Monday, December 31, 2007

Chinesepod - China builds new committee to oversee M&A of listed companies

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BIZCHINA / Center

China builds new committee to oversee M&A of listed companies

(Xinhua)
Updated: 2007-09-18 11:30

China's securities regulator set up a new committee to oversee mergers
and acquisitions (M&A) of listed companies, in an effort to eliminate
insider trading and guarantee transparency in government approval of
listed companies' M&A activities.

The M&A activities that would need examination from the new committee
include key assets restructuring moves, the issuance of new shares and
the purchase of assets from specified parties, and the merger and
separation of listed companies, according to a new regulation published
on the website of the China Securities Regulatory Commission (CSRC) on
Monday.

But the approval power remained in the hands of the commission itself.

The new committee will be composed of 25 commissioners appointed by CSRC,
including five professionals with CSRC. Each commissioner is appointed
for one year, and can be re-appointed for no more than three terms.

The committee will check the M&A applications from listed companies,
examine the materials and opinions provided by financial advisors,
accounting firms, law firms and assets evaluation organizations, and
review the trial examination reports issued by CSRC departments.

The securities regulator also specified detailed requirements of listed
companies that initiate major assets restructuring activities, ordering
that the relevant information be disclosed accurately, timely and fairly,
in a bid to rule out insider trading.

(For more biz stories, please visit Industry Updates)

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Chinese Online Class - Risky?trade?beyond 5,300 points

?  ?

BIZCHINA / Center

Risky?trade?beyond 5,300 points

By Mao Lijun (China Daily)
Updated: 2007-09-17 09:45

The survey showed that more than 60 percent of individual investors
preferred long-term, stable returns and are tolerant of losses up to 20
percent.

Risks and gains

However, the stock market's sharp gains are raising concerns about stock
overvaluations.

Stocks in domestic markets are trading at more than 40 times listed
companies' earnings per share on average, much more than developed
markets overseas, such as 15 times in the United States and 20 times in
Japan.

As stock prices and indexes surge, the A-share market bubble is
accumulating quickly, increasing the risk of bigger fluctuations, experts
say.

"China's equity market is starting to show signs of getting out of
control," says Zuo Xiaolei, chief economist of China Galaxy Securities

Chinese regulators are expected to come up with certain policies to put
the brakes on the surging stock market. They may impose administrative
measures to curb investment demand, although no imminent monetary
tightening measures are expected.

"The country's stock market is still in a policy-sensitive mood," Zhu
Haitao, an analyst with Essence Securities Co, says.

The stock market is likely to be clouded by uncertainties in the short
term, stemming from investors' concerns about further governmental action
and possible monetary tightening measures, he says.

And they believed that a set of policy-related factors in recent days
have already put pressure on stocks and is leading their prices to hike
in the short term.

Such factors include the expected outflow of liquidity to overseas
markets through QDII and direct investment, the issuance of corporate
bonds and treasury bonds, the expectations of another interest rate hike,
the banking regulator's action against irregularities in bank loans
invested in the stock market and expansion pressure from red chips
returning to the home market.

"Liquidity in the domestic stock market is expected to decrease in the
second half because of the expected corporate bonds, return of the giant
red-chip companies and outflow of liquidity to overseas markets," Galaxy
Securities' Qin Xiaobing says.

The inflation figures for August released last Tuesday pushed the stock
market down last week, as the highest figures in 11 years have raised the
specter of a further rise in interest rates and other monetary tightening
measures.

The National Bureau of Statistics said last Tuesday that the Consumer
Price Index (CPI), a barometer of inflation, rose 6.5 percent
year-on-year in August.

And an announcement last week of the sale of 200 billion yuan (US$26.6
billion) ?in special treasury bonds to the public has also pushed stock
the market down.

Economists say they saw a distinctive outflow of investment funds from
the stock market last week.

(For more biz stories, please visit Industry Updates)

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Chinese School - Urban fixed assets investment up 26.7% in?first?8 months

?  ?

BIZCHINA / Center

Urban fixed assets investment up 26.7% in?first?8 months

(Xinhua)
Updated: 2007-09-14 11:34

Investment on fixed assets in China's urban areas rose 26.7 percent
year-on-year in the first eight months, the National Bureau of Statistics
(NBS) said on Friday.

The latest figure was a little higher than the 26.6 percent for the first
seven months.
Urban fixed assets investment added up to 6.67 trillion yuan (US$886.97
billion) in the first eight months, said the bureau.

Investment in the primary industry enjoyed a 42.9-percent growth to 78.3
billion yuan and that of the secondary industry rose 29.5 percent to 2.96
trillion yuan. The tertiary industry witnessed an increase of 24.3
percent to 3.63 trillion yuan.

Investment in the real estate sector registered a 29 percent year-on-year
growth in the period, hitting 1.43 trillion yuan.

A total of 149,751 new projects were launched during the first eight
months, 18,665 more than a year earlier. The planned investment for these
projects totaled 5.19 trillion yuan, up 16.7 percent year on year.

(For more biz stories, please visit Industry Updates)

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Chinese Online Class - SOEs in list of most admired

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BIZCHINA / Center

SOEs in list of most admired

By Fu Jing (China Daily)
Updated: 2007-09-13 09:55

State-owned enterprises (SOEs), once known for chronic losses and low
efficiency, now find themselves in the list of the world's most admired
companies chosen by Fortune magazine.

China Mobile topped the list of most admired Chinese companies in the
world for its outstanding profit-making abilities, talent management and
corporate social responsibility.

China Telecommunications, Baosteel Group Corp, China State Construction
Engineering Corp and China National Petroleum Corp also figure in the
list jointly announced by the magazine and Hay Group, an international
consultancy.

The list was based on a survey conducted by Hay Group among 10,000
financial analysts worldwide and the senior management team of 347
multinationals.

The consulting firm also announces the list of most respected companies
for all countries every year but didn't offer the full lists for other
countries as of yesterday.

Huang Shuhe, vice-minister of the State-owned Assets Supervision and
Administration Commission, said the list validates China's achievements
in SOE reforms.

There are 155 companies directly under the control of the central
government and 16 of them have been listed as Fortune 500 companies.

(For more biz stories, please visit Industry Updates)

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Sunday, December 30, 2007

Chinese School - Record-high CPI triggers 4.5% plunge of China stocks

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BIZCHINA / Index & Statistics

Record-high CPI triggers 4.5% plunge of China stocks

By Li Zengxin (chinadaily.com.cn)
Updated: 2007-09-11 16:47

The announcement of the highest consumer price index (CPI) figure in 11
years and the issuance of another batch of special treasury bonds
totaling 200 billion yuan finally triggered a wave of panic selling today
resulting in the largest single-day drop in three months.

Other factors for the slump also included a series of previous
"discouraging" factors that had failed to affect the market heavily
through yesterday.

The Shanghai Composite Index, after hitting a temporary high in the
morning, plummeted 241.32 points or 4.51 percent by close, the deepest
plunge in the post-May 30 period after June 4 when the benchmark index
fell 330 points in a single day.

Total turnover of the stocks in the major indices was 259.2 billion yuan,
higher than yesterday's figure.

Shanghai Composite Index
Source: sina.com.cn

The benchmark Shanghai index opened higher at 5,362.94 and seemed
resistant to the CPI release at first, by hitting the highest 5,395.04
and fluctuating in short ranges without forming a clear trend in the
morning. In the afternoon, however, it began sliding and lost another 130
points in less than 30 minutes just before the close to hit the lowest at
5,093.92. A slight rebound near close could not save the market from a
losing day.

Of the A shares listed in Shanghai, only 48 went up, 62 ended flat but as
many as 732 closed down. The Industrial and Commercial Bank of China,
with largest trading volume, fell 5.6 percent to further drag down the
index. China COSCO Holdings, with the largest transaction value, rose an
astounding 10 percent to 38.46 yuan, leading today's few gainers.

Shenzhen Component Index
Source: sina.com.cn

The Shenzhen Component Index, tracking the smaller Shenzhen Stock
Exchange, opened higher at 17,926.60 but closed 789.09 points or 4.4
percent?down?to 17129.39. Mapping out a similar trend to its Shanghai
counterpart, the index went through the day within a range of between
17,088.67 and 18,064.15.

Of the A shares, 37 climbed up, 536 fell and 66 remained unchanged. Large
traders TCL and China Vanke were both down about 5 percent.

(For more biz stories, please visit Industry Updates)

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Learn Chinese - Urban rail lines get?1b yuan?from?social security fund

?  ?

BIZCHINA / Top Biz News

Urban rail lines get?1b yuan?from?social security fund

(Xinhua)
Updated: 2007-09-10 10:29

China's National Council for Social Security Fund (NSSF) has agreed to
invest?1 billion yuan (US$131.6 million) to finance construction of two
urban rail transit lines in Beijing.

NSSF has entrusted China Pingan Trust?and Investment Co Ltd (PATIC) to
manage the investment, according to an agreement signed by NSSF, PATIC
and Beijing Infrastructure Investment Co Ltd last Thursday.

The money will be used to fund the construction of Beijing's No. 5 urban
rail line and another line leading to the Beijing Capital International
Airport.

The length of rail transit lines will reach 561.5 kilometers by 2020, up
from the present 114 kilometers in operation, to meet the city's fast
urbanization, according earlier news reports.

An official with NSSF said the investment will help to supplement its
pension accounts because urban rail transit projects in Beijing could
bring good returns.

Key infrastructure projects are safer as they are backed by the
government, said the official.

NSSF said on its website that as the host city of the 2008 Olympic Games,
Beijing will start many other big projects which provides investors with
good opportunities. It will continue to fiance construction of key
infrastructure projects and reform of State-owned enterprises in the city.

(For more biz stories, please visit Industry Updates)

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Learn Chinese online - China Mobile prepares for mainland listing

?  ?

BIZCHINA / Center

China Mobile prepares for mainland listing

(Xinhua)
Updated: 2007-09-08 11:40

China Mobile, the country's largest mobile phone provider, is now
actively preparing for listing on the mainland stock market, Friday's
Shanghai Securities News reports.

However, there is still no timetable for its listing on the
yuan-denominated A-share market, said Wang Jianzhou, board chairman of
China Mobile.

Related readings:
?China Mobile to mix profit, responsibility in Pakistan
?Chinese firm to supply mobile phones in Kenya
?China Mobile profit surges 29%

Special Coverage:
Red Chips Return

In June, China's securities regulator was reported to have drawn up rules
on how Chinese firms registered and listed in Hong Kong, better known as
red chips, can sell shares on the nation's booming domestic stock markets.

Some media reports have suggested the scheme has been suspended but Wang
Jianzhou said the company had not received any official notification to
ask it to halt the A-share listing plan.

He didn't reveal how many shares China Mobile is set to issue or the
possible share price.

Earlier reports said China Mobile had chosen Goldman Sachs Gaohua as the
underwriter for the listing, from which the company plans to raise no
more than 80 billion yuan (US$10.5 billion).

Insiders say that domestic institutional and individual investors will
have more investment opportunities if China Mobile chooses the form
of?initial public offering (IPO)?for the A-share listing instead of the
CDR form.

Earlier reports predicted that the IPO price for China Mobile will be no
lower than its share price on the Hong Kong market, which was HK$75.8?on
June 15. Counting with the estimation of China Mobile's?price to
earnings?ratio on the A-share market, the price will exceed 100 yuan.

China Mobile's turnover in the first half of this year reached 166.6
billion yuan, a year-on-year rise of 21.6 percent.

The new rules approving Hong Kong-listed Chinese firms to sell shares
domestically could pave the way for the return of up to 21 companies,
including China Construction Bank (CCB) and petroleum giant China
National Offshore Oil Corporation.

China Securities Regulatory Commission announced earlier that it would
discuss on Friday CCB's application of offering no more than nine billion
shares on China's A-share market but, as yet, has not released the
results.

(For more biz stories, please visit Industry Updates)

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Learn Chinese online - Preparations for stock-index futures near completion

?  ?

BIZCHINA / News

Preparations for stock-index futures near completion

(Xinhua)
Updated: 2007-09-06 15:21

Shang Fulin, head of China's securities market watchdog, said Thursday
that the preparations for setting up stock-index futures have been
basically finished.

Shang, chairman of the China Securities Regulatory Commission (CSRC),
said preparations in terms of technology and mechanism are near
completion, but investors still need to get prepared.

He did not give a specific date for putting the futures into operation,
only noting that it will debut "when the conditions are ripe."

"Stock-index futures is a big issue for China's capital market," he said,
noting that China still lacks the experience in derivative financial
products.

The stock-index futures is usually used as a tool against drastic
fluctuations in the stock market.

Shang was addressing a plenary session at the Inaugural Annual Meeting of
the New Champions hosted by the World Economic Forum in China's
northeastern coastal city of Dalian.

Media reports said qualified foreign institutional investors (QFII) would
be authorized to participate in stock-index futures trading in China, but
the CSRC declined to comment.

(For more biz stories, please visit Industry Updates)

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Saturday, December 29, 2007

Learn Chinese online - PetroChina inks LNG supply deal

?  ?

BIZCHINA / Center

PetroChina inks LNG supply deal

By Wang Yu (China Daily)
Updated: 2007-09-05 09:47

China's top oil and gas producer has struck a deal with Europe's largest
oil company to buy liquefied natural gas (LNG) from Australia, to meet
the country's soaring demand for clean fuel.

PetroChina International Co Ltd, a branch of PetroChina, and Shell
Eastern LNG signed a long-term supply agreement for LNG from the Gorgon
project in Western Australia, Shell said on its website yesterday.

Shell and PetroChina will draw up a detailed LNG sale and purchase
agreement by the end of next year, according to Shell's statement.

"Details such as price of delivery are still to be agreed, but the deal
will certainly boost China's clean energy supply," said Han Xiaoping, an
independent analyst with energy portal China5e.com.

Han said the deal could also give PetroChina scope to get involved in
upstream gas exploration and production on the Gorgon project.

"PetroChina could use its established natural gas distribution networks
in China to great effect if it can get involved in upstream production at
Gorgon," said Han.

Shell's Beijing office was not available for comment yesterday.

However, Jon Chadwick, executive vice-president of Shell Gas and Power
Asia, said the deal "sets a new benchmark for LNG supplies into China and
underlines Shell's commitment to Chinese LNG customers and to the Gorgon
project".

Shell will sell 1 million tons per annum of LNG to PetroChina during the
20-year contract, Shell said.

(For more biz stories, please visit Industry Updates)

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Chinese Mandarin - China reduces investment barriers

?  ?

BIZCHINA / Investment Alerts

China reduces investment barriers

(Xinhua)
Updated: 2007-09-03 17:35

China is among the top reformers in the 21-member Asia-Pacific Economic
Cooperation (APEC) in removing barriers to investment, boosting greater
economic growth in the country, says a research report released in Sydney
Monday.

"It is the improvement in the investment climate in China compared to
other economies that has mattered most for the global pattern of
investment," says the report titled "Reducing Behind-the-Border Barriers
to Investment", which was drafted by the Center for International
Economics, based in Canberra, capital of Australia.

In general, those APEC economies with fewer impediments to doing business
and a more favorable investment climate are more prosperous, says the
report.

The report identifies behind-the-border barriers to investment as
encompassing domestic policies, rules, procedures and laws which may
include excessive regulations, unclear property rights and poor legal
systems.

The center quotes a World Bank report as saying that the Chinese
government sped business entry, increased investor protections and
reduced red tape in trading across borders.

China also established a credit information registry for consumer loans.
Now 340 million citizens have credit histories, according to the World
Bank.

The removal of those barriers to investment in China came on top of a
host of other reforms associated with the country's transition to a
market economy and accession to the World Trade Organization, says the
Australian report.

China has also privatized many State-owned enterprises, strengthened its
legal system, spent heavily on infrastructure and moved to strengthen
property rights over time, the reports notes.

The report concludes that if investors in APEC economies faced fewer
barriers, investment would be higher and of a better quality, economic
growth would rise and the incidence of poverty across APEC would fall.

(For more biz stories, please visit Industry Updates)

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Chinese language - Universities banned from stock speculation

?  ?

BIZCHINA / News

Universities banned from stock speculation

(Xinhua)
Updated: 2007-08-31 14:36

China's education authorities are warning colleges and universities to be
away from risk investment in stocks and bonds, amid a continuously
frantic national entry into the stock markets over the past months.

Wu Qidi, Vice Minister of Education, said on Thursday, "Colleges and
universities should not invest in companies with funds allocated by the
state finance, funds for infrastructure constructions and tuition fees
collected from students."

Related readings:

?Rules released to curb warrant speculation
?New rules to curb stock price fluctuation
?Major stock index passes 5,000 mark
?Governor fuels speculation over widening RMB exchange

Special Coverage:
Markets Watch??

" Nor should they misappropriate the money to buy stocks," Wu said,
without mentioning what penalties offenders will face. Most institutions
of higher learning in China are funded by the government and even private
colleges are non-profit organizations by law.

High university officials have been found to dip into their purses to
speculate in the stock market.

Shan Ping, former head of Tianjin University in the northern port of
Tianjin, was expelled from the National People's Congress, China's top
legislature, in December last year for misuse of research funds.

He was found to have invested 100 million yuan (US$12.8 million) of
university funds in stocks and shares between 2000 to 2001, causing a
loss of 37.6 million yuan.

After four years in the doldrums, China's stock markets began to rebound
at the beginning of 2006, with the benchmark Shanghai Composite Index
hitting the 5,000-point mark for the first time last Thursday since it
was established 18 years ago.

Wu also reiterated that institutions of higher learning as well as their
internal organs are not allowed to be engaged in illegal business
operations or fund raising among teachers and other work staff.

(For more biz stories, please visit Industry Updates)

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Learn Mandarin online - Redistribute SOEs' profits

?  ?

BIZCHINA / Review & Analysis

Redistribute SOEs' profits

(China Daily)
Updated: 2007-08-29 09:59

The profits earned by monopoly State-owned enterprises should be handed
over to the State so that they can ultimately benefit the public, says an
article in Oriental Morning Post. The following is an excerpt:

On Thursday, PetroChina, the most profitable business in Asia, reported a
first-half net profit of 81.8 billion yuan (US$10.8 billion), an increase
of 1.4 percent from the same period last year.

On hearing the news, common people should feel happy that our State-owned
enterprises are so profitable, despite the odds. However, at the same
time we cannot help asking whether the State or the public will benefit
from this huge profit.

PetroChina and several other State-owned enterprises (SOEs) enjoy
monopolies in their sectors, and they have benefited a lot from their
exclusive use of national resources.

The State is entitled to the profits earned by SOEs, but it has not
collected them for more than a decade under a scheme to promote SOE
reform that was launched in the early 1990s. Meanwhile, PetroChina and
Sinopec also get State subsidies under different names. For example, the
Ministry of Finance gave a 10 billion yuan?tax rebate to PetroChina in
2005 to help it cover its losses in refinery projects.

The central government is putting together a plan to redistribute profits
earned by State-owned enterprises. Before that plan is formally worked
out, PetroChina and its peers will not hand over their profits to the
government, which is to say they will not be used for the public welfare.

Monopoly SOEs have been criticized for giving higher-than-normal pay
packages to their employees, especially those in high-level management
positions.

Ignoring public displeasure over the situation, PetroChina raised
salaries by more than 30 percent in the first half, involving more than
5.4 billion yuan.

(For more biz stories, please visit Industry Updates)

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Friday, December 28, 2007

Learn Chinese - Secrets behind economic zone's attraction to the world

?  ?

BIZCHINA / Local Resources

Secrets behind economic zone's attraction to the world

By Ding Qi (chinadaily.com.cn)
Updated: 2007-08-27 09:03

Among scores of economic development zones in China, the Ningbo Economic
and Technological Development Zone (NETD) has its unique edge in
attracting investors both at home and abroad. Yu Lei, governor of
government in Beilun District of Ningbo, where the zone is located, spoke
with visiting journalists on Thursday.

Established in 1984, NETD is one of the 49 State-level economic
development zones approved by the State Council. By 2006, investors from
56 countries and regions set up 1,461 companies or business projects in
the region with a total investment of US$16.3 billion. The gross domestic
product (GDP) of the area reached 47.6 billion yuan (US$6.3 billion) last
year, a 140-fold increase over 1984.

How could NETD manage to clinch so much investment to propel its economic
development? Yu disclosed the secrets in an interview by journalists from
major online media groups.

"The biggest advantage of NETD is its excellent Beilun port," said Yu,

"Generally speaking, marine shipping has a cost edge over other means of
transportation. As NETD's gate towards the world, Beilun port is
geologically perfect for mass marine transportation. Being an ice-free
port with 18.2-meter deep sea-route, it can accomodate vessels of up to
250,000 tons almost all year long. "

"With the huge capacity of the port, a company in NETD can send or
receive more goods without leasing additional ships. The cost of
transportation is surely lowered, "according to Yu.

"In addition, NETD is located in the most affluent area in Zhejiang
province and close to major metropolitan areas like Shanghai and Nanjing.
Large population and rapid economic development in the neighboring region
have created vast market for products from NETD." the governor continued.

"As long as your products are competitive enough, you don't need to march
all the way across China to find clients or go overseas, since huge
markets are just around the corner." he joked.

According to statistics, so far, NETD has taken in investments from 39 of
the world's top 500 enterprises like Samsung from Korean and Sumitomo
from Japan. A large part of their products are specially designed to meet
the demand of domestic market.

For local firms, the conveyance of Beilun port and short distance to the
neighboring market has also boosted their business greatly. Some
companies even became world famous after decades of development in the
area.

Moreover, sound infrastructures, preferential policies, as well as a
deep-rooted commercial environment in Ningbo have all contributed NETD's
attraction to investors worldwide, according to Yu.

However, he was not immersed in the current achievement of the area.
"NETD, together with the whole Beilun area still have great potentials.
We're exploring better strategies and policies to convert the area's
attraction into substantial economic growth and benefit of the people."

(For more biz stories, please visit Industry Updates)

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Chinese language - Stocks close above 5,000-point mark

?  ?

BIZCHINA / Index & Statistics

Stocks close above 5,000-point mark

By Li Zengxin (chinadaily.com.cn)
Updated: 2007-08-23 16:32

After yesterday's intense combat around the critical frontier, the
benchmark Shanghai index climbed up to the 5,000-point mark and managed
to consolidate the position today. At the same time, both the major
indices finished at record highs.

Total turnover of stocks in the major indices?was 244.8 billion yuan,
lower than yesterday.

Shanghai Composite Index
Source: www.sina.com.cn

The Shanghai Composite Index opened higher at 5,002.84 but soon lost
momentum and slid down to a low of 4,968.33. There, it turned up again
and regained the battle ground. It held on over the line till the end and
touched 5,050.38, the day's highest point. Finally?the index?stopped at
5,032.49, 52.42 points or 1.05 percent higher than yesterday's closing
level.

Shenzhen Component Index
Source: www.sina.com.cn

The Shenzhen Component Index, tracking the smaller Shenzhen Stock
Exchange, opened higher at 17,441.64 and stayed within a range of between
17,272.29 and 17,731.62. The index closed at 17,639.23, up 307.24 points
or 1.77 percent.

Of the A shares listed in Shanghai, 486 went up, 276 closed down and 80
finished unchanged. Of the gainers, 19 were sealed at the maximum growth
cap of 10 percent.

In Shenzhen, 338 A shares closed higher, including the 12 best performing
stocks with a 10 percent growth, while 219 slipped down and 82 ended flat.

The largest traders, the Industrial and Commercial Bank of China, Chalco
and TCL, went up less than 1 percent. China Vanke, with the largest
transaction value in Shenzhen, climbed 2.3 percent to 34.79 yuan.

New shares Ningbo Dongli Transmission Equipment, Shanghai Cimic Tile and
Shenzhen Sanxin Glass Technology rose 288 percent, 216 percent and 194
percent respectively. The less "drastic" price changes than their
predecessors' represented the effectiveness of the bourse's latest
measures against malicious bidding, said analysts.

A shares in the media, paper and real estate industries led the surge.
Listed closed-end mutual funds were up, with both the indices rising over
1 percent.

(For more biz stories, please visit Industry Updates)

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Learn Chinese online - Gear public spending toward social welfare

?  ?

BIZCHINA / Review & Analysis

Gear public spending toward social welfare

By Ma Hongman (China Daily)
Updated: 2007-08-23 11:02

In the latest round of price hikes in pork, poultry products and other
food, many feel their living standards will be compromised due to their
limited incomes. The central government and local governments at various
levels have made a quick response to this sentiment by offering financial
aid to the needy.

The groups receiving aid include low-income earners in rural and urban
areas, people depending on minimum living allowances, farmers raising
pigs, college students whose families are not well-off and other groups
influenced by inflation.

Such extensive coverage of government assistance is unprecedented in
recent years. And it would not be possible without the increase in wealth
of the administrations.

Against the backdrop of a decades-long economic boom, the annul income of
the central government and local governments have grown at an impressive
rate. It is, therefore, an issue of public concern how the
administrations spend their money, and how the common people benefit.

The financial aid to cushion inflation is one of the examples how the
authorities are trying to spend their money in a manner that is
beneficial to the public.

However, the finances of many Chinese administrations are targeted at
economic development, rather than the public good.

Many countries in the world resorted to government spending to fight
against the economic recession after World War II. But they were prudent,
bearing in mind that one important goal of public spending is to narrow
the gap between the rich and poor.

Several European countries carried out this policy successfully by
establishing extensive social welfare systems funded by the government.
Thus, they not only saw an economic recovery, but also a boost in the
lifestyle of the people.

Such experiences are of great value to China which is seeking a
sustainable economic growth.

Chinese decision-makers have earmarked a large portion of the country's
wealth to develop the economy. It has accomplished a lot in many aspects,
but the negative effects are also difficult to ignore.

While the government is putting its money directly into the economy, it
is not equally taking care of the people's welfare. It is possible some
officials are using government money for their own good or are spending
it inefficiently.

More importantly, the inadequate social welfare system makes the public
vulnerable to future uncertainties.

As a result, they tend to spend cautiously, saving their money for fear
of future risks.

(For more biz stories, please visit Industry Updates)

?? ?? 1?? 2?? ??

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Chinesepod - Return of red chips put off

?  ?

BIZCHINA / Center

Return of red chips put off

By Shangguan Zhoudong (chinadaily.com.cn)
Updated: 2007-08-21 11:31

Red chip companies, or mainland firms registered and listed overseas, are
postponing their return to domestic stock markets, the Caijing Magazine
reported yesterday.

Related readings:

?Red chip companies may return home in August
?Way cleared for red-chip return
?China drafting rules to list red-chip firms - paper
?Shanghai exchange prepares to welcome red-chip trading

Wang Jianzhou, chairman of China Mobile Ltd, one of China's biggest
mobile communication carriers, said on August 16 when the company
announced its interim report, that the company has no timetable for
returning to the domestic market, citing complicated procedures.

Kong Qingping, chairman of China Overseas Land & Investment Ltd, a Hong
Kong-listed mainland firm, said the company will temporarily postpone
plans for A-share listing and hope to increase its land reserves in the
second half of this year.

"The postponement is due to laggard coordination with Hong Kong market
regulators," a source close to the matter said.

Currently, the Hong Kong and Shanghai stock markets are competing for
initial public offering (IPO) resources and Hong Kong's IPO market ranked
second in the world. But with bullish A-share markets, Hong Kong is
lusterless despite the fact that some companies listed in Hong Kong
raised more than US$1 billion in the first half of this year. Examples
include real estate developer Country Garden Holdings Company Limited and
footwear producer Belle International Holdings Limited.

In future, fewer private enterprises will go public in Hong Kong as
mainland assets are limited to listing overseas through holding companies
registered overseas.

In addition, the return of H-share and red chips is bad news for the Hong
Kong market. Market regulators have negotiated with mainland
counterparts, but the coordination was not smooth, so the return of red
chips was put off.

Some red chips are evading restrictions by issuing A shares through their
controlling companies or subsidiaries, insiders said.

China Overseas Land & Investment Ltd controlling company China State
Construction Engineering Corporation is making preparation for issuing A
shares.

"The operation is much more complicated that the return of red chips, but
this is the only way," an investment bank source said.

Statistics show that, by the end of July 31 this year, shares of a total
of 143 mainland companies were traded on Hong Kong. 100 of them are from
the main board and 43 from the Growth Enterprise Board, but only 42 of
those 143 companies issued A shares.

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Thursday, December 27, 2007

Chinese School - Firms to vie for Australian project

?  ?

BIZCHINA / Top Biz News

Firms to vie for Australian project

By Xin Dingding (China Daily)
Updated: 2007-08-18 09:43

Five State-owned companies signed a joint venture deal with Australia's
Yilgarn Infrastructure Ltd in Beijing on Friday. They will bid for a
contract to build a large iron ore port at Oakajee in the Mid West region
of Western Australia.

The Mid West is rich in minerals, with at least 8.6 billion tons of iron
ore in reserve.

"But the region is poor in the large-scale port and modern rail
infrastructure needed to bring iron ore to the high-growth markets of
China," said John Saunders, chairman of Perth-based Yilgarn
Infrastructure.

The port will have an annual capacity of 100 million tons, and a rail
network connecting the port to more than five new iron ore mines located
inland. The port-rail project is expected to cost $2.5 billion.

Construction is expected to begin in mid-2008 and will be completed by
2011.

The five Chinese firms are: China Railway Materials Commercial Corp,
China Railway Engineering Corp and China Communications Construction Co
Ltd, which will be responsible for building the railway and port; and
iron ore buyers Sinosteel Corp and Anshan Iron and Steel Group Corp.

The Export-Import Bank of China and China Development Bank have promised
financial services for the project. The five Chinese companies will
invest $2.5 billion to $3 billion in the project.

(China Daily 08/18/2007 page3)

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Chinese School - CMB?denies losses from subprime mortgage crisis

?  ?

BIZCHINA / Top Biz News

CMB?denies losses from subprime mortgage crisis

(Xinhua)
Updated: 2007-08-15 14:30

China Merchants Bank (CMB), the sixth biggest lender on the Chinese
mainland, reported a 13.4-percent yield by selling its US mortgage-backed
securities, according to Ma Weihua, president of the bank.

Ma rejected the media report that the bank incurred a loss of 103 million
yuan in the US subprime crisis from its investment in mortgage-backed
securities, saying the bank had sold out all the securities in August
last year and has not been exposed to the US subprime lending market
since then.

The Hong Kong-listed bank bought its US mortgage-backed securities in
2004 based on its judgement that the US real estate market may witness
strong growth amid declining interest rates.

The Chinese bank sold all the securities in August 2006 as it sensed the
potential risks in the investment, because the US housing market had
boomed for two straight years then, Ma said.

Besides, he said, "the 13.4 percent rate of returns was good enough for
us."

Ma did not reveal the size of his bank's investment in the US
mortgage-backed securities, but the bank's interim report released last
Friday shows that mortgage accounted for 77.5 percent of its retail loans
at the end of the said period.

The management holds that the bad loan ratio of the bank's mortgage is
quite low, according to Ma.

He also made clear that the bank has no outstanding loans to any
financial institutions that hold the US mortgage-backed securities.

Nevertheless, Ma said, the US subprime crisis had sounded the alarm for
Chinese banks and that CMB would adopt a more prudent policy for its
mortgage business.

The CMB said in the interim report that its net profit surged by 120.38
percent in the six months of the year to read 6.12 billion yuan.

The bank attributed the substantial profit increase to the steady growth
of commercial loans, business expansion, assets structure adjustment,
widening interest rate margin and continuously rapid growth of
non-interest business such as credit card services, according to the
statement.

The CMB was rated the best in the general category for its popular
dual-currency credit card, according to a survey conducted by the Chinese
credit card portal 51credit.com and Shanghai-based poll firm 51poll.com
earlier this year.

Two of the Big Four banks, however, have admitted to having been affected
by the subprime crisis though neither Bank of China nor China
Construction Bank has disclosed the extent of their exposure to the
subprime market, according to media reports.

The current crisis began as subprime mortgage defaults started to spiral
as a result of higher interest rates and the bursting of the US housing
bubble. It has been dragging down the world's major stocks for weeks and
making it difficult for the US and European banks, which bought much of
the repackaged subprime debts, to resell it as its value dropped with
serial defaults and bankruptcies.

But experts hold that the crisis has little impact to the Chinese
mainland because its exposure to the US subprime lending market is
relatively limited.

(For more biz stories, please visit Industry Updates)

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Chinese Mandarin - Rising house prices show no sign of stopping

?  ?

BIZCHINA / Center

Rising house prices show no sign of stopping

(Xinhua)
Updated: 2007-08-14 10:52

?
Residential buildings in Huaibei, Anhui Province. The China Real Estate
Association?reported on Sunday that housing prices in China may continue
to rise in the second half, following the announcement that house prices
over the first six months were up 16.34%. [newsphoto]

The China Real Estate Association (CREA) reported on Sunday that housing
prices in China may continue to rise in the second half of the year,
following the announcement that house prices over the first six months
were up 16.34 percent.

"The disparity between tight supply and overheating demand pushed the
prices up," said Zhu Zhongyi, vice-president of the association, at a
recent forum.

Due to expectations of further hikes, ordinary consumers are scared into
buying a house for fear that they will pay even more if they keep
waiting. The growing urban population has also boosted demand.

"These reasons for the rise in housing prices will continue to take
effect in the latter half of the year," the CREA report said.

Zhu called on the Chinese government to take measures that are
"responsive to the current needs and problems of the real estate
industry".

In allocating the state-owned land resources, for example, the government
should encourage the efficient use of land by stepping up the supply of
affordable housing for common consumers, Zhu said.

The government should also promote the second-hand market and the letting
market, which will help alleviate the housing pressure, Zhu said.

The report also warned against speculation risks as more money flowed
into the real estate market.

Foreign investment jumped 68.7 percent in funding real estate development
in the first half, according to the National Bureau of Statistics (NBS).

More foreign capital would push the prices even higher, and could add to
the list of pressures on appreciation of the yuan, said the report.

Housing prices in major cities such as Beijing and Shenzhen have been
growing at a rate of around 10 percent for several months, and smaller
cities have also seen major increases in housing prices.

"The actual trade price in some cities is even higher," Zhu said.

A recent survey showed that 80 percent of the residents in China's major
cities such as Beijing, Shanghai, Shenzhen and Tianjin believed the
housing prices were too high.

(For more biz stories, please visit Industry Updates)

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Chinese School - Used car sales set to accelerate

?  ?

BIZCHINA / Center

Used car sales set to accelerate

(Xinhua)
Updated: 2007-08-12 09:35

After many years of boosting new car sales figures, China's motorists are
increasingly wanting to upgrade, bolstering its fledgling used car sector.

Second-hand car sales totaled 2.7 million in 2006, according to the
Ministry of Commerce, less than half that of the new car sales. Compared
with developed countries, where used car sales are double or triple new
car sales, China's used car market has a huge potential.

A survey by Sinotrust, a leading consulting company, shows China's new
car owners keep their vehicles an average of 6.5 years, while 71.2
percent choose to purchase a new car after three to five years.

Related readings:
?Used car market to rocket over next 2 years
?Strong vehicle sales drive up profits by 66%
?Auto industry thirst for talents
?Small-displacement car sales decline amid auto boom

In Beijing, 170,000 used cars were sold in the first half and the ratio
of used to new car sales reached 0.85:1, while two years ago, it was only
0.54:1, a CADA official said.

Xu Dong, deputy general manager of a Guangdong-based dealer, said used
car sales would accelerate as 4S (franchise dealers in "sales, spare
parts,service and surveys") and overseas used car dealers entered the
market.

Li Xiaokuan, deputy director of market administration of the State
Administration for Industry and Commerce, suggested manufacturers pay
more attention to used cars sales. "Trade-ins could not only open up a
new profit area, but also enhance their new cars sales."

He said China's used car sales rules had no restrictions on 4S dealers
selling second-hand cars, and they should include the used car trade-in
in their main business scope.

However the sector still faced problems, including dealer reliability,
asymmetric information, lack of industrial standards, and contract
problems.

Li said the industry and commerce administrative system had begun on
monitoring dealers' credit worthiness. They would publicize the credit
information, and restrict dealers business scope if they were found to
have credit problems.

(For more biz stories, please visit Industry Updates)

Learn Chinese, Chinese School

Wednesday, December 26, 2007

Chinese Mandarin - Wuxi

CHINA / Cities

Wuxi

Updated: 2006-05-28 18:33

Wuxi, also named "Liangxi", is a famous city with a long history in the
lower reaches of the Yangtze River. Three thousand years ago, Taibo, the
eldest son of the Emperor Zhouwu in the West Zhou Dynasty came here, set
up the State of Gouwu and created the Wu culture.

A sparkling pearl of the Taihu Lake

Wuxi is situated in the southern part of Jiangsu Province and in the
middle of the Shanghai-Nanjing Railway. It is 128km away from Shanghai
with Suzhou in between and 183km away from Nanjing with Changzhou in
between. With the Taihu lake in the south and the south and the Yangtze
River in the north, it borders Zhejiang Province and has bank of 35km
along the Yangtze.

A famous city with a long history in southern china.

As early as 3000 years ago (end of 11th century BC ), in order to give
the throne to his brother Jili, Taibo, the eldest son of the Emperor
Zhouwu in the northern tribe, came here from Shaanxi together with his
younger brother Zhongyong and set up the State of Gouwu (now Meicun Town
of Xishan city ).By leading the local people to engage in water
conservancy,agricultural and sericultural production,

Taibo promoted the combination of central and southern Chinese culture
and created the Wu Culture. In the 5th year of West Han Dynasty (202BC),
Wuxi County was formally established. The name of Wuxi, literarily
meaning "no tin ", was given due to the extinguishing resource of tin of
the Tin Hill. The City of Wuxi was set up in 1949.

It is now a city directly under the jurisdiction of Jiangsu Province.
Wuxi has under its jurisdiction Xishan, Jiangyin and Yixing Cities
(county-level ) and Chongan, Nanchang, Beitang, Suburban, Mashan and New
Districts. The total area of the city is 4650sq.km. and the population
4.33 million by the end of 1999, of which 1.1 million are in the
metropolitan area.

As the birthplace of the Wu Culture, Wuxi has a galaxy of evergrowing
talented personnel who have made contributions to the development of
China's economy and culture. Key celebrities of Wuxi origin are as
follows : Poet Li Kun of Tang Dynasty, Poet Youmao of Song Dynasty,
Painter Ni Zan of Yuan Dynasty, Painter Wang Fu and Traveler Xu Xiake of
Ming Dynasty, Diplomat Xue Fucheng of Qing Dynasty, Scientists Xu Shou
and his son Xu Jiangyin, Scientists Hua Hengfang and Hua Shifang
brothers, contemporary and modern revolutionaries Qin bangXian, Lu
Dingyi, Wang Kunlun, Yan Pu, Scientists Zhou Peiyuan and Qian Weichang,
Economists Sun Yefang and Xue Moqiao, Industrialists Rong Zongjin and
Rong Desheng, Writer and Historian Liu Bannong, Writer Qian Zhongshu,
Movie Star Shangguan Yunzhu, Painer Xu Beihong and National Musician Hua
Yanjun ( A Bin the Blind ), etc.

An important economic center.

Early this century, Mr Rong Zongjin and Mr Rong Desheng, representatives
of China's national industrialists, set up a group of industrial
enterprises in their hometown, recording Wuxi as a birthplace in the
history of China's national industry. Due to developd industry and
flourishing economy, Wuxi is reputed as "Little Shanghai" for half a
century. Since the founding of New China, Wuxi's economy is developing
rapidly. And since the 3th Plenary Session of the 11th Party Central
Committee and under the guild line of the Deng Xiaoping Theory and the
basic line of the Party, the people in Wuxi emancipate their mind in high
spirit, grasp the opportunity and have created unprecedented glories in
the history of its development. Wuxi is listed as one of China's 15 key
economic centers.

It is also one of the 50 cities in China with powerful comprehensive
strength, and among 40 cities in China with excellent investment
environment. Wuxi has formed a processing system with complete category
and powerful support capability. Its key sectors of industry include
those of machinery, electronics, light and textile, metallurgical,
chemical and pharmaceutical industries. It has also become a modernized
industrial city with large scale and high standard along China's coastal
areas. In 1999. The GDP of the whole city was 113.8 billion yuan and its
public revunue 8.72 billion yuan. Its per capita GDP supassed 26,000
yuan, which continued to rank the first place in Jiangsu Province.

A regional hub of transportation.

With railways, highways, air routes, and waterways, Wuxi enjoys
convenient transportation network and connects Jiangsu with Zhejiang and
Anhui Provinces. Nine highways connect Wuxi with important cities like
Shanghai, Nanjing and Hangzhou. Shanghai-Nanjing Railway and
Shanghai-Nanjing Expressway Pass through the city. It is only 2hr's drive
from Wuxi to shanghai-Hongqiao Airport. The Wuxi Airport has opened up
domestic air routes and large jumbo jets are able to take off and land
there. By relying on the Yangtze, the Grand Canal and the Taihu Lake,
Wuxi has 7 waterways which connect different places.

The city centre is 40km away from Jiangyin Harbour and Zhangjiang
Harbour. Both Wuxi-Jiangyi Expressway and JiangyinYangtze River Highway
Bridge have been open to traffic, while Xinyi-Changxing Railway under
fast construction. With developed post and telecommunications system, all
the telephone exchanges in urban and rural areas are
programme-controlled, transmission digitalized and direct calls can be
made to 156 countries and territories in the world. The EMS service is
established between Wuxi and 27 countries and territories in the world
which include those of USA, Japan and UK.

A famous tourist resort.

The landscape of the city embodies the beauty of the Yangtze, the Grand
Canal, the Taihu Lake, fountains, caves and gardens and is characteristic
of the unique features of a water village in southern China. Wuxi takes
over the most beautiful corner of the Taihu Lake and on the shore of the
that Lake scatter famous parks such as Turtle-head Peninsula Park, Lee
Garden, Plun Garden and Xihui Park. Humanitarian and historical relics
wellknown at home and abroad are all located in the whole city. To name
only a few, they are the Donglin College, Native House of Zhang Wentian,
Native House of Xu Xiake, Huangshen Fort, Taibo Temple, Taibo Tomb and
Memorial House of Xu Beihong, etc.

In recent years, the Wuxi National Tourist Resort Zone at Mashan has
completed a few large sightseeing and amusement projects such as the
International Angling Center, the Moon-bay Vacational Village and the
Linshan Scenic Spot. The Wuxi Taihu Film & Television City has built the
theme parks such as "City of Europe", "City of Tang Dynasty", "City of
Three Kingdoms" and "City of Water Margin". In the past few years, Wuxi
is evaluated as one of China's ten major tourist cities, and early this
year, it is listed in the first group as one of " China's Excellent
Tourist Cities" by the National Tourism Administration.

The dawn of the new Millenium has set in and Wuxi-"the Glistening Pearl
of Taihu Lake" will shine even brighter than ever.

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Chinese Online Class - Central bank warns of inflation risks in latest monetary report

?  ?

BIZCHINA / News

Central bank warns of inflation risks in latest monetary report

(Xinhua)
Updated: 2007-08-09 08:48

China's central bank admitted on Wednesday that the country is coming
under increasing pressure from price hikes, and acknowledged inflation
risks are "worthy of attention".

The People's Bank of China said in its second-quarter monetary report
published on Wednesday that the current rising prices were not solely
caused by accidental and temporary factors, adding that inflation risks
were on the rise.

It warned that the price hikes of food products could spread to other
consumer products.

The report identified four reasons behind the increasing risk of
inflation.

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It said prices for grain and meat products would not fall in the short
term and uncertainties over the autumn harvest were aggravated by the
ongoing drought.

Meanwhile, the demand for grain is increasing from both the public and
the bio-fuel industry.

The meat prices would probably continue to rise in the long term owing to
the rising feeding costs and the short supply, which would not be
replenished in the short term due to the breeding cycle of pigs, and the
price hikes of meat could easily spread to other food products, the
report said.

Prices of energy and resources are under pressure as the world petroleum
price has climbed to an even higher level and the domestic pricing reform
of resources and the country's environmental protection efforts would
also push the prices higher, it said.

The report also said labor costs were rising which would eventually raise
the prices of consumer products.

People's anticipation of inflation had been enhanced, and it would put
further pressure on price hikes, according to the report.

A survey by the central bank in the second quarter showed that 40.2
percent of those interviewed, the second highest record since1999, said
they were worried about inflation.

China's consumer price index (CPI) rose 3.2 percent in the first half of
this year, and the growth rate was 1.9 percentage points higher than the
year-earlier level.

Price hike for foodstuffs, mainly grain, meat and fowl and eggs,
contributed significantly to the rise. Statistics show that foodstuff
prices rose 7.6 percent, with grain price up 6.4 percent, egg price up
27.9 percent and prices for meat and fowl as well as related products up
20.7 percent in the first half.

(For more biz stories, please visit Industry Updates)

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Learn Chinese online - Man kidnaps 19 pupils, subdued by police

CHINA / Regional

Man kidnaps 19 pupils, subdued by police
(Shanghai Daily)
Updated: 2006-05-26 06:38

A man in central China hacked a neighbor to death and then took 19
primary school students hostage, killing one, before police shot at and
subdued him, officials announced Thursday.

The incident on Wednesday was the second shocking act of violence in
Henan Province after a young man set fire to a preschool classroom,
killing 10 children, in Gongyi City earlier this month.

A policeman quietly takes aim at Yang Xinlong, who hacked a neighbor to
death and then took 19 primary school students hostage in Gongyi, central
China's Henan Province Wednesday. He killed one of the children before
the policemen shot at and subdued him. [Dahe Daily]

The latest case occurred about 11am on Wednesday. Farmer Yang Xinlong
allegedly killed a neighbor and injured another one following an argument
in Luoying Village of Dengzhou City, according to the Public Security
Bureau of Nanyang. Dengzhou, on the southwest tip of Henan, is under the
jurisdiction of Nanyang.

Yang then broke into the Luoying Primary School and held 19 children
captive, officials said. Yang stabbed one of the hostages to death.

More than 60 policemen rushed to the scene.

Officers attempted to persuade Yang to free the children for hours but he
refused. At 2:30pm, officers fired at him, subduing the wounded suspect
and rescuing the 18 children.

On May 8, an introverted young man in Henan's Gongyi City poured gas in a
classroom and ignited it to vent his anger after a dispute with local
villagers.

Medical workers help the hostages out of the classroom after the drama.
[Dahe Daily]
The fire killed 10 children and left seven others injured, including a
female teacher.

The suspect, Bai Ningyang, 19, was caught the next day.

Bai had quarreled with a villager who stopped him using a newly paved
road in the village on May 6, according to Life Week magazine.

Later in the day, Bai reportedly chased the farmer around the village,
wielding two knives.

When Bai's father tried to stop the chase and punish him, Bai held a
5-year-old boy hostage at knifepoint. The boy freed himself, and Bai also
fled from his father.

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Learn mandarin - Most expect fuel prices to rise

?  ?

BIZCHINA / News

Most expect fuel prices to rise

By Liu Jie (China Daily)
Updated: 2007-08-03 09:24

China's gasoline and diesel prices are expected to rise soon, with the
driving forces likely to be big refiners' request for a price rise and
the growing domestic inflationary pressure, in addition to the global
crude oil price rise.

?
?

A worker adjusts fuel oil prices at a gas station. China's gasoline and
diesel prices are expected to rise soon. [newsphoto]

In a survey conducted by China Daily's website www.chinadaily.com.cn,
52.16 per cent of the 1,135 respondents, or 592 people, said they
believed a price rise is coming, while 28.63 per cent, disagreed, with
the rest offering no comment.

The survey question was: "The soaring global oil price is putting
pressure on China, where the cost of fuel is expected to rise. Do you
think this will be the case? Why?"

Though most respondents said oil prices in the country will eventually
rise, they pointed out that the reason may not be that simple.

Related readings:
?Sinopec, CNPC suspend oil wholesale
?Sinopec: South not lacking in oil
?Private pumps idle due to tight oil supply
?Inflation fears block fuel price rise
?Oil price hike likely in October
?Oil refiners seek gasoline price hike

"CNPC (China National Petroleum Corporation) and Sinopec (China Petroleum
and Chemical Corporation) will surely seize every possible opportunity to
raise prices," said a participant, who added that the dominant positions
of the behemoths grant them a bigger bargaining power in the market.

Another survey participant shared the same view saying that though the
country's two largest oil companies are complaining about losses because
of rising prices on the world market, they have made thousands of
billions of yuan in net profit and their employees still get fat pay.

The National Development and Reform Commission (NDRC), the country's top
economic planner, is reportedly under pressures from refiners to raise
gasoline prices. CNPC and Sinopec recently joined a group of applicants
to seek a price hike for refined oil products.

The producers suggested NDRC should raise gasoline prices by more than
220 yuan per ton and diesel prices by roughly 150 yuan per ton. Sinopec
said it would suffer losses of more than $10 in refining every barrel of
imported crude oil.

Accumulating inflationary pressure is also being seen as a possible
trigger for the likely hike in fuel prices.

Some respondents also said limited resources may lead to the coming fuel
price rise along with high oil exploration costs, China's attempts to
liberalize its gasoline and diesel prices as well as energy-saving
concerns.

Some respondents who said they believed fuel prices would not rise said
China is already under high inflationary pressure. That may intensify if
fuel prices are raised.

"Any rise in fuel prices will push up prices of everything from
agriculture and transportation to manufacturing, thus leading to another
round of inflation," a respondent said.

Cao Changqing, pricing department director of NDRC, has said the
government is considering subsidies for crude oil refiners to help them
meet the growing demand and maintain price stability.

China has started reforms to gradually deregulate refined oil prices but
prices of gasoline and diesel are still regulated.

Reforms have gathered pace since last year, with prices being raised
twice. But the momentum has slowed down this year as global oil prices
rose sharply in March and June.

Some respondents said the government should do more to encourage
alternative energy sources given the skyrocketing prices of oil
internationally and limited oil resources.

(For more biz stories, please visit Industry Updates)

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Tuesday, December 25, 2007

Learn mandarin - SAIC's recent tie-Up may trigger some growing pains

?  ?

BIZCHINA / News

SAIC's recent tie-Up may trigger some growing pains

(The Wall Street Journal)
Updated: 2007-08-02 15:26

In the eyes of many investors, bigger is better for Shanghai Automotive
Industry Corp - but there's no guarantee a greater size would smooth the
road for China's leading car maker.

Shares of SAIC's listed unit, Shanghai Automotive, have been surging for
months, in part on speculation of a merger with smaller rival Nanjing
Automobile (Group). In the first four weeks of July alone, Shanghai
Auto's share price climbed 38%.

Then, during the past weekend, SAIC said it signed a letter of intent
with the parent of Nanjing Auto for "full cooperation." Details haven't
been provided, and it's unclear whether cooperation will entail the
full-fledged merger on which synergy-minded investors have bet.

In the first two days after the weekend announcement, shares of Shanghai
Auto -- which trade only in Shanghai -- stayed high. Yesterday, as all
Asian markets fell, Shanghai Auto's share price dropped 4.2% to 22.89
yuan ($3.02). The Shanghai composite index lost 3.8%.

Merger speculation wasn't the only factor fueling gains for Shanghai
Auto, as it has reported sharply higher earnings and many analysts like
its outlook. Even with yesterday's drop, the share price is more than
four times higher than a year ago.

The recent ascent in Shanghai Auto shares makes some analysts wary.
"Probably the mainland investors got too excited about the acquisition --
the bigger the better, that kind of mindset," says Lehman Brothers
analyst Yankun Hou. A full-scale tie-up between the two groups could be a
drag on Shanghai Auto, at least in the short term, says Mr. Hou, noting
Nanjing Auto has posted operational losses in recent years. And in big
mergers, there's no guarantee the execution intended to knit the two
together will be smooth or successful in the long term, he says.

Shanghai Auto already faces challenges. Its income depends heavily on the
performance of its joint ventures with General Motors and Volkswagen.
Goldman Sachs warns that sales-volume growth at those ventures could
weaken "as core models become increasingly obsolete." Goldman also says
competition in China's full-size car market, pivotal for Shanghai Auto,
could intensify.

Goldman initiated coverage on Shanghai Auto in early June with a "sell"
recommendation and a 12-month target price of 11 yuan, below where the
shares were trading at the time. So far, Goldman hasn't altered its view
on the company.

Moves by SAIC and Nanjing Auto to find common ground fit with China's aim
to consolidate its fragmented auto industry and create national players
that can take on the global auto giants. It's a policy that Beijing has
used in other industries, such as retail and steel, and is sometimes
carried out despite much resistance from the players involved.

For sure, analysts see potential benefits for SAIC from a partnership or
tie-up. Zhang Xin, an analyst at Guotai Junan Securities in Beijing, says
SAIC could benefit from Nanjing Auto's truck business, an area which the
Shanghai auto maker has been trying to beef up. Nanjing Auto has a
profitable but small joint venture with Fiat's truck unit Iveco,
producing light commercial vehicles. It also holds Yuejin Vehicle, which
produces heavy-duty and light trucks.

In 2005, SAIC and Nanjing Auto collided head-on in bidding for collapsed
MG Rover Group of Britain. Nanjing Auto won the bid, but in 2004 SAIC had
already acquired some intellectual-property rights for the Rover 25 and
Rover 75 models.

SAIC's joint ventures with GM and Volkswagen have catapulted it to the
top of the Chinese car industry, with sales last year of 1.34 million
vehicles. Meanwhile, Nanjing Auto's joint venture with Fiat has been one
of the poorest performers in China, and relations between the two are
strained.

More-modest cooperation that focuses on developing the MG brand could be
more beneficial for SAIC. SAIC used the Rover platform to launch its own
brand, the Roewe, which it started selling this year. So far, it has sold
8,000 Roewe 750s, which are based on the Rover 75 model.

For its part, Nanjing Auto inaugurated its production line in Nanjing in
March for MG model sports cars, and aims to begin selling them in China
by September. It has started production at MG Rover's former sports-car
plant in the U.K.

"For Nanjing Auto...rolling out its Rover platform needs a lot of capital
and [SAIC] will be a strong financial backer," says Citigroup analyst
Charles Cheung. "For [SAIC]...on the Rover side, they only have two
models. In order to ensure future continuous new models development,
obviously it makes sense for them to work with Nanjing Auto."

Citigroup initiated coverage of Shanghai Auto on July 3, with a "buy"
rating and target price of 23.20 yuan.

Shanghai Auto's net profit is expected to triple or quadruple this year
and the company has drummed up excitement with its new brand of Roewe
cars. But Mr. Zhang of Guotai Junan warns against reading too much into
earnings growth this year, which he says will be the result largely of
restructuring. He has a target price of 25 yuan for the company. Last
year, SAIC injected auto-related assets of 21.4 billion yuan ($2.82
billion), including stakes in the GM and Volkswagen joint ventures, into
the listed company. That turned what was mainly an auto-parts maker into
China's top car maker.

According to Thomson Financial, the full-year average earnings forecast
by five analysts is 4.74 billion yuan, or 71 fen a share, and 5.68
billion yuan for 2008, for a per-share earnings of 86 fen. In 2006, net
profit was 1.42 billion yuan, or a earnings per share of 22 fen.

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?  ?

BIZCHINA / Biz Media Digest

Finance: Bohai Bank approval to open Beijing branch

(Bloomberg)
Updated: 2007-08-01 14:37

China Bohai Bank, the first national lender set up in the country in a
decade, won regulatory approval to open a branch in Beijing, the first
step in expanding outside its home base.

Bohai Bank, one-fifth owned by Standard Chartered Plc, has started hiring
for the Beijing outlet and will commence operations in the nation's
capital later this year, the Tianjin-based company said in an e-mailed
statement.

Bohai Bank aims to repeat the success of 10-year-old Beijing-based China
Minsheng Banking Corp, which quadrupled its assets in the past five years
to become China's fastest-growing bank. Bohai Bank has a national
license, permitting expansion without geographic limits, unlike small
city-commercial banks.

The company, named after the sea in North China, plans to open as many as
seven outlets nationwide, including one in Beijing and break even by
2009. It was the first national lender based in the northern coastal city
of Tianjin.

Bohai Bank, which operates eight branches in its home base, had 14.6
billion yuan ($1.9 billion) of deposits and 15.5 billion yuan of loans as
of June 31, according to the statement. Its assets totaled 22.2 billion
yuan.

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Learn Chinese online - Finance: Bohai Bank approval to open Beijing branch

Chinese language - Steel export growth to slow down

?  ?

BIZCHINA / Center

Steel export growth to slow down

By Gong Zhengzheng (China Daily)
Updated: 2007-07-31 09:15

Growth of steel exports from China, the world's top steel producer, will
slow to 20 percent for the full year due to government efforts to curb
breakneck growth in the first half of the year, according to an industry
body.

Overseas shipment of finished steel products will hit 51.6 million tons
in 2007, up from 43 million tons last year, Luo Bingsheng, vice-chairman
of China Iron & Steel Association, said in Beijing.

The forecast growth rate would be the slowest since 2003, according to
steel association data.

From January to June this year, steel products exports surged 97.7
percent year-on-year to 33.8 million tons.

However, Zhou Xizeng, a steel analyst with CITIC Securities Co in
Beijing, said the pace of exports will not slow as much as Luo's estimate
because demand and price in the international market remain strong.

Zhou said steel products exports will grow by 30 percent this year from
2006.

Related readings:
?Gov't to maintain restraints on steel exports
?China hits high in steel output ?A state curb just the ticket for steel

China has adopted measures since last year to control steel exports as
part of its drive to tame the trade surplus and prevent trade conflicts
with other countries. In the first six months of this year, the nation's
trade surplus jumped 84 percent to $112.5 billion.

On July 1 China slashed export tax rebates for more than 160 steel
products to 0 or 5 percent from 11-13 percent.

"As a result, steel products exports in the second half will be much less
than in the first half," Luo said.

He said July-December exports will plunge by 40 to 50 percent from those
in the first six months.

"But the policy doesn't mean the less steel exports the better. We should
keep it at a proper level," Luo stressed.

He said exports should account for one-tenth of China's steel production.

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Chinese School - Resolving China's excess liquidity

?  ?

BIZCHINA / Weekly Roundup

Resolving China's excess liquidity

By Xin Zhiming (China Daily)
Updated: 2007-07-27 17:06

It's a consensus that the public has preferred to save rather than spend
because it anticipates long-term spending pressure from the country's
restructuring of its pension, health and education systems.

China needs to raise labor wages and increase provision of such public
services as education and healthcare to enhance people's spending
propensity, Zhuang told China Daily.

The social security network must also be improved, which will also get
people more active in consumption, Zhuang said.

Related readings:
?Central bank raises interest rates, cuts interest income tax
?Survey: Rising food prices upset consumers
?Report: Liquidity high but manageable
?Special bond issue won't seriously impact liquidity?Securitization to
help China reduce excessive liquidity

From a global perspective, Li from CASS said that the low savings rate of
developed countries has led to the trade deficit of these countries and
the surpluses in Asian economies. The US has kept the dollar weak and, as
a result, international markets have been awash with dollars.

Japan has seen a large-scale capital outflow into other countries. In
Europe, statistics show the capital outflow is also on the rise as euro
gets strong. It has also contributed to the global liquidity boom, Li
said. And most of the capital has flown into Asia, including China, Li
added.

Regarding capital inflow, Li suggested the holders of China's foreign
exchange should be diversified, allowing individuals and enterprises to
hold more of the reserves.

Although the central bank can sterilize foreign capital through issuing
bills, raising the banks' reserve requirement ratio or conducting
currency swaps, they can ease the pressure only temporarily, Li said.

Reforming the foreign exchange reserve management regime and allowing
individuals and enterprises to hold more foreign exchanges would reduce
the pressure on policymakers as they would need to sterilize much less
foreign currencies.

To thwart speculative money inflows, Xia Bin and Chen Daofu from the
Development Research Center suggested that policymakers should allow more
volatile yuan trading, making the currency's long-term trends
unpredictable.

"Authorities should allow the yuan to rise in a mixed tempo, sometimes
slowly and sometimes quickly, to completely break the possibility for the
market to predict the yuan's appreciation," they said in the report.

China also needs to raise its interest rate, because hot money holders
not only want to benefit from a revalued yuan, but profit from the rising
prices of assets. "The rising asset prices are closely related to our low
interest rate," the economists said.

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Learn Chinese - Second petroleum exchange opens in Dalian

?  ?

BIZCHINA / Center

Second petroleum exchange opens in Dalian

By Hao Zhou (chinadaily.com.cn)
Updated: 2007-07-26 10:20

The Chinese mainland's second petroleum exchange began trading on
Wednesday in Dalian, a port city seated at the south end of Liaoning
Province.

The Dalian Petroleum Exchange, which combines both conventional and
modern electronic trading means, will mainly deal with spot transactions
of fuel oil, bitumen and petrochemical products, said Zhou Peiliang, the
general manager of the exchange.

Zhou added the exchange also involves systematic intermediary services
such as information publication, business consultation, and goods storage.

The newly opened exchange includes over 150 member enterprises from its
predecessor, the petrochemicals market in Dalian Free Trade Zone, the
largest in northern China.

The exchange's annual trading volume would exceed 10 billion yuan (US$1.3
billion), according to Zhou.

The Shanghai Petroleum Exchange, the first exchange for trade in oil
products on the Chinese mainland, opened on August 18 last year. The new
Dalian Exchange was set up on December 25 last year with a registered
capital of 10 million yuan.

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Learn mandarin - Further rate hike urged

?  ?

BIZCHINA / News

Further rate hike urged

(Shenzhen Daily)
Updated: 2007-07-25 08:55

China needs to raise interest rates further to reduce the risk of
liquidity-fuelled asset bubbles, a government think tank said yesterday.

The Macroeconomic Research Institute, a think tank under the National
Development and Reform Commission, said the central bank could raise
interest rates more than once before the end of the year to curb
excessive money supply growth.

“Monetary policy should consider asset prices — it should especially
monitor fluctuations in property and share prices and include them among
policy targets,” the think tank said in a full-page report in the
official China Securities Journal.

China raised interest rates Friday for the fifth time since April 2006 to
slow an economy that grew 11.9 percent in the second quarter from a year
earlier.

The institute said that, while the Central Government was trying to apply
the brakes, local governments were pressing on the accelerator because
they depend heavily for their revenues on taxes generated by investment,
especially in urban infrastructure.

To that end, China needed to overhaul its system of fiscal transfers and
create different political incentives for local officials, who are now
largely assessed on their ability to deliver growth, the institute said.

Low interest rates could fuel asset inflation, which, along with
continued expectations of yuan appreciation, would attract more overseas
capital, the institute warned.

To curb real estate investment, it urged the government to levy a general
property tax as soon as possible. People who buy second homes should be
required to make higher downpayments and pay higher mortgage rates, it
added.

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Monday, December 24, 2007

Chinese Mandarin - Economy

CHINA / About Jiangsu

Economy
(jschina.com)
Updated: 2006-05-25 11:53

Jiangsu province is the derivation of Wuyue and Yangtze River culture of
ancient China. The fossil of ape-man discovered in Tangshan Nanjing made
civilization in this fertile land trace back to 350, 000 years ago. As
early as the Seventh Century AD, during the most prosperous period of
Tang Dynasty, Jiangsu was well known for its great contribution to the
trade along the famous Silk Road with its jade objects and silk fabrics.
Nanjing, the capital city of Jiangsu Province, known as the capital for
six dynasties created and developed the Yangtze River civilization in the
history of China.

Jiagnsu province locates in the middle latitudes with an annual average
temperature of 13.5C and annual rainfall of 800-1200mm. The frost-free
period is 200-240 days. The climate here is damp and four seasons are
clear. Facing the Pacific Ocean in the east, Jiangsu Province has a
coastline of more than 1000km and circled by Zhejiang, Anhui, Shandong
provinces and Shanghai. The Huaihe River, the Great Canal and Yangtze
River went though the whole province, and the waterway of Yangtze River
can lead to the inner China. With many other rivers and lakes and its
extensive fertile plains Jiangsu has been called `the land of fish and
rice.' Jiangsu Province covers an area of 102,600 square kilometers, of
which 69% are plains. It has a population of 71.66 million while its
population density is 693 persons per square kilometer.

There are 13 municipalities under the jurisdiction of the provincial
government namely Nanjing, Zhenjiang, Changzhou, Wuxi, Suzhou, Yangzhou,
Nantong, Xuzhou, Lianyungang Yancheng, Huaiyin, Suqian and Taizhou. Under
their jurisdiction there are 64 counties and county-level cities. Jiangsu
is famous for its shoal exploitation and grain corps growing in the
North. While in the South, many cities are just like bright stars well
known for their great achievements in the industries of machinery,
electronics, chemicals, automotive, textile and tourism.

Jiangsu is an province advanced in education and technology in our
country. Its higher education institutions and the educated population
ranked among the best of the whole country. Jiangsu carried out the
compulsory education of nine years and established a multi-level and
multi-type educational system including preschool education, elementary
education, vocational education, higher education and adult education. It
has more than 70 higher education institutions (over 500 specialties)
with undergraduate students of 220,600. It has 200 polytechnic school and
6000 secondary vocational school with undergraduate students of 11
million. As for the adult education, it has all over 7000,000 registered
all sorts of institutions and schools. The artistic appreciation of the
whole population has been improved rapidly which laid down a solid
foundation for the development of the economy and the society.

There are more than five hundreds state owned independent large and
medium size scientific and technological research institutions in Jiangsu
Province concerning over thirty fields such as agriculture, chemical,
electronic, machinery, textile and light industries etc. Also, quite a
number of higher education institutions and medium and large size
enterprises established their own research institutions over 2000. These
research institutions lead the way of technological development of all
fields in Jiangsu. Jiangsu has a force of talented technicians numbered
700,000, among which 58 are academicians of Chinese Academy of Science
and Chinese Academy of Engineering.

In 1996, 40 projects were honored as the great achievements of the state
scientific and technological progress and 317 projects were honored as
the great achievements of the province. The total number of signed
technology contracts in 1996 is 31000 while their volume is RMB 2.23
billion yuan.

In recent years, Jiangsu government concentrated their efforts in making
a favorable investment environment. There are many ports opening to the
outside world, including the ports in Lianyungang, Nantong, Zhangjiagang,
Nanjing, Zhenjiang, Jiangyin, Yangzhou, Taichang, Changsu and Gaogang,
with the total import and export volume of 120 million tons. The airports
in Wuxi, Changzhou, Nantong, Lianyungang, Yancheng and Xuzhou have opened
up many air routes to other major cities in our country. Nanjing airport
has also opened up 38 domestic air routes and the air route plane can fly
nonstop to Hong kong. Nanjing Lukou international airport, which will be
put into operation this year, will open several air routes which can get
directly to major cities in the world so that it will shorten the
distance between Jiangsu and the world. Beijing-Shanghai and Longhai
railways cross the whole province. Longhai railway is known as "
European-Asian continent Bridge" which connects Russia in its west and
can get directly to Amsterdam in Holland. Lianyungang is known as the
"Eastern Bridge Tower". Jiangsu is stepping into an economic period of
continent bridge. As to the road construction, Jiangsu framed a dense net
of highways. It takes 3 hours from Nanjing, the capital city of Jiangsu
province to Shanghai municipality, the biggest city in our country by
Nanjing-Shanghai expressway. Now, several expressways and road bridges
crossing the Yangtze River are being constructed. In Jiagnsu, people can
get anywhere in the world high-efficiently and conveniently by air,
railway or sea.

The communication industry in Jiangsu Province made rapid progress. Its
scale, capacity, level of installation, automation and digitization of
communication net all have upgraded to a new stage. Its capacity and the
total volume of business ranked the second in China. Now a long-distance
communication net, whose main body is optical cable and the auxiliary
part is digital microwave, has been formed in the province. The
provincial wireless BP system, with the largest scale and the most
functions has covered all the cities and counties in the province. Also,
the movable communication net has covered all the province. Some new
services and new business such as information services by telephone are
being widely spread. The cable and the wireless communication nets make
the province come into an era of information exchanging in high speed.
These huge communication nets link Jiangsu with other provinces, even
with the world.

The cities set up near the seas, rivers, highways, or railways provide
Jiangsu with many convenient conditions which other domestic regions do
not enjoy. The densely population with harmonious relations and high
quality and the perfect infrastructures support the development of many
enterprises. In recent years, more and more foreign enterprises invested
in Jiangsu. Some famous international TNCs such as Motorola, Mercedes,
Philips, Ericsson, BASF, Mitsubishi and Mitsui also established their
branches or Joint Ventures in Jiangsu.

This is an area full of energy and vitality. Also it is a land with
honest eastern culture and wonderful future. People living there are
hardworking and hospitable.

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Learn Chinese - Human Resource: Hi-tech Chengdu reaches out for experts

?  ?

BIZCHINA / Biz Media Digest

Human Resource: Hi-tech Chengdu reaches out for experts

By Huang Zhiling and Li Yu (China Daily)
Updated: 2007-07-20 10:49

Nearly 50 firms from the State-level Chengdu Hi-Tech Development Zone in
this capital of Southwest China's Sichuan Province will attend a job fair
on Saturday held in Xi'an, capital of Northwest China's Shaanxi Province.

It is among many efforts the zone is making to meet the voracious demand
for hi-tech professionals in this inland city.

Firms from the zone, including IBM, Alcatel and SAP, plan to recruit
1,000 high- and mid-level professional personnel at the Xi'an fair.

The 1,000 positions include a range of specialties in both hardware and
software, said Li Minxue, chief of the zone's organization department.

Participation at the fair in Xi'an is part of the zone's ambitious plan
to attract a total of 10,000 professionals this year, said Li, who will
lead the Chengdu delegation.

To realize the plan, the zone will itself host fairs this year in
Shanghai, Dalian, Beijing, Shenzhen and Wuhan.

The fairs mirror the development of the software industry in Chengdu,
which employs more than 65,000 people, said Tang Jiqiang, director of the
zone's bureau of strategic design.

Manufacturing is Chengdu's strength, but the inland city is thousands of
kilometers from the sea, which means at least 50 percent more in
transportation costs than for coastal regions.

Products made in Chengdu also reach other countries at least five days
later than those from coastal regions, said Chen Xiaobing, chief of the
general office of the Chengdu bureau of commerce.

Yet with the development of computers and the Internet, the Chengdu city
government decided in 2003 to make full use of its advantage in
scientific and technological personnel to build the software sector into
a pillar industry of the Chengdu Hi-Tech Development Zone.

(For more biz stories, please visit Industry Updates)

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Chinese Online Class - Nation's IPR efforts lauded

?  ?

BIZCHINA / Center

Nation's IPR efforts lauded

By Liu Weifeng (China Daily)
Updated: 2007-07-19 09:00

China's unremitting efforts in establishing a legal framework for
intellectual property rights (IPR) at home and abroad has won praise.

Michael S. Keplinger, deputy director-general of the World Intellectual
Property Organization (WIPO), said China is a significant contributor and
an important player in protecting copyright owners' interests in the
international arena.

He made the remarks yesterday at the 2nd International Copyright Forum
focusing on Internet IPR issues on fighting unlimited and unauthorized
downloads and online content infringement.

"China is a leader and committed to the creativity-based IPR development
model," Keplinger said, referring to two WIOP Internet Treaties -
Copyright Treaty and Performance and Phonograms Treaty - which took
effect in China last month.

By endorsing the treaties, Chinese copyright creators will be granted
legal protection in international disputes among the 60 signatory
countries.

China took no more than six years in establishing the legal framework for
IPR protection on cyberspace, which Keplinger said was "an amazing
development".

However, Yan Xiaohong, vice-minister of the China National Copyright
Administration, admitted China lacks an effective enforcement taskforce
to supervise and tackle IPR violations.

The general public, too, has limited knowledge of how to get involved in
counter-copyright-violation activities, he said.

"We've long been targeting illegal Internet content carriers but seldom
put surveillance on the mass users," Yan said.

Statistics show 1 billion unauthorized music tracks are download using
peer-to-peer networks every month globally and some 400,000 to 600,000
films are illegally downloaded each day across the world.

The speed of transmitting information and without geographical limits,
copyright infringement on cyberspace is difficult to detect.

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Learn mandarin - Campbell finding the right ingredients to serve China market

?  ?

BIZCHINA / Overseas Investment

Campbell finding the right ingredients to serve China market

By Debasish Roy Chowdhury (China Daily)
Updated: 2007-07-17 16:15

According to a Euromonitor International study on the mainland soup
industry, the market leader is Unilever China, with a 33.3 percent share
of the 221 million yuan market, followed by Shanghai McCormick with 12.8
percent and Nestle China with 7.2 percent.

Apart from their smart brand positioning and marketing strategies, these
highly localized foreign food companies have also been feeding on the
growing income of the Chinese, which spawns a need for convenience on the
one hand and quality consciousness on the other.

Campbell, for example, will position its broths as a healthy option, made
from natural ingredients, 97 percent fat-free and with no added MSG. It
has already started a low-sodium drive for its existing brands.

These, exactly, are the concerns of a new China, and will mark the new
marketing battle lines in the food industry as in almost everything else,
rather than mere price competitions.

Campbell's entry thus carries two vital lessons: one, there is still
enough room to grow in the market as the market itself is constantly
growing, which is why it keeps drawing new players; two, moving up the
value chain to create product differentiation is key to making room in
this dynamic market.

Any Chinese company planning to wrest the market in traditional products
from multinationals will easily soup up its sales if it takes these
lessons to heart.

(For more biz stories, please visit Industry Updates)

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Sunday, December 23, 2007

Learn mandarin - China produces 226m mobiles in 1st 5 months

?  ?

BIZCHINA / Center

China produces 226m mobiles in 1st 5 months

(Xinhua)
Updated: 2007-07-16 10:14

China produced nearly 226 million mobile phones in the first five months
of the year, up 33.7 percent from a year earlier, according to statistics
from the Ministry of Information Technology.

The rising rural market is believed to be a major driver behind the
production boom, explained ministry officials.

As international giants such as Nokia and Motorola promote low-end phones
targeting farmers, local producers are trying to catch up, according to
the ministry.

China is expected to manufacture 40 percent of the one billion mobile
phones produced around the world this year, said ministry officials.

However, the officials warned that the mobile phone industry is still in
the throes of restructuring and producers without up-to-date technologies
may be thrown out of the market.

China now has more than 80 mobile phone producers. Last year Chinese
companies produced a total of 480 million mobile phones, a hefty rise of
58.2 percent from the previous year.

There are now about 487 million mobile phone users in China with six
million new users being added every month, according to the Ministry of
Information Industry.

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