the US government to reduce the deficit. Wang also points out that because of more money coming back to the US, the US dollar will appreciate in financial market.

According to Wang Chen from China Securities Times, experts believe that due to China's current actions on US bonds, more Chinese funds will flow into the United States in a long-term trend and might help the US government to reduce the deficit. Wang also points out that because of more money coming back to the US, the US dollar will appreciate in financial market.

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China: New Forex Investment Agency Created From Central Huijin

According to a senior central bank official, the Chinese government is considering merging Central Huijin Investment Co Ltd into a new foreign exchange investment agency, temporarily named State Investment Company. Wu Xiaoling, vice governor of the People's Bank of China, said that Central Huijin will become an entirely market-oriented investment company to manage country's capital in the future.

According to a senior central bank official, the Chinese government is considering merging Central Huijin Investment Co Ltd into a new foreign exchange investment agency, temporarily named State Investment Company. Wu Xiaoling, vice governor of the People's Bank of China, said that Central Huijin will become an entirely market-oriented investment company to manage country's capital in the future.

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Hong Kong and China Work Towards Social Harmony to Improve Economy

While Hong Kong celebrated the 10th anniversary of its hand-over to China, the president of China, Hu Jintao, announced that China supported Hong Kong's democratic development. Hu also said that the economy was going to be a strong focus for China in the upcoming months, and to achieve stability in the economy Hong Kong and China must find social harmony.

While Hong Kong celebrated the 10th anniversary of its hand-over to China, the president of China, Hu Jintao, announced that China supported Hong Kong's democratic development. Hu also said that the economy was going to be a strong focus for China in the upcoming months, and to achieve stability in the economy Hong Kong and China must find social harmony.

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China Sets New Rules on Overseas Investments

Within the past few months, China has been taking a number of measures to curb its appetite for amassing huge export surpluses and foreign exchange reserves. China has been pressured with criticisms that they are manipulating their depressed currency and that their economy is overheating. Much of the problem is the fact that there is more money floating around than investment opportunities in China. Last year, China began a pilot program under which one fund management firm, Hua-an, along with 18 banks and three large insurers, were allowed to invest overseas in an effort to reduce the ever-increasing foreign exchange reserves and afford citizens the opportunity of alternative investments. China took another step in that direction by allowing, for the first time ever, all of China's securities brokerages and fund managers to invest client funds in overseas stocks and bonds beginning July 5.

In order to invest overseas, the 110 securities firms and 57 fund management companies that call China home will need to submit an application for qualified domestic institutional investor (QWDII) quotas to invest in offshore securities. They can invest in the full gamut of financial products - bonds, real estate investment trusts, futures, shares, bank bills, bank deposits, government and corporate bonds, convertible bonds, financial derivatives, and asset-backed securities - that are listed on the 33 markets worldwide that have agreements with China.

Many view this policy adjustment as a breakthrough for China, not only because of the opening of capital controls but to the extent at which it was done. Fund managers and brokers have unlimited freedom to invest as much as they want overseas. However, the drawback is the high entrance point - participants must have a net asset value of at least CNY 200 million (USD 26 million) and have client capital of at least CNY 20 billion (USD 2.6 billion) whereas securities brokers need at least CNY 800 million (USD 104 million) in capital and a ratio of net capital to net assets of at least 70 percent.

Such a policy was long overdue. On top of the massive foreign exchange reserves and their undervalued currency, shares of Chinese companies have not only quadrupled over the past two years but currently trade at twice the price on the mainland than in Hong Kong. The arbitrage between Hong Kong and mainland listed shares exemplifies the zeal, albeit irrational, of mainland investors and shows the detrimental effect of China's rigid capital controls. Allowing investments to go overseas permits mainland investors to diversify and hedge the risk involved with the Chinese stock market, which has been volatile of late and, according to some, is due for a correction.

This policy adjustment shows that China is getting serious about opening up its closed capital account and reducing foreign exchange reserves, which should appease the WTO and the developed nations of the world. It has yet to be seen whether this new allowance will affect fund manager and securities brokerage decisions. Nearly USD 19 billion of QDII quotas were doled out last year through the pilot program, but only a small fraction had been used because China's undervalued currency makes overseas investment unappealing to Chinese investors.

However, under the rule change brokerages and fund managers can raise yuan-denominated funds overseas, rather than just foreign currency denominated funds as it was under the pilot program. For mainland investors who believe the yuan will continue to appreciate, allowing yuan-denominated funds overseas could be a huge boon for overseas investment. Even if only 10 percent of the CNY 1 trillion (USD 131 billion) that is currently under fund management is invested overseas, this would still amount to USD 13.1 billion. Furthermore, the rule change should encourage the movement of excess liquidity from mainland China to Hong Kong, closing the valuation gap that currently exists and holding up asset prices in Hong Kong. The rule change should reap China huge benefits, although some analysts believe that large investment outflows should not be expected until early next year because of the need to create administrative procedures.

Within the past few months, China has been taking a number of measures to curb its appetite for amassing huge export surpluses and foreign exchange reserves. China has been pressured with criticisms that they are manipulating their depressed currency and that their economy is overheating. Much of the problem is the fact that there is more money floating around than investment opportunities in China. Last year, China began a pilot program under which one fund management firm, Hua-an, along with 18 banks and three large insurers, were allowed to invest overseas in an effort to reduce the ever-increasing foreign exchange reserves and afford citizens the opportunity of alternative investments. China took another step in that direction by allowing, for the first time ever, all of China's securities brokerages and fund managers to invest client funds in overseas stocks and bonds beginning July 5.

In order to invest overseas, the 110 securities firms and 57 fund management companies that call China home will need to submit an application for qualified domestic institutional investor (QWDII) quotas to invest in offshore securities. They can invest in the full gamut of financial products - bonds, real estate investment trusts, futures, shares, bank bills, bank deposits, government and corporate bonds, convertible bonds, financial derivatives, and asset-backed securities - that are listed on the 33 markets worldwide that have agreements with China.

Many view this policy adjustment as a breakthrough for China, not only because of the opening of capital controls but to the extent at which it was done. Fund managers and brokers have unlimited freedom to invest as much as they want overseas. However, the drawback is the high entrance point - participants must have a net asset value of at least CNY 200 million (USD 26 million) and have client capital of at least CNY 20 billion (USD 2.6 billion) whereas securities brokers need at least CNY 800 million (USD 104 million) in capital and a ratio of net capital to net assets of at least 70 percent.

Such a policy was long overdue. On top of the massive foreign exchange reserves and their undervalued currency, shares of Chinese companies have not only quadrupled over the past two years but currently trade at twice the price on the mainland than in Hong Kong. The arbitrage between Hong Kong and mainland listed shares exemplifies the zeal, albeit irrational, of mainland investors and shows the detrimental effect of China's rigid capital controls. Allowing investments to go overseas permits mainland investors to diversify and hedge the risk involved with the Chinese stock market, which has been volatile of late and, according to some, is due for a correction.

This policy adjustment shows that China is getting serious about opening up its closed capital account and reducing foreign exchange reserves, which should appease the WTO and the developed nations of the world. It has yet to be seen whether this new allowance will affect fund manager and securities brokerage decisions. Nearly USD 19 billion of QDII quotas were doled out last year through the pilot program, but only a small fraction had been used because China's undervalued currency makes overseas investment unappealing to Chinese investors.

However, under the rule change brokerages and fund managers can raise yuan-denominated funds overseas, rather than just foreign currency denominated funds as it was under the pilot program. For mainland investors who believe the yuan will continue to appreciate, allowing yuan-denominated funds overseas could be a huge boon for overseas investment. Even if only 10 percent of the CNY 1 trillion (USD 131 billion) that is currently under fund management is invested overseas, this would still amount to USD 13.1 billion. Furthermore, the rule change should encourage the movement of excess liquidity from mainland China to Hong Kong, closing the valuation gap that currently exists and holding up asset prices in Hong Kong. The rule change should reap China huge benefits, although some analysts believe that large investment outflows should not be expected until early next year because of the need to create administrative procedures.

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Macau: Electricity from Natural Gas by the End of 2007

As reported by local media, Macau will start generating electricity from natural gas by the end of this year, hoping to satisfy 20 percent of the region's increasing power needs. According to a statement by the director of the Office for the Development of the Energy Sector, the natural gas required for the generation process shall be delivered by Mainland China.

As reported by local media, Macau will start generating electricity from natural gas by the end of this year, hoping to satisfy 20 percent of the region's increasing power needs. According to a statement by the director of the Office for the Development of the Energy Sector, the natural gas required for the generation process shall be delivered by Mainland China.

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Nineteen Hong Kong Banks To Receive Punishment for Hot Money Flows to China

Nineteen banks in Hong Kong were punished by the State Administration of Foreign Exchange for aiding with illegal hot money flows into China. China has received USD 5 billion to USD 10 billion in illegal inflows per month, according to Asia Economist Jonathan Anderson. A description of the punishment was not given, but an analyst at an Asian investment bank said that it is likely to have a large affect on foreign bank's bottom lines.

Nineteen banks in Hong Kong were punished by the State Administration of Foreign Exchange for aiding with illegal hot money flows into China. China has received USD 5 billion to USD 10 billion in illegal inflows per month, according to Asia Economist Jonathan Anderson. A description of the punishment was not given, but an analyst at an Asian investment bank said that it is likely to have a large affect on foreign bank's bottom lines.

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China: Index Futures Trading Rules Approved

The China Financial Futures Exchange (CFFEX) announced that the China Securities Regulatory Commission has already approved the trading rules, which is an important step toward the launch of China's first index futures market in this year. The rules cover trading practices, clearing procedures, members' rights and obligations, risk control, information management, hedging operations and the investigation of and penalties for irregular trading.

The China Financial Futures Exchange (CFFEX) announced that the China Securities Regulatory Commission has already approved the trading rules, which is an important step toward the launch of China's first index futures market in this year. The rules cover trading practices, clearing procedures, members' rights and obligations, risk control, information management, hedging operations and the investigation of and penalties for irregular trading.

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China Punished Ten Overseas Banks

According to the State Administration of Foreign Exchange (SAFE), 10 overseas banks, including HSBC and Standard Chartered, have been punished for breaking strict capital controls. China's forex regulator said these 10 banks were involved in helping speculative foreign capital to enter the country's soaring stock and property markets, which violated healthy economic development and government efforts to control growth.

According to the State Administration of Foreign Exchange (SAFE), 10 overseas banks, including HSBC and Standard Chartered, have been punished for breaking strict capital controls. China's forex regulator said these 10 banks were involved in helping speculative foreign capital to enter the country's soaring stock and property markets, which violated healthy economic development and government efforts to control growth.

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china

Taiwan Government Allows Investment in China

Four Taiwanese chip testing and packaging firms have received approval from Taiwan's government to invest in China. In addition, three other Taiwanese companies were allowed to set up facilities on the mainland. Despite being more lax on cross strait economic relations, Taiwan still strictly controls investments into China.

Four Taiwanese chip testing and packaging firms have received approval from Taiwan's government to invest in China. In addition, three other Taiwanese companies were allowed to set up facilities on the mainland. Despite being more lax on cross strait economic relations, Taiwan still strictly controls investments into China.

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Tainted Toothpaste from China Has No Effect on Myanmar Market

Despite concerns from suppliers, toothpaste producers in Myanmar said reports of tainted toothpaste from China have not had any effect on the local market. Earlier this month, the US Federal Department of Agriculture (FDA) issued a warning against certain types of toothpaste after it was discovered that they contained diethylene glycol (DEG), a chemical used as an antifreeze. Local producers said the sale of toothpaste is so low that the warning would not affect the Myanmar market.

Despite concerns from suppliers, toothpaste producers in Myanmar said reports of tainted toothpaste from China have not had any effect on the local market. Earlier this month, the US Federal Department of Agriculture (FDA) issued a warning against certain types of toothpaste after it was discovered that they contained diethylene glycol (DEG), a chemical used as an antifreeze. Local producers said the sale of toothpaste is so low that the warning would not affect the Myanmar market.

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Pakistan to Cut Tariffs on Chinese Imports

Pakistan will soon announce the first tariff cut on Chinese goods under the free-trade agreement in line with China's decision to reduce duty on Pakistani imports from July 1,2007. According to a Pakistani official, the tariff reduction will help ensure "gradual regularization of trade with China while providing an adequate tariff protection to the existing industry as well as future investments."

Pakistan will soon announce the first tariff cut on Chinese goods under the free-trade agreement in line with China's decision to reduce duty on Pakistani imports from July 1,2007. According to a Pakistani official, the tariff reduction will help ensure "gradual regularization of trade with China while providing an adequate tariff protection to the existing industry as well as future investments."

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Freight Rates, Chinese Dominance Hurting Sri Lankan Exporters

Recent changes in global trade patterns and the boom in Chinese exports have created difficult times for Sri Lankan exporters, who can no longer count on Colombo's status as a transshipment hub to ensure their prosperity. Freight rates are soaring and space on Western routes is being squeezed by an abundance of Chinese exports, while an increasing number of shipping lines are calling into booming nearby ports, most notably in India, rather than Colombo when headed West.

Recent changes in global trade patterns and the boom in Chinese exports have created difficult times for Sri Lankan exporters, who can no longer count on Colombo's status as a transshipment hub to ensure their prosperity. Freight rates are soaring and space on Western routes is being squeezed by an abundance of Chinese exports, while an increasing number of shipping lines are calling into booming nearby ports, most notably in India, rather than Colombo when headed West.

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china

China to Strengthen Controls Over Illegal Hot Money Inflows

Deng Xianhong, deputy head of the State Administration of Foreign Exchange (SAFE), has expressed that, because speculative capital has flown into the country's stock and property markets, the Chinese government should strengthen controls over illegal capital inflows, especially the short-term foreign debt. According to the SAFE, by the end of 2006, China's short-term foreign borrowings increased by 16 percent year on year.

Deng Xianhong, deputy head of the State Administration of Foreign Exchange (SAFE), has expressed that, because speculative capital has flown into the country's stock and property markets, the Chinese government should strengthen controls over illegal capital inflows, especially the short-term foreign debt. According to the SAFE, by the end of 2006, China's short-term foreign borrowings increased by 16 percent year on year.

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China's Stocks Increase 2.65 Percent and Return 4,000-point Ground

China's stocks regained 4,000-point ground on Wednesday and showed a clear growth trend to investors. The Shanghai Composite Index increased 105.23 points to 4,078.60, up 2.65 percent and the Shenzhen Component Index opened higher from 13,309.34 and ended at 13,583.70, up 364.29 points or 2.76 percent. However, today's total turnover of the stocks, CNY 197.5 billion, was still one of the lowest figures in a month.

China's stocks regained 4,000-point ground on Wednesday and showed a clear growth trend to investors. The Shanghai Composite Index increased 105.23 points to 4,078.60, up 2.65 percent and the Shenzhen Component Index opened higher from 13,309.34 and ended at 13,583.70, up 364.29 points or 2.76 percent. However, today's total turnover of the stocks, CNY 197.5 billion, was still one of the lowest figures in a month.

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China: Financial Revenue Increases 24 Percent in the First Five Months

Chinese Finance Minister Jin Renqing has announced that China's central and local governments have received CNY 2.172353 trillion (USD 285.836 billion) revenue from January to May in 2007. According to the statistics, the central government revenue reaches CNY 1.220927 trillion, up CNY 298.345 billion year-on-year, and the local government revenues reach CNY 951.426 billion, up CNY 210.912 billion.

Chinese Finance Minister Jin Renqing has announced that China's central and local governments have received CNY 2.172353 trillion (USD 285.836 billion) revenue from January to May in 2007. According to the statistics, the central government revenue reaches CNY 1.220927 trillion, up CNY 298.345 billion year-on-year, and the local government revenues reach CNY 951.426 billion, up CNY 210.912 billion.

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China Plans to Issue USD 203.49 Billion Bonds to Buy Forex

According to Xinhua News Agency, the Ministry of Finance is likely to sell CNY 1.55 trillion (USD 203.49 billion) of bonds to purchase select countries' foreign-exchange reserves and invest in higher returns markets. However, the ministry has not decided whether the bonds will be sold to all investors or only certain targeted institutions.

According to Xinhua News Agency, the Ministry of Finance is likely to sell CNY 1.55 trillion (USD 203.49 billion) of bonds to purchase select countries' foreign-exchange reserves and invest in higher returns markets. However, the ministry has not decided whether the bonds will be sold to all investors or only certain targeted institutions.

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Chinese Yuan-Denominated Bonds Issued in Hong Kong

The China Development Bank has issued Chinese yuan-denominated bonds in Hong Kong with a minimum investment at HKD 20,000. The funds raised will be used to finance infrastructure projects in China. This series of bonds will only be available for retail order until July 6, but Monetary Authority Chief Executive Joseph Yam Chi-kwong said the second issuance of yuan bonds would mostly likely follow shortly after due to high demand.

The China Development Bank has issued Chinese yuan-denominated bonds in Hong Kong with a minimum investment at HKD 20,000. The funds raised will be used to finance infrastructure projects in China. This series of bonds will only be available for retail order until July 6, but Monetary Authority Chief Executive Joseph Yam Chi-kwong said the second issuance of yuan bonds would mostly likely follow shortly after due to high demand.

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China Rejects Import of Two US Food Products

According to a notice from China's main food safety monitor, Chinese inspectors have seized shipments of US-made orange pulp and dried apricots. The reason for refusing is that the fruit contains "excessive bacteria, mold and sulfur dioxide". Importers have been asked to make sure that food safety requirements are met in contracts.

According to a notice from China's main food safety monitor, Chinese inspectors have seized shipments of US-made orange pulp and dried apricots. The reason for refusing is that the fruit contains "excessive bacteria, mold and sulfur dioxide". Importers have been asked to make sure that food safety requirements are met in contracts.

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China Attracting Taiwanese Firms

According to a report by China Credit Information Service, many Taiwanese firms are moving to China while 52 percent of Taiwan's top 1,000 companies are investing in China. In addition, revenues for those firms that have invested in China have experienced revenue growth of approximately 81.4 percent.

According to a report by China Credit Information Service, many Taiwanese firms are moving to China while 52 percent of Taiwan's top 1,000 companies are investing in China. In addition, revenues for those firms that have invested in China have experienced revenue growth of approximately 81.4 percent.

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China Gas Distributor to Invest in Monglian Gas Companies

Mainland piped-gas distributor China Gas Holdings announced it will spend 179 million CNY to gain a majority share of three gas companies in Baotao, Mongolia. After the transactions are completed, China Gas will own 80 percent shares of Baotao Gas, Shenyin Engineering, and Shenyin Natural Gas Station.

Mainland piped-gas distributor China Gas Holdings announced it will spend 179 million CNY to gain a majority share of three gas companies in Baotao, Mongolia. After the transactions are completed, China Gas will own 80 percent shares of Baotao Gas, Shenyin Engineering, and Shenyin Natural Gas Station.

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Indian Gas Company to Form Partnership with China Gas

GAIL (India) Limited, a state-run natural gas company, is teaming up with China Gas to form a strategic joint venture that will operate internationally. The two companies will have equal representation in the management of the venture and projects will be focused in the areas of compressed natural gas, city gas, coal bed methane, pipelines, and liquefied gas.

GAIL (India) Limited, a state-run natural gas company, is teaming up with China Gas to form a strategic joint venture that will operate internationally. The two companies will have equal representation in the management of the venture and projects will be focused in the areas of compressed natural gas, city gas, coal bed methane, pipelines, and liquefied gas.

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China' Stock Declined 3.68 Percent

After last Friday's 3.29 percent drop, China's stocks index plunged 3.68 percent on Monday and total turnover of the stocks dropped to the lowest trading volume for June. According to the statistics, the Shanghai Composite Index ended at 3,941.08, down 150.36 points from Friday's closing, and the Shenzhen Composite Index closed at 13,109.26, down 616.46 points or 4.49 percent.

After last Friday's 3.29 percent drop, China's stocks index plunged 3.68 percent on Monday and total turnover of the stocks dropped to the lowest trading volume for June. According to the statistics, the Shanghai Composite Index ended at 3,941.08, down 150.36 points from Friday's closing, and the Shenzhen Composite Index closed at 13,109.26, down 616.46 points or 4.49 percent.

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China: M&As Face Security Examination

Foreign mergers and acquisitions (M&As) of domestic companies or foreign capital invested in domestic companies in other forms would be inspected if the cases are related to national security. As a part of anti-monopoly law, the draft about security scrutiny has been submitted to the top legislature for a second reading. Experts point out the foreign purchases of domestic firms will go through security as well as anti-monopoly checks in the future.

Foreign mergers and acquisitions (M&As) of domestic companies or foreign capital invested in domestic companies in other forms would be inspected if the cases are related to national security. As a part of anti-monopoly law, the draft about security scrutiny has been submitted to the top legislature for a second reading. Experts point out the foreign purchases of domestic firms will go through security as well as anti-monopoly checks in the future.

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China's Central Bank: Inflation Might Cause Interest Rate Hike

Zhou Xiaochuan, the governor of the People's Bank of China, has expressed that if inflation continues going up, the Chinese government might consider increasing interest rates again. Many economists predict that China's Consumer Price Index (CPI) would reach 4 percent in September or October before it goes down.

Zhou Xiaochuan, the governor of the People's Bank of China, has expressed that if inflation continues going up, the Chinese government might consider increasing interest rates again. Many economists predict that China's Consumer Price Index (CPI) would reach 4 percent in September or October before it goes down.

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China Focuses on Three Areas to Cut Energy Use

China's National People's Congress (NPC) began to draft the amendment to the Law on Conserving Energy in order to avoid wasteful use of energy in the three areas, which are construction projects, the transport sector and government buildings. According to the official statistics, in 2005 27.5 percent of China's energy consumption was in the construction sector, with transportation accounting for 16.3 percent and government buildings, 6.7 percent.

China's National People's Congress (NPC) began to draft the amendment to the Law on Conserving Energy in order to avoid wasteful use of energy in the three areas, which are construction projects, the transport sector and government buildings. According to the official statistics, in 2005 27.5 percent of China's energy consumption was in the construction sector, with transportation accounting for 16.3 percent and government buildings, 6.7 percent.

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China: Stocks Drop 3.29 Percent

Due to expectations of further tightening monetary measures over the weekend, Chinese stocks dived 3.29 percent on Friday, which is the third largest single-day drop since the government increased the stamp tax on May 29. According to the statistics, the Shanghai Composite Index ended at 4,091.45, down 139.38 points, and the Shenzhen Component Index closed at 13,725.72, down 3.72 percent. At the same time, the China Securities Regulatory Commission has begun to step up its crackdown on stock irregularities.

Due to expectations of further tightening monetary measures over the weekend, Chinese stocks dived 3.29 percent on Friday, which is the third largest single-day drop since the government increased the stamp tax on May 29. According to the statistics, the Shanghai Composite Index ended at 4,091.45, down 139.38 points, and the Shenzhen Component Index closed at 13,725.72, down 3.72 percent. At the same time, the China Securities Regulatory Commission has begun to step up its crackdown on stock irregularities.

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Bank of Beijing to List in Shanghai and Hong Kong

Before the end of 2007, China's Bank of Beijing is expected to list in Shanghai and Hong Kong, according to state media Friday. The bank, whose profit hit CNY 2.06 billion in 2006, expects to sell one billion shares at about six to eight CNY (0.131 US dollar/1 CNY) on the Hong Kong stock exchange. It has hired the Goldman Sachs Group Inc. to be the sponsor for the initial public offering.

Before the end of 2007, China's Bank of Beijing is expected to list in Shanghai and Hong Kong, according to state media Friday. The bank, whose profit hit CNY 2.06 billion in 2006, expects to sell one billion shares at about six to eight CNY (0.131 US dollar/1 CNY) on the Hong Kong stock exchange. It has hired the Goldman Sachs Group Inc. to be the sponsor for the initial public offering.

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South Korea Urges China to Increase Investment

South Korean Vice Finance Minister Oh Young-ho urged Chinese ministers on Friday to expand their investment into Korea. Although cooperative ties between Beijing and Seoul were established fifteen years ago, Oh explained that the level of bilateral investment cooperation was insufficient. Last year, China only invested USD 40 million in South Korea, which accounts for two-fifths of a percent of Korea's total foreign direct investment. Meanwhile, Chinese officials asked for Korea's cooperation in facilitating visa issuance procedures.

 

South Korean Vice Finance Minister Oh Young-ho urged Chinese ministers on Friday to expand their investment into Korea. Although cooperative ties between Beijing and Seoul were established fifteen years ago, Oh explained that the level of bilateral investment cooperation was insufficient. Last year, China only invested USD 40 million in South Korea, which accounts for two-fifths of a percent of Korea's total foreign direct investment. Meanwhile, Chinese officials asked for Korea's cooperation in facilitating visa issuance procedures.

 

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China Lifts Ban on South Korean Kimchi Imports

China has lifted its ban on South Korean food imports of kimchi, red pepper and soybean paste made by the food manufacturers Dongwon, Daesang and CJ. China imposed the import ban in 2005 after claiming parasite eggs were found in the food, but government officials now cite improvements in the quality control systems, which led China to lift the ban.

China has lifted its ban on South Korean food imports of kimchi, red pepper and soybean paste made by the food manufacturers Dongwon, Daesang and CJ. China imposed the import ban in 2005 after claiming parasite eggs were found in the food, but government officials now cite improvements in the quality control systems, which led China to lift the ban.

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Kazakh-Chinese Entrepreneurs Meeting Held

A meeting between Kazakh and Chinese entrepreneurs was held in Almaty on Thursday. It was organized by the Almaty Chamber of Commerce and Industry to spur economic relations between both countries. It was stated that Chinese businessmen in particular are interested in cooperating with Kazakh companies in the fields of of energy, chemical industry and air equipment.

A meeting between Kazakh and Chinese entrepreneurs was held in Almaty on Thursday. It was organized by the Almaty Chamber of Commerce and Industry to spur economic relations between both countries. It was stated that Chinese businessmen in particular are interested in cooperating with Kazakh companies in the fields of of energy, chemical industry and air equipment.

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china

South Korean Shipbuilders Gaining on China

South Korean shipbuilders are quickly gaining on China in the race to secure ship orders from around the globe. As of the end of last month, South Korea had won a total of 11.7 million compensated gross tons (CGT) in orders and topped the list of order backlogs with 51 million CGT compared to China's 37 million CGT.

South Korean shipbuilders are quickly gaining on China in the race to secure ship orders from around the globe. As of the end of last month, South Korea had won a total of 11.7 million compensated gross tons (CGT) in orders and topped the list of order backlogs with 51 million CGT compared to China's 37 million CGT.

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China Not to Abolish Interest Tax Without Legislation

According to the Finance and Investment newspaper, without China's top legislative body's decision on abolishing interest tax, the Chinese government will not change current interest tax policies in a short time. Based on the statistics, China's household deposits have decreased by CNY 278 billion (USD 36.2 billion) since May. Therefore, canceling the tax might draw more investors from the overheated stock market.

According to the Finance and Investment newspaper, without China's top legislative body's decision on abolishing interest tax, the Chinese government will not change current interest tax policies in a short time. Based on the statistics, China's household deposits have decreased by CNY 278 billion (USD 36.2 billion) since May. Therefore, canceling the tax might draw more investors from the overheated stock market.

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Kazakhstan Presents Plan for Asian Energy Club

Kazakhstan has proposed a plan to create an Asian energy club to the members of the Shanghai Cooperation Organization (SCO) at its "forum of experts" meeting. The SCO is formed by Russia, China, Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan. The goal of the plan is to coordinate prices, infrastructure development and the contracts between producers and consumers among the club and externally. There are some worries that this plan will be hampered by the incentive to defect due to the huge demand from China, or that some countries will wish to have ascendancy as is postulated could be the case with Russia and Kazakhstan, which may not sit well with potential partners.

Kazakhstan has proposed a plan to create an Asian energy club to the members of the Shanghai Cooperation Organization (SCO) at its "forum of experts" meeting. The SCO is formed by Russia, China, Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan. The goal of the plan is to coordinate prices, infrastructure development and the contracts between producers and consumers among the club and externally. There are some worries that this plan will be hampered by the incentive to defect due to the huge demand from China, or that some countries will wish to have ascendancy as is postulated could be the case with Russia and Kazakhstan, which may not sit well with potential partners.

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Russia to Consider Huge Petroleum Investment in Far East

The Russian government is considering a program to "Develop a Unified System of Gas Production, Transportation and Supply in Eastern Siberia and Far East, Including Possible Exports to China and other Asia-Pacific Countries." The plan would demand RUB 2.4 trillion (USD 92.1 billion) in investment by 2030, and would include investment in all levels of oil production from exploration to production to transit to market. This project would be funded in part by the government but Russia's State gas monopoly Gazprom, is arguing that they should receive control of the projects.

The Russian government is considering a program to "Develop a Unified System of Gas Production, Transportation and Supply in Eastern Siberia and Far East, Including Possible Exports to China and other Asia-Pacific Countries." The plan would demand RUB 2.4 trillion (USD 92.1 billion) in investment by 2030, and would include investment in all levels of oil production from exploration to production to transit to market. This project would be funded in part by the government but Russia's State gas monopoly Gazprom, is arguing that they should receive control of the projects.

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After 12th Round of Talks, New Zealand Closer to Trade Agreement with China

Last week New Zealand and China completed their 12th round of talks about a possible free-trade deal. The free-trade agreement, expected to be completed by next April, could potentially boost the NZ economy by USD 240 million to NZD 370 million a year. However, the deal is not without controversy, as NZ trade negotiators are being advised to pressure China into including emissions targets and humans rights issues as parts of the agreement.

Last week New Zealand and China completed their 12th round of talks about a possible free-trade deal. The free-trade agreement, expected to be completed by next April, could potentially boost the NZ economy by USD 240 million to NZD 370 million a year. However, the deal is not without controversy, as NZ trade negotiators are being advised to pressure China into including emissions targets and humans rights issues as parts of the agreement.

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Gazprom Asks Russian Government to Block Sakhalin Gas Exports to China

A top executive of Russian State gas monopoly Gazprom has asked Russian Prime Minister Mikhail Fradkov to block a Chinese deal with US' ExxonMobil to export 8 billion cubic meters of gas to China from their Sakhalin-1 field. Gazprom's deputy chief executive Alexander Ananenkov argues that the gas should be consumed domestically in Russia's Far Eastern regions. Demand for gas in these regions amounts to 15 billion cubic meters.

A top executive of Russian State gas monopoly Gazprom has asked Russian Prime Minister Mikhail Fradkov to block a Chinese deal with US' ExxonMobil to export 8 billion cubic meters of gas to China from their Sakhalin-1 field. Gazprom's deputy chief executive Alexander Ananenkov argues that the gas should be consumed domestically in Russia's Far Eastern regions. Demand for gas in these regions amounts to 15 billion cubic meters.

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China: Figures Show Risk of Overheated Economy

According to several statistics figures released last week by the National Bureau of Statistics (NBS), China's fixed-assets investment in urban areas has increased by 25.9 percent in the first five months of 2007 to CNY 3.2 trillion (USD 418 billion) from a year earlier. Additionally, the CPI rose 3.4 percent and industrial production surged 18.1 percent. Experts believe that all key economic figures indicate the risk of overheated economic growth.

According to several statistics figures released last week by the National Bureau of Statistics (NBS), China's fixed-assets investment in urban areas has increased by 25.9 percent in the first five months of 2007 to CNY 3.2 trillion (USD 418 billion) from a year earlier. Additionally, the CPI rose 3.4 percent and industrial production surged 18.1 percent. Experts believe that all key economic figures indicate the risk of overheated economic growth.

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Kazakh-Chinese Commodity Circulation Expected to Hit USD 10 Billion

The Economic and Commercial Counselor of the Chinese Embassy in Kazakhstan, Zhao Hua, has stated that bilateral commodity exchange this year might hit the benchmark of USD 10 billion after having already reached USD 3.36 billion throughout the first four months of 2007. Commodity circulation between the two countries reached USD 6.5 billion in 2005 and USD 8.3 billion in 2006.

The Economic and Commercial Counselor of the Chinese Embassy in Kazakhstan, Zhao Hua, has stated that bilateral commodity exchange this year might hit the benchmark of USD 10 billion after having already reached USD 3.36 billion throughout the first four months of 2007. Commodity circulation between the two countries reached USD 6.5 billion in 2005 and USD 8.3 billion in 2006.

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China's Commercial Banks Control Excessive Growth in Credit Supply

Based on 21st Century Business Herald reports, China's commercial banks will curb the excessive growth in credit supply by tightening note financing, controlling new loans, raising reserve requirements for branches and sub-branches, and adjusting the loan structure. According to the statistics, in the first five months of 2007, banks granted 2.09 trillion yuan in new loans, up 311.5 billion from the same period in 2006.

Based on 21st Century Business Herald reports, China's commercial banks will curb the excessive growth in credit supply by tightening note financing, controlling new loans, raising reserve requirements for branches and sub-branches, and adjusting the loan structure. According to the statistics, in the first five months of 2007, banks granted 2.09 trillion yuan in new loans, up 311.5 billion from the same period in 2006.

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China Mobile to Sell a Multibillion-dollar Share

As the world's largest cellular phone operator, China Mobile will offer a multi-billion-dollar share sale in Shanghai as early as next month in order to draw more domestic investors. According to Hong Kong's Chinese-language Apple Daily newspaper, the deal would reach as much as 80 billion yuan (USD 10.49 billion), which might be the biggest initial public offer of equity ever in China's domestic markets.

As the world's largest cellular phone operator, China Mobile will offer a multi-billion-dollar share sale in Shanghai as early as next month in order to draw more domestic investors. According to Hong Kong's Chinese-language Apple Daily newspaper, the deal would reach as much as 80 billion yuan (USD 10.49 billion), which might be the biggest initial public offer of equity ever in China's domestic markets.

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First China-Russia Oil Pipeline Nears Completion With Plans for More

Construction of the first oil pipeline connecting Russia and China will be completed next year and will transport 10 million tons (1.37 million barrels) of oil to China annually and is expected to eventually reach its capacity of 30 million tons (4.1 million barrels) per year. In addition, there has been discussion of three new gas pipelines from Russia to China which could transport an additional 84 billion cubic meters of gas to China on completion. President Vladimir Putin has said that Russia plans on oil exports to Asia reaching 30 percent of total oil exports, and there are discussions of an additional oil pipeline being constructed between the two countries.

Construction of the first oil pipeline connecting Russia and China will be completed next year and will transport 10 million tons (1.37 million barrels) of oil to China annually and is expected to eventually reach its capacity of 30 million tons (4.1 million barrels) per year. In addition, there has been discussion of three new gas pipelines from Russia to China which could transport an additional 84 billion cubic meters of gas to China on completion. President Vladimir Putin has said that Russia plans on oil exports to Asia reaching 30 percent of total oil exports, and there are discussions of an additional oil pipeline being constructed between the two countries.

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Singapore Expanding Ties With China

Singapore is making an effort to learn more about contemporary China in order to increase the engagement between them. The East Asia Institute (EAI) has been urged by Singapore's Education Minister, Tharman Shanmugaratnam, to deepen their study of China. He believes that interaction with China is important to Singapore's development and that speaking the Chinese language is not enough to spawn interactions; Singaporeans must understand the Chinese economy, government, culture, and society as well.

Singapore is making an effort to learn more about contemporary China in order to increase the engagement between them. The East Asia Institute (EAI) has been urged by Singapore's Education Minister, Tharman Shanmugaratnam, to deepen their study of China. He believes that interaction with China is important to Singapore's development and that speaking the Chinese language is not enough to spawn interactions; Singaporeans must understand the Chinese economy, government, culture, and society as well.

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India, China Vow Border Disputes Won't Stall Trade

Despite decades of border disputes between China and India over regions such as Arunanchal Pradesh, India vows not to let old conflicts burden the goals of strengthening economic ties between the nations. The two rapidly growing economies hope to double bilateral trade to USD 40 billion by 2010 and "grow together" to take their place as the economic center of a new international order, says External Affairs Minister Pranab Mukherjee.

Despite decades of border disputes between China and India over regions such as Arunanchal Pradesh, India vows not to let old conflicts burden the goals of strengthening economic ties between the nations. The two rapidly growing economies hope to double bilateral trade to USD 40 billion by 2010 and "grow together" to take their place as the economic center of a new international order, says External Affairs Minister Pranab Mukherjee.

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Chinese Steelmakers Put Australian Iron Ore in High Demand

In an attempt to help meet rising demand from Chinese steelmakers, Fortescue Metals Group Ltd. is planning to raise AUD 1 Billion to expand the capacity of its Western Australia iron ore project that is currently under construction. The influx of the raised capital will expand the capacity of the facility to boost output to roughly four times of what is its current slated to produce. The price of iron ore has rose to a five year record and many analysts expect the resource to maintain an all-time high price level for the next five years.

In an attempt to help meet rising demand from Chinese steelmakers, Fortescue Metals Group Ltd. is planning to raise AUD 1 Billion to expand the capacity of its Western Australia iron ore project that is currently under construction. The influx of the raised capital will expand the capacity of the facility to boost output to roughly four times of what is its current slated to produce. The price of iron ore has rose to a five year record and many analysts expect the resource to maintain an all-time high price level for the next five years.

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China to Launch Gold Bonds

According to the Securities Times, the Shanghai Gold Exchange is preparing the launch of gold bonds to investors. The gold bonds will be issued by gold mining firms, and interest rates will depend on both a basic rate and a floating rate. In addition, the Exchange has approved Shenyin Wanguo Securities Co as the first issuer.

According to the Securities Times, the Shanghai Gold Exchange is preparing the launch of gold bonds to investors. The gold bonds will be issued by gold mining firms, and interest rates will depend on both a basic rate and a floating rate. In addition, the Exchange has approved Shenyin Wanguo Securities Co as the first issuer.

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China Might Raise Resource Tax

Based on Shanghai Securities News, China may raise its resource tax in order to encourage energy efficiency. The tax authorities will adjust the method for calculating the resource tax. However, the timetable is still not confirmed.

Based on Shanghai Securities News, China may raise its resource tax in order to encourage energy efficiency. The tax authorities will adjust the method for calculating the resource tax. However, the timetable is still not confirmed.

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Kazakhstan to Pipe Caspian Oil to China, Bypassing Russia

Kazakhstan has announced that they are going to extend an existing pipeline to China by 435 miles to the Caspian Sea so that Caspian oil may be shipped directly to China. Currently, the existing section of the pipeline sends 100,000 barrels per day to China, but has the capacity to transport up to 400,000 barrels per day if the supply is available. This pipeline competes with another line from Russia to China. This announcement is in contrast to an announcement last month by Kazakh leaders that the country would continue to export the vast majority of its oil through Russia.

Kazakhstan has announced that they are going to extend an existing pipeline to China by 435 miles to the Caspian Sea so that Caspian oil may be shipped directly to China. Currently, the existing section of the pipeline sends 100,000 barrels per day to China, but has the capacity to transport up to 400,000 barrels per day if the supply is available. This pipeline competes with another line from Russia to China. This announcement is in contrast to an announcement last month by Kazakh leaders that the country would continue to export the vast majority of its oil through Russia.

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China Cuts the Number of Central Enterprises

According to the State-owned Assets Supervision and Administration of State Council (SASAC), the Chinese government is planning to reduce the number of central enterprises to 80-100 by 2010. Li Rongrong, the director of SASAC, said that the State-owned assets would be gathered in seven key industries, which are power grid, petroleum and petrochemical, telecommunications, coal, civil aviation, shipping, and military engineering.

According to the State-owned Assets Supervision and Administration of State Council (SASAC), the Chinese government is planning to reduce the number of central enterprises to 80-100 by 2010. Li Rongrong, the director of SASAC, said that the State-owned assets would be gathered in seven key industries, which are power grid, petroleum and petrochemical, telecommunications, coal, civil aviation, shipping, and military engineering.

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Chinese Premier Urges Further Cool-down Measures

Chinese Premier Wen Jiabao on Wednesday at a meeting of the State Council expressed that the Chinese government would continue to implement the current fiscal and monetary policies in order to prevent the fast growing national economy from overheating. According to the statistics, China's CPI rose 3.4 percent in May and the trade surplus in May increased to USD 22.45 billion.

Chinese Premier Wen Jiabao on Wednesday at a meeting of the State Council expressed that the Chinese government would continue to implement the current fiscal and monetary policies in order to prevent the fast growing national economy from overheating. According to the statistics, China's CPI rose 3.4 percent in May and the trade surplus in May increased to USD 22.45 billion.

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Taiwan's China Airlines Anticipating Cross-Strait Flights

China Airlines Corp., Taiwan's largest carrier, bought an 8 percent stake in Taikoo (Xiamen) Landing Gear Services Co Ltd. Similar to Taiwan's EVA Airways, China Airlines is expanding its reach to the Chinese mainland in anticipation that cross-strait flights may come to fruition.

China Airlines Corp., Taiwan's largest carrier, bought an 8 percent stake in Taikoo (Xiamen) Landing Gear Services Co Ltd. Similar to Taiwan's EVA Airways, China Airlines is expanding its reach to the Chinese mainland in anticipation that cross-strait flights may come to fruition.

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China: Stocks Keep Upward Trend

Chinese stocks grew steadily and showed a clear upward trend on Wednesday. According to the statistics, the Shanghai Composite Index ended at 4,176.00, up 104.34 points or 2.56 percent, and the Shenzhen Component Index closed at 13,811.48, up 231.76 points or 1.71 percent. Despite the high CPI and the tightening monetary measures by the central bank, the hot stock market still encourages Chinese residents to put less money into their savings accounts, resulting in a 278.4 billion yuan reduction in deposits last Month.

Chinese stocks grew steadily and showed a clear upward trend on Wednesday. According to the statistics, the Shanghai Composite Index ended at 4,176.00, up 104.34 points or 2.56 percent, and the Shenzhen Component Index closed at 13,811.48, up 231.76 points or 1.71 percent. Despite the high CPI and the tightening monetary measures by the central bank, the hot stock market still encourages Chinese residents to put less money into their savings accounts, resulting in a 278.4 billion yuan reduction in deposits last Month.

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Chinese Yuan Hits New High Against US Dollar

The Chinese yuan broke the 7.63 barrier against the dollar on Wednesday for the first time since China canceled the peg to the US dollar in July 2005. Analysts believe that the reasons for the yuan's appreciation are due to the pressure from United States, domestic inflation, and China's hiking trade surplus.

The Chinese yuan broke the 7.63 barrier against the dollar on Wednesday for the first time since China canceled the peg to the US dollar in July 2005. Analysts believe that the reasons for the yuan's appreciation are due to the pressure from United States, domestic inflation, and China's hiking trade surplus.

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China to Set Up Growth Enterprises Market

According to Wang Shouren, secretary general of the Shenzhen Venture Capital Association, China will establish the growth enterprises market (GEM) to aim at plentiful small- and medium-size enterprises. At the same time, Wang suggested that companies that want to list on the GEM Board should meet the requirements set by the Company Law and the Securities Law and focus on high-tech and agricultural enterprises.

According to Wang Shouren, secretary general of the Shenzhen Venture Capital Association, China will establish the growth enterprises market (GEM) to aim at plentiful small- and medium-size enterprises. At the same time, Wang suggested that companies that want to list on the GEM Board should meet the requirements set by the Company Law and the Securities Law and focus on high-tech and agricultural enterprises.

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China: Banks Might Establish Pension Fund Firm

The Ministry of Labor and Social Security (MLSS) and China's banking regulator are considering allowing commercial banks to move into corporate pensions management, and the overseas investors can hold less than a 49 percent stake if they take part in these ventures. The licenses might be issued to the bank-owned fund management firms by August.

The Ministry of Labor and Social Security (MLSS) and China's banking regulator are considering allowing commercial banks to move into corporate pensions management, and the overseas investors can hold less than a 49 percent stake if they take part in these ventures. The licenses might be issued to the bank-owned fund management firms by August.

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Chinese, Russian Businesses Sign Deals Worth USD 2 Billion

Russia and China made on the edges of an economic forum in Moscow 19 business deals adding up to about USD 2 billion. Bilateral trade in 2006 between the two countries amounted to USD 33.4 billion, a 15 percent increase from the previous year and 5 times that of 1992. Chinese and Russian officials expect the trade volume between the two countries to reach USD 60-80 billion by 2010.

Russia and China made on the edges of an economic forum in Moscow 19 business deals adding up to about USD 2 billion. Bilateral trade in 2006 between the two countries amounted to USD 33.4 billion, a 15 percent increase from the previous year and 5 times that of 1992. Chinese and Russian officials expect the trade volume between the two countries to reach USD 60-80 billion by 2010.

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China: Stocks Up to 4,000 Mark Again

After last week's fluctuation, China's stocks moved up to the critical 4,000-point mark again today. The Shanghai Composite Index ended at 3,995.68, up 82.55 points or 2.11 percent, and the Shenzhen Component Index closed at 13,187.71, up 337.03 points or 2.62 percent. Experts believe that, because many individual investors bought stocks over the 4,000-point index mark, if the index breaks the 4,000-point mark again, investors might sell their stocks to recover from the loss. Therefore, the stock market will become more susceptible to fluctuation.

After last week's fluctuation, China's stocks moved up to the critical 4,000-point mark again today. The Shanghai Composite Index ended at 3,995.68, up 82.55 points or 2.11 percent, and the Shenzhen Component Index closed at 13,187.71, up 337.03 points or 2.62 percent. Experts believe that, because many individual investors bought stocks over the 4,000-point index mark, if the index breaks the 4,000-point mark again, investors might sell their stocks to recover from the loss. Therefore, the stock market will become more susceptible to fluctuation.

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China Faces Inflationary Pressure

Influenced by the surging prices of pork and egg, experts predict that China's Consumer Price Index (CPI) will exceed the central bank's annual target of 3 percent for the whole year. However, based on the existence of seasonal changes or shortages in food supply, Li Xiaochao, a spokesman from the National Statistics Bureau, has expressed that the core CPI rose by only 0.9 percent in the first quarter, and reached 2.7 percent.

Influenced by the surging prices of pork and egg, experts predict that China's Consumer Price Index (CPI) will exceed the central bank's annual target of 3 percent for the whole year. However, based on the existence of seasonal changes or shortages in food supply, Li Xiaochao, a spokesman from the National Statistics Bureau, has expressed that the core CPI rose by only 0.9 percent in the first quarter, and reached 2.7 percent.

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Donut Chains Expanding Into Asia

As Western foods are becoming more popular in Asia, donut chains are establishing their presence in China, Taiwan, South Korea and Japan among other Asian nations. According to Krispy Kreme's spokesman, the donut market is said to be growing by 20 to 30 percent each year. This increase in donut consumption not only represents an embracing of Western cuisine, but also indicates a higher willingness to pay for "luxury eats."

As Western foods are becoming more popular in Asia, donut chains are establishing their presence in China, Taiwan, South Korea and Japan among other Asian nations. According to Krispy Kreme's spokesman, the donut market is said to be growing by 20 to 30 percent each year. This increase in donut consumption not only represents an embracing of Western cuisine, but also indicates a higher willingness to pay for "luxury eats."

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China: Trade Surplus Increases by 73 Percent in May

According to data from China's customs bureau, China's trade surplus has increased by 73 percent in May from a year earlier to USD 22.45 billion. In order to control the business gap, the Chinese government has encouraged imports and raised export taxes on 142 products, while cutting tariffs on 209 types of imports since June 1.

According to data from China's customs bureau, China's trade surplus has increased by 73 percent in May from a year earlier to USD 22.45 billion. In order to control the business gap, the Chinese government has encouraged imports and raised export taxes on 142 products, while cutting tariffs on 209 types of imports since June 1.

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Myanmar USDA and China-ASEAN Association Strengthen Ties

The Union Solidarity and Developmental Association (USDA) of Myanmar and the China-ASEAN Association both wish to strengthen connections with each other and maintain a cooperative friendship, according to the wishes expressed by representatives from both associations. After its visit with Myanmar, the Chinese delegation will proceed to Indonesia and Brunei in hopes of promoting similar, friendly relations.

The Union Solidarity and Developmental Association (USDA) of Myanmar and the China-ASEAN Association both wish to strengthen connections with each other and maintain a cooperative friendship, according to the wishes expressed by representatives from both associations. After its visit with Myanmar, the Chinese delegation will proceed to Indonesia and Brunei in hopes of promoting similar, friendly relations.

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Japan and Italy Discuss Flexibility of Chinese Currency

The finance ministers of Japan and Italy met in Japan today to discuss the relationship between euro and Asian currencies. During the meeting, both ministers agreed that China should have more flexibility in their currency, saying that China should allow the yuan to appreciate to reflect the country's economic strength.

The finance ministers of Japan and Italy met in Japan today to discuss the relationship between euro and Asian currencies. During the meeting, both ministers agreed that China should have more flexibility in their currency, saying that China should allow the yuan to appreciate to reflect the country's economic strength.

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China: Stocks Maintain Upward Trend

After Thursday's strong rebound, China's stocks cooled down but still maintained their upward trend on Friday. The Shanghai Composite Index ended at 3,913.14, up 22.33 points or 0.57 percent. The Shenzhen Component Index closed at 12,850.69, up 154.68 points or 1.22 percent. Analysts believe that the recovery is supported by an increase in the number of new stock accounts and improved legislation and supervision.

After Thursday's strong rebound, China's stocks cooled down but still maintained their upward trend on Friday. The Shanghai Composite Index ended at 3,913.14, up 22.33 points or 0.57 percent. The Shenzhen Component Index closed at 12,850.69, up 154.68 points or 1.22 percent. Analysts believe that the recovery is supported by an increase in the number of new stock accounts and improved legislation and supervision.

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China: Tighten Foreign Investment Approval

According to a notice from the Ministry of Commerce (MOFCOM) and the State Administration of Foreign Exchange (SAFE), foreign real estate companies will face a stricter approval process regarding their investment into China's real estate market, especially in the high-end sector. However, Robert Lie, CEO of ING Real Estate Investment Management Asia, believes that this policy might just drive away speculative investors, though it will benefit long-term investors.

According to a notice from the Ministry of Commerce (MOFCOM) and the State Administration of Foreign Exchange (SAFE), foreign real estate companies will face a stricter approval process regarding their investment into China's real estate market, especially in the high-end sector. However, Robert Lie, CEO of ING Real Estate Investment Management Asia, believes that this policy might just drive away speculative investors, though it will benefit long-term investors.

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Chinese Government to Invest in BHP Billiton

According to an Australian newspaper, the recently formed Chinese State Investment Co. might make a bid for BHP Billiton, which runs as a single entity and produces crude oil, natural gas, iron ore, coal, steel, aluminum, diamonds, and other commodities. On that basis, shares of BHP Billiton trade in two US stocks rose.

According to an Australian newspaper, the recently formed Chinese State Investment Co. might make a bid for BHP Billiton, which runs as a single entity and produces crude oil, natural gas, iron ore, coal, steel, aluminum, diamonds, and other commodities. On that basis, shares of BHP Billiton trade in two US stocks rose.

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Uzbekistan Eager to Diversify Energy, Avoid Russian Stranglehold

Uzbekistan's energy partnerships with Russia are stronger than ever, which in reality is a concern for Uzbek energy officials. Russia has developed a growing influence over the Uzbek energy sector and is close to overhauling the Central Asia-Center pipeline network, which would put them in a position to become an 'international gas cartel'. Unfortunately, US and EU firms are unwilling to enter into negotiations with Uzbekistan, as relations with the two economic superpowers plunged following the Andijan events of 2005. China remains as Uzbekistan's only other viable energy partner.

Uzbekistan's energy partnerships with Russia are stronger than ever, which in reality is a concern for Uzbek energy officials. Russia has developed a growing influence over the Uzbek energy sector and is close to overhauling the Central Asia-Center pipeline network, which would put them in a position to become an 'international gas cartel'. Unfortunately, US and EU firms are unwilling to enter into negotiations with Uzbekistan, as relations with the two economic superpowers plunged following the Andijan events of 2005. China remains as Uzbekistan's only other viable energy partner.

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India and China Agree on Climate Change

During a meeting between Indian Prime Minister Manmohan Singh and Chinese Prime Minster Hu Jintao, the two leaders pledged to increase cooperation in dealing with global climate change. Singh explained that China and India's positions on climate change were "close" and that developed nations should not ask the two developing giants to shoulder the burden of climate change. These issues will be further discussed at the G8 summit in Germany this week as China, India, Brazil, Mexico, and South Africa join the meeting, which is being called the G8 plus five summit. China and India also discussed border issues between the two countries during the meeting of the two prime ministers.

During a meeting between Indian Prime Minister Manmohan Singh and Chinese Prime Minster Hu Jintao, the two leaders pledged to increase cooperation in dealing with global climate change. Singh explained that China and India's positions on climate change were "close" and that developed nations should not ask the two developing giants to shoulder the burden of climate change. These issues will be further discussed at the G8 summit in Germany this week as China, India, Brazil, Mexico, and South Africa join the meeting, which is being called the G8 plus five summit. China and India also discussed border issues between the two countries during the meeting of the two prime ministers.

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China Releases Rules on Issuing of Yuan Bonds in Hong Kong

Beijing said in January that they would allow Chinese financial institutions to issue yuan (RMB) bonds in Hong Kong. Friday, China published rules governing mainland financial institutions' issuance of yuan bonds. This will be the first time Chinese currency has been used for financial intermediation in the international debt market.

 

Beijing said in January that they would allow Chinese financial institutions to issue yuan (RMB) bonds in Hong Kong. Friday, China published rules governing mainland financial institutions' issuance of yuan bonds. This will be the first time Chinese currency has been used for financial intermediation in the international debt market.

 

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China and India Interested in Sri Lanka's Rock Phosphate Deposits

Unable to afford the massive capital expenditure required to process their phosphate deposits into high grade fertilizer, Sri Lanka has received interest from both China and India regarding the development of mining and processing plants. The phosphate deposits have been part of an ongoing debate, as previous negotiations with a Western mining firm were met with stiff opposition. Sri Lanka is currently required to import all of its high soluble fertilizer.

Unable to afford the massive capital expenditure required to process their phosphate deposits into high grade fertilizer, Sri Lanka has received interest from both China and India regarding the development of mining and processing plants. The phosphate deposits have been part of an ongoing debate, as previous negotiations with a Western mining firm were met with stiff opposition. Sri Lanka is currently required to import all of its high soluble fertilizer.

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Shanghai Shimao Purchase USD 983 Million in Properties From Hong Kong

Shanghai Shimao Co, a luxury apartment developer, will buy commercial properties for about USD 983 million in stock in Hong Kong. The Shanghai-based company known for developing luxury apartments has now shifted their development focus on malls and offices. Analysts claims that this change in the company's focus is to reduce the impact of the government's crackdown limiting inflated prices in the housing market.

Shanghai Shimao Co, a luxury apartment developer, will buy commercial properties for about USD 983 million in stock in Hong Kong. The Shanghai-based company known for developing luxury apartments has now shifted their development focus on malls and offices. Analysts claims that this change in the company's focus is to reduce the impact of the government's crackdown limiting inflated prices in the housing market.

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Shanghai Composite Index Rises 3.03 Percent

After yesterday's fluctuation, China's stocks show a clear upward trend today. According to the statistics, the Shanghai Composite Index increased by 114.49 points, or 3.03 percent, to 3,890.80, and the Shenzhen Component Index ended at 12,696.01, up 357.82 points, or 2.9 percent. Central bank vice governor Wu Xiaoling encourages investors to remain confident in the economy and the stock market.

After yesterday's fluctuation, China's stocks show a clear upward trend today. According to the statistics, the Shanghai Composite Index increased by 114.49 points, or 3.03 percent, to 3,890.80, and the Shenzhen Component Index ended at 12,696.01, up 357.82 points, or 2.9 percent. Central bank vice governor Wu Xiaoling encourages investors to remain confident in the economy and the stock market.

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China's Central Bank Might Raise Deposit Reserve Ratio

Zhang Ming, a professor with the World Economics and Politics research department under the Chinese Academy of Social Science, believes that China's central bank is likely to raise banks' deposit reserve requirement from 11.5 percent to 12 percent or 13 percent by the end of this year. At the same time, the central bank will also issue bonds to control excessive liquidity and cool off hot economic growth.

Zhang Ming, a professor with the World Economics and Politics research department under the Chinese Academy of Social Science, believes that China's central bank is likely to raise banks' deposit reserve requirement from 11.5 percent to 12 percent or 13 percent by the end of this year. At the same time, the central bank will also issue bonds to control excessive liquidity and cool off hot economic growth.

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Taiwan and Costa Rica Officially Cut Ties

Taiwan ended diplomatic relations with Costa Rica after the Central American nation decided to recognize China over Taiwan. China was able to secure Costa Rica's relations with a pledged grant of USD 130 million and bonds worth USD 300 million, according to Taiwan's President Chen Shui-bian. In response to the situation, Taiwan aims to strengthen relations with its remaining diplomatic allies in order to prevent a "domino effect."

Taiwan ended diplomatic relations with Costa Rica after the Central American nation decided to recognize China over Taiwan. China was able to secure Costa Rica's relations with a pledged grant of USD 130 million and bonds worth USD 300 million, according to Taiwan's President Chen Shui-bian. In response to the situation, Taiwan aims to strengthen relations with its remaining diplomatic allies in order to prevent a "domino effect."

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Hong Kong Shares Slip, Mainland Market Limits Further Losses

Hong Kong shares fell in early trading, tracking declines on Wall Street overnight. The losses were limited by mainland market, which continues to recover from recent losses. Hong Kong's Hang Seng Index fell by 18.45 points, or 0.1 percent, to close at 20,800.16.

Hong Kong shares fell in early trading, tracking declines on Wall Street overnight. The losses were limited by mainland market, which continues to recover from recent losses. Hong Kong's Hang Seng Index fell by 18.45 points, or 0.1 percent, to close at 20,800.16.

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SCO Summit Makes Kyrgyzstan's Boldest Economic Projects Possible

Kyrgyz government officials are confident that their participation in the upcoming Shanghai Cooperation Organization (SCO) summit will allow them to pursue considerably bolder economic projects in the near future. Kyrgyz Secretary of State Adahan Madumarov expects the summit to strengthen geopolitical, economic, and cultural ties with important neighbors, particularly the SCO's largest members, Russia and China.

Kyrgyz government officials are confident that their participation in the upcoming Shanghai Cooperation Organization (SCO) summit will allow them to pursue considerably bolder economic projects in the near future. Kyrgyz Secretary of State Adahan Madumarov expects the summit to strengthen geopolitical, economic, and cultural ties with important neighbors, particularly the SCO's largest members, Russia and China.

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Kazakh President Sees Russia as Strategic Partner on Energy Market

Kazakh President Nursultan Nazarbayev said that cooperation with Russia on oil and gas is of a "strategic nature, and mutual commitments are wide-ranging and long-term." He noted that Chinese demand for petroleum is such that there would be no need for export competition between the countries. In addition, he declared that Kazakhstan was eager to cooperate further on energy infrastructure including the laying of pipelines to transport oil products from both Kazakh and Russian fields to China and Europe.

Kazakh President Nursultan Nazarbayev said that cooperation with Russia on oil and gas is of a "strategic nature, and mutual commitments are wide-ranging and long-term." He noted that Chinese demand for petroleum is such that there would be no need for export competition between the countries. In addition, he declared that Kazakhstan was eager to cooperate further on energy infrastructure including the laying of pipelines to transport oil products from both Kazakh and Russian fields to China and Europe.

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China Claims Support for Hong Kong's Capitalist System

The Chairman of China's National Congress, Wu Baoguo, announced to the press that China would not interrupt Hong Kong's successful capitalist system. However, he also feels that democratic reform should be gradual, and Hong Kong should not switch to democracy too quickly.

The Chairman of China's National Congress, Wu Baoguo, announced to the press that China would not interrupt Hong Kong's successful capitalist system. However, he also feels that democratic reform should be gradual, and Hong Kong should not switch to democracy too quickly.

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Morgan Stanley: Increase in Taiwan M&A Likely in 2007

According to Morgan Stanley, merger and acquisition activity in Taiwan is likely to increase as domestic firms seek to publicly list themselves in Hong Kong and China's markets. In addition, Taiwanese banks such as Ta Chong Bank and EnTie Bank are looking to be bought out. These banks have had difficulty raising capital as their shares trade at approximately 1.2 times forecast book value, whereas banks in Hong Kong have shares that trade at roughly twice that amount.

According to Morgan Stanley, merger and acquisition activity in Taiwan is likely to increase as domestic firms seek to publicly list themselves in Hong Kong and China's markets. In addition, Taiwanese banks such as Ta Chong Bank and EnTie Bank are looking to be bought out. These banks have had difficulty raising capital as their shares trade at approximately 1.2 times forecast book value, whereas banks in Hong Kong have shares that trade at roughly twice that amount.

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Taiwan and Costa Rica Consider Cutting Ties

Taiwan and Costa Rica may cut ties after a more than 60-year relationship, as the latter country is developing stronger relations with China. In addition, the relationship was tested when Costa Rica voted against Taiwan's bid to join the World Health Organization last month. Currently, only 25 countries publicly recognize Taiwan as a sovereign nation.

Taiwan and Costa Rica may cut ties after a more than 60-year relationship, as the latter country is developing stronger relations with China. In addition, the relationship was tested when Costa Rica voted against Taiwan's bid to join the World Health Organization last month. Currently, only 25 countries publicly recognize Taiwan as a sovereign nation.

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China: Increasing Interest Rate Depends on CPI

Zhou Xiaochuan, China's central bank governor, has announced that, based on the hiking pork and egg prices, the central bank will consider the overall consumer price index (CPI) for May in deciding its next strategic interest rate moves. Last month, the central bank adjusted the one-year deposit rate by an increase of 0.27 percentage points.

Zhou Xiaochuan, China's central bank governor, has announced that, based on the hiking pork and egg prices, the central bank will consider the overall consumer price index (CPI) for May in deciding its next strategic interest rate moves. Last month, the central bank adjusted the one-year deposit rate by an increase of 0.27 percentage points.

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Sri Lanka Telecom Takes Milestone Step in Global Expansion

Sri Lanka Telecom (SLT) has announced the inauguration of services of its Hong Kong subsidiary, SLT Hong Kong Ltd. The launch is a significant milestone for Sri Lankan communications, as SLT has ambitious goals of becoming a global IP solution provider. With Hong Kong regarded as a major gateway for China's global access, Hong Kong incorporation should allow SLT to expand into the booming Chinese market and become a telecom facilitator for the entire Asia region.

Sri Lanka Telecom (SLT) has announced the inauguration of services of its Hong Kong subsidiary, SLT Hong Kong Ltd. The launch is a significant milestone for Sri Lankan communications, as SLT has ambitious goals of becoming a global IP solution provider. With Hong Kong regarded as a major gateway for China's global access, Hong Kong incorporation should allow SLT to expand into the booming Chinese market and become a telecom facilitator for the entire Asia region.

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Chinese-Funded Bridge Over Mekong Begins Construction

One of four projects given preferential loans totaling USD 207 million by China's Eximbank, ground has been broken for the Prek Tamak bridge spanning the Mekong River in Cambodia. The 1,060 meter, USD 43.5 million bridge is one of several Cambodian infrastructure projects funded by China, including two roads and two bridges. Construction will be undertaken by a Chinese construction firm and is expected to be completed in 2011.

One of four projects given preferential loans totaling USD 207 million by China's Eximbank, ground has been broken for the Prek Tamak bridge spanning the Mekong River in Cambodia. The 1,060 meter, USD 43.5 million bridge is one of several Cambodian infrastructure projects funded by China, including two roads and two bridges. Construction will be undertaken by a Chinese construction firm and is expected to be completed in 2011.

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Sri Lanka's Long-awaited Port Development to Commence June 7

Construction of phase one of the Hambantota Port Development Project is slated to begin tomorrow, June 7. Phase one includes the construction of an industrial port, jetty, and oil refinery at a cost of USD 450 million, with investment contracts being awarded to the Consortium of China Harbour Engineering Company Ltd. and the Syno Hydro Corporation Ltd. of People's Republic of China. The Sri Lanka Ports Authority (SLPA) hopes that the 15-year project will attract a number of additional harbor-related industries.

Construction of phase one of the Hambantota Port Development Project is slated to begin tomorrow, June 7. Phase one includes the construction of an industrial port, jetty, and oil refinery at a cost of USD 450 million, with investment contracts being awarded to the Consortium of China Harbour Engineering Company Ltd. and the Syno Hydro Corporation Ltd. of People's Republic of China. The Sri Lanka Ports Authority (SLPA) hopes that the 15-year project will attract a number of additional harbor-related industries.

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China and Japan Face New Era in Hotel Industry

Both China and Japan are expected to lead Asia into a new era for the hotel and service industries, illustrated as Asian hotel transactions accelerated faster than the US and Europe in 2006. Other effects, such as more open government policies and the upcoming Olympic games, will further drive the demand up.

Both China and Japan are expected to lead Asia into a new era for the hotel and service industries, illustrated as Asian hotel transactions accelerated faster than the US and Europe in 2006. Other effects, such as more open government policies and the upcoming Olympic games, will further drive the demand up.

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Myanmar Cooperates with Asian Neighbors on Hydropower Production

Myanmar is cooperating with neighbors Thailand, China, South Korea, and Bangladesh on hydropower development by initiating a substantial number of hyrdopower programs with these countries. The driving impetus for these cooperative programs comes as a response to serious power shortages in Myanmar. Rich in water resources, Myanmar has great potential for development in the hydropower sector, but more foreign investment is still needed for the sector to develop.

Myanmar is cooperating with neighbors Thailand, China, South Korea, and Bangladesh on hydropower development by initiating a substantial number of hyrdopower programs with these countries. The driving impetus for these cooperative programs comes as a response to serious power shortages in Myanmar. Rich in water resources, Myanmar has great potential for development in the hydropower sector, but more foreign investment is still needed for the sector to develop.

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Market Plunge Sees Surge in Chinese Fund Redemptions

Triggered by the hike in the stock transaction tax last Wednesday, Chinese investors redeemed their investment fund units as the mainland market continued to plunge on Monday. Many Hong Kong brokerage houses expect more mainland retail investors will find Hong Kong shares increasingly attractive, with a number of brokerages reporting that about 30 percent of their new accounts over the past month are being opened by mainlanders.

Triggered by the hike in the stock transaction tax last Wednesday, Chinese investors redeemed their investment fund units as the mainland market continued to plunge on Monday. Many Hong Kong brokerage houses expect more mainland retail investors will find Hong Kong shares increasingly attractive, with a number of brokerages reporting that about 30 percent of their new accounts over the past month are being opened by mainlanders.

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Tajik-China Trade Route in Need of Repair, Traders Say

Traders are pushing for consistencies in Tajikistan's Khorog-Kashgar route to China, which has boosted trade for the mountain region but remains hindered by failing infrastructure and frequent closures. The road, when open, allows for casual employment for both the Chinese and the Tajik in the area who have open access to cheap consumer goods and an increased demand for their services, accounting for much of the region's livelihood.

Traders are pushing for consistencies in Tajikistan's Khorog-Kashgar route to China, which has boosted trade for the mountain region but remains hindered by failing infrastructure and frequent closures. The road, when open, allows for casual employment for both the Chinese and the Tajik in the area who have open access to cheap consumer goods and an increased demand for their services, accounting for much of the region's livelihood.

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China and India May Side with US Over Emissions Policy

The G-8 summit's most controversial issues, due to be discussed at their June 6th meeting, most notably include climate change. Climate change is a topic on which newly industrializing nations may side with the US policy approach of nuclear power, bio-fuels and R&D for clean energy generation, in contrast to Europe's conservative and risk-averse approach. Critics of the European model note that rapidly industrializing nations like China, India, and Brazil cannot afford to sacrifice their economic growth for the sole purpose of reducing greenhouse emissions.

The G-8 summit's most controversial issues, due to be discussed at their June 6th meeting, most notably include climate change. Climate change is a topic on which newly industrializing nations may side with the US policy approach of nuclear power, bio-fuels and R&D for clean energy generation, in contrast to Europe's conservative and risk-averse approach. Critics of the European model note that rapidly industrializing nations like China, India, and Brazil cannot afford to sacrifice their economic growth for the sole purpose of reducing greenhouse emissions.

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China's Cooking Oil Price Hikes 10 Percent

Due to a supply shortage of raw materials and the soaring prices of soybean oil in the international market, China's cooking oil price will increase 10 percent and the cost of other food items will rise as well. According to the statistics, China's CPI has increased by 3.3 percent in March and 3 percent in April, reaching the 3 percent inflation "alarm level" set by the central bank.

Due to a supply shortage of raw materials and the soaring prices of soybean oil in the international market, China's cooking oil price will increase 10 percent and the cost of other food items will rise as well. According to the statistics, China's CPI has increased by 3.3 percent in March and 3 percent in April, reaching the 3 percent inflation "alarm level" set by the central bank.

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China: Four New Mutual Funds Issued in Stock Market

In order to stabilize the fluctuating stock market, the China Securities Regulatory Commission (CSRC) has approved four new mutual funds, INVESCO Great Wall, Guangfa, Fortune SGAM, and Yimin, to invest in the stock markets. Experts believe that the new funds will restore investors' confidence after the sharp plunge over the past few days.

In order to stabilize the fluctuating stock market, the China Securities Regulatory Commission (CSRC) has approved four new mutual funds, INVESCO Great Wall, Guangfa, Fortune SGAM, and Yimin, to invest in the stock markets. Experts believe that the new funds will restore investors' confidence after the sharp plunge over the past few days.

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China's Stocks Rebound After Drop

After slumping by another 200 points in the morning session, China's stocks rebounded again and ended higher than yesterday. According to the statistics, the Shanghai Composite Index finished at 3,767.10, up 96.7 points or 2.63 percent, and the Shenzhen Component Index ended at 12,017.71, up 549.25 points or 4.97 percent. However, the rebound is far from fully recovering from the losses realized over the past days.

After slumping by another 200 points in the morning session, China's stocks rebounded again and ended higher than yesterday. According to the statistics, the Shanghai Composite Index finished at 3,767.10, up 96.7 points or 2.63 percent, and the Shenzhen Component Index ended at 12,017.71, up 549.25 points or 4.97 percent. However, the rebound is far from fully recovering from the losses realized over the past days.

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China Strengthens Relationships with Bhutan and Brunei

Chinese Foreign Minister Yang Jiechi met in Seoul separately with senior officials of Bhutan and Brunei on Monday. Mr. Yang agreed with Mr. Duoji that they hope the Bhutan-China border could remain peaceful and stable. While meeting with Mr. Lim Jok Song of Brunei, both countries expressed their willingness to cooperate in trade, economic relations, energy, and the dispute over maritime space.

Chinese Foreign Minister Yang Jiechi met in Seoul separately with senior officials of Bhutan and Brunei on Monday. Mr. Yang agreed with Mr. Duoji that they hope the Bhutan-China border could remain peaceful and stable. While meeting with Mr. Lim Jok Song of Brunei, both countries expressed their willingness to cooperate in trade, economic relations, energy, and the dispute over maritime space.

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china

Sri Lanka Exploring Joint Ventures in Southern China

A business delegation led by Sri Lanka's Minister of Exports is set to explore investment and joint venture opportunities in the Kunmin and Yuan provinces of China. The team is comprised of experts in the agriculture, industry, and service sectors, and has been provided 20 stalls at the Kunmin Trade Fair free of charge. Kunmin province officials are reportedly enthusiastic about investing in Sri Lankan power generation and infrastructure redevelopment projects.

A business delegation led by Sri Lanka's Minister of Exports is set to explore investment and joint venture opportunities in the Kunmin and Yuan provinces of China. The team is comprised of experts in the agriculture, industry, and service sectors, and has been provided 20 stalls at the Kunmin Trade Fair free of charge. Kunmin province officials are reportedly enthusiastic about investing in Sri Lankan power generation and infrastructure redevelopment projects.

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Taiwan's Opposition Leader Seeks Stronger Economic Ties with China

Contrary to Chen Shui-bian and the Democratic Progressive Party (DPP), Ma Ying-jeou, the leader of Taiwan's primary opposition Kuomintang, aims to end hostility and forge a peace agreement with Beijing. In addition, Ma desires stronger economic ties with China by opening the "three direct links" - transportation, commercial services and postal services. The strengthening of these economic ties will increase China's current status as Taiwan's largest trading partner and may lead to increased capital allocation to the mainland.

Contrary to Chen Shui-bian and the Democratic Progressive Party (DPP), Ma Ying-jeou, the leader of Taiwan's primary opposition Kuomintang, aims to end hostility and forge a peace agreement with Beijing. In addition, Ma desires stronger economic ties with China by opening the "three direct links" - transportation, commercial services and postal services. The strengthening of these economic ties will increase China's current status as Taiwan's largest trading partner and may lead to increased capital allocation to the mainland.

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china

China's Booming Market Attracts Taiwanese IPOs

In an effort to raise capital, Taiwanese enterprises are becoming increasingly attracted to launching IPOs in mainland China where the economic boom has led to high share prices. In addition, Taipei's heavy restrictions on cross-strait investment and difficulties in financing domestic businesses have also pushed Taiwanese firms to publicly list themselves in other foreign markets, such as those of Hong Kong and Singapore.

In an effort to raise capital, Taiwanese enterprises are becoming increasingly attracted to launching IPOs in mainland China where the economic boom has led to high share prices. In addition, Taipei's heavy restrictions on cross-strait investment and difficulties in financing domestic businesses have also pushed Taiwanese firms to publicly list themselves in other foreign markets, such as those of Hong Kong and Singapore.

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china

China: Foreign Banks Report USD 566 Million in Deposits

Four overseas banks, HSBC Bank Co Ltd, Standard Chartered Bank Ltd, Bank of East Asia Ltd, and Citibank Co Ltd, reported CNY 4.33 billion (USD 566 million) in deposits from their Shanghai branches in April. Based on the agreement reached at the recent China-US Strategic Economic Dialogue, these four banks can issue their own renminbi-denominated credit and debit cards soon.

Four overseas banks, HSBC Bank Co Ltd, Standard Chartered Bank Ltd, Bank of East Asia Ltd, and Citibank Co Ltd, reported CNY 4.33 billion (USD 566 million) in deposits from their Shanghai branches in April. Based on the agreement reached at the recent China-US Strategic Economic Dialogue, these four banks can issue their own renminbi-denominated credit and debit cards soon.

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China's Stock Market Experiences Largest Single-day Drop

Continuing to be influenced by the stamp tax hike, both of China's benchmark stock indices experienced their largest single-day slump in absolute amounts in history on Monday. The Shanghai Composite Index decreased by 330.34 points, or 8.26 percent, to 3,670.40, and the Shenzhen Component Index went down 964.23 points, or 7.76 percent, to 11,468.46. However, analysts believe that the decline is impermanent and it will not reverse the bull run in the stock market.

Continuing to be influenced by the stamp tax hike, both of China's benchmark stock indices experienced their largest single-day slump in absolute amounts in history on Monday. The Shanghai Composite Index decreased by 330.34 points, or 8.26 percent, to 3,670.40, and the Shenzhen Component Index went down 964.23 points, or 7.76 percent, to 11,468.46. However, analysts believe that the decline is impermanent and it will not reverse the bull run in the stock market.

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SCO Summit Forces Kyrgyzstan to Weigh US, Regional Relations

As Kyrgyzstan prepares to host the annual Shanghai Cooperation Organization (SCO) summit on August 16, it has been forced to weigh the value of its US relations with that of its relations with regional neighbors, most notably China and Russia. A number of experts expect the SCO summit to push the issues of economic investment and joint production between Kyrgyzstan and both Russia and China, the two largest members of the SCO. However, the success of such talks may hinge on how Kyrgyzstan handles growing regional criticism of US military presence near Bishkek.

As Kyrgyzstan prepares to host the annual Shanghai Cooperation Organization (SCO) summit on August 16, it has been forced to weigh the value of its US relations with that of its relations with regional neighbors, most notably China and Russia. A number of experts expect the SCO summit to push the issues of economic investment and joint production between Kyrgyzstan and both Russia and China, the two largest members of the SCO. However, the success of such talks may hinge on how Kyrgyzstan handles growing regional criticism of US military presence near Bishkek.

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Russia, China Discussing Gas Pipeline

Viktor Khristenko, Russia's Minister of Industry and Energy, told the media that Russia and China are discussing the construction of a gas pipeline between the two countries in the next five to six years. He also said that there was interest in further Russian participation in oil production, refining, and marketing in China. The gas would originate in the Russian Far East, and East and West Siberia. Russia also declared that, despite the possibility of increasing gas exports, it would still be able to fulfill its European export obligations.

Viktor Khristenko, Russia's Minister of Industry and Energy, told the media that Russia and China are discussing the construction of a gas pipeline between the two countries in the next five to six years. He also said that there was interest in further Russian participation in oil production, refining, and marketing in China. The gas would originate in the Russian Far East, and East and West Siberia. Russia also declared that, despite the possibility of increasing gas exports, it would still be able to fulfill its European export obligations.

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US Imposes Anti-dumping Duties on Gloss Paper Import

The US Department of Commerce has announced that it made a preliminary decision to impose duties of 23.19 percent to 99.65 percent on gross paper imports from China, South Korea, and Indonesia. The Chinese Ministry of Commerce has not made any comment on the new charge. According to the statistics from the Department of Commerce, the value of Chinese gloss paper imports in 2006 was $224 million, only 5 percent of the total US market.

The US Department of Commerce has announced that it made a preliminary decision to impose duties of 23.19 percent to 99.65 percent on gross paper imports from China, South Korea, and Indonesia. The Chinese Ministry of Commerce has not made any comment on the new charge. According to the statistics from the Department of Commerce, the value of Chinese gloss paper imports in 2006 was $224 million, only 5 percent of the total US market.

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China to Hold More Euros in Foreign Exchange Reserve

Central bank vice governor Wu Xiaoling has reported that China will increase the ratio of Euros in its foreign exchange due to the EU's stable growth in both its economy and in the value of its currency. Meanwhile, Xiaoling also emphasized that the proportion of US dollar assets would not be changed. In order to resolve trade imbalance with western countries, China will continue stimulating domestic consumption and improving the flexibility of the Chinese currency.

Central bank vice governor Wu Xiaoling has reported that China will increase the ratio of Euros in its foreign exchange due to the EU's stable growth in both its economy and in the value of its currency. Meanwhile, Xiaoling also emphasized that the proportion of US dollar assets would not be changed. In order to resolve trade imbalance with western countries, China will continue stimulating domestic consumption and improving the flexibility of the Chinese currency.

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Hong Kong's Hang Seng Bank Keen on Mainland Market

Hong Kong's Hang Seng Bank, partly owned by HSBC, is anxious to begin their plan to boost their retail banking business in China. Currently headquartered in Shanghai, Hang Seng is also interested in tapping into China's insurance market.

Hong Kong's Hang Seng Bank, partly owned by HSBC, is anxious to begin their plan to boost their retail banking business in China. Currently headquartered in Shanghai, Hang Seng is also interested in tapping into China's insurance market.

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China Seeks to Urbanize the West

In an effort to develop the west in which three of four Chinese reside, China seeks to promote rapid interior urbanization. Chongqing, boasting a population of 12 million, is the largest city in the interior and aims to become comparable to Beijing and Shanghai within a few years. Despite the prospective increase in economic wealth related to growth and development, the cities of the interior must deal with the pollution and waste associated with an increase in population, consumption, and production.

 


 

In an effort to develop the west in which three of four Chinese reside, China seeks to promote rapid interior urbanization. Chongqing, boasting a population of 12 million, is the largest city in the interior and aims to become comparable to Beijing and Shanghai within a few years. Despite the prospective increase in economic wealth related to growth and development, the cities of the interior must deal with the pollution and waste associated with an increase in population, consumption, and production.

 


 

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china

China's Stocks Rebound After Steep Plunge

Influenced by the stamp tax hike, Chinese stocks experienced a five-minute "breath-taking" plunge in the morning. However, supported by the returning of investor confidence and the start of a new round of bull run, the stock index came back in the end. Analysts believe that the Chinese government will take efforts to maintain the healthy development of the capital market.

Influenced by the stamp tax hike, Chinese stocks experienced a five-minute "breath-taking" plunge in the morning. However, supported by the returning of investor confidence and the start of a new round of bull run, the stock index came back in the end. Analysts believe that the Chinese government will take efforts to maintain the healthy development of the capital market.

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Chinese Government Continues to Restrain Steel Exports

Due to steel firms' high energy consumption and serious pollution, the Chinese government will keep restraining its excessive growth of steel exports by imposing export tariffs and reducing export rebates. Experts believe that, because of the current high demand for steel, the policies are likely to take effect in July.

Due to steel firms' high energy consumption and serious pollution, the Chinese government will keep restraining its excessive growth of steel exports by imposing export tariffs and reducing export rebates. Experts believe that, because of the current high demand for steel, the policies are likely to take effect in July.

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China Opens its Nuclear Power Industry to Private, Foreign Investors

According to an announcement from the State Commission of Science and Technology for National Defense Industry, China's nuclear power generating projects will accept investment from both domestic and foreign companies as long as they don't hold a controlling stake. The Chinese government hopes to strengthen its nuclear power industry in order to achieve their goal of having the nuclear industry supply 4 percent of the nation's energy needs by 2020.

According to an announcement from the State Commission of Science and Technology for National Defense Industry, China's nuclear power generating projects will accept investment from both domestic and foreign companies as long as they don't hold a controlling stake. The Chinese government hopes to strengthen its nuclear power industry in order to achieve their goal of having the nuclear industry supply 4 percent of the nation's energy needs by 2020.

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China: Central Bank to Speed Up Financial Innovations

China's central bank has announced that it will speed up financial innovations in its newly released report, the China Financial Markets Development Report 2006. The reform will involve inter-bank markets, the gold market, exchange markets, securities, and financial derivatives. According to the statistics, companies have raised a total of CNY246.37 billion in the Shanghai and Shenzhen stock markets, a 628.6 percent increase since the financial market structure was improved last year.

China's central bank has announced that it will speed up financial innovations in its newly released report, the China Financial Markets Development Report 2006. The reform will involve inter-bank markets, the gold market, exchange markets, securities, and financial derivatives. According to the statistics, companies have raised a total of CNY246.37 billion in the Shanghai and Shenzhen stock markets, a 628.6 percent increase since the financial market structure was improved last year.

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Mongolian Rail Costs Hindering Russian-Chinese Oil Trade

Another major Russian oil company has announced it is unable to continue providing oil to China, as Rosneft reported that the rail costs of shipping through Mongolia are simply too high. Despite a newly imposed railway fee discount and the 22 percent slashing of Russian rail tariffs on the Mongolia route, Rosneft's Vice President for Exports says their Chinese partners must absorb the pricing difference or contractual negotiations will cease.

Another major Russian oil company has announced it is unable to continue providing oil to China, as Rosneft reported that the rail costs of shipping through Mongolia are simply too high. Despite a newly imposed railway fee discount and the 22 percent slashing of Russian rail tariffs on the Mongolia route, Rosneft's Vice President for Exports says their Chinese partners must absorb the pricing difference or contractual negotiations will cease.

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New Zealand Sharemarket Unaffected by Shanghai's Dive

Concerns regarding the New Zealand sharemarket's 0.7 percent slump yesterday, when Shanghai's stock market plunged 6 percent, have been alleviated by a 10.74 point gain to 4,290.37 on the NZSX-50 benchmark index. Trucking and Logistics firm Mainfreight continued its solid upward trend, jumping another 10c to 735c, as NZ investors took comfort in strong performance at opening on Wall Street.

Concerns regarding the New Zealand sharemarket's 0.7 percent slump yesterday, when Shanghai's stock market plunged 6 percent, have been alleviated by a 10.74 point gain to 4,290.37 on the NZSX-50 benchmark index. Trucking and Logistics firm Mainfreight continued its solid upward trend, jumping another 10c to 735c, as NZ investors took comfort in strong performance at opening on Wall Street.

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china

Appreciating Chinese Yuan Might Cause Huge Job Losses

Job experts warn that if the Chinese yuan appreciates by another 5 to 10 percent, about 3.5 million workers in non-agriculture sectors, such as the textile, apparel, footwear, toy, and motorcycle industries, might lose their jobs. Some 10 million farmers could be affected as well. The central bank set the yuan's central parity rate at 7.6538 against the dollar yesterday, compared with 7.6512 on Monday, which was already a record high.

Job experts warn that if the Chinese yuan appreciates by another 5 to 10 percent, about 3.5 million workers in non-agriculture sectors, such as the textile, apparel, footwear, toy, and motorcycle industries, might lose their jobs. Some 10 million farmers could be affected as well. The central bank set the yuan's central parity rate at 7.6538 against the dollar yesterday, compared with 7.6512 on Monday, which was already a record high.

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World Bank Announces New Forecast for China's Economic Growth

World Bank has changed its forecast for China's economic growth this year from 9.6 percent to 10.4 percent. Because the main drivers in boosting economy are external trade and investment, World Bank urged China to make efforts on increasing domestic consumption. World Bank also warned that a sharp fall in prices due to a stock market fall could hurt confidence in China's capital markets, though the effect on the overall economy would be limited.

World Bank has changed its forecast for China's economic growth this year from 9.6 percent to 10.4 percent. Because the main drivers in boosting economy are external trade and investment, World Bank urged China to make efforts on increasing domestic consumption. World Bank also warned that a sharp fall in prices due to a stock market fall could hurt confidence in China's capital markets, though the effect on the overall economy would be limited.

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APEC to Study State-Owned Oil Firms

Asia-Pacific Economic Cooperation (APEC) energy ministers plan to study the impact of state ownership of oil and gas companies among its 21-member body by focusing on their trade and investment. The study expects to form partnerships between state-controlled and private oil companies in order to efficiently develop reserves.

Asia-Pacific Economic Cooperation (APEC) energy ministers plan to study the impact of state ownership of oil and gas companies among its 21-member body by focusing on their trade and investment. The study expects to form partnerships between state-controlled and private oil companies in order to efficiently develop reserves.

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China's Stock Index Declines Due to Stamp Tax Hike

Influenced by a stamp tax hike, the Shanghai Composite Index ended at 4,053.09 points, down 281.84 points or 6.5 percent. Analysts believe that the stamp tax hike is aimed at cooling down the stock market, though such fiscal instruments usually lack a lasting effect and the stamp tax hike may not stop the upward trend in China's stock market in the long run.

Influenced by a stamp tax hike, the Shanghai Composite Index ended at 4,053.09 points, down 281.84 points or 6.5 percent. Analysts believe that the stamp tax hike is aimed at cooling down the stock market, though such fiscal instruments usually lack a lasting effect and the stamp tax hike may not stop the upward trend in China's stock market in the long run.

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Hong Kong Shares Drop as Chinese Triple Trade Tax

On Wednesday, Hong Kong shares surprisingly dropped after an overnight trading tax change by Chinese authorities. The tripling of the trade tax is aimed to cool down the red hot mainland stock market. Hong Kong traders have different views on this sudden drop in shares.

On Wednesday, Hong Kong shares surprisingly dropped after an overnight trading tax change by Chinese authorities. The tripling of the trade tax is aimed to cool down the red hot mainland stock market. Hong Kong traders have different views on this sudden drop in shares.

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Singapore and China Merge Airlines

China Eastern recently agreed to sell nearly 25 percent of its stake to Singapore Air, but the deal is still pending regulatory approval. One of the main reasons for China's hesitance is that Singapore Air's majority shareholder is Temasek, Singapore's state investment arm. China has to this point never allowed a foreign government to invest in its airline industry, which it considers critical to its future development. However, this deal would allow the Chinese airline to have access to Singapore Airs's extensive global network, and experts believe that the deal will be approved shortly.

China Eastern recently agreed to sell nearly 25 percent of its stake to Singapore Air, but the deal is still pending regulatory approval. One of the main reasons for China's hesitance is that Singapore Air's majority shareholder is Temasek, Singapore's state investment arm. China has to this point never allowed a foreign government to invest in its airline industry, which it considers critical to its future development. However, this deal would allow the Chinese airline to have access to Singapore Airs's extensive global network, and experts believe that the deal will be approved shortly.

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China Raises Stock Stamp Duty to Cool Market

China's Ministry of Finance announced Monday that the stock trading stamp duty will be raised from 0.1 percent to 0.3 percent starting Wednesday. According to an official with the Ministry, the increase in the stamp duty is intended to cool the overheated economy and promote healthy securities market development. This rise in the stamp duty, which is levied on both buyers and sellers based on transaction turnover, came after regulators warned of stock trading risks and ordered brokerages to inform investors of the risks. In response to the announcement, the Dow Jones Industrial average fell on Tuesday, as well as American depository receipts of Chinese companies traded in New York.

China's Ministry of Finance announced Monday that the stock trading stamp duty will be raised from 0.1 percent to 0.3 percent starting Wednesday. According to an official with the Ministry, the increase in the stamp duty is intended to cool the overheated economy and promote healthy securities market development. This rise in the stamp duty, which is levied on both buyers and sellers based on transaction turnover, came after regulators warned of stock trading risks and ordered brokerages to inform investors of the risks. In response to the announcement, the Dow Jones Industrial average fell on Tuesday, as well as American depository receipts of Chinese companies traded in New York.

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Chinese Stock Market Influences Hong Kong Economy

Hong Kong bankers discussed the influence of the Chinese stock market on Hong Kong's economy. They say, the volatile Chinese stock market might put Hong Kong's stock market at risk. In fact, mainland companies listed in Hong Kong by April accounted for 47% of Hong Kong stock market's capitalization.

Hong Kong bankers discussed the influence of the Chinese stock market on Hong Kong's economy. They say, the volatile Chinese stock market might put Hong Kong's stock market at risk. In fact, mainland companies listed in Hong Kong by April accounted for 47% of Hong Kong stock market's capitalization.

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Russia Considering Stripping Gas Field's License

The Russian government is considering stripping TNK-BP, which is half-owned by BP, of its license to operate its huge Kovykta gas field. The field has reserves estimated to be able to supply the world's demand for gas for one year or China's national demand for three years. The government has accused the company of under-producing. TNK-BP alleges that Gazprom, Russia's gas transport monopoly, is preventing the company from exporting, primarily to China, forcing them to cut back production. Many see this as a ploy by the government to seize direct control over gas exports to China.

The Russian government is considering stripping TNK-BP, which is half-owned by BP, of its license to operate its huge Kovykta gas field. The field has reserves estimated to be able to supply the world's demand for gas for one year or China's national demand for three years. The government has accused the company of under-producing. TNK-BP alleges that Gazprom, Russia's gas transport monopoly, is preventing the company from exporting, primarily to China, forcing them to cut back production. Many see this as a ploy by the government to seize direct control over gas exports to China.

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China's Stock Accounts Expected to Exceed 100 Million

The benchmark Shanghai Composite Index today rose 1.47 percent to 4,334.92 points, setting a new record-high. Meanwhile, the Shenzhen Composite Index closed at 13,456.60, up 3.3 percent. The hot stock market has attracted more investors. According to China Securities Depository and Clearing Co Ltd., by last Friday the total stock accounts in the two exchanges had increased to 99.8189 million and is estimated to surpass a milestone 100 million soon.

The benchmark Shanghai Composite Index today rose 1.47 percent to 4,334.92 points, setting a new record-high. Meanwhile, the Shenzhen Composite Index closed at 13,456.60, up 3.3 percent. The hot stock market has attracted more investors. According to China Securities Depository and Clearing Co Ltd., by last Friday the total stock accounts in the two exchanges had increased to 99.8189 million and is estimated to surpass a milestone 100 million soon.

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First Bridge Linking Russia and China to be Constructed

A bridge spanning the Amur river between the Russian Far Eastern Jewish Autonomous Region and China's Northeastern Heilongjiang province is slated to be constructed by 2010. The bridge would be the first to link Russia and China and is expected to carry iron from the rich deposits in Russia's far east to steel mills in China where iron is in high demand. More than 3 million tons of iron are planned to be shipped over the bridge at substantially reduced transportation costs of USD5.00 per tonne compared to the current USD9.15.

A bridge spanning the Amur river between the Russian Far Eastern Jewish Autonomous Region and China's Northeastern Heilongjiang province is slated to be constructed by 2010. The bridge would be the first to link Russia and China and is expected to carry iron from the rich deposits in Russia's far east to steel mills in China where iron is in high demand. More than 3 million tons of iron are planned to be shipped over the bridge at substantially reduced transportation costs of USD5.00 per tonne compared to the current USD9.15.

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Chinese Yuan Rises 7.65 Percent Against US Dollar

Since the Chinese government changed the yuan-dollar exchange rate restriction in July of 2005, the value of the Chinese currency has increased by 7.65 percent against the US dollar, according to a central bank report. In addition, Chinese Vice Premier Wu Yi, speaking at the second Sino-US Strategic Economic Dialogue, expressed that the Chinese government would continue exchange rate reform in an independent, controllable, and gradual way in order to maintain the yuan's strength.

Since the Chinese government changed the yuan-dollar exchange rate restriction in July of 2005, the value of the Chinese currency has increased by 7.65 percent against the US dollar, according to a central bank report. In addition, Chinese Vice Premier Wu Yi, speaking at the second Sino-US Strategic Economic Dialogue, expressed that the Chinese government would continue exchange rate reform in an independent, controllable, and gradual way in order to maintain the yuan's strength.

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Mainland China Plans to Issue Bond in Hong Kong

One of the nation's largest lenders, Bank of China, has confirmed that they plan to issue up to 3 billion yuan (USD390 million) of bonds in Hong Kong. The issue in yuan will be subject to approval on June 14 during a shareholders meeting in Beijing. Other than Bank of China, other large Chinese banks, including Industrial and Commercial Bank of China, have applied to issue yuan bonds in Hong Kong as well.

One of the nation's largest lenders, Bank of China, has confirmed that they plan to issue up to 3 billion yuan (USD390 million) of bonds in Hong Kong. The issue in yuan will be subject to approval on June 14 during a shareholders meeting in Beijing. Other than Bank of China, other large Chinese banks, including Industrial and Commercial Bank of China, have applied to issue yuan bonds in Hong Kong as well.

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China: Trade Surplus to Surpass USD250 Billion This Year

Boosted by strong external demand, China's trade surplus will hit USD250-300 billion in 2007. According to a statement from the National Development and Reform Commission (NDRC), it seems that a stronger Chinese yuan and cuts in export tax rebates cannot slow down the surging trade surplus. Experts predict that the trade surplus is unlikely to shrink in the short term and may be sustained in the long run.

Boosted by strong external demand, China's trade surplus will hit USD250-300 billion in 2007. According to a statement from the National Development and Reform Commission (NDRC), it seems that a stronger Chinese yuan and cuts in export tax rebates cannot slow down the surging trade surplus. Experts predict that the trade surplus is unlikely to shrink in the short term and may be sustained in the long run.

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Meeting Between China and United States Ineffectual

This week, United States and Chinese trade officials met in Washington to discuss the United States' severe trade deficit which has resulted in tensions between both governments. As the United States trade gap with China expands to an incredible $233 billion deficit, U.S. trade officials have begun to put pressure on China to take steps to open its economy to the United States.

This week, United States and Chinese trade officials met in Washington to discuss the United States' severe trade deficit which has resulted in tensions between both governments. As the United States trade gap with China expands to an incredible $233 billion deficit, U.S. trade officials have begun to put pressure on China to take steps to open its economy to the United States.

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Asian Stocks Fall on US Rate Speculation

Speculation that interest rates will be adjusted downward in the US, Asia's largest export market, has all but dissipated, especially with an unexpected surge in US home sales. The result was the largest drop in Asian stocks in the past five weeks, with only the benchmark indexes of China, India, Pakistan, and Sri Lanka advancing in the region. Hong Kong's Hang Seng Index fell 1.3 percent, while Japan's Nikkei 225 Stock Average took its largest hit of the month at 1.2 percent.

Speculation that interest rates will be adjusted downward in the US, Asia's largest export market, has all but dissipated, especially with an unexpected surge in US home sales. The result was the largest drop in Asian stocks in the past five weeks, with only the benchmark indexes of China, India, Pakistan, and Sri Lanka advancing in the region. Hong Kong's Hang Seng Index fell 1.3 percent, while Japan's Nikkei 225 Stock Average took its largest hit of the month at 1.2 percent.

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China to Launch Securities Industry

Following the China-US Strategic Economic Dialogue, China has agreed to allow foreign companies to jointly venture in the securities industry as well as to permit international firms to expand from investment banking to brokerage, principal investment, and asset management later this year. Experts believe that this policy will benefit both global companies and China's capital market.

Following the China-US Strategic Economic Dialogue, China has agreed to allow foreign companies to jointly venture in the securities industry as well as to permit international firms to expand from investment banking to brokerage, principal investment, and asset management later this year. Experts believe that this policy will benefit both global companies and China's capital market.

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China's Economy Likely to Grow Double-digit Percent

The Organization for Economic Cooperation and Development (OECD) predicts that China's Gross Domestic Product (GDP) will rise by 10.4 percent in 2007 and 2008 and the inflation rate will reduce to 2.5 percent. Although the slower world demand and stronger Chinese currency might drag on China's exports, the expanding consumption capacity in China's rural areas and energizing real estate sector would offset the loss and keep the economy growing at a double-digit rate over the next two years.

The Organization for Economic Cooperation and Development (OECD) predicts that China's Gross Domestic Product (GDP) will rise by 10.4 percent in 2007 and 2008 and the inflation rate will reduce to 2.5 percent. Although the slower world demand and stronger Chinese currency might drag on China's exports, the expanding consumption capacity in China's rural areas and energizing real estate sector would offset the loss and keep the economy growing at a double-digit rate over the next two years.

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China's Stock Index Moves Up Slowly

Chinese stocks index changed moderately today with less turmoil and leaving a clam trace behind. Shanghai Composite Index finished at 4,179.78 up 0.69 percent; and Shenzhen Component Index ended at 12,681.45, up 1.33 percent. Additionally, several commercial banks have prevented the business loan with share pledge in order to avoid investment loss from payment default by borrowers.

Chinese stocks index changed moderately today with less turmoil and leaving a clam trace behind. Shanghai Composite Index finished at 4,179.78 up 0.69 percent; and Shenzhen Component Index ended at 12,681.45, up 1.33 percent. Additionally, several commercial banks have prevented the business loan with share pledge in order to avoid investment loss from payment default by borrowers.

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Chinese Steelmakers to Develop Cambodian Iron Ore

Four State-owned Chinese steel companies reached an agreement to set up a joint venture to explore and develop iron ore mining in Cambodia. The agreement is part of the companies' efforts to increase their control over the pricing and supply of iron ore and steel. Rising steel prices have forced Chinese steel mills to work together to better control the cost and price of ore. Wuhan Steel, the largest stakeholder in the venture, is China's fifth largest steel mill.

Four State-owned Chinese steel companies reached an agreement to set up a joint venture to explore and develop iron ore mining in Cambodia. The agreement is part of the companies' efforts to increase their control over the pricing and supply of iron ore and steel. Rising steel prices have forced Chinese steel mills to work together to better control the cost and price of ore. Wuhan Steel, the largest stakeholder in the venture, is China's fifth largest steel mill.

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China: No Monetary Restraints in Near Future

Zhou Xiaochuan, governor of the People's Bank of China, has announced that China will not impose any monetary restraints in the near future. During US-China strategic economic talks in Washington, Zhou expressed that the government should wait to see the results of recent policies before taking further steps to cool down the economy.

Zhou Xiaochuan, governor of the People's Bank of China, has announced that China will not impose any monetary restraints in the near future. During US-China strategic economic talks in Washington, Zhou expressed that the government should wait to see the results of recent policies before taking further steps to cool down the economy.

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China's Widening QDII Quota Encourages Hong Kong

The China Banking Regulatory Commission (CBRC) has announced that it will extend the spectrum of Qualified Domestic Institutional Investors' (QDII) products to overseas stocks, and analysts believe that the widening will boost Hong Kong's equity market. At the same time, further relaxation could transfer excess liquidity and decrease foreign reserve pressure for the Chinese mainland.

The China Banking Regulatory Commission (CBRC) has announced that it will extend the spectrum of Qualified Domestic Institutional Investors' (QDII) products to overseas stocks, and analysts believe that the widening will boost Hong Kong's equity market. At the same time, further relaxation could transfer excess liquidity and decrease foreign reserve pressure for the Chinese mainland.

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Chinese Demand Sees Taiwanese Growth Accelerate

First quarter numbers showed that gross domestic product growth in Taiwan expanded 4.15 percent from a year earlier, building on the 4.04 percent rate from the fourth quarter of 2006. Soaring Chinese demand for electronics exports such as personal computers and liquid-crystal displays have helped offset a drop in US demand, which may prompt Taiwan's central bank to raise its benchmark interest rate, the second-lowest in Asia.

First quarter numbers showed that gross domestic product growth in Taiwan expanded 4.15 percent from a year earlier, building on the 4.04 percent rate from the fourth quarter of 2006. Soaring Chinese demand for electronics exports such as personal computers and liquid-crystal displays have helped offset a drop in US demand, which may prompt Taiwan's central bank to raise its benchmark interest rate, the second-lowest in Asia.

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Chinese Company Applies for Kosdaq Listing

Chinese firm 3NOD Digital Group has become the first foreign firm to apply for a listing on Korea's tech-heavy Kosdaq index. If approved, the speaker and sound equipment manufacturer would be the first foreign company to be listed on the Kosdaq.

Chinese firm 3NOD Digital Group has become the first foreign firm to apply for a listing on Korea's tech-heavy Kosdaq index. If approved, the speaker and sound equipment manufacturer would be the first foreign company to be listed on the Kosdaq.

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china

China to Implement New Rules on Enterprise Bonds

Because China's bond market lagged behind the domestic stock market, the Chinese government plans to boost the bond market by issuing new rules on enterprise bonds and transferring supervisory power from the National Development and Reform Commission (NDRC) to the China Securities Regulatory Commission (CSRC). Analysts believe that China's securities market is heading for consolidation.

Because China's bond market lagged behind the domestic stock market, the Chinese government plans to boost the bond market by issuing new rules on enterprise bonds and transferring supervisory power from the National Development and Reform Commission (NDRC) to the China Securities Regulatory Commission (CSRC). Analysts believe that China's securities market is heading for consolidation.

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china

China Oilfield Services Ltd. Issues Corporate Bonds

The largest oilfield service provider in Asia, China Oilfield Services Ltd. (COSL), has issued its first corporate bonds on the Chinese mainland stock market, valued at 1.5 billion yuan. A COSL statement expressed that the new funds will be used to erect or upgrade oil rigs, purchase ships, and build a multi-functional drilling platform. Additionally, COSL reported a 32.9 percent rise in revenue from 4,789 million yuan in 2005 to 6,365 million yuan in 2006.

The largest oilfield service provider in Asia, China Oilfield Services Ltd. (COSL), has issued its first corporate bonds on the Chinese mainland stock market, valued at 1.5 billion yuan. A COSL statement expressed that the new funds will be used to erect or upgrade oil rigs, purchase ships, and build a multi-functional drilling platform. Additionally, COSL reported a 32.9 percent rise in revenue from 4,789 million yuan in 2005 to 6,365 million yuan in 2006.

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china

China to Increase Currency Flexibility

Zhou Xiaochuan, governor of People's Bank of China, has reported that China plans to increase flexibility in the yuan's exchange rate, but the flexibility will still follow the three principles of exchange-rate reform. The yuan is currently able to fluctuate up to 0.5 percent.

Zhou Xiaochuan, governor of People's Bank of China, has reported that China plans to increase flexibility in the yuan's exchange rate, but the flexibility will still follow the three principles of exchange-rate reform. The yuan is currently able to fluctuate up to 0.5 percent.

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china

Hong Kong Dollar Reaches Near 22-Year Low

Under selling pressure from interest rate arbitrage and anticipation of the impending US-China talks, the Hong Kong dollar has dropped to 7.823 against the US dollar. Expectations are that, in the short term, rates will continue to fall as arbitrage trading continues amidst expected improving market liquidity, and while commercial interest in the US dollar continues.

Under selling pressure from interest rate arbitrage and anticipation of the impending US-China talks, the Hong Kong dollar has dropped to 7.823 against the US dollar. Expectations are that, in the short term, rates will continue to fall as arbitrage trading continues amidst expected improving market liquidity, and while commercial interest in the US dollar continues.

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china

China's New Orders of Shipbuilding Places Top

Based on 8.5 million compensated gross tons (CGT) in orders placed since January, China's new orders have surpassed South Korea and take the first place in the global shipbuilding market. South Korea ranks second with 6.9 million CGT, followed by Japan with 1.2 million CGT from January to April this year. However, South Korea still holds the top spot in terms of ships built with a volume of 3.2 million CGT.

Based on 8.5 million compensated gross tons (CGT) in orders placed since January, China's new orders have surpassed South Korea and take the first place in the global shipbuilding market. South Korea ranks second with 6.9 million CGT, followed by Japan with 1.2 million CGT from January to April this year. However, South Korea still holds the top spot in terms of ships built with a volume of 3.2 million CGT.

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china

China to Keep Securities Stamp Tax

To disprove the rumor about the surging securities stamp tax, the Ministry of Finance has confirmed that China will now increase the stamp tax for the stock exchange in a short term. However, Yang Chengzhang, the chief economist of Shenyin & Wanguo Securities Co, believes it to be the right time for the government to raise the securities stamp tax in order to decline the number of trades and cool the overheated stock market without a huge fluctuation of stocks.

To disprove the rumor about the surging securities stamp tax, the Ministry of Finance has confirmed that China will now increase the stamp tax for the stock exchange in a short term. However, Yang Chengzhang, the chief economist of Shenyin & Wanguo Securities Co, believes it to be the right time for the government to raise the securities stamp tax in order to decline the number of trades and cool the overheated stock market without a huge fluctuation of stocks.

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china

China's Stock Market Bounces to A New High

Supported by companies in agriculture and real estate sectors, Chinese stocks bounced back to reach a new high record on Wednesday after having experienced a quick and deep slip before. Shang Fulin, chairman of China Securities Regulatory Commission, says regulators are closely concerning and monitoring the daily movements in stock market. Meanwhile he suggests individual investors to enhance their risk awareness and risk control ability.

Supported by companies in agriculture and real estate sectors, Chinese stocks bounced back to reach a new high record on Wednesday after having experienced a quick and deep slip before. Shang Fulin, chairman of China Securities Regulatory Commission, says regulators are closely concerning and monitoring the daily movements in stock market. Meanwhile he suggests individual investors to enhance their risk awareness and risk control ability.

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china

China: Money Market Experiences Surge

Traders saw a jump in China's money market rates on their 10 billion yuan sale of one-year bonds Tuesday, with an auction yield of 3.0928 percent; a rate much higher than the 3.02 percent projected for the week and the 2.9760 percent seen in the previous six weeks. However, even with the favorable yield, banks are continuing to hold off on serious trading until the results of Wednesday's auction on seven-year governmental bonds come to light.

Traders saw a jump in China's money market rates on their 10 billion yuan sale of one-year bonds Tuesday, with an auction yield of 3.0928 percent; a rate much higher than the 3.02 percent projected for the week and the 2.9760 percent seen in the previous six weeks. However, even with the favorable yield, banks are continuing to hold off on serious trading until the results of Wednesday's auction on seven-year governmental bonds come to light.

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china

Hong Kong: A Better Investment?

Stock Investment Management chief investment officer warns that mainland China's high trade shares might be a bubble ready to burst and that investment would be better placed with some of Hong Kong's most lucrative companies. Peter Stock, the firm's president, suggests a few Hong Kong companies that would serve as a safer hold for investors' money while still maintaining high levels of return for their value.

Stock Investment Management chief investment officer warns that mainland China's high trade shares might be a bubble ready to burst and that investment would be better placed with some of Hong Kong's most lucrative companies. Peter Stock, the firm's president, suggests a few Hong Kong companies that would serve as a safer hold for investors' money while still maintaining high levels of return for their value.

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china

China: Stock Market Needs Close Watch

China's stock market watchdog, the China Securities Regulatory Commission (CSRC), is on high alert concerning irregularities in the current stock market and will heavily punish any illegal behavior. According to reports, 65-70 percent of A shares are owned by small investors and how to ensure fair play amongst them has become a significant problem for the CSRC.

China's stock market watchdog, the China Securities Regulatory Commission (CSRC), is on high alert concerning irregularities in the current stock market and will heavily punish any illegal behavior. According to reports, 65-70 percent of A shares are owned by small investors and how to ensure fair play amongst them has become a significant problem for the CSRC.

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china

China to Impose Extra Export Tariffs

According to the Ministry of Finance's report, China will impose extra export tariffs while simultaneously reducing import duties on June 1 in order to cool the surging trade surplus. The newly-imposed export tariffs are focused on slowing the growth of high domestic polluters as well as the export of resources, such as steel products. At the same time, China will temporarily lower import duties and tariffs on 209 products to encourage imports and boost consumption.

According to the Ministry of Finance's report, China will impose extra export tariffs while simultaneously reducing import duties on June 1 in order to cool the surging trade surplus. The newly-imposed export tariffs are focused on slowing the growth of high domestic polluters as well as the export of resources, such as steel products. At the same time, China will temporarily lower import duties and tariffs on 209 products to encourage imports and boost consumption.

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china

Hong Kong, Singapore Banks to Start Local Business in China

Hong Kong-based Hang Seng Bank and Singapore's DBS Group Holdings announced that they have been allowed by the China Banking Regulatory Commission (CBRC) to start local incorporation and engage in China's currency retail business. The two banks say they will begin business shortly and provide their full range of wealth management services to mainland Chinese customers.

Hong Kong-based Hang Seng Bank and Singapore's DBS Group Holdings announced that they have been allowed by the China Banking Regulatory Commission (CBRC) to start local incorporation and engage in China's currency retail business. The two banks say they will begin business shortly and provide their full range of wealth management services to mainland Chinese customers.

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china

Chinese Yuan Sets up a New High Record

After the People's Bank of China announced its plans to widen the Chinese yuan's daily floating band against the US dollar from 0.3 percent to 0.5 percent, the central parity rate surged to 7.6652, a new high record. However, China's central bank expressed that widening the floating range does not necessarily mean that the yuan will fluctuate or appreciate significantly.

After the People's Bank of China announced its plans to widen the Chinese yuan's daily floating band against the US dollar from 0.3 percent to 0.5 percent, the central parity rate surged to 7.6652, a new high record. However, China's central bank expressed that widening the floating range does not necessarily mean that the yuan will fluctuate or appreciate significantly.

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china

India and China to Lead Asia in Pharmaceuticals

According to a recent PriceWaterouseCoopers report, India and China are going to drive the continent's development in pharmaceuticals, as they are the major destination for greenfield investments in the pharmaceutical sector in Asia. As the report states further, nearly 60 percent of the respondents believe that the focal point of worldwide pharmaceuticals will shift within the coming years from Europe and North America to Asia.

According to a recent PriceWaterouseCoopers report, India and China are going to drive the continent's development in pharmaceuticals, as they are the major destination for greenfield investments in the pharmaceutical sector in Asia. As the report states further, nearly 60 percent of the respondents believe that the focal point of worldwide pharmaceuticals will shift within the coming years from Europe and North America to Asia.

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china

Soaring Demand Helps Indian Steel Authority's Net Surge

Soaring demand and the closure of a number of steel plants in China helped the Steel Authority of India Ltd. realize record share prices and increases in prices and sales, all of which beat analyst's estimates. The state-run steelmaker reported that profit increased to 19.02 billion rupees ($468 million), while sales rose by 14 percent to 99.84 billion rupees. With China likely unable to keep up with its own rampant demand for steel, the outlook for Indian steelmakers looks even better in the near future.

Soaring demand and the closure of a number of steel plants in China helped the Steel Authority of India Ltd. realize record share prices and increases in prices and sales, all of which beat analyst's estimates. The state-run steelmaker reported that profit increased to 19.02 billion rupees ($468 million), while sales rose by 14 percent to 99.84 billion rupees. With China likely unable to keep up with its own rampant demand for steel, the outlook for Indian steelmakers looks even better in the near future.

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china

China's Stock Market Influences Policyholders

Boosted by rising returns from stock market investments, China's investment-linked insurance premiums increased by 177.21 percent to 3.11 billion yuan in the first quarter of this year. Meanwhile, universal life insurance premiums surged 60 percent to 18.31 billion yuan. On this basis, the China Insurance Regulatory Commission warned that the public should consider investment-related risks when engaging in business activities.

Boosted by rising returns from stock market investments, China's investment-linked insurance premiums increased by 177.21 percent to 3.11 billion yuan in the first quarter of this year. Meanwhile, universal life insurance premiums surged 60 percent to 18.31 billion yuan. On this basis, the China Insurance Regulatory Commission warned that the public should consider investment-related risks when engaging in business activities.

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china

Overseas Stock Exchanges Can Establish Offices in China

China's securities regulator announced that overseas stock exchanges can establish representative offices in China, so long as the stock exchanges meet their requirements. The protocol will be implemented on July 1. According to media reports, the U.S.-based NASDAQ Stock Market Inc. is considering opening a representative office in China to woo more initial public offerings.

China's securities regulator announced that overseas stock exchanges can establish representative offices in China, so long as the stock exchanges meet their requirements. The protocol will be implemented on July 1. According to media reports, the U.S.-based NASDAQ Stock Market Inc. is considering opening a representative office in China to woo more initial public offerings.

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china

China to Invest US$3 Billion in Blackstone

The Blackstone Group LP reports that China's State Investment Company, a State foreign exchange investment company soon to be established, will invest US$3 billion to buy about 8 percent stake in Blackstone as non-voting common units and hold it for at least four years. The purchase price per common unit might be 95.5 percent of the public offering price in Blackstone's planned IPO.

The Blackstone Group LP reports that China's State Investment Company, a State foreign exchange investment company soon to be established, will invest US$3 billion to buy about 8 percent stake in Blackstone as non-voting common units and hold it for at least four years. The purchase price per common unit might be 95.5 percent of the public offering price in Blackstone's planned IPO.

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china

G8 Focus on Yuan Sees Yen Fall to Record Low Against Euro

Investors continuously sold the yen after finance ministers at the weekend's G8 meeting focused on how to control China's vigorous economic growth rather than the weakening state of the Japanese currency. The euro strengthened to 163.91 yen from 163.56, a record-high, while the dollar rose to 121.27 yen from 121.10.

Investors continuously sold the yen after finance ministers at the weekend's G8 meeting focused on how to control China's vigorous economic growth rather than the weakening state of the Japanese currency. The euro strengthened to 163.91 yen from 163.56, a record-high, while the dollar rose to 121.27 yen from 121.10.

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china

China's Trade to Hit $2.1 Trillion in 2007

The Ministry of Commerce reports that, thanks to the domestic and foreign trade environment and the macro-control policy, China's trade in goods has increased by 20 percent year-on-year and will surpass $2.1 trillion in 2007. On this basis, the Chinese government will raise export taxes by 5 to 10 percent on a series of goods, such as steel, to ease the trade surplus. At the same time, China is also considering reducing import taxes on some raw materials.

The Ministry of Commerce reports that, thanks to the domestic and foreign trade environment and the macro-control policy, China's trade in goods has increased by 20 percent year-on-year and will surpass $2.1 trillion in 2007. On this basis, the Chinese government will raise export taxes by 5 to 10 percent on a series of goods, such as steel, to ease the trade surplus. At the same time, China is also considering reducing import taxes on some raw materials.

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china

US$4 Billion Investment in Asia Planned by Chevron Corp.

Focusing on petroleum expansion and production in Asia, Chevron Corp. will invest about US$4 billion in a number of Asian nations this year, worth 20 percent of their projected global spending. Chevron's major endeavors include an offshore liquefied natural gas (LNG) project in Australia, petroleum production in Indonesia and Thailand, and enhanced exploration drilling in Bangladesh, Vietnam, and Cambodia. In addition, Chevron has slated five exploration and production projects in China.

Focusing on petroleum expansion and production in Asia, Chevron Corp. will invest about US$4 billion in a number of Asian nations this year, worth 20 percent of their projected global spending. Chevron's major endeavors include an offshore liquefied natural gas (LNG) project in Australia, petroleum production in Indonesia and Thailand, and enhanced exploration drilling in Bangladesh, Vietnam, and Cambodia. In addition, Chevron has slated five exploration and production projects in China.

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china

China's Stock Value Probably Goes Beyond Deposits

Due to continuous capital flow pumping into stock market, the total value of Chinese stocks rose to 17.43 trillion yuan ($2.27 trillion) yesterday and probably has surpassed the total in household deposits, which has dropped to 17.37 trillion yuan. Facing the fast speed of capital inflow into stock markets in April, Shanghai Securities News predicts household deposits might drop further in May.

Due to continuous capital flow pumping into stock market, the total value of Chinese stocks rose to 17.43 trillion yuan ($2.27 trillion) yesterday and probably has surpassed the total in household deposits, which has dropped to 17.37 trillion yuan. Facing the fast speed of capital inflow into stock markets in April, Shanghai Securities News predicts household deposits might drop further in May.

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china

Foreign Companies Earn $31 Billion from China Acquisitions

Based on Beijing Business Today's report, overseas companies have produced $31 billion last year, three times the total volume of China's acquisitions between 2001 and 2005. However, the report also shows that foreign firms have to spend more time involving their head offices during the transaction and execution process.

Based on Beijing Business Today's report, overseas companies have produced $31 billion last year, three times the total volume of China's acquisitions between 2001 and 2005. However, the report also shows that foreign firms have to spend more time involving their head offices during the transaction and execution process.

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china

Australia to Announce emmisions Trading Scheme at APEC

Australia, the host of APEC's September gathering, is working to develop an emissions trading scheme. This would involve the setting of a price for carbon and putting in place a target for green house gas emissions. Under this scheme dubbed the "Sydney declaration", polluters who are unable to meet the emission standards would be allowed to buy credits from others at the set price.

Australia, the host of APEC's September gathering, is working to develop an emissions trading scheme. This would involve the setting of a price for carbon and putting in place a target for green house gas emissions. Under this scheme dubbed the "Sydney declaration", polluters who are unable to meet the emission standards would be allowed to buy credits from others at the set price.

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china

China to Start Futures Investor Protection Fund

According to a joint release by the China Securities Regulatory Commission and the Ministry of Finance, China will start a futures investor protection fund on August 1. The purpose of this new protection fund is to compensate a shortage in deposit margin caused by illegal conducts or ineffective risk control by a futures brokerage. Analysts think this fund can prevent actual controlling persons from insider trading, price manipulation or abusing the power to make equity transaction on unfair basis.

According to a joint release by the China Securities Regulatory Commission and the Ministry of Finance, China will start a futures investor protection fund on August 1. The purpose of this new protection fund is to compensate a shortage in deposit margin caused by illegal conducts or ineffective risk control by a futures brokerage. Analysts think this fund can prevent actual controlling persons from insider trading, price manipulation or abusing the power to make equity transaction on unfair basis.

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china

China to Raise Interest Rates and Reserve Requirements Ratio

The People's Bank of China will increase the one-year deposit and loan interest rates respectively by 0.27 and 0.18 percent to 3.06 and 6.57 percent on May 19. At the same time, the banks' reserve requirement ratio will also be adjusted to 11.5 percent, 0.5 percent up, on June 5. Zhou Xiaochuan, the governor of the central bank, said China would consider other instruments to keep macro-economic stability.

The People's Bank of China will increase the one-year deposit and loan interest rates respectively by 0.27 and 0.18 percent to 3.06 and 6.57 percent on May 19. At the same time, the banks' reserve requirement ratio will also be adjusted to 11.5 percent, 0.5 percent up, on June 5. Zhou Xiaochuan, the governor of the central bank, said China would consider other instruments to keep macro-economic stability.

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china

China's Stocks Rise and Currency Appreciates

Supported by retail investors buying foreign-currency "B shares," Chinese stocks surged on Thursday, increasing the value of the yuan against the US dollar. The benchmark Shanghai Composite Index gained 1.6 percent to 4,048.29 and Shenzhen Composite Index also increased by 2.5 percent to 1,151.85. However, regulators are likely to take steps to reduce stock prices. At the same time, the dollar once reached 7.6758 on the over-the-counter market .

Supported by retail investors buying foreign-currency "B shares," Chinese stocks surged on Thursday, increasing the value of the yuan against the US dollar. The benchmark Shanghai Composite Index gained 1.6 percent to 4,048.29 and Shenzhen Composite Index also increased by 2.5 percent to 1,151.85. However, regulators are likely to take steps to reduce stock prices. At the same time, the dollar once reached 7.6758 on the over-the-counter market .

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china

Pakistani Coal Project Loses Chinese Power

Chinese state-owned Shenhua Group Corp has rescinded its plan to build coal-fired power plants at Thar in the Pakistani province of Sindh, a major blow to the power-strapped nation of Pakistan. Shenhua Group cited an insufficient power tariff rate offered by Pakistan, security concerns, and an excessive domestic workload as its reasoning for abandoning the US$1.5 billion project.

Chinese state-owned Shenhua Group Corp has rescinded its plan to build coal-fired power plants at Thar in the Pakistani province of Sindh, a major blow to the power-strapped nation of Pakistan. Shenhua Group cited an insufficient power tariff rate offered by Pakistan, security concerns, and an excessive domestic workload as its reasoning for abandoning the US$1.5 billion project.

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china

China's Foreign Direct Investment Rises 10% in the First Four Months

Despite hiking corporate income tax rates, Foreign direct investment (FDI) in China still increased over 10 percent year-on-year in the first four months of this year. Researcher Shen Danyang states that the service sector is likely to attract more foreign investment, while investment in the manufacturing sector is likely to decrease. The Chinese government is encouraging foreign investments in western China, while turning down investments in high-pollution and low-efficiency ventures.

Despite hiking corporate income tax rates, Foreign direct investment (FDI) in China still increased over 10 percent year-on-year in the first four months of this year. Researcher Shen Danyang states that the service sector is likely to attract more foreign investment, while investment in the manufacturing sector is likely to decrease. The Chinese government is encouraging foreign investments in western China, while turning down investments in high-pollution and low-efficiency ventures.

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china

Chinese Government Pledges Currency Reforms

Chinese Premier Wen Jiabao pledged at a global meeting on Wednesday that China would take steps in form of modified currency controls to avoid higher inflation or a debt crisis, which might be caused by the current development of overheating economic growth. The purpose of reforming currency controls is to resolve excessive liquidity, an imbalance in the balance of payments, and rapid accumulation of foreign exchange. However, Wen emphasized that the reforms are being implemented as fast as the developing economy and financial system will allow it to.

Chinese Premier Wen Jiabao pledged at a global meeting on Wednesday that China would take steps in form of modified currency controls to avoid higher inflation or a debt crisis, which might be caused by the current development of overheating economic growth. The purpose of reforming currency controls is to resolve excessive liquidity, an imbalance in the balance of payments, and rapid accumulation of foreign exchange. However, Wen emphasized that the reforms are being implemented as fast as the developing economy and financial system will allow it to.

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china

China's Industrial Production Increases by 17% in April

Based on the figures released by the Nation Bureau of Statistics, China's industrial output rose by 17.4 percent in April, which was boosted by accelerating exports and retail sales. However, strong industrial production is not what the government desires since it suggests that surging fixed-asset investment could lead to overcapacity, falling prices and bad loans. Chief economist Glenn Maguire believes that an interest rate increase and a higher bank reserve ratio could occur if investment increases any further.

Based on the figures released by the Nation Bureau of Statistics, China's industrial output rose by 17.4 percent in April, which was boosted by accelerating exports and retail sales. However, strong industrial production is not what the government desires since it suggests that surging fixed-asset investment could lead to overcapacity, falling prices and bad loans. Chief economist Glenn Maguire believes that an interest rate increase and a higher bank reserve ratio could occur if investment increases any further.

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china

Light Trading as Taiwanese Investors Mull Chinese Relations

Shares on the Taiwan Stock Exchange gained slightly on light trading, as Taiwanese investors await President Chen Shui-bian's announcement on the state of relations with rival China's government. Analysts expect a positive policy statement will stimulate the market, as has been the case following five of Chen's six major policy addresses during his seven-year presidency.

Shares on the Taiwan Stock Exchange gained slightly on light trading, as Taiwanese investors await President Chen Shui-bian's announcement on the state of relations with rival China's government. Analysts expect a positive policy statement will stimulate the market, as has been the case following five of Chen's six major policy addresses during his seven-year presidency.

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china

Auto Sales Continue to Surge in China

According to an industry association, auto sales and production in China respectively grew 21.46 and 21.36 percent in the first four months. Especially the domestic-owned brands with 449,700 units' sales performed better than foreign brands this year. Analysts consider releases of new models and prick cut incentives by automakers as reasons for the hiking sales. Additionally, Chinese automakers begin to explore overseas markets.

According to an industry association, auto sales and production in China respectively grew 21.46 and 21.36 percent in the first four months. Especially the domestic-owned brands with 449,700 units' sales performed better than foreign brands this year. Analysts consider releases of new models and prick cut incentives by automakers as reasons for the hiking sales. Additionally, Chinese automakers begin to explore overseas markets.

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china

China and Turkmenistan Sign Contract on Natural Gas Exploration

China National Petroleum Corp (CNPC), China's biggest oil and gas producer, wins the competition against Russia and signs a $ 1.5 billion contract with Turkmenistan on natural gas exploration. Based on this agreement, the Central Asian will provide 30 billion cubic meters of gas to China every year. Experts say this contract will not influence the cooperation between Russia and Turkmenistan on gas.

China National Petroleum Corp (CNPC), China's biggest oil and gas producer, wins the competition against Russia and signs a $ 1.5 billion contract with Turkmenistan on natural gas exploration. Based on this agreement, the Central Asian will provide 30 billion cubic meters of gas to China every year. Experts say this contract will not influence the cooperation between Russia and Turkmenistan on gas.

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china

China and Hong Kong's Stocks Fall Down

Influenced by Japanese core machinery order data, most Asian markets fell on Tuesday, including Mainland China and Hong Kong. Profit taking made the Hang Seng Index fall by 11.09 points or 0.53 percent but the index still has an upward trend. At the same time, due to the allowance of banks to invest in overseas stocks and the urge of local branches to educate investors about risks in stocks, China's shares also went down.

Influenced by Japanese core machinery order data, most Asian markets fell on Tuesday, including Mainland China and Hong Kong. Profit taking made the Hang Seng Index fall by 11.09 points or 0.53 percent but the index still has an upward trend. At the same time, due to the allowance of banks to invest in overseas stocks and the urge of local branches to educate investors about risks in stocks, China's shares also went down.

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china

China's Ease of Investment Rules have Singapore's Stock Market on A High

On May 14th, the Singapore stock market hit a record high after a decision by China's banking regulators created a Manic Monday rally in the region. Moreover, China's bank customers will be allowed to buy shares in overseas markets by using funds for the first time. Managing director Loh Hoon Sun believes that, eventually, some US$2 trillion of Chinese domestic savings will be attracted.

On May 14th, the Singapore stock market hit a record high after a decision by China's banking regulators created a Manic Monday rally in the region. Moreover, China's bank customers will be allowed to buy shares in overseas markets by using funds for the first time. Managing director Loh Hoon Sun believes that, eventually, some US$2 trillion of Chinese domestic savings will be attracted.

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china

China's Inflation Down to 3 Percent in April

According to the National Bureau of Statistics' (NBS) announcement, China's inflation rate has slowed down from 3.3 percent in March to 3 percent in April. The hiking food price is still the main source of power to keep the inflation rate high. Experts believe the central bank will watch inflation pressure closely and raise interest rates in the next two months.

According to the National Bureau of Statistics' (NBS) announcement, China's inflation rate has slowed down from 3.3 percent in March to 3 percent in April. The hiking food price is still the main source of power to keep the inflation rate high. Experts believe the central bank will watch inflation pressure closely and raise interest rates in the next two months.

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china

China's Retail Sales Increase by 15.5% in April

Boosted by stock market and rising incomes, China's retail sales have increased by 15.5 percent in April. Rising retail sales make China less dependent on exports and investment for economic growth, and increase the employment rate. However, experts suspect whether the increment is sustainable due to an unstable stock market.

Boosted by stock market and rising incomes, China's retail sales have increased by 15.5 percent in April. Rising retail sales make China less dependent on exports and investment for economic growth, and increase the employment rate. However, experts suspect whether the increment is sustainable due to an unstable stock market.

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china

China to Open Magazine Market to Foreign Publishers

Foreign periodical publishers will be allowed to enter the Chinese magazine market and can enjoy the same legal protection and policy treatment as local counterparts. Chinese government will approve projects between some major international magazines and local periodicals. According to the statistics, Chinese magazines have an annual sales turnover of $5.2 billion and a circulation of 2.85 billion.

Foreign periodical publishers will be allowed to enter the Chinese magazine market and can enjoy the same legal protection and policy treatment as local counterparts. Chinese government will approve projects between some major international magazines and local periodicals. According to the statistics, Chinese magazines have an annual sales turnover of $5.2 billion and a circulation of 2.85 billion.

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china

Asian Naval Industries Benefit from Maritime Security Enhancements

In an effort to enhance their regional maritime security, Asian nations will spend an estimated $108 billion on naval vessels, which industry watchers insist will not go towards a naval arms race. Japan, China, and India are expected to lead the buying spree, and naval industry leaders such as Japan, South Korea, and Singapore are set to reap the benefits with over half the contracts still available.

In an effort to enhance their regional maritime security, Asian nations will spend an estimated $108 billion on naval vessels, which industry watchers insist will not go towards a naval arms race. Japan, China, and India are expected to lead the buying spree, and naval industry leaders such as Japan, South Korea, and Singapore are set to reap the benefits with over half the contracts still available.

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china

China's Central Bank Feels Pressured to Raise Interest Rates

According to the National Bureau of Statistics announcement, China's Consumer Price Index (CPI) went down from 3.3 percent in March, failing to meet the goal of three percent. At the same time, a drop in household deposits and a surge of household loans have flown into the stocks market, pushing the index to increase more than 50 percent. Therefore, the People's Bank of China have to face the pressure of increasing interest rates to reduce excessive liquidity.

According to the National Bureau of Statistics announcement, China's Consumer Price Index (CPI) went down from 3.3 percent in March, failing to meet the goal of three percent. At the same time, a drop in household deposits and a surge of household loans have flown into the stocks market, pushing the index to increase more than 50 percent. Therefore, the People's Bank of China have to face the pressure of increasing interest rates to reduce excessive liquidity.

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china

China to Face Labor Shortage

Based on a report issued by the Institute of Population and Labor Economics, China will break its previous demand-and-supply balance and face labor shortage in 2009 due to an aging population. The shortage will spread from coastal areas to central regions and will be a heavy burden on China's economic growth.

Based on a report issued by the Institute of Population and Labor Economics, China will break its previous demand-and-supply balance and face labor shortage in 2009 due to an aging population. The shortage will spread from coastal areas to central regions and will be a heavy burden on China's economic growth.

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china

Mainland China Surpasses Japan and Taiwan in Competitive World Rankings

For the first time since the Swiss-based International Institute for Management Development (IMD) has launched its annual list in 1989, China has moved ahead of Japan and Taiwan in this year's world competitiveness rankings. Mainland China has moved from 15th place from last year's 18th place, while Japan and Taiwan fell behind. Competitiveness of the 55 economies is measured in four areas: economic performance, government efficiency, business efficiency and infrastructure.

For the first time since the Swiss-based International Institute for Management Development (IMD) has launched its annual list in 1989, China has moved ahead of Japan and Taiwan in this year's world competitiveness rankings. Mainland China has moved from 15th place from last year's 18th place, while Japan and Taiwan fell behind. Competitiveness of the 55 economies is measured in four areas: economic performance, government efficiency, business efficiency and infrastructure.

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China's Central Bank to Control Dollar Reserves

The People's Bank of China has announced to increase their reserves by widening the channel of foreign currency investment. The reason for this measure is the risk of inflation and excessive investment. Nevertheless, the central bank will still keep US dollar denominated assets as the most significant part of China's overseas investment.

The People's Bank of China has announced to increase their reserves by widening the channel of foreign currency investment. The reason for this measure is the risk of inflation and excessive investment. Nevertheless, the central bank will still keep US dollar denominated assets as the most significant part of China's overseas investment.

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Chinese Commercial Banks to Enter Overseas Stock Markets

According to the China Banking Regulator Commission, Chinese commercial banks can now invest up to 50 percent of their funds in the qualified domestic institutional investors program to buy overseas stocks. Analysts believe that allowing banks to buy overseas stocks will control excessive liquidity and overheating domestic stock markets.

According to the China Banking Regulator Commission, Chinese commercial banks can now invest up to 50 percent of their funds in the qualified domestic institutional investors program to buy overseas stocks. Analysts believe that allowing banks to buy overseas stocks will control excessive liquidity and overheating domestic stock markets.

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China's Outbound Travel Market is Hot

Based on the statistic result of Pacific Asia Tourism Association (PATA), China has become one of Asia's largest sources of tourists, with an estimation of 37.4 million Chinese people traveling overseas this year. Moreover, Chinese tourists have regarded Asia as the top foreign traveling destination. Supported by strong GDP, China's outbound travel market has attracted international travel organizations to explore the market and set up offices in China.

Based on the statistic result of Pacific Asia Tourism Association (PATA), China has become one of Asia's largest sources of tourists, with an estimation of 37.4 million Chinese people traveling overseas this year. Moreover, Chinese tourists have regarded Asia as the top foreign traveling destination. Supported by strong GDP, China's outbound travel market has attracted international travel organizations to explore the market and set up offices in China.

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China to Reduce Prices of Western Medicine

China's National Development and Reform Commission (NDRC) will adjust 70 percent of medicine prices, saving them a total 5 billion yuan ($6.5 billion). This reduction will affect some 260 kinds of western medicine, but analysts say that it would not influence the medicine industry too much.

China's National Development and Reform Commission (NDRC) will adjust 70 percent of medicine prices, saving them a total 5 billion yuan ($6.5 billion). This reduction will affect some 260 kinds of western medicine, but analysts say that it would not influence the medicine industry too much.

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China to Raise Interest Rate

According to the report from State Information Center, China's central bank is considering proper measures to increase interest rates and reserve requirements in order to rein in an overheated economy. In the second quarter of this year, China's GDP is estimated to grow 10.8 percent. Additionally, the report also warns that China's fixed assets investment might rebound and suffer from high inflation pressure in the future.

According to the report from State Information Center, China's central bank is considering proper measures to increase interest rates and reserve requirements in order to rein in an overheated economy. In the second quarter of this year, China's GDP is estimated to grow 10.8 percent. Additionally, the report also warns that China's fixed assets investment might rebound and suffer from high inflation pressure in the future.

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China's Express Delivery Market Faces Change and Competition

Four major foreign express delivery firms, FedEx, UPS, TNT, and DHL, as well as China's private and State-owned players are preparing to adjust their strategies in order to take an advantageous place in China's fast developing express delivery market. Foreign companies need to use their financial strength, service and technology to compete against China's local firms, which have already built up their own infrastructure and customer service strategies.

Four major foreign express delivery firms, FedEx, UPS, TNT, and DHL, as well as China's private and State-owned players are preparing to adjust their strategies in order to take an advantageous place in China's fast developing express delivery market. Foreign companies need to use their financial strength, service and technology to compete against China's local firms, which have already built up their own infrastructure and customer service strategies.

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China's Economic Growth to Increase by 10.8% in the Second Quarter

According to the State Information Center's report, a research body under the National Development and Reform Commission, China's gross domestic product (GDP) is expected to increase by 10.8 percent in the second quarter of this year. Strong investment and increasing trade surplus are two main powers expected to boost economic growth. However, the center also warns of overheating in investment and excessive liquidity.

According to the State Information Center's report, a research body under the National Development and Reform Commission, China's gross domestic product (GDP) is expected to increase by 10.8 percent in the second quarter of this year. Strong investment and increasing trade surplus are two main powers expected to boost economic growth. However, the center also warns of overheating in investment and excessive liquidity.

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ADB Reform Questions Produce Tension, Not Answers

The Asia Development Bank (ADB) seeks to enact reforms after their initial mission of poverty eradication in the region seems to be coming to a close. Richer members argue for a diversification of their interests to environmental preservation and sustainable development, while poorer nations insist that economic development in their countries is no where near finished.

The Asia Development Bank (ADB) seeks to enact reforms after their initial mission of poverty eradication in the region seems to be coming to a close. Richer members argue for a diversification of their interests to environmental preservation and sustainable development, while poorer nations insist that economic development in their countries is no where near finished.

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China's Ping An Insurance Co. to Join Hang Seng Index

After carefully reviewing Hong Kong's stock benchmark, Ping An Insurance (Group) Co., China mainland's second-biggest insurer, has made a decision to join the Hang Seng Index (HSI). As the sixth Chinese mainland stock adds to Hang Seng, Ping An's joining will promote HSI, especially with H shares in terms of market cap and turnover.

After carefully reviewing Hong Kong's stock benchmark, Ping An Insurance (Group) Co., China mainland's second-biggest insurer, has made a decision to join the Hang Seng Index (HSI). As the sixth Chinese mainland stock adds to Hang Seng, Ping An's joining will promote HSI, especially with H shares in terms of market cap and turnover.

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China Has Room to Raise Reserve Ratio

Although the People's Bank of China failed to slow down lending and inflation by raising the reserve ratio on April 29 to 11 percent, the central bank governor, Zhou Xiaochuan, states that China still has room for taking further steps to raise its reserve ratio to 12 percent or higher. Thus, the central bank can rein in excess liquidity in the upcoming months and has the capability to control inflation.

Although the People's Bank of China failed to slow down lending and inflation by raising the reserve ratio on April 29 to 11 percent, the central bank governor, Zhou Xiaochuan, states that China still has room for taking further steps to raise its reserve ratio to 12 percent or higher. Thus, the central bank can rein in excess liquidity in the upcoming months and has the capability to control inflation.

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ASEAN+3 Agree to Establish Foreign Reserves Pool

The finance ministers of ASEAN plus Japan, China and the Republic of Korea have agreed on setting up a pooling fund from their foreign reserves. This self-managed reserve pooling will be conducted by a single contractual agreement with a gradual approach to ensure the liquidity for currencies and protect the Asian economy against a possible future crisis. Additionally, all ministers announced to accelerate and deepen structural reforms and implement macro-economic policies in order to strengthen cooperation and to support sustainable economic growth.

The finance ministers of ASEAN plus Japan, China and the Republic of Korea have agreed on setting up a pooling fund from their foreign reserves. This self-managed reserve pooling will be conducted by a single contractual agreement with a gradual approach to ensure the liquidity for currencies and protect the Asian economy against a possible future crisis. Additionally, all ministers announced to accelerate and deepen structural reforms and implement macro-economic policies in order to strengthen cooperation and to support sustainable economic growth.

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Biggest Chinese FDI in India

The Chinese Sinosteel is planning to establish a 5 MT steel plant. The project's value amounts to a total of US$4billion, which makes it the biggest Foreign Direct Investment in India ever.

The Chinese Sinosteel is planning to establish a 5 MT steel plant. The project's value amounts to a total of US$4billion, which makes it the biggest Foreign Direct Investment in India ever.

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China's Steel Export to Slow Down in the Second Half

After keeping high growth rates in the first quarter, China's export of steel is expected to slow down in the second half of the year, due to a globally declining demand and export rebates. The vice chairman of the Chinese Iron and Steel Association predicts steel exports to be equal compared to 2006 or to drop slightly in 2007.

After keeping high growth rates in the first quarter, China's export of steel is expected to slow down in the second half of the year, due to a globally declining demand and export rebates. The vice chairman of the Chinese Iron and Steel Association predicts steel exports to be equal compared to 2006 or to drop slightly in 2007.

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China's Stock Bubble Is Warned

Experts say China's equity bubble is building and needs to be cooled down after the central bank raised the ratio of commercial banks deposits to 11 percent, otherwise the stock bubble might quickly bust. Besides increasing interest rates, economists think the authorities should watch carefully to enhance the stock market by adding more quality firms, especially overseas quality companies, to soak up immoderate liquidity.

Experts say China's equity bubble is building and needs to be cooled down after the central bank raised the ratio of commercial banks deposits to 11 percent, otherwise the stock bubble might quickly bust. Besides increasing interest rates, economists think the authorities should watch carefully to enhance the stock market by adding more quality firms, especially overseas quality companies, to soak up immoderate liquidity.

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Asian Pool of Foreign Reserves Shall Support in Case of Financial Crisis

China, Japan and South Korea consider the establishment of a pan-Asian pool of foreign reserves as opportunity to counteract a possible financial crisis in the future. In case of a crisis, this might be a chance to face this threat on a regional level first before turning to cross-regional institutions.

China, Japan and South Korea consider the establishment of a pan-Asian pool of foreign reserves as opportunity to counteract a possible financial crisis in the future. In case of a crisis, this might be a chance to face this threat on a regional level first before turning to cross-regional institutions.

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Major Discovery Increases China's Oil Reserve

The China National Petroleum Corporation (CNPC) reports a new oilfield with a reserve of one billion tons or about 7.35 billion barrels in China's Bohai Bay. This is the largest discovery in the country for over four decades. In 2006, China produced 183.68 million tons of crude oil and consumed 346.55 million tons. This new discovery might reduce China's oil dependency and increase its oil reserve.

The China National Petroleum Corporation (CNPC) reports a new oilfield with a reserve of one billion tons or about 7.35 billion barrels in China's Bohai Bay. This is the largest discovery in the country for over four decades. In 2006, China produced 183.68 million tons of crude oil and consumed 346.55 million tons. This new discovery might reduce China's oil dependency and increase its oil reserve.

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Taiwanese Firms Diminishing in Capital Markets

Taiwan's influence on global capital markets is diminishing as fewer Taiwanese companies have been seen on the list of top 1,000 Greater China enterprises. Compared to last year, a reduction of 40 per cent of Taiwanese companies was seen on the list. Moreover, Chinese firms are beginning to increase, indicating that new companies have been listed within China and share prices of older companies have gone up.

Taiwan's influence on global capital markets is diminishing as fewer Taiwanese companies have been seen on the list of top 1,000 Greater China enterprises. Compared to last year, a reduction of 40 per cent of Taiwanese companies was seen on the list. Moreover, Chinese firms are beginning to increase, indicating that new companies have been listed within China and share prices of older companies have gone up.

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China's Food Prices Boost CPI

China's and the global demand for farm crops to produce biofuel pushes Chinese food prices up and results in China's hiking consumer price index (CPI) in the first quarter of this year. According to the National Bureau of Statistics (NBS), China's overall CPI rose to 3.3 percent in March, 3 percent more than what the central bank and economists expected.

China's and the global demand for farm crops to produce biofuel pushes Chinese food prices up and results in China's hiking consumer price index (CPI) in the first quarter of this year. According to the National Bureau of Statistics (NBS), China's overall CPI rose to 3.3 percent in March, 3 percent more than what the central bank and economists expected.

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China's Trade Surplus Rises 43%

The Chinese Academy of Sciences (CAS) has predicted that China's aggregate trade surplus would rise 42.8 percent since the end of last year to $254.03 billion in 2007. CAS reports that the year's total exports might be up to $1.20 trillion, up 23.7 percent year-on year; and the year's total imports could reach $946 billion, up 19.5 percent in comparison to last year.

The Chinese Academy of Sciences (CAS) has predicted that China's aggregate trade surplus would rise 42.8 percent since the end of last year to $254.03 billion in 2007. CAS reports that the year's total exports might be up to $1.20 trillion, up 23.7 percent year-on year; and the year's total imports could reach $946 billion, up 19.5 percent in comparison to last year.

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China's Home Price Growth Rate Slows Down

Because of effective macro-controlling measures, China's home price growth rate will slow down to less than 5 percent this year according to the Blue Book of Real Estate 2007. However, experts say that it is necessary to set up a sound social security system of houses to support low-income families.

Because of effective macro-controlling measures, China's home price growth rate will slow down to less than 5 percent this year according to the Blue Book of Real Estate 2007. However, experts say that it is necessary to set up a sound social security system of houses to support low-income families.

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China's Steel Firms Gain Profits in the First Quarter

Boosted by the increasing steel price, 99% of the large and medium-sized steel plants in China raised net profits to 34.5 billion yuan ($4.5 billion) in the first quarter of this year. At the same time, due to the high domestic steel consumption, China produced 114.7 million tons of crude steel in January-March period, according to a report from China Iron and Steel Association.

Boosted by the increasing steel price, 99% of the large and medium-sized steel plants in China raised net profits to 34.5 billion yuan ($4.5 billion) in the first quarter of this year. At the same time, due to the high domestic steel consumption, China produced 114.7 million tons of crude steel in January-March period, according to a report from China Iron and Steel Association.

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Asian Financial Chiefs Meet to Discuss Financial Cooperation

The Finance ministers from ASEAN plus Japan, China and South Korea will hold a conference on Saturday in Kyoto to discuss ways to improve financial cooperation, including a deal on multilateral currency swaps. During the meeting, all the issues being discussed are ways to ensure necessary liquidity in a prompt manner in the event of a crisis and to enhance the capabilities of local rating organizations and securitization.

The Finance ministers from ASEAN plus Japan, China and South Korea will hold a conference on Saturday in Kyoto to discuss ways to improve financial cooperation, including a deal on multilateral currency swaps. During the meeting, all the issues being discussed are ways to ensure necessary liquidity in a prompt manner in the event of a crisis and to enhance the capabilities of local rating organizations and securitization.

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China Stocks Hike as Reserve Ratios Rise to 11%

Although China's central bank raised the reserve ratios to 11% at the weekend in order to prevent the economy from overheating, China's main stock index rose and showed an uptrend on Monday. Some experts believe that the reserve ratio rise would not hurt the market a lot, but the risks in stocks market still remain high.

Although China's central bank raised the reserve ratios to 11% at the weekend in order to prevent the economy from overheating, China's main stock index rose and showed an uptrend on Monday. Some experts believe that the reserve ratio rise would not hurt the market a lot, but the risks in stocks market still remain high.

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China Will Cut Export Rebates to Reduce Energy Use

China's National Development and Reform Commission said China would further reduce tax incentives to limit the export of energy-intensive items. However, it has not offered a full list of the items or the reducing rates. The reasons are both rapid investment growth in energy-heavy industries and failure to reach the goal of reducing energy use last year.

China's National Development and Reform Commission said China would further reduce tax incentives to limit the export of energy-intensive items. However, it has not offered a full list of the items or the reducing rates. The reasons are both rapid investment growth in energy-heavy industries and failure to reach the goal of reducing energy use last year.

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China Mobile Becomes 5th Global Brand

China Mobile, the world's largest wireless operator and valued at more than $41 billion, has become the fifth global brand in an influential annual ranking, published in the Financial Times. The ranking was based on brand's earnings, contribution to the parent business and future prospects.

China Mobile, the world's largest wireless operator and valued at more than $41 billion, has become the fifth global brand in an influential annual ranking, published in the Financial Times. The ranking was based on brand's earnings, contribution to the parent business and future prospects.

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China Raises Limit for Bid Price of Stocks

Shanghai Stock Exchange announced that the upper limit for the bidding price of stocks has been raised from current 200 percent of issue price to 900 percent. The lower limit stays at 50 percent. That day the Shanghai Composite Index rose 0.6 percent to close at 3743.96.

Shanghai Stock Exchange announced that the upper limit for the bidding price of stocks has been raised from current 200 percent of issue price to 900 percent. The lower limit stays at 50 percent. That day the Shanghai Composite Index rose 0.6 percent to close at 3743.96.

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China Changes Policies to Control Surplus

The Chinese Ministry of Commerce (MOC) will investigate local governments' export promotion policies and revamp those which hurt state's macro-economic policies and violate WTO rules. In addition, Chinese Premier Wen Jiabao said that China would expand its imports of advanced technology and equipment to rein in surplus.

The Chinese Ministry of Commerce (MOC) will investigate local governments' export promotion policies and revamp those which hurt state's macro-economic policies and violate WTO rules. In addition, Chinese Premier Wen Jiabao said that China would expand its imports of advanced technology and equipment to rein in surplus.

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Chinese Mainland has Become Japan's Top Trade Partner

By the end of March, Japan's total trade with the Chinese mainland has reached 25.43 trillion yen (US$214.8 billion), surpassing Japan's 25.16 trillion yen trade with the United States and the growth of trade with Chinese mainland will continue. As a fast-developing country, Chinese mainland provides cheap labour costs for Japan's imports and a large market for Japan's exports.

By the end of March, Japan's total trade with the Chinese mainland has reached 25.43 trillion yen (US$214.8 billion), surpassing Japan's 25.16 trillion yen trade with the United States and the growth of trade with Chinese mainland will continue. As a fast-developing country, Chinese mainland provides cheap labour costs for Japan's imports and a large market for Japan's exports.

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China's Economy Shows Strong First-quarter Performance

Chinese first quarter GDP has increased by 11.1 percent and the trade surplus reached $46.44 billion. During the last four years Chinese GDP growth always exceeded 8-percent, which is considered to be the ideal development rate to Chinese economy. Therefore, some economists think Chinese economy is overheating. With this background, Tao Dong, Chief Economist of Credit Suisse First Boston (CSFB), points out that Chinese economy growth outlook for the second quarter this year depends on when and how Beijing launches the next round of tightening measures.

Chinese first quarter GDP has increased by 11.1 percent and the trade surplus reached $46.44 billion. During the last four years Chinese GDP growth always exceeded 8-percent, which is considered to be the ideal development rate to Chinese economy. Therefore, some economists think Chinese economy is overheating. With this background, Tao Dong, Chief Economist of Credit Suisse First Boston (CSFB), points out that Chinese economy growth outlook for the second quarter this year depends on when and how Beijing launches the next round of tightening measures.

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China Chooses Consumer-based Economy

Based on a report by McKingsey & Company, China will give up its investment-based development pattern and transform to a consumer-based economy. The reasons are not only the increasing income of Chinese people but also the decreasing repayment rate of investments in China.

Based on a report by McKingsey & Company, China will give up its investment-based development pattern and transform to a consumer-based economy. The reasons are not only the increasing income of Chinese people but also the decreasing repayment rate of investments in China.

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China Mobile Will Invest $ 400 Million in Pakistan

China Mobile, which has invested $460 million in Paktel, will spend more money to expand its network in Pakistan. The investment might be focused on improving Paktel's sales systems and building new brands. The purpose for investment is to garner experience from the venture which could be applied to China Mobile's further overseas expansion.

China Mobile, which has invested $460 million in Paktel, will spend more money to expand its network in Pakistan. The investment might be focused on improving Paktel's sales systems and building new brands. The purpose for investment is to garner experience from the venture which could be applied to China Mobile's further overseas expansion.

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Foreign Banks Start Yuan Service in China

Four foreign banks---HSBC, Citigroup, Standard Chartered Bank and the Bank of East Asia will offer full banking service to large numbers of domestic residents in China. Besides the wealth management, the four overseas institutions can now provide mortgage loans and expand funding sources for corporate banking business.

Four foreign banks---HSBC, Citigroup, Standard Chartered Bank and the Bank of East Asia will offer full banking service to large numbers of domestic residents in China. Besides the wealth management, the four overseas institutions can now provide mortgage loans and expand funding sources for corporate banking business.

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Chinese Stocks Continue Rising

Without fears of an interest rate hike, more investors jumped into Chinese stock markets and made both Shanghai and Shenzhen Composite Index soar on last Friday. An analyst pointed out that the stock market would likely continue going up and investors may keep buying large caps before the launch of index futures for arbitrage purposes.

Without fears of an interest rate hike, more investors jumped into Chinese stock markets and made both Shanghai and Shenzhen Composite Index soar on last Friday. An analyst pointed out that the stock market would likely continue going up and investors may keep buying large caps before the launch of index futures for arbitrage purposes.

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China and Australia Begin Free Trade Talk

The two countries' Trade and Commerce Ministers hope to achieve progress in free-trade talks before Chinese President Hu Jintao's visit in September. Australia is interested in the liberalization of the service industry and agricultural industry in China. Based on official Chinese statistics, trade between both countries reached 6.27 billion dollars in the first three months of 2007.

The two countries' Trade and Commerce Ministers hope to achieve progress in free-trade talks before Chinese President Hu Jintao's visit in September. Australia is interested in the liberalization of the service industry and agricultural industry in China. Based on official Chinese statistics, trade between both countries reached 6.27 billion dollars in the first three months of 2007.

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Competition and Cooperation between Chinese and Foreign Banks

Compared with the newly arrived foreign banks, Chinese banks have already taken the advantage in Chinese customers' trust and financial network. However, as the ideal working partners, foreign banks can bring advanced banking management and provide incentives for Chinese banks.

Compared with the newly arrived foreign banks, Chinese banks have already taken the advantage in Chinese customers' trust and financial network. However, as the ideal working partners, foreign banks can bring advanced banking management and provide incentives for Chinese banks.

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Chinese Central Government to Rein in Investment

The central government will introduce stricter controls on fixed-asset investment as well as rein in growth of liquidity. The State Council stressed the need to strengthen macroeconomic controls to facilitate change in the growth pattern and prevent the economy from overheating.

The central government will introduce stricter controls on fixed-asset investment as well as rein in growth of liquidity. The State Council stressed the need to strengthen macroeconomic controls to facilitate change in the growth pattern and prevent the economy from overheating.

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Interest Rates Set to Rise in China for Stable Growth Economists Believe

According to the release Thursday of China's key economic figures, economists speculate that authorities might once again raise interest rates to maintain stable economic growth. A senior analyst with the Beijing-based CITIC Securities said that although the growth is strong, it has not become "overheated".

According to the release Thursday of China's key economic figures, economists speculate that authorities might once again raise interest rates to maintain stable economic growth. A senior analyst with the Beijing-based CITIC Securities said that although the growth is strong, it has not become "overheated".

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EU Can Benefit From Future Trade with China

Despite recent trade frictions, the latest EU report suggests China and the European Union will experience more opportunities in 2007. There are several obstacles hindering trade relations between China and EU as first and foremost the prevalence of protectionism. However, the EU is supposed to develop independent and fair trading policies with China.

Despite recent trade frictions, the latest EU report suggests China and the European Union will experience more opportunities in 2007. There are several obstacles hindering trade relations between China and EU as first and foremost the prevalence of protectionism. However, the EU is supposed to develop independent and fair trading policies with China.

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China's Bank Cards Number Reaches 1.1b

According to Chinese central bank on Wednesday, Chinese banks have issued 1.08 billioin debit cards and 50 million credit cards. Due to rapidly expanding bank card market, China's bank card payment system had basically taken shape.

According to Chinese central bank on Wednesday, Chinese banks have issued 1.08 billioin debit cards and 50 million credit cards. Due to rapidly expanding bank card market, China's bank card payment system had basically taken shape.

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China's CPI Index Rises 3.3 percent in March

China's consumer price index (CPI) rose 3.3 percent in March compared with a year ago. On Thursday (04/19) the index reached the highest rate within 25 months after it hit 3.9 percent in February 2005.

China's consumer price index (CPI) rose 3.3 percent in March compared with a year ago. On Thursday (04/19) the index reached the highest rate within 25 months after it hit 3.9 percent in February 2005.

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Regulation Cannot Stop Property Investment from Foreigners

The regulations of Chinese government had been issued in order to limit foreign investors' access to domestic property market. By the end of 2006, there were 344 foreign property developers in Beijing, 9.9% more than 2005. In 2006, foreign investors made 26.67 billion yuan of investment in the Beijing market.

The regulations of Chinese government had been issued in order to limit foreign investors' access to domestic property market. By the end of 2006, there were 344 foreign property developers in Beijing, 9.9% more than 2005. In 2006, foreign investors made 26.67 billion yuan of investment in the Beijing market.

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Chinese Stocks Fall and Inflation Accelerates

Chinese stocks nosedived nearly five per cent Thursday amid fears of an interest rate hike to slow down the booming economy and curb inflation. The benchmark Shanghai Composite Index, the most widely watched indicator of the mainland's stock market, lost 4.52 per cent to end at 3,449.01.

Chinese stocks nosedived nearly five per cent Thursday amid fears of an interest rate hike to slow down the booming economy and curb inflation. The benchmark Shanghai Composite Index, the most widely watched indicator of the mainland's stock market, lost 4.52 per cent to end at 3,449.01.

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Free Trade Agreement between China and Pakistan

As a first step to expand strategical partnership between China and Pakistan, both countries have signed agreements to cooperate more intensely in fields such as space, telecommunications, education and legal assistance. Further, they want to focus on the implementation of a five-year plan for economic and trade cooperation.

As a first step to expand strategical partnership between China and Pakistan, both countries have signed agreements to cooperate more intensely in fields such as space, telecommunications, education and legal assistance. Further, they want to focus on the implementation of a five-year plan for economic and trade cooperation.

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china

China Looking Towards Markets Other Than The U.S. For Its Exports

The sentiment expressed by Chinese business executives at China's main trade fair this week has been the same -- the American market is still important for China's exports, but not as important as it used to be. Factors cited are the steady decline of the dollar against China's currency, weaker growth in the U.S. economy and rising U.S. protectionism. The fastest growth these days for exports lies in Europe, Africa, the Mideast, South America and elsewhere in Asia.

The sentiment expressed by Chinese business executives at China's main trade fair this week has been the same -- the American market is still important for China's exports, but not as important as it used to be. Factors cited are the steady decline of the dollar against China's currency, weaker growth in the U.S. economy and rising U.S. protectionism. The fastest growth these days for exports lies in Europe, Africa, the Mideast, South America and elsewhere in Asia.

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china

China: World's Largest Foreign Reserves

China plans to build a multibillion-dollar company to invest some of it's stockpile. Currently, the country holds the world's largest foreign reserves at more than US $1.2 trillion. China's reserves have apparently risen due to huge trade surpluses and foreign investment. It is believed that the rising reserves show a sign of China's failure in balancing the flow of money in the economy.

China plans to build a multibillion-dollar company to invest some of it's stockpile. Currently, the country holds the world's largest foreign reserves at more than US $1.2 trillion. China's reserves have apparently risen due to huge trade surpluses and foreign investment. It is believed that the rising reserves show a sign of China's failure in balancing the flow of money in the economy.

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Shanghai Sets Record High of 3563.856

After nine consecutive days of gaining, the Shanghai Composite Index finally outreached the mark of 3500 on Thursday. The turnover establishes a record as well having traded shares reaching a volume of 165.6 billion yuan ($21.5 billion).

After nine consecutive days of gaining, the Shanghai Composite Index finally outreached the mark of 3500 on Thursday. The turnover establishes a record as well having traded shares reaching a volume of 165.6 billion yuan ($21.5 billion).

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china

Brunei and China About to Intensify ICT Cooperation

At their latest bilateral meeting the Minister of Communications of Brunei, Pehin Orang Kaya Seri Kerna Dato Seri Setia Hj Awg Abu Bakar bin Hj Apong, and China's Vice Minister of Information Industry Jiang Yaoping, have emphasized the meaning of a tighter relationship, especially within the sector of Information and Communication Technology to strengthen their economies.

At their latest bilateral meeting the Minister of Communications of Brunei, Pehin Orang Kaya Seri Kerna Dato Seri Setia Hj Awg Abu Bakar bin Hj Apong, and China's Vice Minister of Information Industry Jiang Yaoping, have emphasized the meaning of a tighter relationship, especially within the sector of Information and Communication Technology to strengthen their economies.

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china

China and Japan Pledge for Better Relationship

Japanese and Chinese leaders met in Tokyo, pledging to work together and rebuild a relationship that has been marred by disputes over World War II and territory. Chinese Premier Wen Jiabao is the first Chinese leader to visit Japan in seven years, taking a big step in attempting to salvage a fragile relationship. The two countries mutually agreed to aid each other on various topics including energy and the environment.

Japanese and Chinese leaders met in Tokyo, pledging to work together and rebuild a relationship that has been marred by disputes over World War II and territory. Chinese Premier Wen Jiabao is the first Chinese leader to visit Japan in seven years, taking a big step in attempting to salvage a fragile relationship. The two countries mutually agreed to aid each other on various topics including energy and the environment.

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china

China's Money Supply Exceeds Central Bank's Target

For the second consecutive month, China's money supply exceeded central bank's targets. Foreign exchange reserves soar to a record $ 1.2 trilion. Thus, pressure on the government increases to allow faster Yuan gains.

For the second consecutive month, China's money supply exceeded central bank's targets. Foreign exchange reserves soar to a record $ 1.2 trilion. Thus, pressure on the government increases to allow faster Yuan gains.

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china

China Overtakes US in Exports

In releasing the first batch of its 2006 Global Trade Statistics the World Trade Organisation (WTO) states that China has overtaken the US in terms of exports in the last six months of 2006. Provided that China maintains its current growth rates, it will overtake Germany as the world's biggest exporter in 2008. In the meantime, the US have filed two complaints against China at the WTO concerning copyright policy and restrictions of the sale of American media.

In releasing the first batch of its 2006 Global Trade Statistics the World Trade Organisation (WTO) states that China has overtaken the US in terms of exports in the last six months of 2006. Provided that China maintains its current growth rates, it will overtake Germany as the world's biggest exporter in 2008. In the meantime, the US have filed two complaints against China at the WTO concerning copyright policy and restrictions of the sale of American media.

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IMF: China and India drive Growth in Asia

The International Monetary Fund (IMF) recently has published its semiannual World Economic Outlook report, stating that emerging Asian economies, mainly driven by China and India will see an overall growth of 8.4 percent this year. This means a slight reduction compared to last year's 8.9 percent. As reason for the lower pace of growth the IMF states the decline of US influence.

The International Monetary Fund (IMF) recently has published its semiannual World Economic Outlook report, stating that emerging Asian economies, mainly driven by China and India will see an overall growth of 8.4 percent this year. This means a slight reduction compared to last year's 8.9 percent. As reason for the lower pace of growth the IMF states the decline of US influence.

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Third Day Rise for Asia Stocks -- Record Highs in China, South Korea and Indonesia Indexes

Asia stocks rose for a third day, with some indexes reaching record highs. Advances were seen in the technology, transportation and mining sectors.

Asia stocks rose for a third day, with some indexes reaching record highs. Advances were seen in the technology, transportation and mining sectors.

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U.S. Still Concerned Over China's Trade Surplus, Despite Unexpected March Decline

China's montlhy trade surplus in March dratically declined to about US$6.9 billion, about 29% of that recorded for February. However, despite this unexpected decline, analysts agreed that this was an anomaly and that the U.S. would continue to put pressure on Bejing to do more to trim its surplus. Political pressure from Washington over China's large trade surplus has prompted the U.S. to take certain recent actions to address what the U.S. considers unfair practices by China.

China's montlhy trade surplus in March dratically declined to about US$6.9 billion, about 29% of that recorded for February. However, despite this unexpected decline, analysts agreed that this was an anomaly and that the U.S. would continue to put pressure on Bejing to do more to trim its surplus. Political pressure from Washington over China's large trade surplus has prompted the U.S. to take certain recent actions to address what the U.S. considers unfair practices by China.

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Caution Urged for Small Investors

Though the Chinese market is considered the 'hot' market, a Chinese mutual fund manager urges small investors to be cautious when considering Chinese investments, as most companies are badly managed public companies with incomplete financial statements, and are risky investment opportunities.

Though the Chinese market is considered the 'hot' market, a Chinese mutual fund manager urges small investors to be cautious when considering Chinese investments, as most companies are badly managed public companies with incomplete financial statements, and are risky investment opportunities.

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China More Selectively Chooses Foreign Investment

The past years have seen immense amounts of uncontrolled foreign direct investment in China. However, by refusing an offer from the Carlyle Group to purchase part of Chongqing City Commercial Bank, the China Banking Regulatory Commission is showing a more intense opposition to private equity investments which are not deemed helpful to the Chinese economy in the long run.

The past years have seen immense amounts of uncontrolled foreign direct investment in China. However, by refusing an offer from the Carlyle Group to purchase part of Chongqing City Commercial Bank, the China Banking Regulatory Commission is showing a more intense opposition to private equity investments which are not deemed helpful to the Chinese economy in the long run.

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China and Russia Agree to Boost Trade

Chinese President Hu Jintao signed a series of agreements with the primary objective of boosting economic and political relations between China and Russia. Involved in these agreements is cooperation between the industries of oil transportation, technology, and banking. Investment is also expected to increase as a result. Experts see this as an example of Russia shifting away from Western powers and developing closer ties with the Far East.

Chinese President Hu Jintao signed a series of agreements with the primary objective of boosting economic and political relations between China and Russia. Involved in these agreements is cooperation between the industries of oil transportation, technology, and banking. Investment is also expected to increase as a result. Experts see this as an example of Russia shifting away from Western powers and developing closer ties with the Far East.

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china

Unchecked Investments Leading to Overexpansion

Recognizing that the Chinese market may be over-producing, leading to falling prices and a market that is "heating up", Chinese officials are raising interest rates, increasing banks' reserve requirements, and may raise taxes on exports. Officials are also encouraging city governments to focus on environmental programs rather than factory building to decrease annual growth to below 9.6%.

Recognizing that the Chinese market may be over-producing, leading to falling prices and a market that is "heating up", Chinese officials are raising interest rates, increasing banks' reserve requirements, and may raise taxes on exports. Officials are also encouraging city governments to focus on environmental programs rather than factory building to decrease annual growth to below 9.6%.

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China Strives to Balance Trade Surplus

The Chinese commerce ministry makes an effort to balance their trade surplus, passing legislation to allow domestic firms to import materials and products. Aside from balancing the surplus, officials cite a goal of improving the quality of exports.

The Chinese commerce ministry makes an effort to balance their trade surplus, passing legislation to allow domestic firms to import materials and products. Aside from balancing the surplus, officials cite a goal of improving the quality of exports.

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NK Demands Money from Previous Macau Bank Issue

North Korea will not shut its nuclear facility until it gets back all of its money that has been frozen in a Macau bank, North Korean Vice Foreign Minister Kim Kye Gwan said. "If all the money is not released, we will stop our cooperation," said Kim, who arrived today in Beijing to attend six-nation nuclear dismantlement talks that will be hosted by China at the Diaoyutai State Guesthouse.

North Korea will not shut its nuclear facility until it gets back all of its money that has been frozen in a Macau bank, North Korean Vice Foreign Minister Kim Kye Gwan said. "If all the money is not released, we will stop our cooperation," said Kim, who arrived today in Beijing to attend six-nation nuclear dismantlement talks that will be hosted by China at the Diaoyutai State Guesthouse.

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Major Gas Fields Found in Southwest China by Sinopec

Oil giant Sinopec announced its discovery of vast amounts of gas fields in southwest China's Sichuan province, the China Securities Journal reported on friday. Although, the exact amount of gas field reserves cannot be determined yet, experts say that the new gas fields will make an enormous contribution in meeting China's gas demands.

Oil giant Sinopec announced its discovery of vast amounts of gas fields in southwest China's Sichuan province, the China Securities Journal reported on friday. Although, the exact amount of gas field reserves cannot be determined yet, experts say that the new gas fields will make an enormous contribution in meeting China's gas demands.

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Chinese Inflation Pushed by Food Prices

Chinese inflation in February was 2.7% greater than the same month a year before, according to the National Bureau of Statistics. The inflation rise was largely caused by a 6% increase in food prices. Some foods, including eggs and meat, increased in price as much as 30% from a year before. Economists disagree over whether food prices will continue to rise as sharply.

Chinese inflation in February was 2.7% greater than the same month a year before, according to the National Bureau of Statistics. The inflation rise was largely caused by a 6% increase in food prices. Some foods, including eggs and meat, increased in price as much as 30% from a year before. Economists disagree over whether food prices will continue to rise as sharply.

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Intel to Invest $2.5 Billion in China

The Chinese government has announced that Intel, the world's largest semiconductor maker, will build a $2.5 billion in the Chinese city of Dalian. The factory would be the second largest foreign-financed project in China's history. The move is expected to help meet the surging Chinese demand for computer chips.

The Chinese government has announced that Intel, the world's largest semiconductor maker, will build a $2.5 billion in the Chinese city of Dalian. The factory would be the second largest foreign-financed project in China's history. The move is expected to help meet the surging Chinese demand for computer chips.

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Chinese Trade Surplus Surges

The Chinese trade surplus hit $23.76 billion in February, the second biggest monthly surplus ever and almost three times larger than most economists predicted. So far in 2007, the cumulative trade surplus for China has been $39.6 billion. The large numbers are putting further pressure on Chinese officials to loosen currency restrictions in order to allow the yuan to appreciate. Without some changes, China could face sanctions from the US.

The Chinese trade surplus hit $23.76 billion in February, the second biggest monthly surplus ever and almost three times larger than most economists predicted. So far in 2007, the cumulative trade surplus for China has been $39.6 billion. The large numbers are putting further pressure on Chinese officials to loosen currency restrictions in order to allow the yuan to appreciate. Without some changes, China could face sanctions from the US.

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Winning the Race for Tourist's Dollars: Beijing's Olympic Games

On JUNE 13, 2001, Beijing, China was awarded the 2008 Olympics. The selection was announced following an intense selection process and the investment of millions of dollars in planning and logistics. The hard work, however, had just begun.

In recent history, the Olympic Games have a mixed record of generating profits for their host cities and countries. The 1976 Montreal Olympics sustained a loss of almost US $1 billion, and it took 20 years for the city to recover. Only eight years later, Peter Ueberroth created a new model for Olympic economic success as he organized a completely privately funded 1984 Olympic Games in Los Angeles. This new approach resulted in a net profit of US $250 million.

The latest example, the 2004 games in Athens, Greece was an unmitigated economic disaster, due largely to the stubbornness of the Athens Olympic Organizing Committee. At one point, the committee ordered the dismantling of 10,000 billboards that had been erected in Athens. The organizers of the Athens games were far too focused on preserving the purity of the Olympic sprit and not focused enough on the tremendous economic stakes.

China's Path so Far

China intends for the Beijing Games to be "the frugal games", and this intention was reinforced by the Athens debacle. Projections made public in 2004 put the cost of the Beijing Games between 20 and 40 US Billion. The reasons for the high cost includes the construction of new venues, some intended for outlandish uses, such as a kayaking facility, and other more conventional venues, such as the track and field stadium. Security costs will also be extreme, and logistics alone is a task of biblical proportions. US 5 billion has been set aside for logistics, including the movement of 75,000 tons of equipment, 2000 transport vehicles, and even trash removal from the athlete's village.

The main Olympic stadium, dubbed the "bird's nest" for its interlocking steel roof construction alone will cost 2 billion yuan, down from an original estimate of 4.2 billion yuan. This cost cutting is representative of a general decrease from the outlandish original estimates that were crucial parts of the winning proposal. A retractable roof has been eliminated, for a net savings of US $37 million.

Sources of Revenue in No Short Supply

In pursuit of profit, China, as one might expect, has chosen to take a different route than that of the 1984 Los Angeles Games. The Beijing Olympics is to be one financed primarily by state run enterprises like the Bank of China, China Mobile, and China Netcom. However, Western firms have joined the fray, with the likes of Volkswagen, General Electric, and McDonalds all throwing their sponsorship dollars into the ring.

Striking a balance between the desire to produce a remarkable spectacle, and the need to recoup losses is not an easy task. Luckily, the Olympics provide several avenues for profit. For example, China stands to gain US $240 million from television royalties alone. The service industry stands to gain the most from the festivities, as some forecasts project commercial opportunities in the range of 3 trillion yuan.

The effects of the Olympic games are already permeating Chinese culture. Following the announcement of the winning bid, Chinese revelers spent the night celebrating in the streets, a rare occurrence. Workers in crucial industries have already enrolled in English language classes, financed by the Olympic Committee.

In its original 1999 proposal, China expected to see income of US $1.625 billion, which would make it the second most profitable games in history, behind only Sydney. This projection now seems a bit conservative, given the already rapid flow of advertising dollars into the city.

The road to Beijing is a long one, but with some construction projects ahead of schedule, it is clear that China is prepared to show the world that moderation and frugality may be the best model for Olympic host cities.

On JUNE 13, 2001, Beijing, China was awarded the 2008 Olympics. The selection was announced following an intense selection process and the investment of millions of dollars in planning and logistics. The hard work, however, had just begun.

In recent history, the Olympic Games have a mixed record of generating profits for their host cities and countries. The 1976 Montreal Olympics sustained a loss of almost US $1 billion, and it took 20 years for the city to recover. Only eight years later, Peter Ueberroth created a new model for Olympic economic success as he organized a completely privately funded 1984 Olympic Games in Los Angeles. This new approach resulted in a net profit of US $250 million.

The latest example, the 2004 games in Athens, Greece was an unmitigated economic disaster, due largely to the stubbornness of the Athens Olympic Organizing Committee. At one point, the committee ordered the dismantling of 10,000 billboards that had been erected in Athens. The organizers of the Athens games were far too focused on preserving the purity of the Olympic sprit and not focused enough on the tremendous economic stakes.

China's Path so Far

China intends for the Beijing Games to be "the frugal games", and this intention was reinforced by the Athens debacle. Projections made public in 2004 put the cost of the Beijing Games between 20 and 40 US Billion. The reasons for the high cost includes the construction of new venues, some intended for outlandish uses, such as a kayaking facility, and other more conventional venues, such as the track and field stadium. Security costs will also be extreme, and logistics alone is a task of biblical proportions. US 5 billion has been set aside for logistics, including the movement of 75,000 tons of equipment, 2000 transport vehicles, and even trash removal from the athlete's village.

The main Olympic stadium, dubbed the "bird's nest" for its interlocking steel roof construction alone will cost 2 billion yuan, down from an original estimate of 4.2 billion yuan. This cost cutting is representative of a general decrease from the outlandish original estimates that were crucial parts of the winning proposal. A retractable roof has been eliminated, for a net savings of US $37 million.

Sources of Revenue in No Short Supply

In pursuit of profit, China, as one might expect, has chosen to take a different route than that of the 1984 Los Angeles Games. The Beijing Olympics is to be one financed primarily by state run enterprises like the Bank of China, China Mobile, and China Netcom. However, Western firms have joined the fray, with the likes of Volkswagen, General Electric, and McDonalds all throwing their sponsorship dollars into the ring.

Striking a balance between the desire to produce a remarkable spectacle, and the need to recoup losses is not an easy task. Luckily, the Olympics provide several avenues for profit. For example, China stands to gain US $240 million from television royalties alone. The service industry stands to gain the most from the festivities, as some forecasts project commercial opportunities in the range of 3 trillion yuan.

The effects of the Olympic games are already permeating Chinese culture. Following the announcement of the winning bid, Chinese revelers spent the night celebrating in the streets, a rare occurrence. Workers in crucial industries have already enrolled in English language classes, financed by the Olympic Committee.

In its original 1999 proposal, China expected to see income of US $1.625 billion, which would make it the second most profitable games in history, behind only Sydney. This projection now seems a bit conservative, given the already rapid flow of advertising dollars into the city.

The road to Beijing is a long one, but with some construction projects ahead of schedule, it is clear that China is prepared to show the world that moderation and frugality may be the best model for Olympic host cities.

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china

China-Japan Trade Increases

Trade between China and Japan increased to US$211 billion in 2006, a government-affiliated trade organization announced today. China is currently Japan's 2nd largest trading partner, accounting for 17.2% of total trade, though it is expected to pass the US for the number one trading partner position in 2007. Japan's trade deficit with China shrank to US$25.5 billion, down from US$28.7 billion in 2005.

Trade between China and Japan increased to US$211 billion in 2006, a government-affiliated trade organization announced today. China is currently Japan's 2nd largest trading partner, accounting for 17.2% of total trade, though it is expected to pass the US for the number one trading partner position in 2007. Japan's trade deficit with China shrank to US$25.5 billion, down from US$28.7 billion in 2005.

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China Defends Environmental, Energy Policy

Largely cited as an environmentally destructive country, top planner Ma Kai defended China's energy consumption, pointing out that it has 1/5 of the world's population for being the second highest consumer of crude oil, so per capita consumption is low. China is becoming largely self reliant for its energy. The country is working on its low environmental standards, but planners point out that they cannot slash pollution drastically without harming GDP growth.

Largely cited as an environmentally destructive country, top planner Ma Kai defended China's energy consumption, pointing out that it has 1/5 of the world's population for being the second highest consumer of crude oil, so per capita consumption is low. China is becoming largely self reliant for its energy. The country is working on its low environmental standards, but planners point out that they cannot slash pollution drastically without harming GDP growth.

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Chinese Economist Downplays China's Influence

The Chinese market is widely believed to be influential enough to act as a barometer for the world markets. However, a top Chinese economist denies that the "relatively small" Chinese stock market is developed enough to have caused the recent decline in stocks globally. Ma Kai insists that China's stock market slump should not be blamed for other countries' stock performances.

The Chinese market is widely believed to be influential enough to act as a barometer for the world markets. However, a top Chinese economist denies that the "relatively small" Chinese stock market is developed enough to have caused the recent decline in stocks globally. Ma Kai insists that China's stock market slump should not be blamed for other countries' stock performances.

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China to Raise Corp Tax Rates for Foreign Firms

China has announced plans to create a standard tax rate of 25% for both foreign and domestic-owned companies starting in 2008. The current rates are 15% for foreign-owned firms and 33% for domestic ones. Special tax cuts will be available to sectors that are environmentally friendly. Current foreign-owned companies will enjoy a 5-year grace period before the new rates take effect. The new law is expected to shrink tax revenue by US$12 billion.

China has announced plans to create a standard tax rate of 25% for both foreign and domestic-owned companies starting in 2008. The current rates are 15% for foreign-owned firms and 33% for domestic ones. Special tax cuts will be available to sectors that are environmentally friendly. Current foreign-owned companies will enjoy a 5-year grace period before the new rates take effect. The new law is expected to shrink tax revenue by US$12 billion.

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Emerging Stock Markets Surge Back

The MCSI index of emerging market stocks rose yesterday for the first time since tumbling 10% last week. Indices in China, Malaysia, and the Philippines rose 2.7%, 2.3%, and 3% respectively. The surges came on the heals of US Treasury Secretary Henry Paulson announcing that global economic growth is 'solid.'

The MCSI index of emerging market stocks rose yesterday for the first time since tumbling 10% last week. Indices in China, Malaysia, and the Philippines rose 2.7%, 2.3%, and 3% respectively. The surges came on the heals of US Treasury Secretary Henry Paulson announcing that global economic growth is 'solid.'

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Shanghai Home Prices Fall

Residence prices fell 4.6% in February in the Chinese city of Shanghai, ehomeday.com reported Tuesday. The volume of sales also fell 44% compared to January. The slumps were blamed on both the Spring Festival holiday and government policies enacted last year to keep real estate prices down.

Residence prices fell 4.6% in February in the Chinese city of Shanghai, ehomeday.com reported Tuesday. The volume of sales also fell 44% compared to January. The slumps were blamed on both the Spring Festival holiday and government policies enacted last year to keep real estate prices down.

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China Grants UBS AG Brokerage Ownership

UBS AG has made an agreement to take ownership of Chinese brokerage firm Beijing Securities as soon as the law permits, taking advantage of a reversal of September's decision to stop granting international firms brokerage licenses. UBS will be part of the $55 billion of stock trades made in the largely domestic, closed Chinese market. Beijing Securities holds negative assets of 1.68 billion yuan and lost 160.2 million yuan in 2004.

UBS AG has made an agreement to take ownership of Chinese brokerage firm Beijing Securities as soon as the law permits, taking advantage of a reversal of September's decision to stop granting international firms brokerage licenses. UBS will be part of the $55 billion of stock trades made in the largely domestic, closed Chinese market. Beijing Securities holds negative assets of 1.68 billion yuan and lost 160.2 million yuan in 2004.

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China: Social Insurance for an Aging Workforce

Asian countries are experiencing an increase in the number of elderly people relative to the overall population. This change can be attributed to declining fertility rates and increasing longevity. Lesser developed nations may find it more difficult to respond to the needs of this growing aging population.

Amid the Asian nations, China faces a unique situation,. The number of people over the age of 60 has already reached 143 million, or 11 percent of the population. By 2010, the elderly population is expected to increase 174 million, or 12.78 percent of the total population.. This increase translates into a decreasing labor force.

Developed nations experienced an increase in the elderly population after modernization, when the per capita GDP was between 5,000 and 10,000 dollars. China is not fully modernized or developed, and the per capita GDP is hardly 1,000 dollars.

The government may not necessarily have foreseen this development. Traditionally, younger family members would care for their elders, but they are not always willing or able to do so today. Nonetheless, the elderly are likely to have high expectations of officials. Until the 1980s, China had a laudable universal medical care program. The program deteriorated as the country began to privatize.

China has already taken measures to restructure existing social insurance programs and develop new initiatives. The Chinese Association of Life Care, founded in April 2006, has addressed issues such as palliative care, gerontology research, and healthcare for the elderly. In September, the China National Committee on Aging established a national program on the aging for the 11th Five-Year Program period (2006-2010). Two areas of great concern include pension plans and healthcare.

The nation has restructured its outdated, debt-ridden pension program. Asian nations employ two different types of systems to manage the risks associated with retirement income and medical care. The Central Provident Funds (CPF) of Singapore and Malaysia use the defined contribution (DC) approach. The DC subsidizes large expenditures such as housing, education, and sometimes medical care. It also provides a variable benefit, a lump sum payment that can translate into 20 to 40 percent of a worker's income upon purchasing an annuity.

In contrast, the defined benefit (DB) approach employed in India, Korea, the Philippines and Thailand is employee-sponsored and relies on current contributions. Contributions vary according to operational costs; therefore, DB is not as effective if the elderly population continues to increase. The new Chinese pension system utilizes a mandatory DB approach as its first tier, a mandatory funded DC as its second tier, and a voluntary saving scheme as its last tier. The government must continue to improve access to care, especially for the 65.82 percent of the elderly population in rural areas. The program currently addresses the needs of less than one fourth of the population.

A government medical program aims to provide care to more senior citizens in poor areas. There are plans to increase accommodations in elderly nursing homes by 800,000 in urban areas and 2.2 million in rural areas within the next five years. At present, these homes only accommodate 1.2 million people. The government must see the long term payoff for providing better healthcare is that the aged labor force can work longer. Experts are encouraging the government to postpone the retirement age to 63 or 65.

The government has been pursuing a policy of fiscal consolidation so that it can fund these programs. It also plans to build 10,000 colleges and schools for elderly people by 2010.

Asian countries are experiencing an increase in the number of elderly people relative to the overall population. This change can be attributed to declining fertility rates and increasing longevity. Lesser developed nations may find it more difficult to respond to the needs of this growing aging population.

Amid the Asian nations, China faces a unique situation,. The number of people over the age of 60 has already reached 143 million, or 11 percent of the population. By 2010, the elderly population is expected to increase 174 million, or 12.78 percent of the total population.. This increase translates into a decreasing labor force.

Developed nations experienced an increase in the elderly population after modernization, when the per capita GDP was between 5,000 and 10,000 dollars. China is not fully modernized or developed, and the per capita GDP is hardly 1,000 dollars.

The government may not necessarily have foreseen this development. Traditionally, younger family members would care for their elders, but they are not always willing or able to do so today. Nonetheless, the elderly are likely to have high expectations of officials. Until the 1980s, China had a laudable universal medical care program. The program deteriorated as the country began to privatize.

China has already taken measures to restructure existing social insurance programs and develop new initiatives. The Chinese Association of Life Care, founded in April 2006, has addressed issues such as palliative care, gerontology research, and healthcare for the elderly. In September, the China National Committee on Aging established a national program on the aging for the 11th Five-Year Program period (2006-2010). Two areas of great concern include pension plans and healthcare.

The nation has restructured its outdated, debt-ridden pension program. Asian nations employ two different types of systems to manage the risks associated with retirement income and medical care. The Central Provident Funds (CPF) of Singapore and Malaysia use the defined contribution (DC) approach. The DC subsidizes large expenditures such as housing, education, and sometimes medical care. It also provides a variable benefit, a lump sum payment that can translate into 20 to 40 percent of a worker's income upon purchasing an annuity.

In contrast, the defined benefit (DB) approach employed in India, Korea, the Philippines and Thailand is employee-sponsored and relies on current contributions. Contributions vary according to operational costs; therefore, DB is not as effective if the elderly population continues to increase. The new Chinese pension system utilizes a mandatory DB approach as its first tier, a mandatory funded DC as its second tier, and a voluntary saving scheme as its last tier. The government must continue to improve access to care, especially for the 65.82 percent of the elderly population in rural areas. The program currently addresses the needs of less than one fourth of the population.

A government medical program aims to provide care to more senior citizens in poor areas. There are plans to increase accommodations in elderly nursing homes by 800,000 in urban areas and 2.2 million in rural areas within the next five years. At present, these homes only accommodate 1.2 million people. The government must see the long term payoff for providing better healthcare is that the aged labor force can work longer. Experts are encouraging the government to postpone the retirement age to 63 or 65.

The government has been pursuing a policy of fiscal consolidation so that it can fund these programs. It also plans to build 10,000 colleges and schools for elderly people by 2010.

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china

China Looks For Growth Reform

Chinese Premier Wen Jiabao announced on Monday that the government will look to foster more manageable and susatainable growth in the future. Among the changes sought are better environmental controls, a lessening of the income gap between rich and poor, and lower inflation rates. Recently, China has focused solely on increasing growth but now is shifting to addressing the costs of expansion.

Chinese Premier Wen Jiabao announced on Monday that the government will look to foster more manageable and susatainable growth in the future. Among the changes sought are better environmental controls, a lessening of the income gap between rich and poor, and lower inflation rates. Recently, China has focused solely on increasing growth but now is shifting to addressing the costs of expansion.

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Vietnamese Consumer Trends: Lessons From China

Vietnam underwent significant economic change since beginning its economic renovation program in 1986. The socialist government has loosened control over the economy and relaxed restrictions on foreign investment. In response, the Vietnamese economy has grown on average of 8 percent for the past several years, and analysts expect the trend to continue through 2011.

There are important parallels between China and Vietnam, and prospective investors can learn much from the Chinese experience. The Chinese economy has grown upwards of 9 percent for the past several years, and the country's consumer market now represents the largest market for new purchases, including automobiles, mobile phones, and electronics. The Chinese market and private consumption have been closely tied to urbanization.Urban incomes are generally higher, and consumers have better access to retail outlets. Consumer behavior has been another component. In general, Chinese consumers are spending more and saving less.Taken together, these trends have made the Chinese market a popular investment opportunity.

Vietnam has developed in a manner similar to China, and the country's consumer market seems set to follow China's example. Vietnam's current growth has come from mobilizing surplus labor, and many Vietnamese have relocated from the countryside to urban centers.

Changing demographic and employment trends have affected the Vietnamese market. Demographically, young Vietnamese have shown more consumer confidence than their parents, and spend more than they save.2 Consumer demand has also expanded for what were previously considered luxury items. Cars have begun to replace the more traditional bicycle and motor scooter as the preferred means of transportation. Most interesting has been the increase in luxury car sales. Sales of Mercedes Benz doubled during 2002.3 Department stores and retail outlets have become more popular among Vietnamese, and the Malaysian-owned Parkson Group has recently carved out a niche in the Vietnamese market.4 Even the Vietnamese diet has changed, providing an opportunity for new investment. Vietnam has seen an increase in per-capita milk consumption, especially in urban regions, and analysts have directly linked dairy consumption to economic growth.5

These trends are likely to continue. Asian Development Bank expects Vietnamese domestic demand to continue to grow by 8.5 percent for the next two years. The Vietnamese government has consistently prioritized economic growth and has taken measures to boost domestic demand.

The government has, for example, lifted restrictions on used car imports and has reduced the special consumption tax on foreign-made vehicles. Vietnam's recent entry to the WTO promises to further expand opportunities for foreign investors. As a result, consulting firm A.T. Kearney has recently ranked Vietnam as the third most attractive retail market for investment, and Wal-Mart and Carrefour, the French supermarket chain, have both included Vietnam in the companies' respective expansion plans.

However, there are important considerations to keep in mind. As with China, Vietnam's short-term and medium-term growth seem reasonably well-assured, while the long-term growth is less certain. Again, as with China, Vietnam's economic growth has for the most part not extended to rural areas. Many Vietnamese remain employed in agriculture, and farmers are very vulnerable to changes in commodity prices. The consumer market depends on per capita income, and to sustain current demand, Vietnam must transfer surplus agriculture workers to higher-income urban areas.

As always, the political context is extremely important. In China's experience, massive rural to urban migration resulted in civil unrest. Like in China, the Vietnamese consumer trends could be reversed in the event of political uncertainty or change in government economic policy.

Vietnam underwent significant economic change since beginning its economic renovation program in 1986. The socialist government has loosened control over the economy and relaxed restrictions on foreign investment. In response, the Vietnamese economy has grown on average of 8 percent for the past several years, and analysts expect the trend to continue through 2011.

There are important parallels between China and Vietnam, and prospective investors can learn much from the Chinese experience. The Chinese economy has grown upwards of 9 percent for the past several years, and the country's consumer market now represents the largest market for new purchases, including automobiles, mobile phones, and electronics. The Chinese market and private consumption have been closely tied to urbanization.Urban incomes are generally higher, and consumers have better access to retail outlets. Consumer behavior has been another component. In general, Chinese consumers are spending more and saving less.Taken together, these trends have made the Chinese market a popular investment opportunity.

Vietnam has developed in a manner similar to China, and the country's consumer market seems set to follow China's example. Vietnam's current growth has come from mobilizing surplus labor, and many Vietnamese have relocated from the countryside to urban centers.

Changing demographic and employment trends have affected the Vietnamese market. Demographically, young Vietnamese have shown more consumer confidence than their parents, and spend more than they save.2 Consumer demand has also expanded for what were previously considered luxury items. Cars have begun to replace the more traditional bicycle and motor scooter as the preferred means of transportation. Most interesting has been the increase in luxury car sales. Sales of Mercedes Benz doubled during 2002.3 Department stores and retail outlets have become more popular among Vietnamese, and the Malaysian-owned Parkson Group has recently carved out a niche in the Vietnamese market.4 Even the Vietnamese diet has changed, providing an opportunity for new investment. Vietnam has seen an increase in per-capita milk consumption, especially in urban regions, and analysts have directly linked dairy consumption to economic growth.5

These trends are likely to continue. Asian Development Bank expects Vietnamese domestic demand to continue to grow by 8.5 percent for the next two years. The Vietnamese government has consistently prioritized economic growth and has taken measures to boost domestic demand.

The government has, for example, lifted restrictions on used car imports and has reduced the special consumption tax on foreign-made vehicles. Vietnam's recent entry to the WTO promises to further expand opportunities for foreign investors. As a result, consulting firm A.T. Kearney has recently ranked Vietnam as the third most attractive retail market for investment, and Wal-Mart and Carrefour, the French supermarket chain, have both included Vietnam in the companies' respective expansion plans.

However, there are important considerations to keep in mind. As with China, Vietnam's short-term and medium-term growth seem reasonably well-assured, while the long-term growth is less certain. Again, as with China, Vietnam's economic growth has for the most part not extended to rural areas. Many Vietnamese remain employed in agriculture, and farmers are very vulnerable to changes in commodity prices. The consumer market depends on per capita income, and to sustain current demand, Vietnam must transfer surplus agriculture workers to higher-income urban areas.

As always, the political context is extremely important. In China's experience, massive rural to urban migration resulted in civil unrest. Like in China, the Vietnamese consumer trends could be reversed in the event of political uncertainty or change in government economic policy.

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china

Chinese Healthcare Changes, Challenges

China has become a popular market for healthcare providers. The demand for quality care and insurance coverage has grown as the country has become more affluent. The healthcare sector as a whole has expanded 16 percent over the past several years, and the market for pharmaceuticals alone has grown about 11 percent per year. The healthcare system seems to be at a crossroads as the country attempts to transition from a command economy to a market-based system. Beijing has substantially reduced state-provided healthcare, and the reduction has led to a gap between the demand for and supply of care. The private sector needs to expand to meet the needs left unaddressed by the government.

The overall need for healthcare has been related to changes in the Chinese standard of living. The Chinese are living longer and so there has been more need for long-term care. There has also been a rise in the number of chronic illnesses like diabetes, heart disease, and cancer. These trends are partly attributed to the adoption of Western consumption patterns. Personal preferences have changed as well, and most Chinese now want better quality healthcare.

By the same token, China's medical coverage has shrunk considerably due to recent state reforms. The government has scaled back subsidies for healthcare expenses as part of the general effort to reform the economy and enhance efficiency. These reforms have led to a gap in healthcare coverage, and the rural poor have been especially hard-hit. During the 1980s, the central government devolved responsibility for healthcare to the local level. Local care was to be funded through tax revenue and so favored the wealthy coastal regions.

For many rural Chinese, cost has become the principal deterrent to medical care. The rural Chinese are 65 percent less likely to have medical coverage than urban residents, and out-of-pocket healthcare expenses for the rural residents can total upwards of 10 percent of annual income. Many Chinese therefore no longer have adequate access to medical services.

The lack of coverage and unequal access to care present serious problems for Beijing. Riots have erupted over the rising costs of basic healthcare. General support for the government depends largely on the ability to deliver economic growth and improvements in the standard of living. Failure to address the poor provision of healthcare can therefore lead to further unrest and undermine overall support for the government. Furthermore, the prospect of an AIDS, SARS, or bird flu epidemic makes the need for reliable healthcare all the more urgent.

Many Chinese no longer seek professional treatment because of the expense. Instead they rely on self-care which would have grave consequences in the event of an epidemic. The private sector can help compensate for the reduction in subsidized healthcare although the necessary steps have not been taken.

Several healthcare companies have recently expanded their operations to reach China's market. AstraZeneca has invested heavily in China and plans to set up a research and development center in the country. Other providers like ChinaLife and Goodhealth Worldwide have together launched the first comprehensive healthcare plan for the country. Also, Parkway, a Singaporean healthcare group, plans to open a multimillion dollar surgical center to help promote awareness of Singapore's quality healthcare.

Most of these ventures have been geared toward the wealthy and Chinese expatriates. The focus on the wealthy could exacerbate tensions between the government and rural areas and encourage the perception that development has not been fairly distributed throughout the country. These tensions would weaken popular support for government programs, and political instability could hurt prospects for future growth. More attention should therefore be given to less affluent sectors of the Chinese society.

The best prospects for healthcare growth seem to be among second- and third-tier cities. Rural living standards are expected to progress dramatically. This means rural Chinese may soon demand healthcare comparable to that found in first-tier cities like Beijing and Shanghai. The United States government has embarked on a program to help China address rural healthcare and integrate traditional Chinese care with Western-style medicine. The private sector has yet to address the rural and less developed areas.

Ultimately there are several challenges ahead for expanding China's healthcare system that cannot be addressed through the private sector alone. Corruption has become common among hospitals, especially in drug prescriptions. Hospitals receive about 40 percent of their revenue from prescription sales. Beijing needs to revamp the incentive structure for doctors and create a more transparent healthcare system. Furthermore, government regulations restrict substantial foreign investment in the healthcare industry. The perverse effects of the current healthcare system are also a major hurdle.

There seems to be an overprovision of unneeded services and an under-provision of more needed treatments. Locally provided healthcare has also been seen as sub-par to hospital care, and many Chinese prefer to go to regional hospitals after visiting local clinics. The result has been a redundant and inefficient system. These reforms must be made at the government level before private investment can have an appreciable effect.

China has become a popular market for healthcare providers. The demand for quality care and insurance coverage has grown as the country has become more affluent. The healthcare sector as a whole has expanded 16 percent over the past several years, and the market for pharmaceuticals alone has grown about 11 percent per year. The healthcare system seems to be at a crossroads as the country attempts to transition from a command economy to a market-based system. Beijing has substantially reduced state-provided healthcare, and the reduction has led to a gap between the demand for and supply of care. The private sector needs to expand to meet the needs left unaddressed by the government.

The overall need for healthcare has been related to changes in the Chinese standard of living. The Chinese are living longer and so there has been more need for long-term care. There has also been a rise in the number of chronic illnesses like diabetes, heart disease, and cancer. These trends are partly attributed to the adoption of Western consumption patterns. Personal preferences have changed as well, and most Chinese now want better quality healthcare.

By the same token, China's medical coverage has shrunk considerably due to recent state reforms. The government has scaled back subsidies for healthcare expenses as part of the general effort to reform the economy and enhance efficiency. These reforms have led to a gap in healthcare coverage, and the rural poor have been especially hard-hit. During the 1980s, the central government devolved responsibility for healthcare to the local level. Local care was to be funded through tax revenue and so favored the wealthy coastal regions.

For many rural Chinese, cost has become the principal deterrent to medical care. The rural Chinese are 65 percent less likely to have medical coverage than urban residents, and out-of-pocket healthcare expenses for the rural residents can total upwards of 10 percent of annual income. Many Chinese therefore no longer have adequate access to medical services.

The lack of coverage and unequal access to care present serious problems for Beijing. Riots have erupted over the rising costs of basic healthcare. General support for the government depends largely on the ability to deliver economic growth and improvements in the standard of living. Failure to address the poor provision of healthcare can therefore lead to further unrest and undermine overall support for the government. Furthermore, the prospect of an AIDS, SARS, or bird flu epidemic makes the need for reliable healthcare all the more urgent.

Many Chinese no longer seek professional treatment because of the expense. Instead they rely on self-care which would have grave consequences in the event of an epidemic. The private sector can help compensate for the reduction in subsidized healthcare although the necessary steps have not been taken.

Several healthcare companies have recently expanded their operations to reach China's market. AstraZeneca has invested heavily in China and plans to set up a research and development center in the country. Other providers like ChinaLife and Goodhealth Worldwide have together launched the first comprehensive healthcare plan for the country. Also, Parkway, a Singaporean healthcare group, plans to open a multimillion dollar surgical center to help promote awareness of Singapore's quality healthcare.

Most of these ventures have been geared toward the wealthy and Chinese expatriates. The focus on the wealthy could exacerbate tensions between the government and rural areas and encourage the perception that development has not been fairly distributed throughout the country. These tensions would weaken popular support for government programs, and political instability could hurt prospects for future growth. More attention should therefore be given to less affluent sectors of the Chinese society.

The best prospects for healthcare growth seem to be among second- and third-tier cities. Rural living standards are expected to progress dramatically. This means rural Chinese may soon demand healthcare comparable to that found in first-tier cities like Beijing and Shanghai. The United States government has embarked on a program to help China address rural healthcare and integrate traditional Chinese care with Western-style medicine. The private sector has yet to address the rural and less developed areas.

Ultimately there are several challenges ahead for expanding China's healthcare system that cannot be addressed through the private sector alone. Corruption has become common among hospitals, especially in drug prescriptions. Hospitals receive about 40 percent of their revenue from prescription sales. Beijing needs to revamp the incentive structure for doctors and create a more transparent healthcare system. Furthermore, government regulations restrict substantial foreign investment in the healthcare industry. The perverse effects of the current healthcare system are also a major hurdle.

There seems to be an overprovision of unneeded services and an under-provision of more needed treatments. Locally provided healthcare has also been seen as sub-par to hospital care, and many Chinese prefer to go to regional hospitals after visiting local clinics. The result has been a redundant and inefficient system. These reforms must be made at the government level before private investment can have an appreciable effect.

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china

APEC's Free Trade Area Woes

The Asia Pacific Economic Cooperation (APEC) forum held in Hanoi from November 17 to 19 resulted in renewed discussions on trade. APEC leaders drafted a statement on the WTO's Doha Development Agenda and the Hanoi Action Plan. The leaders agreed on the need to continue the stalled round of Doha trade negotiations. However, they refuse to empower negotiators to execute this goal until all members are better prepared for liberalization.

The longer APEC nations put off negotiating a multilateral agreement, the more difficulties they are likely to face. It will be considerably harder to catch up with developed nations and trade blocs such as the EU. APEC will also be losing potential profits. To prevent unequal economic gains, protection of smaller, vulnerable nations is necessary. However, all will lose if Asian economies continue to interact with one another as inefficiently as they currently do. If these nations are going to remain internationally competitive, they must consolidate economic power.

The slow pace of progress invites criticism. Is APEC really as inefficient as its detractors claim? APEC allows smaller nations to balance against stronger players such China and the US, while still cooperating with them for economic gain. With the kinds of obstacles that the leaders face, some wariness is justified. A free trade area only has potential if developing countries in APEC take necessary precautions. They must be strong enough to withstand fluctuations in international markets before they open their economies to free trade. Capacity-building measures and the flexibility for leaders in determining national trade policies will prevent an agreement from benefiting members unequally.

APEC nations should not delay too long, or they risk lagging behind economically. A free trade agreement between APEC nations would facilitate trade within the bloc and internationally. These countries already control nearly half the world's trade and 56 percent of global gross domestic product. WTO negotiations had come to a halt because of disagreement on subsidies. In Hanoi, the US and Japan did not complete unfinished discussions on reductions in agricultural subsidies. China and Australia also have yet to consider further tariff cuts on industrial goods. The conference, however, did open debate for the first time since Doha and concessions are likely to follow. The Hanoi Action Plan outlines details of a multinational agreement. The agreement will streamline the negotiation process and replace 50 bilateral treaties. It proposes that members institute measures which will prepare economies for trade liberalization. The Plan also identifies corruption as an obstacle to growth. The leaders also focused on energy security. Development of renewable technologies and cleaner use of fossil fuels are among the issues of concern. The difficulties in WTO negotiations have made leaders wary.

The chances for success may be higher for a regional trade area. The EU for instance has proved more successful, but APEC will face different challenges. Singapore's Prime Minister Lee Hsien Loong thinks that the EU trade bloc was easier to create because of greater political similarities between nations. APEC includes some of the world's richest and poorest countries. The disparity in economic backgrounds also makes it difficult to find common ground. The conference agenda included discussions of pandemic diseases such as AIDS and disaster response plans. Vietnamese President Nguyen Minh Triet issued a statement on North Korea's nuclear arsenal. Some are critical of the meeting's success since no declaration was issued. APEC does provide a forum for world leaders to discuss pressing concerns, but international security is not the organization's primary focus. Those types of discussions would diffuse its main purpose which is to discuss economic development and trade.

APEC should begin negotiations much sooner than it plans. It can simultaneously help its smaller members strengthen their economies. The bloc could integrate weaker economies, seeking to strengthen vulnerable industries, at a slower pace. Other necessary measures include improving infrastructure and reforming laws. Meanwhile, nations can continue to sign bilateral or even smaller multilateral agreements. They can also provide aid to some of the lesser developing nations. APEC should also begin to develop enforcement procedures. As a trade bloc, the organization could later leverage its influence to more effectively address security and health issues.

 

The Asia Pacific Economic Cooperation (APEC) forum held in Hanoi from November 17 to 19 resulted in renewed discussions on trade. APEC leaders drafted a statement on the WTO's Doha Development Agenda and the Hanoi Action Plan. The leaders agreed on the need to continue the stalled round of Doha trade negotiations. However, they refuse to empower negotiators to execute this goal until all members are better prepared for liberalization.

The longer APEC nations put off negotiating a multilateral agreement, the more difficulties they are likely to face. It will be considerably harder to catch up with developed nations and trade blocs such as the EU. APEC will also be losing potential profits. To prevent unequal economic gains, protection of smaller, vulnerable nations is necessary. However, all will lose if Asian economies continue to interact with one another as inefficiently as they currently do. If these nations are going to remain internationally competitive, they must consolidate economic power.

The slow pace of progress invites criticism. Is APEC really as inefficient as its detractors claim? APEC allows smaller nations to balance against stronger players such China and the US, while still cooperating with them for economic gain. With the kinds of obstacles that the leaders face, some wariness is justified. A free trade area only has potential if developing countries in APEC take necessary precautions. They must be strong enough to withstand fluctuations in international markets before they open their economies to free trade. Capacity-building measures and the flexibility for leaders in determining national trade policies will prevent an agreement from benefiting members unequally.

APEC nations should not delay too long, or they risk lagging behind economically. A free trade agreement between APEC nations would facilitate trade within the bloc and internationally. These countries already control nearly half the world's trade and 56 percent of global gross domestic product. WTO negotiations had come to a halt because of disagreement on subsidies. In Hanoi, the US and Japan did not complete unfinished discussions on reductions in agricultural subsidies. China and Australia also have yet to consider further tariff cuts on industrial goods. The conference, however, did open debate for the first time since Doha and concessions are likely to follow. The Hanoi Action Plan outlines details of a multinational agreement. The agreement will streamline the negotiation process and replace 50 bilateral treaties. It proposes that members institute measures which will prepare economies for trade liberalization. The Plan also identifies corruption as an obstacle to growth. The leaders also focused on energy security. Development of renewable technologies and cleaner use of fossil fuels are among the issues of concern. The difficulties in WTO negotiations have made leaders wary.

The chances for success may be higher for a regional trade area. The EU for instance has proved more successful, but APEC will face different challenges. Singapore's Prime Minister Lee Hsien Loong thinks that the EU trade bloc was easier to create because of greater political similarities between nations. APEC includes some of the world's richest and poorest countries. The disparity in economic backgrounds also makes it difficult to find common ground. The conference agenda included discussions of pandemic diseases such as AIDS and disaster response plans. Vietnamese President Nguyen Minh Triet issued a statement on North Korea's nuclear arsenal. Some are critical of the meeting's success since no declaration was issued. APEC does provide a forum for world leaders to discuss pressing concerns, but international security is not the organization's primary focus. Those types of discussions would diffuse its main purpose which is to discuss economic development and trade.

APEC should begin negotiations much sooner than it plans. It can simultaneously help its smaller members strengthen their economies. The bloc could integrate weaker economies, seeking to strengthen vulnerable industries, at a slower pace. Other necessary measures include improving infrastructure and reforming laws. Meanwhile, nations can continue to sign bilateral or even smaller multilateral agreements. They can also provide aid to some of the lesser developing nations. APEC should also begin to develop enforcement procedures. As a trade bloc, the organization could later leverage its influence to more effectively address security and health issues.

 

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china

Asian Markets Fall Again After Rebound

Chinese stocks fell again after rebounding Wednesday from their biggest drop in a decade. Elsewhere, Japan, Taiwan, Hong Kong, Singapore, Australia, and New Zealand markets were all down. The Philippines, India, Pakistan, Thailand and Indonesia indices were up, with the Philippines' rise as the region's biggest gain of the day after seeing Asia's biggest drop Wednesday at 7.9 percent.

Chinese stocks fell again after rebounding Wednesday from their biggest drop in a decade. Elsewhere, Japan, Taiwan, Hong Kong, Singapore, Australia, and New Zealand markets were all down. The Philippines, India, Pakistan, Thailand and Indonesia indices were up, with the Philippines' rise as the region's biggest gain of the day after seeing Asia's biggest drop Wednesday at 7.9 percent.

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china

China and Pakistan Explore Rail Route

An international group was awarded a $1.2 million grant on Monday to study a proposed link between the Chinese and Pakistani rail systems. The move is motivated largely by China's interest in increasing access to the energy-rich Persian Gulf states and getting more of an economic foothold in South and Central Asia. China has been actively involved in the transportation and communication sectors of Pakistan for several years.

An international group was awarded a $1.2 million grant on Monday to study a proposed link between the Chinese and Pakistani rail systems. The move is motivated largely by China's interest in increasing access to the energy-rich Persian Gulf states and getting more of an economic foothold in South and Central Asia. China has been actively involved in the transportation and communication sectors of Pakistan for several years.

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china

Trade Between China, Vietnam Increasing

Bilateral ties between China and Vietnam have gained strength in recent years. The latest numbers indicate that two-way trade turnover between the countries reached US$10.42 billion in 2006. This is an increase of 19.2% from 2005. Credit for this increase is given to Vietnam's accession into the WTO, which has made Vietnamese markets more conduscive to international investment and trade. Experts believe that cooperation between China and Vietnam will continue to grow.

Bilateral ties between China and Vietnam have gained strength in recent years. The latest numbers indicate that two-way trade turnover between the countries reached US$10.42 billion in 2006. This is an increase of 19.2% from 2005. Credit for this increase is given to Vietnam's accession into the WTO, which has made Vietnamese markets more conduscive to international investment and trade. Experts believe that cooperation between China and Vietnam will continue to grow.

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china

North Korean Pledge to Disarm Seeks Implementation

North Korea's No. 2 leader pledged his country's commitment Thursday to giving up its nuclear program in talks with a visiting high-level South Korean delegation. North Korea has also proposed that the two countries on the Korean peninsula resume economic cooperation talks in March, though Seoul was opposed to holding the talks so soon. The countries involved in the nuclear talks (the Koreas, China, Japan, Russia and the U.S.) have begun preparations for implementing the disarmament pact.

North Korea's No. 2 leader pledged his country's commitment Thursday to giving up its nuclear program in talks with a visiting high-level South Korean delegation. North Korea has also proposed that the two countries on the Korean peninsula resume economic cooperation talks in March, though Seoul was opposed to holding the talks so soon. The countries involved in the nuclear talks (the Koreas, China, Japan, Russia and the U.S.) have begun preparations for implementing the disarmament pact.

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china

China Causes Global Markets to Tumble

Global markets hit a skid Wednesday as Shanghai Stock Exchange fell by nearly 9 percent. Elsewhere, the Australian stock market experienced its largest one-day sell off since the Sept. 11, 2001 attacks. The fall wiped out weeks worth of gains and presented buying opportunities.

Global markets hit a skid Wednesday as Shanghai Stock Exchange fell by nearly 9 percent. Elsewhere, the Australian stock market experienced its largest one-day sell off since the Sept. 11, 2001 attacks. The fall wiped out weeks worth of gains and presented buying opportunities.

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china

Chinese Crackdown Sends Stocks Tumbling Worldwide

A Chinese Government crackdown on illegal investments in the stock market caused one of the largest global stock market plunges in recent memmory. The Shanghai and Shenzhen 300 Index dropped 9.2 percent on the same day the US Dow average sank 3.3 percent and Europe's Dow Jones Stoxx 600 Index fell 3 percent. The stocks of input manufacturers were especially hit hard as demand from China was expected to decrease.

A Chinese Government crackdown on illegal investments in the stock market caused one of the largest global stock market plunges in recent memmory. The Shanghai and Shenzhen 300 Index dropped 9.2 percent on the same day the US Dow average sank 3.3 percent and Europe's Dow Jones Stoxx 600 Index fell 3 percent. The stocks of input manufacturers were especially hit hard as demand from China was expected to decrease.

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china

The Decline of China's Manufacturing Sector

Over the years, China's unstoppable economic growth has been largely attributed to the strength of its manufacturing sector and the country's rapid advances technologically. Many factors like cheap labor, increases in quality infrastructure, and the huge size of the domestic market have made the country one of the most attractive places in the world to invest. This has resulted in foreign investment inflows into the manufacturing sector that exceeded $70 billion in 2005 and economic growth rates of more than 10 percent on an annualized basis.1 However, things are set to change with a growing number of firms realizing that from the standpoint of costs, country risks, and the customer base, China may no longer be the best place in Asia to invest.

Manufacturing's Slow Decline

In the last decade, China's share of the world's export goods market has been growing exponentially and in 2005 it became the world's third largest exporter behind Germany and the US.2 In stark contrast, most members of the G-8 group of rich nations saw their shares of world exports and global production fall during the comparable time period. However, the trend seems to be slowly but steadily changing. In other parts of Asia, manufacturing and exports are also growing rapidly with South Korea, Taiwan, India and the Association of South-East Asian Nations (ASEAN) increasing their share of global manufacturing from less than 7 percent to more than 9 percent in the decade leading up to 2003.3 In fact, many new factories are being established in other regions of Asia as increasing numbers of companies and foreign investors seek to diversify their country risks and minimize their costs of production. Experts believe that there are several flaws in the current Chinese manufacturing model. These problems include highly fragmented domestic markets; industrial growth being concentrated in certain pockets, firms, and sectors; and the wide-spread prevalence of small, underutilized and poorly-managed firms.4 There is also a serious shortage of skilled workers in the country that results in massive poaching among rival companies and huge wage increases being offered to workers. This growth in wages is only partially offset by the gains in productivity achieved by the factory workers and has therefore led to a huge problem with wage-inflation in the domestic economy.

Other Nations Seize the Opportunity

This situation has created an enormous opportunity for the rest of Asia to become manufacturing hubs like China. Foreign companies are not just driven to minimize their costs, but also to diversify the risks of being overly dependent on a particular country to meet their production requirements. Many foreign managers are also concerned with the current political situation in China and the growing social unrest among the populations of the economically backward rural regions of the country. In recent years, there have been strong measures taken by the United States and the European Union to make China more accountable for its World Trade Organization obligations. This has created some fears among foreign investors and companies that this might disrupt the current trade system. Meanwhile, factories are being set up in other low-cost Asian countries like Cambodia, Vietnam, the Philippines, Singapore and Malaysia as part of the diversification objective. China also suffers from another setback: the lack of protection for intellectual property rights. This has prompted several firms to move to countries like India where the intellectual property rights environment is much better than in China.5 The rising value of the yuan in recent months is another factor which has diminished the competitiveness of China as a manufacturing hub.

The Road Ahead

Despite these challenges, several factors remain in China's favor as far as the attractiveness of its manufacturing sector. The country has a highly vibrant middle class prevalent in the big cities, has achieved consistently high growth rates over the years and has developed highly integrated supply chains.6 It also possesses quality transport facilities and infrastructure which are perhaps unparalleled in many other competing nations in Asia. In fact, the biggest reason why the Indian manufacturing sector has not progressed as much as China's is that the country is saddled with huge problems like inadequate infrastructure, a poor law and order system, a corrupt and tardy bureaucracy, complex tax laws and archaic labor laws.7 However, countries like India and Singapore, with their highly educated, skilled workforce are slowly but steadily catching up. India, in particular has a population of over a billion people and its domestic economy has grown by leaps and bounds in recent years. As the governments of these nations develop their economies even further by taking several steps to strengthen the physical infrastructure and integrate more effectively with the global markets, the mantle of ‘manufacturing hub of the world' may soon pass on to the next best contender in the race to the top.

 

This article was originally published in Asia Economic Institute Vol. 1 No. 5.

 

Tell us what you think about this issue by adding a comment.

Over the years, China's unstoppable economic growth has been largely attributed to the strength of its manufacturing sector and the country's rapid advances technologically. Many factors like cheap labor, increases in quality infrastructure, and the huge size of the domestic market have made the country one of the most attractive places in the world to invest. This has resulted in foreign investment inflows into the manufacturing sector that exceeded $70 billion in 2005 and economic growth rates of more than 10 percent on an annualized basis.1 However, things are set to change with a growing number of firms realizing that from the standpoint of costs, country risks, and the customer base, China may no longer be the best place in Asia to invest.

Manufacturing's Slow Decline

In the last decade, China's share of the world's export goods market has been growing exponentially and in 2005 it became the world's third largest exporter behind Germany and the US.2 In stark contrast, most members of the G-8 group of rich nations saw their shares of world exports and global production fall during the comparable time period. However, the trend seems to be slowly but steadily changing. In other parts of Asia, manufacturing and exports are also growing rapidly with South Korea, Taiwan, India and the Association of South-East Asian Nations (ASEAN) increasing their share of global manufacturing from less than 7 percent to more than 9 percent in the decade leading up to 2003.3 In fact, many new factories are being established in other regions of Asia as increasing numbers of companies and foreign investors seek to diversify their country risks and minimize their costs of production. Experts believe that there are several flaws in the current Chinese manufacturing model. These problems include highly fragmented domestic markets; industrial growth being concentrated in certain pockets, firms, and sectors; and the wide-spread prevalence of small, underutilized and poorly-managed firms.4 There is also a serious shortage of skilled workers in the country that results in massive poaching among rival companies and huge wage increases being offered to workers. This growth in wages is only partially offset by the gains in productivity achieved by the factory workers and has therefore led to a huge problem with wage-inflation in the domestic economy.

Other Nations Seize the Opportunity

This situation has created an enormous opportunity for the rest of Asia to become manufacturing hubs like China. Foreign companies are not just driven to minimize their costs, but also to diversify the risks of being overly dependent on a particular country to meet their production requirements. Many foreign managers are also concerned with the current political situation in China and the growing social unrest among the populations of the economically backward rural regions of the country. In recent years, there have been strong measures taken by the United States and the European Union to make China more accountable for its World Trade Organization obligations. This has created some fears among foreign investors and companies that this might disrupt the current trade system. Meanwhile, factories are being set up in other low-cost Asian countries like Cambodia, Vietnam, the Philippines, Singapore and Malaysia as part of the diversification objective. China also suffers from another setback: the lack of protection for intellectual property rights. This has prompted several firms to move to countries like India where the intellectual property rights environment is much better than in China.5 The rising value of the yuan in recent months is another factor which has diminished the competitiveness of China as a manufacturing hub.

The Road Ahead

Despite these challenges, several factors remain in China's favor as far as the attractiveness of its manufacturing sector. The country has a highly vibrant middle class prevalent in the big cities, has achieved consistently high growth rates over the years and has developed highly integrated supply chains.6 It also possesses quality transport facilities and infrastructure which are perhaps unparalleled in many other competing nations in Asia. In fact, the biggest reason why the Indian manufacturing sector has not progressed as much as China's is that the country is saddled with huge problems like inadequate infrastructure, a poor law and order system, a corrupt and tardy bureaucracy, complex tax laws and archaic labor laws.7 However, countries like India and Singapore, with their highly educated, skilled workforce are slowly but steadily catching up. India, in particular has a population of over a billion people and its domestic economy has grown by leaps and bounds in recent years. As the governments of these nations develop their economies even further by taking several steps to strengthen the physical infrastructure and integrate more effectively with the global markets, the mantle of ‘manufacturing hub of the world' may soon pass on to the next best contender in the race to the top.

 

This article was originally published in Asia Economic Institute Vol. 1 No. 5.

 

Tell us what you think about this issue by adding a comment.

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china

Water Key to China's Sustainable Development

China's environmental problems have hampered its political economy for as long as it has modeled its path to prosperity on economic growth at all costs. While its 10 percent annually compounded growth rate over the last quarter of a century1 has lifted millions out of poverty, it has also caused severe environmental damage that, if not addressed in a timely fashion, will result in serious long-term economic and political consequences.

Perhaps China's most pressing environmental threat for policymakers is the supply and pollution of water. Water shortages have caused an estimated loss of $11.2 billion in industrial output while water pollution has taxed human health by about $3.9 billion.2 Water and waste pollution, according to Pan Yue, the deputy head of SEPA, is the "bottleneck constraining economic growth in China."3

Water Shortage

Water is becoming an increasingly difficult resource to come by in China. Fights have started breaking out between villages over water sources.4 The Chinese government reports large internal migrations due to water scarcities . These unemployed migrants cause social unrest and further exacerbate China's ability to manage its already overpopulated coastal cities.5 On a per capita basis, China's water supply is 25 percent of the global average and by World Bank estimates it will qualify as a water scarce country by 2030.6 Beijing further estimates that the country will suffer an annual water shortage of 53 trillion gallons by 2030 which is more than all the factories and households in China consume today.7

Furthermore, such water shortages will cause a strain on global food security.8 China depends on irrigated land to produce 70 percent of its grain for its large population. A grain shortage in China would cause a spike in world grain prices to the detriment of other developing countries at a time when world grain supplies are already vastly depleted.9

Water Pollution

Water shortages' twin problem, water pollution, is an equally vicious environmental threat that interferes with agricultural production and public health. By far, China has the highest total emissions of organic water pollutants in the world, equal to that of the US, Japan, and India combined.10 According to the World Water Congress in Beijing, every two or three days in China there is a water pollution accident that has damaging effects on its rivers.11 Such pollution has not only damaged agriculture but has also been a huge detriment to human health – 700 million Chinese consume polluted drinking water on a daily basis.12

According to data by UC Davis, households are willing to pay more for the water they use.13 Currently, consumers are sheltered by below market prices that cause little incentive to conserve or find alternatives. Chinese consumers pay only five cents per gallon, less than one twelfth of what Americans and many Europeans pay.14 In northern Chinese cities, the price of water, while gradually rising, is still only 1 RMB per ton, just one-fifth of the 5 RMB that Chinese hydrologists estimate it costs to acquire. A simple yet effective solution has emerged: an administered increase in the price of water that is market driven and reflects societal costs. This could induce greater efficiency and create incentives to save water. Meanwhile, penalties for industrial pollution are rarely enforced. If penalties for water polluters increase by 10 percent annually, reflecting water's total cost to society, water pollution could be reduced by 70 percent by 2020.15

China's future rests largely on how it integrates its environmental challenges into its economic, social, and political strategies. Chinese officials must contemplate the urgency of these environmental problems so that they are aware of the dangers they face. This will only happen if economic and environmental interests are aligned in such a way that individual interests become one with the long-term sustainable interests of China. Only then will a coherent strategy evolve to solve these problems.

 

This article was originally published in Asia Economic Institute Vol. 1 No. 5.

 

Tell us what you think about this issue by adding a comment.

China's environmental problems have hampered its political economy for as long as it has modeled its path to prosperity on economic growth at all costs. While its 10 percent annually compounded growth rate over the last quarter of a century1 has lifted millions out of poverty, it has also caused severe environmental damage that, if not addressed in a timely fashion, will result in serious long-term economic and political consequences.

Perhaps China's most pressing environmental threat for policymakers is the supply and pollution of water. Water shortages have caused an estimated loss of $11.2 billion in industrial output while water pollution has taxed human health by about $3.9 billion.2 Water and waste pollution, according to Pan Yue, the deputy head of SEPA, is the "bottleneck constraining economic growth in China."3

Water Shortage

Water is becoming an increasingly difficult resource to come by in China. Fights have started breaking out between villages over water sources.4 The Chinese government reports large internal migrations due to water scarcities . These unemployed migrants cause social unrest and further exacerbate China's ability to manage its already overpopulated coastal cities.5 On a per capita basis, China's water supply is 25 percent of the global average and by World Bank estimates it will qualify as a water scarce country by 2030.6 Beijing further estimates that the country will suffer an annual water shortage of 53 trillion gallons by 2030 which is more than all the factories and households in China consume today.7

Furthermore, such water shortages will cause a strain on global food security.8 China depends on irrigated land to produce 70 percent of its grain for its large population. A grain shortage in China would cause a spike in world grain prices to the detriment of other developing countries at a time when world grain supplies are already vastly depleted.9

Water Pollution

Water shortages' twin problem, water pollution, is an equally vicious environmental threat that interferes with agricultural production and public health. By far, China has the highest total emissions of organic water pollutants in the world, equal to that of the US, Japan, and India combined.10 According to the World Water Congress in Beijing, every two or three days in China there is a water pollution accident that has damaging effects on its rivers.11 Such pollution has not only damaged agriculture but has also been a huge detriment to human health – 700 million Chinese consume polluted drinking water on a daily basis.12

According to data by UC Davis, households are willing to pay more for the water they use.13 Currently, consumers are sheltered by below market prices that cause little incentive to conserve or find alternatives. Chinese consumers pay only five cents per gallon, less than one twelfth of what Americans and many Europeans pay.14 In northern Chinese cities, the price of water, while gradually rising, is still only 1 RMB per ton, just one-fifth of the 5 RMB that Chinese hydrologists estimate it costs to acquire. A simple yet effective solution has emerged: an administered increase in the price of water that is market driven and reflects societal costs. This could induce greater efficiency and create incentives to save water. Meanwhile, penalties for industrial pollution are rarely enforced. If penalties for water polluters increase by 10 percent annually, reflecting water's total cost to society, water pollution could be reduced by 70 percent by 2020.15

China's future rests largely on how it integrates its environmental challenges into its economic, social, and political strategies. Chinese officials must contemplate the urgency of these environmental problems so that they are aware of the dangers they face. This will only happen if economic and environmental interests are aligned in such a way that individual interests become one with the long-term sustainable interests of China. Only then will a coherent strategy evolve to solve these problems.

 

This article was originally published in Asia Economic Institute Vol. 1 No. 5.

 

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The Asian Stock Markets: Boom or Bust?

The year 2006 for the Asian stock markets saw unprecedented gains of the kind rarely witnessed. The stock markets of China, Hong Kong, Singapore, India, Indonesia, Malaysia, New Zealand and Vietnam hit record highs while Japan, South Korea and Taiwan also posted muted though respectable gains. With this state of affairs, it was perhaps unsurprising that global investors flocked to the Asian markets just hoping to reap some of the big rewards. However, some people feel that the amazing growth of these stock markets needs to be tempered with a healthy dose of caution since the nightmarish memories of the 1997-meltdown in the region's equity markets just refuse to die out. This has raised a few doubts among analysts studying the region and has prompted many to be skeptical about the potential growth prospects of these markets in the future.

A Year of Skyrocketing Growth

During the last few years, many stock markets in Asia have been rising rapidly. In China, during 2006, stocks in the home market sizzled, at long last reflecting the country's gathering economic might after years of paltry returns. The MSCI China A, an index of domestically listed stocks, soared 128 percent.1 The scenario was also quite rosy in India when the Bombay stock exchange rocketed another 46.7 percent in 2006.2 Elsewhere in the region, markets bolted ahead on sound economic fundamentals, with markets in Indonesia, the Philippines and Singapore returning 55.3 percent, 42.3 percent and 27.2 percent, respectively.3 Even the so-called stragglers, Taiwan and Malaysia, clocked returns of 19.5 percent and 21.8 percent in 2006, a reflection of just how turbo-charged the growth trend has been. The only disappointments were South Korea which rose by a modest 4 percent last year and Japan, which, contrary to expectations, managed to end the year up only 6.9 percent. This is creditable given that these enormous returns occurred despite a plunge in the region's stock markets during May and June, when foreign investors were spooked by the prospect of rising interest rates and fled riskier assets.4 With massive investor confidence and a huge amount of global liquidity, it is no wonder that there has been a mad rush by global investors to invest in the region.

Factors Driving the Growth

Many changes have transformed the domestic economies of the Asian region radically over the last decade. Many market watchers believe that these emerging economies are on a much surer financial footing than in the past. Many have pared their deficits, increased their reserves and reduced their dependence on exports to the US, thereby decreasing their vulnerability to a potential US economic slowdown.5 Some investors believe that these countries are finally beginning to decouple from the US economy either by trading more among themselves or relying more on local consumer demand.6 Skeptics discount this hypothesis and consider it too early to draw conclusions. A slow US economy could still trigger a region-wide recession in the near future.

Impediments to Sustainable Growth

Despite all the hype and hoopla surrounding the Asian economies and their booming stock markets, the future growth outlook for these economies is strangely benign. Experts believe that even though Asia is presently more resilient to a US slowdown than in the past, a drastic slowdown to the US economy might seriously upset the status quo. Currently, investor sentiment remains strong as evidenced by several positive factors like lower international oil prices and a recovery staged by Wall Street after the mid-year slump in 2006. However, financial markets might feel the impact if institutional investors in the US and Europe become more risk-averse, or if the global liquidity that has been funding portfolio investment in Asia dries up.7 The region is still highly export-dependent and vulnerable to developments in the US. In fact, many of the goods traded within Asia are still used as inputs for products that are ultimately sold to the US and other OECD economies.8 These emerging economies are currently characterized by weak inflation levels, strong growth, solvent governments and a lesser degree of dependence on foreign money to finance their investment requirements.9 Although the domestic economies in Asia seem to be in impressive shape, they remain vulnerable to disruption if investment-positive factors begin to wane. Potential investors should exercise a significant degree of caution and restraint while deciding whether or not to invest their money in Asia's growing bourses.

 

This article was originally published in Asia Economic Institute Vol. 1 No. 5.

 

Tell us what you think about this issue by adding a comment.

The year 2006 for the Asian stock markets saw unprecedented gains of the kind rarely witnessed. The stock markets of China, Hong Kong, Singapore, India, Indonesia, Malaysia, New Zealand and Vietnam hit record highs while Japan, South Korea and Taiwan also posted muted though respectable gains. With this state of affairs, it was perhaps unsurprising that global investors flocked to the Asian markets just hoping to reap some of the big rewards. However, some people feel that the amazing growth of these stock markets needs to be tempered with a healthy dose of caution since the nightmarish memories of the 1997-meltdown in the region's equity markets just refuse to die out. This has raised a few doubts among analysts studying the region and has prompted many to be skeptical about the potential growth prospects of these markets in the future.

A Year of Skyrocketing Growth

During the last few years, many stock markets in Asia have been rising rapidly. In China, during 2006, stocks in the home market sizzled, at long last reflecting the country's gathering economic might after years of paltry returns. The MSCI China A, an index of domestically listed stocks, soared 128 percent.1 The scenario was also quite rosy in India when the Bombay stock exchange rocketed another 46.7 percent in 2006.2 Elsewhere in the region, markets bolted ahead on sound economic fundamentals, with markets in Indonesia, the Philippines and Singapore returning 55.3 percent, 42.3 percent and 27.2 percent, respectively.3 Even the so-called stragglers, Taiwan and Malaysia, clocked returns of 19.5 percent and 21.8 percent in 2006, a reflection of just how turbo-charged the growth trend has been. The only disappointments were South Korea which rose by a modest 4 percent last year and Japan, which, contrary to expectations, managed to end the year up only 6.9 percent. This is creditable given that these enormous returns occurred despite a plunge in the region's stock markets during May and June, when foreign investors were spooked by the prospect of rising interest rates and fled riskier assets.4 With massive investor confidence and a huge amount of global liquidity, it is no wonder that there has been a mad rush by global investors to invest in the region.

Factors Driving the Growth

Many changes have transformed the domestic economies of the Asian region radically over the last decade. Many market watchers believe that these emerging economies are on a much surer financial footing than in the past. Many have pared their deficits, increased their reserves and reduced their dependence on exports to the US, thereby decreasing their vulnerability to a potential US economic slowdown.5 Some investors believe that these countries are finally beginning to decouple from the US economy either by trading more among themselves or relying more on local consumer demand.6 Skeptics discount this hypothesis and consider it too early to draw conclusions. A slow US economy could still trigger a region-wide recession in the near future.

Impediments to Sustainable Growth

Despite all the hype and hoopla surrounding the Asian economies and their booming stock markets, the future growth outlook for these economies is strangely benign. Experts believe that even though Asia is presently more resilient to a US slowdown than in the past, a drastic slowdown to the US economy might seriously upset the status quo. Currently, investor sentiment remains strong as evidenced by several positive factors like lower international oil prices and a recovery staged by Wall Street after the mid-year slump in 2006. However, financial markets might feel the impact if institutional investors in the US and Europe become more risk-averse, or if the global liquidity that has been funding portfolio investment in Asia dries up.7 The region is still highly export-dependent and vulnerable to developments in the US. In fact, many of the goods traded within Asia are still used as inputs for products that are ultimately sold to the US and other OECD economies.8 These emerging economies are currently characterized by weak inflation levels, strong growth, solvent governments and a lesser degree of dependence on foreign money to finance their investment requirements.9 Although the domestic economies in Asia seem to be in impressive shape, they remain vulnerable to disruption if investment-positive factors begin to wane. Potential investors should exercise a significant degree of caution and restraint while deciding whether or not to invest their money in Asia's growing bourses.

 

This article was originally published in Asia Economic Institute Vol. 1 No. 5.

 

Tell us what you think about this issue by adding a comment.

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China's Changing Dollar Policy

Chinese Premier Wen Jiabao announced on January 20th that China plans to make greater use of its nearly $1.07 trillion foreign currency reserves. The plan calls for the diversification of foreign exchange reserves away from dollar-denominated assets, and the announcement has fueled speculation about the value of the dollar. China has become one of the largest holders of US dollars and Treasury bills, and an abrupt policy change could have significant consequences for the U.S. economy. On the other hand, spending the foreign exchange surplus could address the imbalances in the Chinese economy and better position the country for future growth.


An Issue of Imbalance

The Chinese government has become increasingly concerned over imbalances in international trade and in the domestic economy. The Chinese trade surplus now totals over $14 billion and foreign currency reserves have grown by about $20 billion a month.1 Most of these currency reserves come from trade surplus and foreign direct investment. Analysts say China should not acquire foreign currency reserves more quickly than can be used for productive modernization. The large surplus of foreign currency has allowed extensive lending and large investments in construction and the residential sector. The central government now wants to slow the rapid, unsustainable pace of growth and hopes to cut back bank lending and scale down investment in saturated sectors.


Using Reserves

There are several suggestions for how China can use its foreign currency reserves. Yu Yongding of the People's Bank of China has encouraged government officials to expand China's energy holdings.2 He and others think China should buy oil stocks to help with the country's energy needs and to hedge against a sharp decline in the dollar. But China could go other directions. The $1.07 trillion surplus could enable China to become the preeminent global military power. The Chinese government seems most concerned with strategic priorities. Financial goals do not factor as much in monetary policy.


Addressing Imbalance

The most prudent use of the foreign reserves surplus would entail addressing the central bank's bad-debt problem. The People's Bank of China has made several poor loans. These bad-debts can jeopardize the bank's long-term liquidity, and the problem presents a serious obstacle to future growth. Another, equally prudent measure would address the divergence between urban and rural areas. The spread of economic growth has been very uneven, and the Chinese interior has lagged far behind the coast. The Chinese government could use the $1.07 trillion surplus to restructure the financial system and to extend infrastructure, education, and healthcare to these less developed regions. Doing so would help address the growing rural resentment toward the government and thereby remove a major threat to political stability.


Acting in Context

However, there will be challenges to any change in the Chinese dollar policy. The United States does not want a dollar sell-off and will likely protest any attempt to diversify China's foreign exchange reserves. China must therefore be careful how it approaches its currency problem. Relations with western countries are already strained due to yuan appreciation disputes. China does not want to further jeopardize these relationships. Thus, the most tenable solution is to focus on domestic development while addressing internal imbalances.

 

Let us know what you think about this issue by posting a comment.

 

 


Chinese Premier Wen Jiabao announced on January 20th that China plans to make greater use of its nearly $1.07 trillion foreign currency reserves. The plan calls for the diversification of foreign exchange reserves away from dollar-denominated assets, and the announcement has fueled speculation about the value of the dollar. China has become one of the largest holders of US dollars and Treasury bills, and an abrupt policy change could have significant consequences for the U.S. economy. On the other hand, spending the foreign exchange surplus could address the imbalances in the Chinese economy and better position the country for future growth.


An Issue of Imbalance

The Chinese government has become increasingly concerned over imbalances in international trade and in the domestic economy. The Chinese trade surplus now totals over $14 billion and foreign currency reserves have grown by about $20 billion a month.1 Most of these currency reserves come from trade surplus and foreign direct investment. Analysts say China should not acquire foreign currency reserves more quickly than can be used for productive modernization. The large surplus of foreign currency has allowed extensive lending and large investments in construction and the residential sector. The central government now wants to slow the rapid, unsustainable pace of growth and hopes to cut back bank lending and scale down investment in saturated sectors.


Using Reserves

There are several suggestions for how China can use its foreign currency reserves. Yu Yongding of the People's Bank of China has encouraged government officials to expand China's energy holdings.2 He and others think China should buy oil stocks to help with the country's energy needs and to hedge against a sharp decline in the dollar. But China could go other directions. The $1.07 trillion surplus could enable China to become the preeminent global military power. The Chinese government seems most concerned with strategic priorities. Financial goals do not factor as much in monetary policy.


Addressing Imbalance

The most prudent use of the foreign reserves surplus would entail addressing the central bank's bad-debt problem. The People's Bank of China has made several poor loans. These bad-debts can jeopardize the bank's long-term liquidity, and the problem presents a serious obstacle to future growth. Another, equally prudent measure would address the divergence between urban and rural areas. The spread of economic growth has been very uneven, and the Chinese interior has lagged far behind the coast. The Chinese government could use the $1.07 trillion surplus to restructure the financial system and to extend infrastructure, education, and healthcare to these less developed regions. Doing so would help address the growing rural resentment toward the government and thereby remove a major threat to political stability.


Acting in Context

However, there will be challenges to any change in the Chinese dollar policy. The United States does not want a dollar sell-off and will likely protest any attempt to diversify China's foreign exchange reserves. China must therefore be careful how it approaches its currency problem. Relations with western countries are already strained due to yuan appreciation disputes. China does not want to further jeopardize these relationships. Thus, the most tenable solution is to focus on domestic development while addressing internal imbalances.

 

Let us know what you think about this issue by posting a comment.

 

 


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China Must Embrace Globalization

The Chinese Vice Minister of Commerce announced that China should increase its usage of Free Trade Agreements and open up its services sector in order to better embrace globalization. Yu Guangzhou made the statements at the 2007 Enterprise Development Forum held in Guangzhou on Friday. he said that the international trade competence of some Chinese firms still lagged too far behind their competitors.

The Chinese Vice Minister of Commerce announced that China should increase its usage of Free Trade Agreements and open up its services sector in order to better embrace globalization. Yu Guangzhou made the statements at the 2007 Enterprise Development Forum held in Guangzhou on Friday. he said that the international trade competence of some Chinese firms still lagged too far behind their competitors.

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Trade Between China and Malaysia Up

Malaysia's trade with China rose 20.8% last year due to the electrical and electronic componenets industry. There was also growing imports of palm oil by Malaysia, which has a trade surplus of $10 billion. Malaysia is China's biggest import source among Association of South East Asian Nations (ASEAN) countries and its eighth-biggest trading partner. The future looks bright for both countries as they continue to utilize their bilateral trade and further develop their economic status in the world.

Malaysia's trade with China rose 20.8% last year due to the electrical and electronic componenets industry. There was also growing imports of palm oil by Malaysia, which has a trade surplus of $10 billion. Malaysia is China's biggest import source among Association of South East Asian Nations (ASEAN) countries and its eighth-biggest trading partner. The future looks bright for both countries as they continue to utilize their bilateral trade and further develop their economic status in the world.

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Citigroup to Invest in India and China

A Hong Kong-based team from Citigroup has raised $1.29 billion for its first fund to invest in real estate in Asia, with a focus on China and India. This announcement comes a day after Citigroup announced plans to invest $3.5 billion in companies in emerging markets, including India and China.

A Hong Kong-based team from Citigroup has raised $1.29 billion for its first fund to invest in real estate in Asia, with a focus on China and India. This announcement comes a day after Citigroup announced plans to invest $3.5 billion in companies in emerging markets, including India and China.

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Shanghai-Taiwan Trade Hits All-Time High

Trade between the Chinese city of Shanghai and Taiwan hit $25.8 billion in 2006, an all-time high and a 20% increase over the previous year. Shanghai is a popular point of investment for Taiwanese businesses, with $16.4 billion in investment in the city coming from Taiwan last year.

Trade between the Chinese city of Shanghai and Taiwan hit $25.8 billion in 2006, an all-time high and a 20% increase over the previous year. Shanghai is a popular point of investment for Taiwanese businesses, with $16.4 billion in investment in the city coming from Taiwan last year.

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China Moves to Curb Inflation

The Chinese Central bank raised the reserve ratio to 10% this week, a 0.5% increase. The move will decrease the amount of money that Chinese banks can lend in order to decrease inflation, which hit 2.2% in January. This is the latest in a series of moves designed to decrease the supply of money for an economy that has been booming thanks to a record trade surplus.

The Chinese Central bank raised the reserve ratio to 10% this week, a 0.5% increase. The move will decrease the amount of money that Chinese banks can lend in order to decrease inflation, which hit 2.2% in January. This is the latest in a series of moves designed to decrease the supply of money for an economy that has been booming thanks to a record trade surplus.

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China, India, Russia Vow to Cooperate on Regional Disputes

The foreign ministers of China, India, and Russia pledged to cooperate and solve disputes ranging from energy to insurgency issues. The three foreign ministers agreed that cooperation is the right approach to regional and global affairs. They also called for strengthening the United Nations to promote the "democratisation of international relations" to build a multi-polar world.

The foreign ministers of China, India, and Russia pledged to cooperate and solve disputes ranging from energy to insurgency issues. The three foreign ministers agreed that cooperation is the right approach to regional and global affairs. They also called for strengthening the United Nations to promote the "democratisation of international relations" to build a multi-polar world.

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China and India Announce Joint Venture

An Indian software firm has announced a partnership with three Chinese firms to create a joint venture that will employ some 5,000 Chinese. The new firm, announced by Tata Consultancy Services, will be one of the five largest software companies in China. China lags far behind its southern neighbor in software exporting, though its domestic industry has been growing 30-40% yearly.

An Indian software firm has announced a partnership with three Chinese firms to create a joint venture that will employ some 5,000 Chinese. The new firm, announced by Tata Consultancy Services, will be one of the five largest software companies in China. China lags far behind its southern neighbor in software exporting, though its domestic industry has been growing 30-40% yearly.

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China and Japan in Top 8 for Patents

Both China and Japan were among the top 8 nations in the filing of international patents in 2006, with China filing 57% more than in 2005. Japan was 2nd on the list and China was 8th, up two spots from the year before. The bulk of China's patent growth came from its telecommunication, pharmaceutical, and information technology industries. Worldwide, patents increased 6%.

Both China and Japan were among the top 8 nations in the filing of international patents in 2006, with China filing 57% more than in 2005. Japan was 2nd on the list and China was 8th, up two spots from the year before. The bulk of China's patent growth came from its telecommunication, pharmaceutical, and information technology industries. Worldwide, patents increased 6%.

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Lower Copper and Aluminum Prices Increase China's Profits

The prices of raw metals such as copper and aluminum are down from the all-time highs of last year and are expected to stay that way through coming years. The lowered prices were caused by increasing inventories and are expected to most benefit those firms that use the metals as inputs for the manufacturing of other products.

The prices of raw metals such as copper and aluminum are down from the all-time highs of last year and are expected to stay that way through coming years. The lowered prices were caused by increasing inventories and are expected to most benefit those firms that use the metals as inputs for the manufacturing of other products.

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Record Trade Surplus for China

China's trade surplus rose almost $16 billion in January thanks to continued growth and a longer January than normal. The Chinese New Year was later than normal, increasing trading days in January. The trade surplus for China hit an all-time high in 2006, as it rose 74% from 2005 to $177.47 billion. Experts point to an undervalued yuan as one of the causes for the surplus and many developed nations are pressuring China to increase its currency flexibility.

China's trade surplus rose almost $16 billion in January thanks to continued growth and a longer January than normal. The Chinese New Year was later than normal, increasing trading days in January. The trade surplus for China hit an all-time high in 2006, as it rose 74% from 2005 to $177.47 billion. Experts point to an undervalued yuan as one of the causes for the surplus and many developed nations are pressuring China to increase its currency flexibility.

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The Rise of Organized Crime in Asia

ORGANIZED CRIME presents a challenge to sustained economic growth for many Asian countries. Cargo theft, piracy, counterfeit currency, and corruption have become more prevalent as the region has developed and become more connected to the global economy. The failure of host governments to curb organized crime has eroded the profitability of investment in the region and seems to have discouraged prospective trade partners. In addition to the economic loss, these elements pose a broader threat as gang revenue has been used to fund terrorist groups and other non-state actors. Given these threats, the business community and host governments must collaborate to address the rise in organized crime.

Types of criminal activity vary widely . Cargo theft has been among the most common. Cargo holds are often poorly secured, and cargo containers poorly sealed. For gangs, cargo theft has proven to be less costly than the drug trade and so offers higher returns. Many former drug smugglers and established gangs have shifted their focus to ports where they siphon off cargo. Sea piracy has been another concern. In fact, Asia has the highest piracy rate worldwide. According to the International Maritime Organization, there were 266 reported cases of piracy in 2005. Southeast Asia accounted for 117 cases.1 Counterfeit currency has recently become another problem. In March 2006, the Chinese government announced an influx of counterfeit American $100 bills. The fake currency was presumably made in North Korea to be sold to Chinese and Taiwanese gangs. North Korea earns approximately $15 to $25 million each year from counterfeit currency.2

Roots of Organized Crime
There are several factors behind the growth of crime syndicates in Asia. Generally speaking, global commerce and the reduction of the state sector have presented an opportunity for criminal elements. Gangs have benefited from the deregulation of the economy. They have often stepped up activity to fill the gap left by a government scale-back.3 Furthermore, e-commerce can not yet be effectively regulated, and the reliance on the Internet as a means of growth poses problems. Gangs have used electronic communications to establish transnational ties, and the current lack of Internet oversight allows these groups to compromise the security of online transactions of legitimate businesses. Many groups have successfully hacked bank systems and online government records.4

Another component which is more specific to Asia concerns the role of labor shortages. The acute need for labor has affected the quality of the Asian workforce. To take the case of Malaysia, the need for manufacturing labor has led companies to employ foreign workers. Up to 75 percent of a factory workforce can be foreign-born.5 Many argue the prevalence of non-native workers has helped erode the quality of the regional workforce. Background checks are extremely lax, and many workers have ties to criminal gangs or come from regions hostile to American and Western business interests.

The linkage between organized crime, host governments, and legitimate businesses are also an important factor. Corruption has become common throughout the region and threatens long-term development. Organized crime has thrived in part because it can operate alongside a legitimate business. Crime exploits, rather than disrupts, a legitimate business.6 Gangs have established extensive contacts with government officials and private business and have integrated themselves with the broader economy. Gang-controlled front businesses have become more common, and many legal groups have acquiesced to gang demands. The longer gangs can operate in such a manner, the harder it will be for governments to disentangle organized crimes from legitimate businesses.

Assessing Threats
There is significant debate as to which country constitutes the greatest threat to the business community. Malaysia and Indonesia were traditionally seen as among the most severe threats. The Malaysian Mamuk gang has been the bane of the Malaysian transport system and has siphoned cargo away from legitimate businesses for over twenty years.7 China has usually been seen as comparatively crime-free and uncorrupt. However, some now argue that the extensive links between the government and Chinese Triads make China the number one threat to foreign businesses.8 Moreover, there seems to be no consensus over which type of criminal activity is most prevalent or most threatening. Asian officials are more likely to see gambling and extortion as more threatening than corruption or human smuggling.

The effects of crime on legitimate business are well documented.-studied. The United States are primarily concerned with the piracy of intellectual property . Many organized crime groups work exclusively with pirated materials. Piracy has undercut profit for players throughout the globe, making investment in the region less likely. Cargo theft and extortion have a similar deterrent effect.
A more general concern has to do with the infiltration of organized crime to legitimate sectors. Most criminal groups want to be seen as legitimate. They foster relationships with government officials and local businesses. The result is corrupt operating environment that is biased against foreign businesses and consumers.

There are several measures companies can take to counteract the effects of organized crime. Risk management firm FirstAdvantage recently conducted a multiyear study to assess the risks of operating in less developed countries.9 The study found the majority of businesses do not take adequate safeguards. Employees are not sufficiently screened hence many workers have maintained contacts to gangs. Many businesses rely on third parties for the storage of inventory, and the use of external groups can expose cargo to gang elements. The study also found many companies often misallocate security spending. Businesses have employed a cookie-cutter approach to security that does not account for differences in criminal activity.

The FirstAdvantage study offers suggestions for those companies that operate in less developed regions. Suggested measures include constant vigilance, extensive employee training to recognize security threats, and a holistic view toward security. FirstAdvantage recommends companies evaluate port security throughout the supply chain. They should become familiar with common gang tactics used during cargo heists. There are several private sector efforts to address the threats of organized crime. The Technology Asset Protection Association includes over 200 multinational corporations and mandates transportation security requirements. TAPA requirements have helped reduce losses through theft by up to 40 percent.10 These ventures help minimize the effects of organized crimes on businesses. But in the long-term, the actions of regional governments will be more important than measures taken by the private sector.

Asian organized crimes remain mostly a regional problem. Regional cooperation at the government level therefore appears to be the most effective defense against organized crimes. Right now, local law enforcement groups have been more focused on traditional criminal activities like prostitution and violence than they are on transnational crimes. But, there have been encouraging first steps towards regional cooperation. Last November, Japan, Singapore, the Philippines, and eight other countries signed a treaty to cooperate on anti-piracy measures. The Japanese Coast Guard has agreed to step up patrols, especially in the Malacca Straits, and the Japanese government has pledged to help lead regional efforts against organized crime.11

The private sector should encourage these regulatory measures and pressure governments to take more aggressive stands against organized crimes and corruption. At the government level, the United States and other countries should be more forthcoming toward Asian law enforcement groups, helping them develop effective countermeasures against organized crime. Asian local law enforcement spokesmen have complained that the United States and Western governments do not offer sufficient investment or treat Asian counterparts as equals. Without global cooperation throughout public and private sectors, organized crime will continue to expand.

ORGANIZED CRIME presents a challenge to sustained economic growth for many Asian countries. Cargo theft, piracy, counterfeit currency, and corruption have become more prevalent as the region has developed and become more connected to the global economy. The failure of host governments to curb organized crime has eroded the profitability of investment in the region and seems to have discouraged prospective trade partners. In addition to the economic loss, these elements pose a broader threat as gang revenue has been used to fund terrorist groups and other non-state actors. Given these threats, the business community and host governments must collaborate to address the rise in organized crime.

Types of criminal activity vary widely . Cargo theft has been among the most common. Cargo holds are often poorly secured, and cargo containers poorly sealed. For gangs, cargo theft has proven to be less costly than the drug trade and so offers higher returns. Many former drug smugglers and established gangs have shifted their focus to ports where they siphon off cargo. Sea piracy has been another concern. In fact, Asia has the highest piracy rate worldwide. According to the International Maritime Organization, there were 266 reported cases of piracy in 2005. Southeast Asia accounted for 117 cases.1 Counterfeit currency has recently become another problem. In March 2006, the Chinese government announced an influx of counterfeit American $100 bills. The fake currency was presumably made in North Korea to be sold to Chinese and Taiwanese gangs. North Korea earns approximately $15 to $25 million each year from counterfeit currency.2

Roots of Organized Crime
There are several factors behind the growth of crime syndicates in Asia. Generally speaking, global commerce and the reduction of the state sector have presented an opportunity for criminal elements. Gangs have benefited from the deregulation of the economy. They have often stepped up activity to fill the gap left by a government scale-back.3 Furthermore, e-commerce can not yet be effectively regulated, and the reliance on the Internet as a means of growth poses problems. Gangs have used electronic communications to establish transnational ties, and the current lack of Internet oversight allows these groups to compromise the security of online transactions of legitimate businesses. Many groups have successfully hacked bank systems and online government records.4

Another component which is more specific to Asia concerns the role of labor shortages. The acute need for labor has affected the quality of the Asian workforce. To take the case of Malaysia, the need for manufacturing labor has led companies to employ foreign workers. Up to 75 percent of a factory workforce can be foreign-born.5 Many argue the prevalence of non-native workers has helped erode the quality of the regional workforce. Background checks are extremely lax, and many workers have ties to criminal gangs or come from regions hostile to American and Western business interests.

The linkage between organized crime, host governments, and legitimate businesses are also an important factor. Corruption has become common throughout the region and threatens long-term development. Organized crime has thrived in part because it can operate alongside a legitimate business. Crime exploits, rather than disrupts, a legitimate business.6 Gangs have established extensive contacts with government officials and private business and have integrated themselves with the broader economy. Gang-controlled front businesses have become more common, and many legal groups have acquiesced to gang demands. The longer gangs can operate in such a manner, the harder it will be for governments to disentangle organized crimes from legitimate businesses.

Assessing Threats
There is significant debate as to which country constitutes the greatest threat to the business community. Malaysia and Indonesia were traditionally seen as among the most severe threats. The Malaysian Mamuk gang has been the bane of the Malaysian transport system and has siphoned cargo away from legitimate businesses for over twenty years.7 China has usually been seen as comparatively crime-free and uncorrupt. However, some now argue that the extensive links between the government and Chinese Triads make China the number one threat to foreign businesses.8 Moreover, there seems to be no consensus over which type of criminal activity is most prevalent or most threatening. Asian officials are more likely to see gambling and extortion as more threatening than corruption or human smuggling.

The effects of crime on legitimate business are well documented.-studied. The United States are primarily concerned with the piracy of intellectual property . Many organized crime groups work exclusively with pirated materials. Piracy has undercut profit for players throughout the globe, making investment in the region less likely. Cargo theft and extortion have a similar deterrent effect.
A more general concern has to do with the infiltration of organized crime to legitimate sectors. Most criminal groups want to be seen as legitimate. They foster relationships with government officials and local businesses. The result is corrupt operating environment that is biased against foreign businesses and consumers.

There are several measures companies can take to counteract the effects of organized crime. Risk management firm FirstAdvantage recently conducted a multiyear study to assess the risks of operating in less developed countries.9 The study found the majority of businesses do not take adequate safeguards. Employees are not sufficiently screened hence many workers have maintained contacts to gangs. Many businesses rely on third parties for the storage of inventory, and the use of external groups can expose cargo to gang elements. The study also found many companies often misallocate security spending. Businesses have employed a cookie-cutter approach to security that does not account for differences in criminal activity.

The FirstAdvantage study offers suggestions for those companies that operate in less developed regions. Suggested measures include constant vigilance, extensive employee training to recognize security threats, and a holistic view toward security. FirstAdvantage recommends companies evaluate port security throughout the supply chain. They should become familiar with common gang tactics used during cargo heists. There are several private sector efforts to address the threats of organized crime. The Technology Asset Protection Association includes over 200 multinational corporations and mandates transportation security requirements. TAPA requirements have helped reduce losses through theft by up to 40 percent.10 These ventures help minimize the effects of organized crimes on businesses. But in the long-term, the actions of regional governments will be more important than measures taken by the private sector.

Asian organized crimes remain mostly a regional problem. Regional cooperation at the government level therefore appears to be the most effective defense against organized crimes. Right now, local law enforcement groups have been more focused on traditional criminal activities like prostitution and violence than they are on transnational crimes. But, there have been encouraging first steps towards regional cooperation. Last November, Japan, Singapore, the Philippines, and eight other countries signed a treaty to cooperate on anti-piracy measures. The Japanese Coast Guard has agreed to step up patrols, especially in the Malacca Straits, and the Japanese government has pledged to help lead regional efforts against organized crime.11

The private sector should encourage these regulatory measures and pressure governments to take more aggressive stands against organized crimes and corruption. At the government level, the United States and other countries should be more forthcoming toward Asian law enforcement groups, helping them develop effective countermeasures against organized crime. Asian local law enforcement spokesmen have complained that the United States and Western governments do not offer sufficient investment or treat Asian counterparts as equals. Without global cooperation throughout public and private sectors, organized crime will continue to expand.

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The Indian Retail Revolution

GOOD TIMES lie ahead for the retailers in India. The Indian retail sector is poised for ‘big-bang' growth in the foreseeable future, after some recent initiatives undertaken by the government to open up the sector to foreign players. And with a large number of domestic and foreign players namely Reliance Retail, the Bharti-Wal-Mart combine, AV Birla Group, Future group, Tesco's and Carrefour all set to announce some really aggressive plans for their eventual entry into the sector, things just could not have gotten any better in the country. However, retailers must surmount several obstacles in order for the sector to successfully embark on the path towards tangible reforms and growth.

Ready for Growth
Analysts consider India's retail business one of the most attractive in the world. Consumer demand is booming as the government's liberalizing policies have produced 8-9 percent annual GDP growth. Technopak, a Delhi-based retail consultancy, expects retail sales of $250-300 billion now to rise to nearly $430 billion by 2010.1 Also the retail industry is the largest provider of jobs after agriculture, accounting for 6-7 percent of employment and about 10 percent of GDP.2

Currently India lags behind other Asian countries like China, Thailand and South Korea where the organized retail sector has a much greater percentage share of the total business carried out in those nations. This is in stark contrast to India, where of the approximately 98 percent "traditional retailing" taking place, most of the business is being handled by the mom-and-pop kirana stores.3 These stores suffer from some severe limitations, namely the small size of their operations, low-cost format and the widespread under-reporting of business transactions resulting in tax evasion. Additionally, the Indian retail sector suffers from limited access to capital, labor and suitable real estate options. 4 Technopak estimates that over the next four years, organized retail in India will receive investments in excess of $25 billion from 40 players.5 The primary advantages of organized retailing is that retailers are able to leverage their massive size and well-established supply chains in order to deliver a variety of choice at competitive prices to the consumer.

Major Constraints
Things, however, are not as rosy as they appear. Some believe that the retail sector should be kept shut since an influx of foreign supermarket chains would wipe out the millions of small shops presently dominating the retail landscape. This potential loss in jobs has invited the ire of the Communist parties who want to protect the interests of the small traders and local shopkeepers. Since the government relies on the votes of these Communist parties for its parliamentary majority, implementing the reforms in the retail sector has become somewhat tricky. Other problems acting as potential stumbling blocks in the growth of organized retailing include poor infrastructure, land grabs, the massive red tapism prevalent in the bureaucracy and labor disputes. All of these legal, infrastructural, cultural and educational constraints would have to be overcome if the sector truly aspires to achieve the kind of growth it envisages for itself.

Retail Rolls On
Just recently, the Commerce and Industries Minister Kamal Nath said that the government is considering opening up retail sector for multi brand specialty formats like consumer electronics, sports goods, building and construction equipment and stationery. The move follows last year's decision to allow 51 percent foreign direct investment (FDI) in single brand retail outlets.6 Big players like Reliance Retail have already seized the opportunity and have announced plans to open approximately 5000 shops across India over the next five years. The government has received FDI proposals for single brand outlets from companies like Starbucks, Lee Cooper and Argentina's Rino Jreggio but has yet to decide on these proposals.7 Despite setback, analysts estimate Indian retailing will grow about 37 percent in 2007 and 42 percent in 2008.8 If this is the case, the government will be forced to open up even further after of the current spate of reforms are underway.

Winners and losers
Indian consumers can expect to benefit enormously from the influx of foreign competition in the retail sector. Not only would they have access to a vast array superior quality of products at extremely affordable prices from competing producers all over the globe. However, millions of small store-owners are terrified of the onslaught from giant domestic and foreign retailers and fear being driven out of business. The government must take strong steps to ensure that consumer's and big retailer's huge gains do not result in the ultimate demise of the kirana stores, which have been a staple feature of India's retail landscape since time immemorial.

GOOD TIMES lie ahead for the retailers in India. The Indian retail sector is poised for ‘big-bang' growth in the foreseeable future, after some recent initiatives undertaken by the government to open up the sector to foreign players. And with a large number of domestic and foreign players namely Reliance Retail, the Bharti-Wal-Mart combine, AV Birla Group, Future group, Tesco's and Carrefour all set to announce some really aggressive plans for their eventual entry into the sector, things just could not have gotten any better in the country. However, retailers must surmount several obstacles in order for the sector to successfully embark on the path towards tangible reforms and growth.

Ready for Growth
Analysts consider India's retail business one of the most attractive in the world. Consumer demand is booming as the government's liberalizing policies have produced 8-9 percent annual GDP growth. Technopak, a Delhi-based retail consultancy, expects retail sales of $250-300 billion now to rise to nearly $430 billion by 2010.1 Also the retail industry is the largest provider of jobs after agriculture, accounting for 6-7 percent of employment and about 10 percent of GDP.2

Currently India lags behind other Asian countries like China, Thailand and South Korea where the organized retail sector has a much greater percentage share of the total business carried out in those nations. This is in stark contrast to India, where of the approximately 98 percent "traditional retailing" taking place, most of the business is being handled by the mom-and-pop kirana stores.3 These stores suffer from some severe limitations, namely the small size of their operations, low-cost format and the widespread under-reporting of business transactions resulting in tax evasion. Additionally, the Indian retail sector suffers from limited access to capital, labor and suitable real estate options. 4 Technopak estimates that over the next four years, organized retail in India will receive investments in excess of $25 billion from 40 players.5 The primary advantages of organized retailing is that retailers are able to leverage their massive size and well-established supply chains in order to deliver a variety of choice at competitive prices to the consumer.

Major Constraints
Things, however, are not as rosy as they appear. Some believe that the retail sector should be kept shut since an influx of foreign supermarket chains would wipe out the millions of small shops presently dominating the retail landscape. This potential loss in jobs has invited the ire of the Communist parties who want to protect the interests of the small traders and local shopkeepers. Since the government relies on the votes of these Communist parties for its parliamentary majority, implementing the reforms in the retail sector has become somewhat tricky. Other problems acting as potential stumbling blocks in the growth of organized retailing include poor infrastructure, land grabs, the massive red tapism prevalent in the bureaucracy and labor disputes. All of these legal, infrastructural, cultural and educational constraints would have to be overcome if the sector truly aspires to achieve the kind of growth it envisages for itself.

Retail Rolls On
Just recently, the Commerce and Industries Minister Kamal Nath said that the government is considering opening up retail sector for multi brand specialty formats like consumer electronics, sports goods, building and construction equipment and stationery. The move follows last year's decision to allow 51 percent foreign direct investment (FDI) in single brand retail outlets.6 Big players like Reliance Retail have already seized the opportunity and have announced plans to open approximately 5000 shops across India over the next five years. The government has received FDI proposals for single brand outlets from companies like Starbucks, Lee Cooper and Argentina's Rino Jreggio but has yet to decide on these proposals.7 Despite setback, analysts estimate Indian retailing will grow about 37 percent in 2007 and 42 percent in 2008.8 If this is the case, the government will be forced to open up even further after of the current spate of reforms are underway.

Winners and losers
Indian consumers can expect to benefit enormously from the influx of foreign competition in the retail sector. Not only would they have access to a vast array superior quality of products at extremely affordable prices from competing producers all over the globe. However, millions of small store-owners are terrified of the onslaught from giant domestic and foreign retailers and fear being driven out of business. The government must take strong steps to ensure that consumer's and big retailer's huge gains do not result in the ultimate demise of the kirana stores, which have been a staple feature of India's retail landscape since time immemorial.

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china

China Invests in Central Asia

BOTH THE Chinese government and the business community have become intently focused on Central Asia. For the Chinese government, Central Asia represents an opportunity to expand access to energy reserves and extend international influence, and as such, the Chinese government has worked to foster good relations with Central Asian governments through loans and sponsorship. The business community has benefited from these government-led measures. Chinese tradesmen have expanded their business and have established themselves among several Central Asian trade posts. The effects of Chinese trade to Central Asia will likely have far-reaching consequences for the region at large. The precise nature of these consequences depends largely on the nature of Chinese investment and the Central Asian reaction.

Security
The Chinese see Central Asia through both a security and business framework. Central Asia can represent vulnerability. The Chinese leadership has always wanted a stable Central Asia, free from Russian or American domination, because unrest can take attention away from economic policy. The recent rise of Islamic extremism has therefore led to greater Chinese concern, especially after the US-led invasion of Afghanistan. Of central concern is the minority Uighurs of south-west China. The Uighur are a Muslim group, many of whom have long wanted to secede. Central Asian states have often supported Uighur secession. China founded the multilateral Shanghai Cooperation Organization as a means to address Uighur secessionism. Many Chinese hope better Sino-Central Asian relations and extended economic growth can prevent further secession attempts.1

Expansion
Business has been the second aspect of Chinese involvement in Central Asia. China needs new markets for products, and Central Asia seems to be an excellent prospect. Chinese trade represents the fastest-growing segment of the Central Asian economy. There are, for example, now over 20,000 Chinese merchants who currently operate in Kyrgyzstan. Chinese trade to the country totals over $866 million as of 2005. The Chinese state has spent over $7.7 million on a road through central Kyrgyzstan.2 But there are conditions to Chinese cooperation, and the Chinese government has often tied investment to important economic concessions. In the case of Kyrgyzstan, China wants access to the national gold industry. Kazakhstan has been another target of Chinese conditionality. Kazakhstan has the region's largest oil reserves, and in October 2005, China acquired Canada-based PetroKazakhstan Inc. The acquisition gave China a controlling stake in the Kazakh oil industry.3 has expanded to Central Asia.4 Many mononuclear cells (MNC) manufacturers want to diversify production locales. They are afraid to become too dependent on China. afraid to become too dependent on China. Vietnam, Indonesia, and Malaysia have all benefited from foreign direct investment (FDI) diverted from China.5 Trade could also help encourage legal businesses. More formal sector employments could undercut the drug and arms trade and help support Central Asian governments.

By the same token, Chinese investment could have a negative effect, especially if the central government does not effectively monitor trans-border trade. China has become somewhat notorious for a arms sales to less-than-reputable or unstable actors. The Chinese government seems unlikely to sanction arms sales to Central Asian states, however unless these western borders are carefully controlled, the private sector may take up the trade. The sale of arms would further destabilize the region and erode chances for broad-based Central Asian development. Another concern looks at the Central Asian response to Chinese merchants. Xenophobia on the part of Central Asians could lead to a backlash to Chinese trade and a move away from the global economy. A related aspect has to do with the conditions set by the Chinese government. China has made many demands of its Central Asian neighbors. These states have agreed to the conditions because they need the aid and technological know-how. However, these concessions run against the strong sense of nationalism common among many Central Asian states. Should China exploit its advantage, it runs the risk of inciting popular unrest against these governments. A moderate approach that stresses mutual advantage therefore seems most appropriate.

BOTH THE Chinese government and the business community have become intently focused on Central Asia. For the Chinese government, Central Asia represents an opportunity to expand access to energy reserves and extend international influence, and as such, the Chinese government has worked to foster good relations with Central Asian governments through loans and sponsorship. The business community has benefited from these government-led measures. Chinese tradesmen have expanded their business and have established themselves among several Central Asian trade posts. The effects of Chinese trade to Central Asia will likely have far-reaching consequences for the region at large. The precise nature of these consequences depends largely on the nature of Chinese investment and the Central Asian reaction.

Security
The Chinese see Central Asia through both a security and business framework. Central Asia can represent vulnerability. The Chinese leadership has always wanted a stable Central Asia, free from Russian or American domination, because unrest can take attention away from economic policy. The recent rise of Islamic extremism has therefore led to greater Chinese concern, especially after the US-led invasion of Afghanistan. Of central concern is the minority Uighurs of south-west China. The Uighur are a Muslim group, many of whom have long wanted to secede. Central Asian states have often supported Uighur secession. China founded the multilateral Shanghai Cooperation Organization as a means to address Uighur secessionism. Many Chinese hope better Sino-Central Asian relations and extended economic growth can prevent further secession attempts.1

Expansion
Business has been the second aspect of Chinese involvement in Central Asia. China needs new markets for products, and Central Asia seems to be an excellent prospect. Chinese trade represents the fastest-growing segment of the Central Asian economy. There are, for example, now over 20,000 Chinese merchants who currently operate in Kyrgyzstan. Chinese trade to the country totals over $866 million as of 2005. The Chinese state has spent over $7.7 million on a road through central Kyrgyzstan.2 But there are conditions to Chinese cooperation, and the Chinese government has often tied investment to important economic concessions. In the case of Kyrgyzstan, China wants access to the national gold industry. Kazakhstan has been another target of Chinese conditionality. Kazakhstan has the region's largest oil reserves, and in October 2005, China acquired Canada-based PetroKazakhstan Inc. The acquisition gave China a controlling stake in the Kazakh oil industry.3 has expanded to Central Asia.4 Many mononuclear cells (MNC) manufacturers want to diversify production locales. They are afraid to become too dependent on China. afraid to become too dependent on China. Vietnam, Indonesia, and Malaysia have all benefited from foreign direct investment (FDI) diverted from China.5 Trade could also help encourage legal businesses. More formal sector employments could undercut the drug and arms trade and help support Central Asian governments.

By the same token, Chinese investment could have a negative effect, especially if the central government does not effectively monitor trans-border trade. China has become somewhat notorious for a arms sales to less-than-reputable or unstable actors. The Chinese government seems unlikely to sanction arms sales to Central Asian states, however unless these western borders are carefully controlled, the private sector may take up the trade. The sale of arms would further destabilize the region and erode chances for broad-based Central Asian development. Another concern looks at the Central Asian response to Chinese merchants. Xenophobia on the part of Central Asians could lead to a backlash to Chinese trade and a move away from the global economy. A related aspect has to do with the conditions set by the Chinese government. China has made many demands of its Central Asian neighbors. These states have agreed to the conditions because they need the aid and technological know-how. However, these concessions run against the strong sense of nationalism common among many Central Asian states. Should China exploit its advantage, it runs the risk of inciting popular unrest against these governments. A moderate approach that stresses mutual advantage therefore seems most appropriate.

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china

Real Estate Investment Shifts to China's Small Cities

As the Chinese government has implemented many regulations on large cities' real estate markets, investment is increasingly shifting to the nation's second-tier cities such as Wuhan, Chongqing and Chengdu. These cities have high internal rates of return (IRR), a measure that, roughly speaking, tells investors what they can expect to make from an investment on an annual basis.

As the Chinese government has implemented many regulations on large cities' real estate markets, investment is increasingly shifting to the nation's second-tier cities such as Wuhan, Chongqing and Chengdu. These cities have high internal rates of return (IRR), a measure that, roughly speaking, tells investors what they can expect to make from an investment on an annual basis.

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China to Restart Launch of New Mutual Funds

China's securities regulator has approved the launch of five new mutual funds, showing the government's confidence in the market despite widespread concerns of a stock market bubble.The new funds were approved by the China Securities Regulatory Commission (CSRC) after a two-month halt amid fears of runaway investment and excessive liquidity.

China's securities regulator has approved the launch of five new mutual funds, showing the government's confidence in the market despite widespread concerns of a stock market bubble.The new funds were approved by the China Securities Regulatory Commission (CSRC) after a two-month halt amid fears of runaway investment and excessive liquidity.

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China Issues Rules for Foreigners Buying Houses

Many foreigners have been speculating in China's real estate market due to the escalating housing prices and the appreciation of Chinese currency. In the effort to prevent a real estate bubble, the Chinese government decided to forbid foreigners buying houses unless they have worked or studied in China for more than one year and buy property for their own use.

Many foreigners have been speculating in China's real estate market due to the escalating housing prices and the appreciation of Chinese currency. In the effort to prevent a real estate bubble, the Chinese government decided to forbid foreigners buying houses unless they have worked or studied in China for more than one year and buy property for their own use.

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Emerging Asia’s Growth and Integration - How Autonomous are Business Cycles?

Against the background of the rapid integration of emerging Asia into the global economy, this paper investigates the role of domestic and external factors in driving individual emerging economies in Asia. We estimate VAR models for ten countries over the period 1979Q1-2003Q4, controlling for external factors, and use sign restrictions to identify structural domestic shocks. Variance decompositions indicate that Asian emerging economies are to a large part driven by external developments, and even more so employing a more recent sample. We analyse to what extent structural domestic shocks exhibit a regional dimension by comparing shocks across countries using correlation and principal component analysis. The extent of regional co-movement between structural shocks is relatively limited. While the principal components analysis indicates a moderate increase in co-movement over time, the correlation analysis finds a decline. This may reflect a broadening of regional integration at the expense of bilateral economic ties.

Against the background of the rapid integration of emerging Asia into the global economy, this paper investigates the role of domestic and external factors in driving individual emerging economies in Asia. We estimate VAR models for ten countries over the period 1979Q1-2003Q4, controlling for external factors, and use sign restrictions to identify structural domestic shocks. Variance decompositions indicate that Asian emerging economies are to a large part driven by external developments, and even more so employing a more recent sample. We analyse to what extent structural domestic shocks exhibit a regional dimension by comparing shocks across countries using correlation and principal component analysis. The extent of regional co-movement between structural shocks is relatively limited. While the principal components analysis indicates a moderate increase in co-movement over time, the correlation analysis finds a decline. This may reflect a broadening of regional integration at the expense of bilateral economic ties.

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china

The Emergence of a New ‘Socialist’ Market Labour Regime in China

China's transition to a market economy has been a process of basic institutional changes and institution building. The institutional change from a socialist labour regime (SLR) as one of the backbones upholding the traditional leninist system to a new ‘socialist' market labour regime (SMLR) became particularly important for the success of economic and political reforms. This analysis is based on the analytical framework of regimes and makes use of the idea of path dependence. An ensemble of institutions, mutually interconnected and influencing each other, forms the regime and shapes its trajectory. Six institutions are identified to constitute the employment regime: (1) the system of social control, (2) the production system, (3) the system of industrial relations, (4) the welfare system, (5) the family order, and (6) the educational system. The SMLR is still characterised by its socialist past and differs from other varieties of transformation labour regimes and bears little resemblance to labour regimes in Western market economies.

China's transition to a market economy has been a process of basic institutional changes and institution building. The institutional change from a socialist labour regime (SLR) as one of the backbones upholding the traditional leninist system to a new ‘socialist' market labour regime (SMLR) became particularly important for the success of economic and political reforms. This analysis is based on the analytical framework of regimes and makes use of the idea of path dependence. An ensemble of institutions, mutually interconnected and influencing each other, forms the regime and shapes its trajectory. Six institutions are identified to constitute the employment regime: (1) the system of social control, (2) the production system, (3) the system of industrial relations, (4) the welfare system, (5) the family order, and (6) the educational system. The SMLR is still characterised by its socialist past and differs from other varieties of transformation labour regimes and bears little resemblance to labour regimes in Western market economies.

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china

Outsourcing Tariff Evasion: A New Explanation for Entrepot Trade

Traditional explanations for indirect trade through an entrepot have focused on savings in transport costs and on the role of specialized agents in processing and distribution. We provide an alternative perspective based on the possibility that entrepots may facilitate tariff evasion. Using data on direct exports to mainland China and indirect exports via Hong Kong SAR, we find that the indirect export rate rises with the Chinese tariff rate, even though there is no legal tax advantage to sending goods via Hong Kong SAR. We undertake a number of extensions to rule out plausible alternative hypotheses based on existing explanations for entrepot trade.

Traditional explanations for indirect trade through an entrepot have focused on savings in transport costs and on the role of specialized agents in processing and distribution. We provide an alternative perspective based on the possibility that entrepots may facilitate tariff evasion. Using data on direct exports to mainland China and indirect exports via Hong Kong SAR, we find that the indirect export rate rises with the Chinese tariff rate, even though there is no legal tax advantage to sending goods via Hong Kong SAR. We undertake a number of extensions to rule out plausible alternative hypot