Learn Chinese Online: 2007

Monday, December 31, 2007

Chinesepod - Risks of high growth

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BIZCHINA / Review & Analysis

Risks of high growth

(China Daily)
Updated: 2007-09-18 16:15

It is reassuring that the developing Asian economies are performing
soundly a decade after a devastating financial crisis swept across the
region.

Driven by fast growth in China and India, the Asian Development Bank
(ADB) raised its forecast for growth in the developing Asian economies to
8.3 percent in 2007 from an earlier estimate of 7.6 percent made half a
year ago.

While uncertainty reigns in global financial markets and worries about
the health of the US economy mount, such an upbeat forecast is full
testimony to growing confidence in the region's ability to sustain
economic growth.

The faster than expected growth momentum China built up this year can be
well expected to carry into 2008. The Chinese economy grew 11.5 percent
in the first half of 2007, which is the highest rate since 1994. It is
not too bold to expect China's economic growth to reach 11.2 percent this
year and 10.8 percent next year.

However, though ADB ruled out a "sharp dive" of the Asian economy despite
uncertainties in credit markets and the broader global economy, Chinese
policymakers should not miss the internal risks this development bank
also identified in its new report.

Buoyed by exports, investment, and consumption, the Chinese economy is
likely to defend against external shocks in the short term. But an upturn
in inflation, mainly caused by food price increases, is raising concerns.
The ADB report lifts China's inflation projection to 4.2 percent this
year and 3.8 percent in 2008. It also warned that there is a risk that
the actual out-turn could be higher still.

China's consumer price index surged to 6.5 percent last month, raising
the inflation level between January and August to 3.9 percent, far
exceeding the 3.0-percent target set by the central bank for all of 2007.

The country's inflation has risen mainly as the result of a run-up in
food prices. Some people believe that as long as food price hikes do not
spread to non-food items, serious inflation will be kept in check. Yet,
rising global grain prices is undermining the prospect that a bumper
harvest can stop the spike in domestic food prices.

Worse, soaring headline inflation is shifting people's inflation
expectation, making it harder for Chinese policymakers to rein in
inflation.

To achieve sustainable development, the Chinese authorities must not
allow runaway inflation to erode its economic progress and the
accumulation of people's wealth.

The ADB report also pointed out that rising stock and property values
pose challenges for the country. It might appear reasonable to associate
China's rocketing stock and house prices with the country's strong growth
momentum and huge growth potential.

Nonetheless, policymakers should have a sober understanding of the severe
consequence of asset bubbles.

(For more biz stories, please visit Industry Updates)

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Chinese School - China to add 27 new air routes to Europe, America

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BIZCHINA / Center

China to add 27 new air routes to Europe, America

(Xinhua)
Updated: 2007-09-17 11:40

China's civil aviation authority said it has approved 27 new
international routes to Europe and America.

The routes will be opened in the next two years. In addition, there will
be 206 more flights per week on the existing routes to Europe and
America, said the General Administration of Civil Aviation of China
(CAAC).

The new routes will be run by Air China, China Southern Airlines, China
Eastern Airlines, Shanghai Airlines and Hainan Airlines, which have
introduced aircrafts such as Boeing B787 and Airbus A380.

(For more biz stories, please visit Industry Updates)

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Chinesepod - China raises interest rates for 5th time in 2007

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BIZCHINA / Center

China raises interest rates for 5th time in 2007

By Zhang Ran (China Daily)
Updated: 2007-09-14 18:36

The central bank raised interest rates for the fifth time this year on
Friday as part of its continuing efforts to arrest the rising inflation
graph and prevent the economy from overheating.

The benchmark one-year lending and deposit rates will be raised by 0.27
percentage points from September 15, the People's Bank of China, the
central bank, said on its website.

That?means the one-year lending rate will increase from 7.02 percent to a
nine-year high of 7.29 percent, and the deposit rate will rise from 3.6
percent to 3.87 percent.

The last interest rate hike was on August 21.

"The move was predictable," BNP Paribas Peregrine Securities chief
economist Chen Xingdong said. "Over the past months, the central bank has
been trying to check the rising prices of consumer products, which now is
the biggest concern of the government."

The consumer price index (CPI), a key gauge of inflation, rose to 6.5
percent in August, driven mainly by rising food prices and the highest
since December 1996.

The supply of money grew 18.09 percent in August, exceeding the central
bank's annual target of 16 percent for the seventh consecutive month. And
urban fixed-assets investment rose 26.7 percent in the first eight months
of the year.

"These figures in aggregate suggest a continuous strong growth momentum
in the real economy amid excess liquidity," JP Morgan Securities (Hong
Kong) chief economist Frank Gong said.

Given the latest macro developments, analysts said Friday's interest rate
increase might not be the last this year. The central bank could raise it
again in October, Chen said, while Gong forecast one more increase of
0.27 basic points by the end of the year, followed by another in the
first quarter of next year.

Chen, however, felt Friday's interest rate hike will have very limited
impact on the property and stock markets. "Even after the interest rate
increase, the real deposit rate remains in negative territory. Since
people still fear higher inflation in the following months, they will
invest more in stocks or the property market," Chen said.

But China Jianyin Investment Securities Co senior analyst Li Zhikun
disagreed. Given the series of money tightening moves, fixed-assets
investment will finally be curbed, he said. This in turn could slow down
public companies' growth prospects and help cool down the stock market in
the long run.

(For more biz stories, please visit Industry Updates)

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Chinese Mandarin - Wal-Mart lessons for local pharmaceutical chains

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BIZCHINA / Review & Analysis

Wal-Mart lessons for local pharmaceutical chains

By Qian Zisheng (China Daily)
Updated: 2007-09-13 13:36

It's time for Chinese pharmaceutical chains to learn from international
retailing behemoths like Wal-Mart.

Last year, US-based Wal-Mart topped the Fortune 500 list, which pegged
the world's largest retailer's revenue at US$351.1 billion, an increase
of 11.2 percent over the previous year, with a profit of US$11.3 billion.

The seemingly less profitable retailing business surprisingly leaves many
big American names like General Electric and General Motors behind in
profit figures. There are reasons for this success. Low price is one of
them.

In all markets, price is always an important, if not the most, tool to
attract or drive away customers. Sam Walton, founder of Wal-Mart, was
wise enough to realize he could please his customers by passing on the
savings to them and earn his profit through bigger volumes.

The low-price strategy has been copied around the world since early 1962,
when the first Wal-Mart outlet was launched in Rogers, Arkansas.

But how can prices be kept down? This brings us to another equally
important Wal-Mart strategy - maximum cost cutting.

Wal-Mart opens as many stores as possible in a specific region. This
effectively weakens the competition in the local market by slowing down
the expansion of other retailers. More importantly, it brings in a more
efficient logistics system and scales down the transportation costs.

The large number of stores and the bulk buying also put Wal-Mart at a
more advantageous position to bargain with suppliers for cheaper deals.

Of course, it's not merely thrift that pushes Wal-Mart ahead of its
competitors. The American retailer has been highlighting the value of its
staff and makes it a point to keep them happy.

On the other hand, there are lessons to be learnt from Wal-Mart's
setbacks in China.

Wal-Mart here insists on the unified settlement of accounts, which means
the cash flow in all stores will eventually go through the China
headquarters. This, in turn, means loss of tax revenue for local
governments, and is the reason why most of them cold-shoulder Wal-Mart,
hindering its expansion.

The slower expansion and the consequent small number of stores makes it
difficult to guarantee the same efficient logistics system as it enjoys
worldwide, let alone cost controls.

For Chinese pharmaceutical retailers, the Wal-Mart story is worth bearing
in mind.

There are numerous pharmaceutical retailing brands but most share common
problems such as a lack of core value or brand promise, like Wal-Mart's
low price, that could easily set themselves apart, insufficient qualified
brains capable of finding the niche market and innovative corporate
strategy, roughly designed talent training programs, empty words on both
internal reward and punishment initiatives, and sales commissions that
lead to high retail prices.

The problems are exactly where the gap lies and what Chinese
pharmaceutical retailers should get rid of to raise their bottom line
amid fiercer competition.

Take Jiangsu Drug Store Federation for example. There are 33
pharmaceutical brands in the province that have a network of 1,500 stores
in total.

I was part of a group of industry experts that recently participated in
overhauling a pharmaceutical chain that resulted in rocketing revenue and
profits.

After having studied the practices of international retailers, the group
carried out a brand repositioning campaign internally, and then, before
the new brand made its debut, conducted training to make employees fully
involved in the campaign, telling them what the brand stands for, what
they are expected to do and what they are not.

Everyone was asked to send a report analyzing the job they are involved
in and suggest solutions to support the new corporate strategy.

A series of rewarding tools were also designed to motivate the staff to
work harder and convince them that they can benefit from the strides the
company makes.

The headquarters was made responsible for 70 percent of pharmaceutical
purchasing and individual stores for the rest.

Wal-Mart's other practices, like freeing suppliers of entry fees, helping
them improve the product quality and design, and online information
sharing, were also adopted.

The author is a senior marketing consultant in China's pharmaceutical
industry and is now executive general manager of Jiangsu Drug Store
Federation

(For more biz stories, please visit Industry Updates)

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Sunday, December 30, 2007

Chinese Mandarin - Chinese firms to build?Polish expressways

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BIZCHINA / Center

Chinese firms to build?Polish expressways

By Lu Haoting (China Daily)
Updated: 2007-09-12 10:46

Nearly 40 private Chinese companies, led by China International Industry
and Commerce Co Ltd (CIIC), are likely to build expressways worth 20
billion euros in Poland as the Eastern European country modernizes its
infrastructure.

CIIC, a leading real estate company in Beijing, yesterday signed a letter
of intent for cooperation with the Polish Ministry of Transport to
participate in Poland's road transport modernization.

Poland is carrying out a massive campaign to improve its poor road
transport system. It will build 1,700 kms of road and 2,500 kms of
expressway in seven years.

On behalf of our government, I sincerely send out my invitation to
Chinese enterprises and hope China would participate in this
modernization campaign," Jerzy Polaczek, Poland's minister of transport,
said at the signing ceremony. "We hope our business partnership agreement
will take effect very soon."

CIIC plans to set up a joint venture company with other Chinese private
firms to participate in the expressway projects in Poland, said Wang
Tianyi, CIIC's president.

"About 38 companies have expressed interest in joining us," Wang said.

Poland's road transport system modernization is mainly funded by the
European Union and the Polish government. The EU will increase its aid to
Poland from 2 percent of the country's gross domestic product to 4
percent between 2007 and 2013, according to Euromonitor International.
The funds are part of the EU Structural and Cohesion Funds aimed at
improving transport infrastructure, regional development, education and
environment.

Founded in 1988, CIIC has total assets of 9.8 billion yuan (US$1.3
billion). Its business covers real estate development, property
management, hotels, industrial park development and information security
management. It wholly owns the five-star Presidential Plaza Hotel in
western Beijing.

CIIC is also making forays into other Eastern European countries. It
signed a letter of intent on Monday to build a 40-story commercial
building in Romania, one of the tallest structures in Eastern Europe.

Bilateral trade between China and Poland reached US$4.67 billion in 2006,
rising 48.2 percent over the previous year, according to figures from the
Chinese Ministry of Commerce.

(For more biz stories, please visit Industry Updates)

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Chinese Online Class - China's forex investment company?may debut this week

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BIZCHINA / Top Biz News

China's forex investment company?may debut this week

(Xinhua)
Updated: 2007-09-10 13:49

China Investment Co Ltd, the State forex investment company to make
better use of the country's huge foreign exchange reserve, is expected to
start operation this week, said Monday's China Securities Journal.

Senior management of the company will include Lou Jiwei, Gao Xiqing,
Zhang Hongli, Xie Ping and Hu Zuliu, said "informed" sources.

Lou is currently a deputy secretary-general of the State Council, or the
cabinet; Gao is a vice chairman of the National Council for Social
Security Fund; Zhang is a vice finance minister; Xie is the general
manager of the Central Huijin Investment Corporation and Hu is the
general manager of Goldman Sachs Group (Asia) Ltd.

In an interview with the newspaper in Dalian, Hu did not give
confirmation to the news that he would join the company, but offered his
advice that the company should not aim too high in terms of returns in
the beginning stage when it is still short of personnel and risk
management capability.

He said the company should have 100 to 200 investment specialists and
about 1,000 employees in other fields, including IT, risk management and
legal affairs.

At the end of last month,?the Ministry of Finance announced it would use
forex purchased with returns from a 600 billion-yuan (US$67.79 billion)
special treasury bond sale to finance the China Investment Co Ltd.

China's forex reserve had reached US$1.33 trillion by the end of June.

(For more biz stories, please visit Industry Updates)

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Chinesepod - Hong Kong remains No. 1 overseas investor on mainland

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BIZCHINA / Top Biz News

Hong Kong remains No. 1 overseas investor on mainland

(Xinhua)
Updated: 2007-09-08 14:32

Hong Kong maintained its position as the biggest overseas investor on the
Chinese mainland in the first seven months of the year, according to the
latest statistics from the Ministry of Commerce.

In the January-July period, Hong Kong invested US$12.3 billion on the
mainland, up 20 percent from a year earlier, involving 8,782 projects.

Hong Kong had invested an accumulative US$292.1 billion on the mainland
by the end of July, taking a 40-percent share in the total investment the
mainland had received from overseas since 1978.

The mainland's exports to Hong Kong in the first seven months surged 23.9
percent to US$99 billion, while imports rose 14.2 percent to US$6.8
billion.

Meanwhile, the mainland saw the number of its Macao-invested projects
increase 16 percent to 514, with investment value rising 15.9 percent to
US$4?million.

The mainland's exports to Macao rose 23 percent to US$1.47 billion, while
imports were down by 7.4 percent to US$150 million.

(For more biz stories, please visit Industry Updates)

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Learn Mandarin online - Australia's FDI from China's mainland, HK up 196%?in 5 years

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BIZCHINA / Overseas Investment

Australia's FDI from China's mainland, HK up 196%?in 5 years

(Xinhua)
Updated: 2007-09-06 17:35

Foreign direct investment (FDI) from China's mainland and Hong Kong to
Australia has increased 196 percent over the past five years, an
Australian government agency said Thursday.

In 2006, FDI from China's mainland and Hong Kong accounted for 4 percent
of the total stock of all FDI in Australia from the Asia- Pacific
Economic Cooperation (APEC) member economies, Invest Australia, the
Australian government's inbound investment agency, said in a press
release here.

The United States is Australia's major source of investment from APEC,
with a 57 percent share last year, followed by Japan (18 percent) and New
Zealand (6 percent).

Australia's total FDI from APEC economies jumped by 7.3 percent during
2006 to reach 130 billion Australian dollars (US$106.6 billion),
representing the ever-strengthening links between Australia and the rest
of the Asia-Pacific Region, the release said.

Invest Australia CEO Barry Jones said that foreign investment plays an
important role in Australia's economic success and that the country is
very welcoming of investment from overseas.

Australia's outbound FDI to China's mainland and Hong Kong also took up 4
percent of the country's total outward FDI within APEC in 2006, according
to the release.

The United States was the principal destination for Australia's outward
FDI within APEC, accounting for 60 percent of Australia's FDI stock to
APEC members, followed by New Zealand (21 percent), Singapore (2.3
percent), and Papua New Guinea (1.4 percent).

APEC is the premier forum for facilitating economic growth, cooperation,
trade and investment in the Asia-Pacific region.

Founded in 1989, it represents the most economically dynamic region in
the world, with its 21 member economies spanning four continents and
accounting for approximately 40 percent of the world's population, 56
percent of world GDP and 48 percent of world trade.

(For more biz stories, please visit Industry Updates)

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Saturday, December 29, 2007

Chinesepod - Time to introduce rebates for tax groups

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BIZCHINA / Review & Analysis

Time to introduce rebates for tax groups

(China Daily)
Updated: 2007-09-05 10:35

The Ministry of Finance?revealed that the country's financial revenue in
the first half of the year exceeded 2.6 trillion yuan (US$325 billion),
equivalent to the annual revenue of 2004 and a 30 percent increase over
the corresponding period last year.

Low and middle-income earners are bearing the heavy tax burden.

In this context, it is right that these two groups get back some of the
money they have paid in taxes, in the opinion of this author.

It seems that the State's moneybag is getting bigger and at an
accelerated pace. Putting a brake on this rapid financial revenue growth,
therefore, becomes imperative.

Tax rebates for low and middle-income people would help to achieve that
goal. And tax rebates of this kind are relatively easy to implement.

Besides, it also brings a number of benefits.

First, tax rebates help regulate social wealth distribution which is
leaning increasingly in favor of the rich.

Over the years, income disequilibrium in the country has been widening
and the society is becoming increasingly polarized.

Middle-income earners are the backbone of the tax system, yet they find
themselves trailing farther behind the rich in so far as disposable
income is concerned.

Giving back some of the taxes they have paid to the State treasury will
immediately increase their disposable income substantially, and will be
in line with the State's goal of regulating social wealth distribution.

Over the last decade or so, general socio-economic development has been
marked by the fact that the government has been receiving much more
benefits from the rapid economic growth than ordinary people.

Tax rebates to low and middle-income earners means a few thousand yuan
each for them, but would hardly dent the State's coffers.

Second, tax rebates can help resolve some of the chronic problems
besetting the Chinese economy.

Weak consumption demand, for instance, has for years been an inhibitive
factor in the promotion of economic development. As a result, heavy
reliance on investments and exports became a means to promote economic
growth. This is, however, not the right formula for the economy's healthy
and sustainable development.

The tax rebates, followed by the introduction of regular tax reductions,
and exemptions would largely promote the consumption power of low and
middle-income earners. This, in turn, would help resolve the structural
problems of the Chinese economy.

Third, the tax rebates would help make the society more harmonious.

Currently, inflation is on the rise with food price hikes and prohibitive
house prices.

Low and middle-income groups are finding the going is getting tough. This
is in contrast to swelling of the State treasury and rapid economic
growth. This situation by no means helps to build a society in harmony.

But tax rebates can play a role in this regard, helping to cushion the
negative impact of inflation and, in turn, facilitating the building of a
harmonious society.

Fourth, tax rebates help improve relations between the government and
people.

In essence, the relationship between the government and people is one of
inter-dependence. People pay taxes so that the country can carry on. When
the country is in difficulties, the people have an obligation to pay more
taxes to help. But when the State's coffers are swelling and the people
are finding the going tough, the government is obligated to let the
people pay less tax. At this time, rebates will best demonstrate the
government's care for taxpayers. This facilitates political stability of
the country.

(For more biz stories, please visit Industry Updates)

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Learn mandarin - Aviation: Asian aviation to grow

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BIZCHINA / Biz Media Digest

Aviation: Asian aviation to grow

(Xinhua)
Updated: 2007-09-04 09:21

The Asia aviation sector will continue to grow in influence in the coming
years, Cathay Pacific Airways Chief Executive Tony Tyler said on Monday.

Speaking at the Asian Aerospace International Expo and Congress 2007
which opened?in Hong Kong, Tyler said, spurred by fast-rising demand in
burgeoning markets such as the Chinese Mainland and India, the Asia
aviation sector will continue to grow in influence in the coming years.

Asia's carriers are "the best carriers in the world", Tyler said, "but we
are also on the way to becoming the biggest airlines in the world. The
reason this is happening, apart from growth in the region generally, is
the enormous growth in India and China. This is happening fast and it
will continue to drive the increasingly important influence of Asian
aviation."

Tyler outlined Cathay Pacific's strategy, including the integration of
Dragonair with its extensive Chinese Mainland network and the equity
relationship the airline now enjoys with Air China, for developing twin
hubs in Hong Kong and Beijing. " Hubbing is what it's all about and
Cathay Pacific is now truly a network carrier with over 50 percent of our
passengers making connections through Hong Kong," Tyler said.

Tyler also pointed to three key challenges Asian carriers will face: the
growing environmental debate, airspace congestion and ever-increasing
competition.

Cathay Pacific Airways has been named the Official Carrier of Asian
Aerospace International Expo and Congress 2007, which kick started on
Monday at AsiaWorld-Expo, which is alongside Hong Kong International
Airport.

The four-day trade-only event has attracted more than 500 exhibiting
companies from over 20 countries and regions, 12 national pavilions,
1,000 conference delegates, 100 speakers; with up to 10,000 trade
visitors expected, and more than 200 media accredited.

(For more biz stories, please visit Industry Updates)

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Chinese Online Class - Hongshi cements US deal

? ?

BIZCHINA / Center

Hongshi cements US deal

By Wang Lan (China Daily)
Updated: 2007-09-01 10:01

Privately owned Hongshi Cement Holding Group reached an agreement with
Goldman Sachs on Thursday to sell up to 25 percent, or 600 million yuan
(US$79.5 million), of its shares to the US investment bank.

Ni Yuehui, a senior executive at Hongshi Group, said on Friday that the
transaction is part of the company's plan to seek a mainland listing. But
he said the timetable for the proposed initial public offering is yet to
be decided.

Learn Chinese online - China issues 600 billion yuan of special T-bonds

? ?

BIZCHINA / Center

China issues 600 billion yuan of special T-bonds

(Xinhua)
Updated: 2007-08-29 16:08

China began to issue 600 billion yuan (US$67.79 billion) of bonds on
Wednesday in the first tranche of 1.55 trillion yuan basket of special
treasury bonds.

Friday, December 28, 2007

Chinese language - Warning bell for mortgage market

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BIZCHINA / News

Warning bell for mortgage market

By Hu Yuanyuan (China Daily)
Updated: 2007-08-22 10:01

The US subprime crisis will have limited impact on China's mortgage
market, but it has raised the need for stricter examination of individual
credit and higher down payments, insiders said.

The US subprime issue has had almost no impact on China's mortgage
market, said Li Ling, general manager of the examination and approval
department at the Shenzhen Development Bank (Beijing branch).

"In fact, measures taken last year to address increasing risks in the
market had already seen our loans to real estate developers shrink by
almost half in the past year," Li told China Daily. "They now account for
a very small proportion of our business."

Mortgage down payments currently range from 20 to 30 percent, but in real
terms they are 10 percent or even zero given the inflated prices, Li said.

Property prices in the country's 70 large and medium cities rose by 7.5
percent year-on-year last month, the highest growth rate since 2006 and
0.4 of a percentage point higher than for June.

"Increasing down payments is a must," Li said.

The Shenzhen branches of some banks raised the down payment from 30 to 40
percent and put a stop to mortgages on pre-owned houses last week.

Shenzhen prices increased at a rate of 16.1 percent for new houses and
21.4 percent for pre-owned homes in July, leading the country's property
price growth, the National Development and Reform Commission said.

"We might see more increases in Beijing, but down payments could differ
according to the client's credit background," Li said.

According to Tao Dong, chief economist with Credit Suisse First Boston
Asia, the US subprime issue sounds a warning bell for China's mortgage
market.

"Banks should be more careful and cautious in examining the credit of
homebuyers," Tao said.

Peng Xingyun, a researcher with the Financial Research Institute of the
Chinese Academy of Social Sciences, called for stricter supervision and
risk management of the country's mortgage market.

"China's mortgage market has shown some features of the US subprime
crisis, as property prices keep rising and the interest rate goes up,"
Peng said.

(For more biz stories, please visit Industry Updates)

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Chinese Online Class - Lai's extradition to be settled tomorrow

CHINA / National

Lai's extradition to be settled tomorrow
(Shanghai Daily)
Updated: 2006-05-30 15:37

The Federal Court of Canada will hear Lai Changxing's appeal tomorrow, as
Canadian authority's final assessment on his extradition disappointed
him, Xinhua news agency reported today.

The Canadian Immigration and Refugee Board recently completed the final
review on the extradition of Lai Changxing, China's most wanted fugitive.

Canadian Border Services Agency officers will immediately start the
deportation procedure for Lai, if the court rejects his final appeal
tomorrow.

"This is Lai's last chance at appealing to stay in Canada," a Canadian
law expert said.

The extradition of Lai has been delayed for one week since last Tuesday,
as the Federal Court of Canada postponed his appeal for refugee status.

Lai was arrested by Canadian Border Services Agency officers on May 16,
after a final assessment concluded he would not be in danger if he was
deported to China to face charges, including smuggling and bribery.

The Immigration and Refugee Board revoked the detention, rejecting
arguments made by the agency that Lai has untapped financial resources he
will use to flee before being sent back to China.

Lai is accused of heading a syndicate based in coastal Xiamen City,
southeastern China's Fujian Province, which conducted the biggest
smuggling operation uncovered in China since 1949, in collusion with
corrupt government officials.

The case involved US$10 billion worth of goods ranging from cigarettes to
cooking oil.

Lai fled to Canada with his wife Tsang Mingna and their three children in
1999. For years Lai has been trying to gain refugee status.

Tsang, now divorced from Lai, is subject to a separate deportation
proceeding.

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Chinesepod - A multi-layer housing system needed

? ?

BIZCHINA / Opinion

A multi-layer housing system needed

(China Daily)
Updated: 2007-08-23 16:21

China does need a multi-layer housing security system, says an editorial
in Oriental Morning Post. The following is an excerpt:

A recent article by Xinhua News Agency pointed out that rising house
prices show no sign of stopping in China.

According to a report by the National Bureau of Statistics and the
National Development and Reform Commission, housing prices in 70 major
Chinese cities were up a record 7.5 percent in July from the same month
last year.

When prices keep rising, the most important way to guarantee housing for
low and medium-income families is to build a multi-layer housing security
system. It is the government's major responsibility to solve the housing
problems of low and medium-income groups.

The first layer of the housing security system should be low-rent housing
provided by the government for the urban poor. The second layer is for
low and medium income earners, they account for about 70 percent of the
total population. The government should provide monetary subsidies,
favorable interest and tax rates. The third layer should be commercial
housing with capped prices for those who are not qualified for the second
layer but also cannot afford commercial housing.

The current problem is that many regional governments have not attached
enough importance to housing security. The policy is not complete. There
are no long-term plans.

Land reserves are limited and most low-rent and low-price housing are in
city suburbs, which makes life inconvenient and increases the cost of
social management. Furthermore, existing low-rent and economically
affordable housing are insufficient and of poor quality. At the end of
June, there were more than 60 cities that had not provided low-rent
housing. Thus the local government's function to establish a security
housing system should be clarified and regulated.

The State Council has publicized opinions on solving the housing
difficulties of urban low-income families. A multi-layer system is now
under deliberation.

(For more biz stories, please visit Industry Updates)

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Chinese Online Class - Aviation:?Industrial park inaugurated

? ?

BIZCHINA / Biz Media Digest

Aviation:?Industrial park inaugurated

(People's Daily Online)
Updated: 2007-08-21 15:52

China's aviation industries have begun construction of a high-tech
industrial park featuring space and aviation technology in Chengdu,
capital of Southwest China's Sichuan Province.

The industrial park and the surrounding area would be a major research
and development center and production base of military and civil
aircraft, said Hu Wenming, vice president of China's Aviation Industry
Corporation I (AVIC I), a founder of the park.

Managed by a joint venture company with a registered capital of 230
million yuan (US$30 million), the park is expected to attract big
State-owned enterprises and private companies in the aviation sector.

"The building of the park is a milestone in China's aviation industry,
showing it has moved forward from technological research to industrial
production," said Lin Zuoming, president of AVIC I.

(For more biz stories, please visit Industry Updates)

Related Stories ?

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Thursday, December 27, 2007

Learn mandarin - Ping An Insurance?profit up?140% in 1st half

? ?

BIZCHINA / Center

Ping An Insurance?profit up?140% in 1st half

(Xinhua)
Updated: 2007-08-20 09:53

Ping An Insurance (Group) Co, China's second biggest life insurer, said
its net profits soared 140 percent in the first half of the year.

Its net profits reached 9.97 billion yuan (US$1.31 billion), from 4.17
billion yuan in the same period of last year, according to the first-half
report from the Shenzhen-based company.

The jump in profits was mainly boosted by strong performance in the
company's insurance, securities and banking businesses.

Net profits on life insurance rose 70 percent to 6.02 billion yuan in the
first half, while those on property insurance soared 140 percent to 760
million yuan.

The insurance giant, which acquired Shenzhen Commercial Bank last year,
saw its first-half banking profits climbing to 1.09 billion yuan from 1
million yuan a year ago.

Meanwhile, its securities arm racked up 676 million yuan, compared with
174 million yuan a year ago, thanks to the rising turnover in the bullish
stock market.

By the end of June, the Hong Kong and Shanghai-listed company had 617.8
billion yuan in total assets, up 24.9 percent year on year.

(For more biz stories, please visit Industry Updates)

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� China Life, Ping An pay $1.4 billion for Minsheng Bank stake
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Chinese language - Magnates bidding for plot in Shanghai

? ?

BIZCHINA / Center

Magnates bidding for plot in Shanghai

By Shangguan Zhoudong (chinadaily.com.cn)
Updated: 2007-08-16 11:30

International magnates, such as Rockefeller Group from the United States
and Macquarie from Australia, have bid on a high-end plot in Shanghai's
Pudong District, the Shanghai Securities News reported.

Other leading real estate developers bidding for the land include Hong
Kong Construction (Holdings) Limited, CITIC Pacific Ltd, Hutchison
Whampoa, Sun Hung Kai Properties, Shanghai Lujiazui Finance & Trade Zone,
and Shanghai New Huang Pu Real Estate Co.

The Huangpu District 163 Plot is located in Shanghai's renowned Nanjing
Road Pedestrian Street and boasts a total acreage of 13,709 square meters
and a floor area ratio of 4.8, yielding a combined gross floor area of
65,803 square meters.

This piece of land will be used for commercial projects or office
buildings and is included in Nanjing Road East's key construction
projects.

The starting price of the plot was set at 1.718 billion yuan (US$227.25
million), a new record in Shanghai's Pudong area.

Foreign bidders are required to have at least US$150 million in bank
deposits, high-grade office buildings, and emporia development records.

Domestic bidders should be accredited with the Real Estate Development
Grade I and have a registered capital of more than 150 million yuan, 1
billion yuan in bank deposits and records in developing emporia and
high-grade office buildings.

Foreign bidders will need to pay yuan for the land, if they win the bid.

The land will be listed from August 9 to 24. The Huangpu District real
estate regulator said that bidders must submit development plans,
including design prospectuses and blueprints.

(For more biz stories, please visit Industry Updates)

Related Stories ?

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Chinese language - Insurers expand into central and western regions

? ?

BIZCHINA / China Insurance

Insurers expand into central and western regions

By Hao Zhou (chinadaily.com.cn)
Updated: 2007-08-14 14:47

Related publication:

?
????
???

Chinesepod - Nasdaq expects to list 23 more Chinese companies by year end

? ?

BIZCHINA / News

Nasdaq expects to list 23 more Chinese companies by year end

(Xinhua)
Updated: 2007-08-13 08:46

China is very likely to become Nasdaq's biggest source of non-US listings
by the end of 2007, according to NASDAQ Stock Market vice chairman
Michael Oxley.

Although Oxley declined to give the specific number, there must be at
least 23 more Chinese firms to be listed by year end for China to catch
up with Israel, Nasdaq's current biggest source of non-US listings, who
has about 70 listed companies on the market.

Forty-seven Chinese companies have been listed on Nasdaq so far, with
13listed in 2007 and nine in 2006, said Oxley, best known as a co-author
of the Sarbanes-Oxley Act, which tightened US rules on financial
reporting and governance.

Special coverage:
Markets Watch
Related readings:
?E-House soars 41% on NY debut
?Twenty-one Chinese firms list overseas in 2nd quarter
?China stops approving private firms' overseas listing
?Record number of firms to list overseas
?NYSE seeks more Chinese companies

The act is in response to a string of corporate scandals, such as Enron.
However, some companies complained the strict rules resulted in enormous
auditing expense.

Oxley said the measures haven't discouraged Chinese companies from
listing on Nasdaq, though its president, Bob Greifeld, said last year
they were hindering efforts to attract international listings.

"It's a combination of accessing the most liquid and visible market in
the world and, I guess you could call it, the prestige of listing with a
market that has such high standards," Oxley said.

"I think they aspire to play in the big leagues, and they know they have
to meet these requirements to do so," he said, "so instead of whining or
backing off, they have made a determination that this is a competitive
advantage to them in the marketplace to say they have made a decision to
meet these higher standards."

Furthermore, the auditing measures have been modified from one same
standard for all companies to different standards based on the company
size and the risk that a company is able to cause, he said.

"It has more flexibility and can significantly reduce auditing expense
for small companies," he said, "it will help Nasdaq attract more
listings, including those in China," he said.

Those on Nasdaq include Internet search engine Baidu.com Inc., Web
portals Sina.com Corp. and Sohu.com Inc., and Suntech Power Holdings
Ltd., a maker of solar power equipment.

To attract more Chinese listings, Nasdaq is applying to open a
representative office in Beijing.

(For more biz stories, please visit Industry Updates)

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Wednesday, December 26, 2007

Learn Mandarin online - Shanghai lighted up for SCO summit meeting

? ?

CHINA / Photo

Shanghai lighted up for SCO summit meeting

(China Foto Press)
Updated: 2006-06-14 14:34

The sky is illuminated as the landscape lights underwent the?final
adjustment in?Lujiazui of Pudong District in Shanghia?on the Tuesday
evening, June 13, 2006. The large-scale landscape lights were in place to
hail the?upcoming 2006 SCO?summit meeting. [China Foto Press]

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

Top China News ?

* Ex-chief lawmaker given death sentence
* Call to abandon use of wooden chopsticks
* Surprise as 'male' giant panda gives birth to twins
* CCB hires Citic, CICC for $6.5b IPO
* Stock market value tops last year's GDP

Today's Top News ?

* Vehicles ordered off road for Olympics drill
* Call to abandon wooden chopsticks
* Ex-chief lawmaker sentenced to death
* Japan minister 'says no to shrine visit'
* China invites the world to 2008 Olympic gala party

Most Commented/Read Stories in 48 Hours

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Chinese language - Inner Mongolia witnesses growing foreign trade

? ?

BIZCHINA / Center

Inner Mongolia witnesses growing foreign trade

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

North China's Inner Mongolia Autonomous Region has experienced leaps in
foreign trade since 1978 when China started to open to the outside world.

It chalked up US$5.95 billion of imports and exports last year, compared
with US$16 million in 1978 when China embarked on the road of reform and
opening-up, according to statistics of the region's commerce department.

Trade with Mongolia and Russia rose by 57.9 percent and 30.5 percent
year-on-year to US$580 million and US$2.29 billion respectively last year.

China shares a 4,221-km-long borderline with Mongolia and Russia in Inner
Mongolia, which has opened 18 border trade outlets. Top border trade
outlets include Erenhot, Manzhouli and Ceke.

Manzhouli, situated on the Sino-Russian Border, now does 60 percent of
the country's Sino-Russian bilateral trade by land.

According to the region's commerce department, Inner Mongolia does 40
percent of the country's foreign trade with Mongolia.

(For more biz stories, please visit Industry Updates)

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Chinesepod - China further boosts financial services in rural areas

? ?

BIZCHINA / News

China further boosts financial services in rural areas

(Xinhua)
Updated: 2007-08-07 16:59

The?banking regulators on Monday further eased market access for banks to
rural areas and removed some obstacles to the development of rural
financial services, in a move to promote the rural development.

All banking institutions are allowed access to rural areas, according to
a new guideline, published on the website of the China Banking Regulatory
Commission (CBRC), that aims to provide more sophisticated and tailored
loan services for rural communities and businesses.

Six provincial areas had previously been included in a pilot program to
allow foreign and domestic banking capital to invest in, or to purchase
or establish banking institutions in rural areas, according to an earlier
guideline issued at the end of 2006.

The new guideline directs loans to the agricultural production sector,
and sectors such as the processing of farm produce and transportation in
a bid to support the industrial development in rural areas.

Related readings:
?CBRC issued guideline for rural credit
?CBRC: Rural cooperatives should serve rural interests
?Rural financial services need urgent improvement
?Rural community lenders providing loans to farmers

It encourages loans to farmers to buy expensive durable consumer
products, to finance the building or purchase of homes, to cover medicare
costs as well as school tuition for the children of farmers, loans that
in the past farmers found difficult to obtain.

The CBRC raised the maximum for micro loans offered to rural people and
industry in developed areas to 100,000 yuan to 300,000 yuan, and 10,000
to 50,000 yuan for those in underdeveloped areas.

The commission also said the terms of village loans could be flexible,
adding the term for the payment of loans could be fixed according to the
cycle of agricultural production.

It again called on the financial institutions in rural areas to simplify
the loan application procedures for farmers and rural industry.

The government pledged to accelerate financial reform in rural areas in
its annual report made in March.

After the government lowered the working capital limits for domestic
financial institutions to establish branches in rural areas to three
million yuan (US$384,615) for banks in counties and one million yuan in
villages and towns in terms of registered capital, a couple of village
banks had been established in pilot areas this year.

The Postal Savings Bank, which started operation on March 20 as the
country's fifth state-owned bank, was expected to give a lift to credit
services in rural areas, as 60 percent of its outlets were in rural areas.

(For more biz stories, please visit Industry Updates)

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Chinese Mandarin - Economist: CPI to rise less than 4% in 2007

? ?

BIZCHINA / Center

Economist: CPI to rise less than 4% in 2007

By Shangguan Zhoudong (chinadaily.com.cn)
Updated: 2007-08-06 14:49

Soaring food prices will be effectively curbed and the consumer price
index (CPI) for 2007 will rise less than 4 percent, said Yao Jingyuan,
chief economist of the National Bureau of Statistics (NBS), the Beijing
News reported today.

Statistics from the NBS show that, in the first half of this year,
foodstuff prices rose 7.6 percent, with grain prices up 6.4 percent, egg
prices up 27.9 percent and prices for meat, fowl, and related products up
20.7 percent.

According to Li Xiaochao, spokesman with the NBS, rising grain prices
were largely due to the rising grain prices on international markets and
growing demand both at home and abroad.

Related readings:
?Premier restores public confidence in supply, price
?CPI may grow 5% in July
?Gov'ts warned against price intervention
?CPI to rise record 4.5% in 3rd quarter, rate hike likely
?GDP grows 11.5% in 1st half

The Ministry of Commerce predicted that growth in foodstuff prices would
slow down in the second half of this year.

Yao said the food price rise was due to structural problems. Currently,
the supply of food exceeds demand in the whole, and some products are
even produced excessively.

Only the supply of pork is "slightly tight" while other food products
have no supply problems.

Lu Zhongyuan, an economist with the Macroeconomic Research Institute of
the Development Research Center of the State Council, said that China's
grain production recorded its fourth consecutive harvest this year,
slowing growth in food prices.

Lu said China's inflation is also growing at a slower pace.

The CPI rose 4.4 percent in June, and CPI for the first half increased
3.2 percent year on year.

Meanwhile, the country's economy expanded 11.5 percent in the first half
of this year, up 0.5 percentage points from a year earlier, according to
the NBS.

(For more biz stories, please visit Industry Updates)

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Tuesday, December 25, 2007

Chinese Mandarin - How to make Olympics work for your firm

? ?

BIZCHINA / Weekly Roundup

How to make Olympics work for your firm

By Ma Ruiguang and Jia Bingwei (China Daily)
Updated: 2007-08-02 17:11

4. Create a media event: Hengyuanxiang is a master in this. What should
the Chinese delegation wear at the opening? Hengyuanxiang launched a
dress design contest globally. A simple commercial plan like this can
become a news event and attract a lot of eyeballs.

5. Create China elements: Lining has released sports shoes in the shape
of a Chinese bow and Nike used the China Red color in its products, while
sports shoemaker Voit designed the China Impression series. All these
products use China concepts like color, calligraphy, painting, and
legends. As China becomes the focus of the world during the Games, China
concepts are likely to become popular too.

6. Add some entertainment factors: During the Athens Games in 2004,
Netease.com built a Sports Dream World theme park covering over 10,000
square meters and won applauses from many Chinese.

7.Have some interaction with society: Olympic Games can be seen as a
relation marketing platform, with so many relations among governments,
enterprises, the media, social communities, consumers, and manufacturers.
These groups can be all used as a platform to demonstrate products of
clothes manufacturers. Even if athletes do not wear your suits, ordinary
people may do so.

(For more biz stories, please visit Industry Updates)

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Chinesepod - IMF says China to be leader in world economic growth

? ?

BIZCHINA / News

IMF says China to be leader in world economic growth

(Shenzhen Daily)
Updated: 2007-08-01 16:28

China and India are the new engines of world economic growth, replacing
the United States and other developed countries, International Monetary
Fund managing director Rodrigo Rato was quoted by media as saying
yesterday.

He said China overtook the United States this year to become the biggest
contributor to world economic growth.

“For the first time, the largest contribution to global growth will now
be made by China,” Rato told a business conference in the Philippines.

“Looking ahead, we expect this pattern of growth to continue ... we
expect China — and increasingly India — to grow in importance as
engines of global growth.”

He said China would grow by more than 11 percent and India at around 9
percent this year, with almost equal rates in 2008.

After slowing down, the U.S. economy would “regain momentum gradually
as the drag from the current housing correction and the softness in the
business sector dissipates.”

“Prospects in Europe and Japan remain good,” Rato added, without
giving specific figures.

“The outlook for the global economy is generally good and the economic
prospects of most countries in emerging Asia are also good,” he said.

At the same time, Rato warned that the oil market and capital flows were
a major concern.

While the global economy had easily shrugged off the high oil prices
driven by increased demand, “a supply shock could be much more damaging
to global growth.”

Inflows of capital to emerging economies could “complicate
macro-economic management and expose the countries that receive them to
an abrupt reversal of flows when sudden shocks occur,” he added.

Rato also said there was a “danger of a backlash against
globalization” as many people felt mainly benefited the wealthy and
educated.

He said the best way to address this inequality was to increase
investment in education and technology and give the poor more access to
infrastructure, utilities and financial services so they could also
benefit from globalization as well.

(For more biz stories, please visit Industry Updates)

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Learn Mandarin online - Positive spin

? ?

BIZCHINA / Biz Who

Positive spin

(China Daily)
Updated: 2007-07-31 09:41

Stark says the company is planning more corporate social responsibility
programs in China in the years to come.

To make its vehicles affordable for more Chinese buyers, BMW in January
2005 slashed the prices of its locally assembled 3 and 5 Series sedans by
as much as 14 percent, its boldest markdown in China.

2007 forecast

BMW expects its sales on the Chinese mainland to grow by at least 38
percent this year from the 2006 figure of 36,357, says Stark.

In the first half of the year, BMW's mainland sales climbed by 38 percent
to 23,167 vehicles, including 15,165 3 and 5 Series sedans made at its
joint venture in the northeastern city of Shenyang with Brilliance China
Auto.

Barring any further negativity in the market toward the brand, Stark says
the group will see growth at the end of this year of not less than what
it was in the first half.

"We will go faster than the market, and basically faster than our main
competitors," he says.

"This is usually our benchmark, our yardstick."

From January to June, mainland sales at Audi, the premium brand owned by
Volkswagen, grew by 27 percent to 48,716 cars.

And German luxury carmaker Mercedes-Benz has seen its combined sales on
the mainland, Hong Kong and Macao increase by 28 percent to 13,500 units.

Stark says BMW will offer new products in China to boost sales.

"We would like to stay true to the products and true to the brand. We try
to on one hand bring new products, but also to adapt our products as much
as we can to the demands of Chinese customers," he says.

Last November, BMW's venture with Brilliance launched the new 5 Series
sedans, which are 14 cm longer than the previous models and only
available in China.

(For more biz stories, please visit Industry Updates)

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Chinese language - US Treasury opposes currency bill

? ?

BIZCHINA / Center

US Treasury opposes currency bill

(China Daily)
Updated: 2007-07-28 10:28

The US Treasury Department said it continues to believe that the robust
Strategic Economic Dialogue (SED) is the best means of achieving
progress, when opposing a bill aimed at pressing China to raise the value
of its currency.

The US Senate Finance Committee voted 20-1 on Thursday to pass a bill
that would give the US government new tools to pressure China to float
the yuan currency in open markets. [newsphoto]?

The Treasury said in a statement the bill represents the wrong approach
in achieving essential currency and economic reforms in China that would
reduce trade imbalances.

The US Senate Finance Committee voted 20-1 on Thursday to pass a bill
that would give the US government new tools to pressure China to float
the yuan currency in open markets.

"It distances the US from a multilateral approach and raises serious
concerns regarding US compliance with international rules governing
anti-dumping investigations," the statement said.

The Treasury said it recognized that members of Congress want to send a
strong message to China through this bill and others under consideration,
adding that Treasury Secretary Henry Paulson would tell the Chinese
leadership that "it is vital to the health of the global economy,
including the US economy, that China reform its currency and take other
steps to reduce imbalances."

Paulson will start his fourth visit to China next week and is scheduled
to hold talks with President Hu Jintao and Vice- Premier Wu Yi.

But the Treasury said it cannot support the bill's approach and
"continues to believe that direct, robust discussions with the senior
Chinese leaders, not legislation, is the best means of achieving
progress."

The bill requires the Commerce Department to take "currency
undervaluation" into account when calculating anti-dumping duties on
foreign goods, which could lead to higher duties already in place on many
Chinese products, and encourage US companies to seek new duties on
additional Chinese goods.

The bill also would require the Bush administration to take action
through the International Monetary Fund and eventually the World Trade
Organization against targeted countries that refuse to reform their
currency policies.

The overwhelming vote shows Congress is headed toward passing legislation
by a big enough margin to overcome any presidential veto, said Senator
Charles Schumer, a New York Democrat who helped craft the measure.

A faster appreciation of the yuan is not a panacea to the broadening
US-Chinese trade deficit or other ills, such as losses in manufacturing
jobs, Federal Reserve Chairman Ben S. Bernanke said last week.

Vice-Premier Wu told a dinner in Washington in May attended by Paulson
and Bernanke that the yuan's value was not the cause of the deficit.

She added that about 85 per cent of China's surplus with the US is from
foreign companies exporting products no longer made in the United States,
such as shoes.

Meanwhile, China has made it clear on many occasions that the country
would carry out the exchange rate reform in an independent, controllable
and gradual way to maintain the yuan's strength.

The yuan has seen seesawing fluctuations versus the dollar since 2005.

China promised to deepen the exchange rate reform to allow the yuan to
fluctuate in line with market supply and demand during the second
strategic economic dialogue between the two countries.

China Daily-Agencies

(China Daily 07/28/2007 page2)

(For more biz stories, please visit Industry Updates)

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Chinesepod - Chinese consumer confidence rebounds

? ?

BIZCHINA / Center

Chinese consumer confidence rebounds

(Agencies)
Updated: 2007-07-26 16:30

The newly published China consumer confidence index (CCCI) by Xinhua
Finance eziData showed a slight rebound in Chinese consumer confidence in
July, as a jump in future expectations offset continued pessimism
regarding current conditions.

The index rose 0.4 point to 102.0 in July, but remained slightly below
the 102.2 reading in May.

The relative stability in July resulted from a series of sub-trends -
including steadily rising food prices, rebounding housing prices and
fluctuating stock market prices - that tended to counteract each other.

Current conditions fell by 1.2 points, the second consecutive monthly
decline, under the direct influence of rising concern on consumer prices
and lower stock market returns. More demand for cars was offset by an
even stronger increase in expectations of higher gasoline prices.

In contrast, future expectations rose 1.3 points, led by gains in both
the one-year business outlook (up 3.1 points) and five-year business
outlook (up 3.5 points). On the other hand, expectations on personal
finance in one year fell for the second month in a row (down 1.3 points),
affected by the declining sentiment on current personal finances.

The CCCI has fluctuated in the last few months due to concerns about sky
high real estate prices, the unstable stock market and confusing
post-Olympic economics. It's widely believed that such high real estate
prices are most likely to harm Chinese's economic in the long run, while
on the other hand, after the year-long unsuccessful government control on
prices, consumers have little hope that price will drop. The growing real
estate prices have destroyed confidence in local economic development
planned for the next five years.

Vacillating statistics from the past few months showed people with both
high and medium incomes were wary of the uncertainty of the Chinese
domestic market after the Olympics. Experts explained although most
people believed in a post-Olympics prosperous Chinese economy, they are
worried about the future development of some currently overvalued
industries such as the real estate sector.

Despite all the confidence in China's future economic prospects, people
feel less free to spend when they realize problems affecting current
economy, experts noted.

Xinhua Finance eziData China Consumer Confidence Index is a monthly index
designed and conducted by eziData and University of Michigan's Institute
of Social Research.

The survey this month was conducted through 1,546 telephone interviews
from July 1 to July13. April 2007 survey results are set as the benchmark
value of 100.

(For more biz stories, please visit Industry Updates)

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Chinese language - Why indices ignored rise in interest rates

? ?

BIZCHINA / Review & Analysis

Why indices ignored rise in interest rates

By Wang Lan (China Daily)
Updated: 2007-07-25 09:55

Don't read too much into the latest increase in bank interest rates. The
stock market doesn't, as indicated by the stable performance of the
leading indices. What the central bank has done in raising interest rates
and lowering the tax on interest income was basically a "passive"
reaction to bring the interest rate structure in line with the inflation
rate.

As correctly interpreted by various investment markets, the seemingly
high consumer price index (CPI) in June does not indicate an overheated
economy.

The consistent rise of CPI since the beginning of the year has been
driven by increasing food prices, while the core inflation, excluding
food and fuel, has remained at a low level of around 1 percent in the
past two months.

What's more, the food inflation has mainly been coming from surges in
meat and egg prices for the past several months. Pork and eggs have been
heavily influenced by temporary supply shortages largely caused by animal
diseases. Apart from pork and eggs, all other food prices, including
grains, fish, fruits, vegetables and processed food, showed little
increase.

Pork prices in June rose 59.8 percent year-on-year and egg prices 37.9
percent, largely exceeding the price rise in other food categories, like
aquatic products, up 5.2 percent, vegetables, up 4.8 percent, and fruits,
down 16.2 percent.

In China's current CPI, food accounts for 37 percent of the index,
followed by transport and communications at 14 percent, and entertainment
and education at 12 percent. Food prices have contributed to over 80
percent of the inflation in the past two months.

Such a food-driven inflation is widely believed to be a short-lived
episode. "This is hardly a picture of rising economy-wide inflationary
pressure," said Jonathan Anderson, UBS Securities' chief economist for
Asia in a recent report. Economists and analysts clearly don't see
inflation as a serious issue for today's China.

The common perception is that there is little incentive for the
government to tighten monetary policies in the future. As the central
bank said in the statement posted on its website last Friday, the
interest rate hike is an effective way to alleviate inflation and help
stabilize the general consumer prices.

The reduction of tax on interest income is also a passive reaction by the
central bank to help increase return on deposits and help absorb the
impact of CPI rise.

Jason Chang, a Standard Chartered Bank economist based in Shanghai,
agreed that last Friday's monetary actions seek to improve the real
deposit rate and offset the impact of soaring inflation.

The central bank raised the interest rates for the third time this year a
day after the National Bureau of Statistics announced that the annual
economic growth reached 11.9 percent in the second quarter, the fastest
rate in 11 years, and the CPI notched up a 33-month high of 4.4 percent
in June.

(For more biz stories, please visit Industry Updates)

Chinese language

Monday, December 24, 2007

Chinesepod - China, EU to share more food safety info

? ?

BIZCHINA / Center

China, EU to share more food safety info

By Zhu Zhe (China Daily)
Updated: 2007-07-24 09:04

Chinese and European Union (EU) quality control officials yesterday
agreed to share more information on seizures of substandard consumer
products and strengthen law enforcement to better combat unsafe goods.

The two sides will have to thrash out the details of the action plan.

For now, safety watchdogs from the two sides will exchange more
information on unsafe products in the EU rapid alert system for non-food
products, known as RAPEX, to help them better select targets for
enforcement.

China has promised to take more rigorous action against companies found
guilty of making substandard products, according to the country's General
Administration of Quality Supervision, Inspection and Quarantine (AQSIQ).

The agreement is the latest between China and the EU, AQSIQ Minister Li
Changjiang said after he met with the visiting EU Consumer Protection
Commissioner Meglena Kuneva in Beijing yesterday. But officials gave no
further details.

The two sides signed a cooperation agreement in January giving China
access to RAPEX. The Chinese side agreed to help track down the Chinese
culprits who supplied substandard products to the EU.

China has also vowed to crack down on substandard product makers in
general.

Under RAPEX, about 48 percent of the 924 products identified as unsafe
for the EU market last year were from China, down 2 percentage points
than the previous year.

Commissioner Kuneva said she had seen China improve its handling of
products, but the EU wanted Beijing to help avoid consumer safety
firestorms by tracing more complaints down the trade chain to the factory
floor.

"Yes, there is an improvement but also it's equally valid that there is
need of the reforms to be stepped up on the market and on market
surveillance," she said.

Minister Li acknowledged that the safety of Chinese products had been in
the global spotlight recently. But he said product safety was not only
China's concern, but also the common responsibility of all countries.

AQSIQ figures show that in the first half of this year, 98.8 percent of
the food products from the EU were up to standard, 1 percentage point
less than the equivalent figure for Chinese food exports to the EU.

(For more biz stories, please visit Industry Updates)

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Chinesepod

Learn Chinese - China's current challenges are only too familiar

? ?

BIZCHINA / Weekly Roundup

China's current challenges are only too familiar

By Eliot R Cutler (China Daily)
Updated: 2007-07-20 16:20

The author Eliot R Cutler is the managing partner of the Beijing office
of Akin Gump Strauss Hauer & Feld LLP, an international law firm. He is
also a former associate director of the White House Office of Management
and Budget.

John F Kennedy famously called Washington a city of "northern charm and
southern efficiency". Someone old enough to have lived in Washington when
it was a small and sleepy capital finds surprisingly familiar the drama
playing out in China these days over the safety and reliability of
everything from drugs to drinking water to automobile parts. Like 33 1/3
rpm records played on a 78 rpm Victrola, the music sounds different when
it is played at warp speed, but if you listen carefully enough, you can
recognize the tune and even pick out most of the words.

These are serious matters, no doubt about it. My wife and I are careful
about where we buy toothpaste and aspirin, we wonder where the bottled
water really comes from and we think twice now about eating baozi and
some of our other favorite foods. We shudder to think about what is in
the air that we are breathing, and we wonder how China will save its
rivers and streams from the ravages of careening growth. But there is
nothing happening in China today that is fundamentally different from
what has happened in other countries - including the US - at other times.
These are the sounds and groans (and dangers) of a free-wheeling market
economy transforming itself into one that soon will become more regulated
and even more internationally competitive. Most of China's safety and
quality problems are caused by good people trying to do their jobs in a
domestic marketplace that is so highly competitive and unregulated that
it often accounts for nothing but the most direct costs.

In many of its sectors, China's booming economy is one of the most
cutthroat in the world: Factories pare margins to the bone in order to
beat out their neighbors for orders and market share, and they eliminate
as many costs as possible. Bad ingredients are substituted for good ones
if they are cheaper and non-apparent, and costs for largely external
benefits, like clean air and water, are not incurred when they are
ineffectively mandated and cannot be recovered in product pricing.

Even some of China's best and most responsible companies, those with
genuine ambitions to produce high-quality goods, are sometimes forced to
choose between losing money, market share or both. Caught between Scylla
and Charybdis, those that succumb and sacrifice quality in order to
remain price-competitive find themselves disciplined either by growing
domestic outrage or by international regulators who refuse entry to
shoddy and unsafe goods.

Does this sound familiar? Of course it does. Go back and reread Upton
Sinclair. Recall the sweatshops in New York's garment district or the
children working in New England's textile mills. Remember what sparked
the creation of the Food and Drug Administration and, not so long ago,
the Consumer Products Safety Commission. Before he became a gadfly and a
regular presidential candidate, Ralph Nader was an important consumer
muckraker ... less than 40 years ago.

This country is now furiously engaged in a remarkable frenzy of
self-examination and criticism. As China looks at itself in the mirror
and prepares to face the world's markets, what should we expect will
change?

Well, past is prologue. Notwithstanding the differences between our
politics and our cultures, there is nothing so fundamentally unique about
the challenges facing China's market economy - particularly in terms of
domestic expectations and international competitiveness - that we should
be surprised to find its economy become much more highly regulated and
the national government endow itself with considerably greater reach and
leverage.

(For more biz stories, please visit Industry Updates)

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Learn Chinese

Learn Chinese online - Carrefour lets staff set up trade union

? ?

BIZCHINA / Biz Media Digest

Carrefour lets staff set up trade union

By Zhan Lisheng (China Daily)
Updated: 2007-07-19 11:27

Retailer Carrefour yesterday announced the opening of a trade union to
cover its five outlets in the city.

The organization, which is the company's first in Guangdong Province,
will have a branch in each outlet and represent some 590 employees. It
will be chaired by Li Wenkai, a department manager at one of the stores.

Pierre Bertholat, vice-president of Carrefour China, said: "We hope the
union will play an active role in organizing activities and do its bit to
contribute to an invigorated corporate culture and to the protection of
the worker's rights."

Joanna Meng, human resources director, said establishing the trade union
was part of its localization strategy.

"Carrefour is witnessing a rapid expansion in China and we will step up
efforts to set up trade unions in all of our outlets across the nation,"
she said.

Carrefour has opened 13 outlets in China this year, taking its total to
100, and plans to open a further 10 by the year's end.

Zeng Fanqiang, trade union chairman of Guangzhou Development District,
where Carrefour's South China territory is registered, said the setting
up of the union was a positive move.

"I hope the union will aid Carrefour's labor-management relations and
unite employees," he said.

More than 70 percent of the province's 36,200 foreign-funded companies
now have a union. Sixty-eight were set up last year.

In addition, more than two-thirds of the multinationals represented in
the province have established unions, with the remainder expected to do
so by the end of the year.

(For more biz stories, please visit Industry Updates)

Learn Chinese online

Learn Mandarin online - Overseas firms can bid in the largest gold mine

? ?

BIZCHINA / Center

Overseas firms can bid in the largest gold mine

By Sun Xiaohua (China Daily)
Updated: 2007-07-18 08:41

Domestic, as well as overseas, companies can bid for the exploration
rights of China's largest potential gold mine.

The gold deposit in Yangshan, Gansu Province, has at least 160 tons in
proven reserve, Xiong Bilin, deputy director of National Development and
Reform Commission's industry department, said yesterday.

The company with the latest and best technology that can ensure minimum
wastage of the precious metal is likely to win the bid.

Without giving a specific date for the floating of tenders, Xiong said:
"Any company from home and abroad, as long as it has the mining
technology and is able to work out a detailed mining plan without harming
the environment, can take part in the bid."

Related readings:
?Gold production up 11% in 1st 5 months
?Exchange starts gold trading via local banks
?China's 6 financial markets taking shape
?Metallurgy: China to become world's No.2 gold producer

The gold deposit could be more than 200 tons, said a People's Daily
report earlier, and is in a convenient area with a national highway
passing near it.

The NDRC website says gold deposits, with 50 or more tons of reserves,
have also been discovered in Zhaishang in Gansu and Damoqujia and
Jinchang in Shandong and Heilongjiang provinces.

China produces 224 tons of gold a year, but last year it consumed more
than 400 tons. The top three gold producing provinces are Shandong,
accounting for 27 percent of the country's total, Henan (14 percent) and
Fujian (8 percent).

In the first six months of this year, China produced 122 tons of gold, up
15 percent year-on-year, NDRC said. Also, the gold industry's gross value
of products of about 32 billion yuan ($4.2 billion) - up 44 percent -
made a profit of 3.5 billion yuan ($460 million).

In the first six months, the average global gold price reached $656 an
ounce, breaking the 1980 record of $614 an ounce.

(For more biz stories, please visit Industry Updates)

Related Stories ?

� Gold production up 11% in 1st 5 months
===========================================================================
� Exchange starts gold trading via local banks
===========================================================================
� China's 6 financial markets taking shape
===========================================================================
� Metallurgy: China to become world's No.2 gold producer
===========================================================================

Learn Mandarin online

Sunday, December 23, 2007

Chinese language - Survey: Rising food prices upset consumers

? ?

BIZCHINA / Center

Survey: Rising food prices upset consumers

By Song Hongmei (Chinadaily.com.cn)
Updated: 2007-07-16 17:21

A recent survey of 2,538 people in 29 Chinese provinces suggests that the
rise in food prices has had a negative impact on people, although some
report higher income from wages and financial investments.

The survey, jointly conducted by the China Youth Daily and Qtick.com,
asked about food price concerns, and discovered that 90.9 percent of
respondents agreed they had been affected by the rising prices.
Seventy-eight percent claimed that the rise has impacted their
consumption interests negatively.

The constant rise of food prices have pushed up the consumer price index
(CPI). The CPI in May rose 3.4 percent, the highest monthly increase in
more than two years. May was also the third consecutive month this year
to have a CPI of over 3 percent, the warning line set by the central bank.

Ordinary consumers may not be concerned with the CPI index and the
warning line, but they felt the pinch from the rising food prices in
local markets, as discovered by the survey.

Pork wholesale prices polled by the Ministry of Commerce in 36 large and
medium-sized cities averaged at 18.57 yuan (US$2.45) per kilogram on July
11, up nearly 30 percent from the 14.25 yuan on May 11. The average
retail prices for lean pork have exceeded 22 yuan per kilogram.

In Beijing, the price of eggs climbed as high as 9 yuan per kilogram last
week, 25 percent higher than that of just a few months ago. Jinlongyu
soybean oil costs 49.9 yuan per five liters, an increase of eight percent
from a few months ago.

Due to the rising prices of soybean and wheat, the price of sauce in
Kunming, capital of Southwest China's Yunnan Province, rose about 20
percent to 4.8 yuan per kilogram.

A shop of steamed stuffed buns closed down in a district of Guangzhou,
capital of South China's Guangdong Province, due to the rising cost of
meat.
Income levels on the rise as well

Meanwhile statistics show that Chinese people earn more from their work
and the financial investments, leading to the question of whether rising
wages can offset the rising cost of living.

Excluding inflationary factors, the wages of employees in China have seen
an averaged annual growth of 12 percent in the past four years, the
fastest growth since the country's reform and opening up in the late
1970s, according to figures from the China Association for Labor Studies.

Individual investors have obtained an average return of 244.6 percent
from the bullish stock market in the past 17 months from January 2006 to
this May, according to Shenyin and Wanguo Securities.

(For more biz stories, please visit Industry Updates)

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Chinese language

Learn Chinese - June FDI rises 21.91% to $6.63b

? ?

BIZCHINA / Center

June FDI rises 21.91% to $6.63b

(Agencies/chinadaily.com.cn)
Updated: 2007-07-12 15:26

China, the fastest-growing major economy in the world, saw actual foreign
direct investment (FDI) hit US$6.63 billion in June, an increase of 21.91
percent year on year, the Ministry of Commerce said.

In May, actual FDI reached US$4.90 billion, up 8.65 percent compared with
the same period last year, the ministry said. FDI rose 12.2 percent in
the first half of this year to US$31.89 billion from a year earlier.

Low manufacturing costs and a pool of 1.3 billion potential consumers
have attracted many foreign firms to set up operations in China, the
fourth-largest economy in the world. Statistics show that there were
18,683 new foreign-invested enterprises in the first six months of the
year, down 5.4 percent from a year earlier, with 3,611 such enterprises
established in June, a decrease of 11.73 percent.

Hong Kong, the British Virgin Islands, and South Korea were the top three
sources of FDI in the first half, the ministry said.

Overseas-funded factories accounted for more than 50 percent of the
surging exports that pushed up the nation's trade surplus in June to a
monthly record of US$26.9 billion. The surplus soared to US$112.5 billion
in the first half of this year, up 84 percent from a year earlier.

Investment inflows have made China the world's biggest producer of cell
phones, computers and clothes. China was the world's fourth-largest
recipient of foreign investment this year, according to the United
Nations. Spending by overseas companies rose 4.5 percent from a year
earlier to US$63 billion.

FDI growth has a huge potential in China and an increasing number of
foreign companies will establish a presence here as the country tries to
boost domestic demand, experts said.

(For more biz stories, please visit Industry Updates)

Learn Chinese

Chinese Mandarin - Brokers gearing up for IPOs

? ?

BIZCHINA / Photos

Brokers gearing up for IPOs

(Shanghai Daily)
Updated: 2007-07-10 09:36

Orient Securities Co and Everbright Securities Co, China's 10th and 13th
biggest brokers by assets, are preparing to sell stock to the public, the
two companies said in separate statements in the Oriental Morning Post.

The two brokerages have begun training each other on the procedures for
preparing an initial public offering, Orient and Everbright said in
separate statements published on Saturday in the Shanghai-based newspaper.

China's domestic brokerages need to raise funds through equity offerings
to open branches, hire traders and prepare for trading in stock index
futures in a market that's gained 85 percent this year, according to
Bloomberg News. They also want to boost capital ahead of a December
deadline when the government allows overseas brokers to compete unimpeded
in China.

Everbright's first-half profit increased almost nine-fold to 3.25 billion
yuan (US$427 million), according to the Oriental Morning Post.

Orient Securities' first-quarter profit surpassed 500 million yuan, the
newspaper reported yesterday, without giving comparative figures.

The investment banks arranging the initial public offerings were not
identified.

(For more biz stories, please visit Industry Updates)

Chinese Mandarin

Chinese Mandarin - Beijing set to hike taxi fares to 2 yuan

CHINA / Regional

Beijing set to hike taxi fares to 2 yuan
(Chinadaily.com.cn)
Updated: 2006-05-19 17:44

After months of discussion and planning, Beijing is finally set to raise
taxi fares from 1.6 yuan (20 US cents) to 2 yuan (25 US cents) per
kilometer from May 20, 2006.

Two taxis get refuel at a gas station in Beijing April 26, 2006. Beijing
is set to raise taxi fares from 1.6 yuan (20 US cents) to 2 yuan (25 US
cents) per kilometre after a fuel price hike. [Xinhua]

Charges for base mileage, returning empty, night service, waiting and
low-speed driving will remain unchanged.

A system linking taxi fares and oil prices will be established to spread
increase burden between taxi companies, taxi drivers and passengers. When
oil prices go up, taxi companies and drivers will absorb it and it fare
increases will trickle down to passengers.

Against a backdrop of surging oil prices worldwide, price adjustments for
oil products have been under way nationwide since the end of March this
year. The Beijing Municipal Development and Reform Commission held a
hearing conference at the end of April and most of the delegates present
supported a rise taxi fares.

Commission sources say the valuating device and the price labels on
Beijing's taxies would have been changed into new ones by the end of June
and all of the taxies in Beijing will be charged 2 yuan per kilometer
from July 1st, 2006.

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Chinese Mandarin

Saturday, December 22, 2007

Learn Chinese online - 31,000 murder cases occur in China in 2005

CHINA / National

31,000 murder cases occur in China in 2005
(Xinhua)
Updated: 2006-05-16 11:01

China had 31,000 murder cases, including homicide, intentional injury,
explosion, poisoning, arson, robbery, rape and abduction, in 2005, the
Ministry of Public Security announced on Tuesday.

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� Drought could reduce grain output in W. China

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� China may crack down on foreign law firms

� Low income residents face growing difficulties

Learn Chinese online

Learn mandarin - Chinese president meets senior UN officials

CHINA / Kenya

Chinese president meets senior UN officials
(Xinhua)
Updated: 2006-04-29 12:35

NAIROBI -- Chinese President Hu Jintao met here Friday with the United
Nations Human Settlement Program (UN-HABITAT) Executive Director Mrs.
Anna Kajumulo Tibaijuka and the United Nations Environment Program (UNEP)
acting Executive Director Shafqat Kakakhel.

Hu said the UN-HABITAT has made positive efforts to promote human
residence construction and global sustainable development.

He said the UNEP has played an important role in pushing for the solution
of global environmental issues, promoting international cooperation in
this regard, and helping developing countries improve environmental
protection capability.

He said China has always supported international cooperation in the
above-mentioned fields, and will further strengthen exchanges and
cooperation with the two UN programs and continue to support their work.

Tibaijuka said China has many beneficial experiences in human habitat
development, which the UN-HABITAT is popularizing in other areas of the
world.

The UN-HABITAT values China's assistance to the African people in this
regard, she said.

Kakakhel said the UNEP appreciates China's attention to and efforts for
environmental protection.

He said China has always firmly supported the UNEP's work, and the
cooperation between the two sides has progressed steadily at bilateral,
regional and global levels.

The UNEP is expecting to deepen cooperation with the Chinese side to
jointly meet the challenge in this regard, he said.

Hu arrived here Thursday on a three-day state visit to Kenya as Kenyan
President Mwai Kibaki's guest.

Kenya is the last leg of Hu's five-nation tour which has already taken
him to the United States, Saudi Arabia, Morocco and Nigeria.

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Learn mandarin

Chinesepod - China and Morocco ink package of accords

CHINA / National

China and Morocco ink package of accords
(China Daily)
Updated: 2006-04-26 06:29

China and Morocco have agreed to expand trade and co-operation in fields
of telecommunications, agriculture, oil and gas development to boost
bilateral ties.

The agreement was reached following talks in Rabat between visiting
President Hu Jintao and Moroccan King Mohammed VI, during Hu's three-day
state visit to the African nation.

The two leaders signed a package of accords on economic, technical,
scientific, cultural and medical cooperation, the Moroccan Communications
Ministry said.

Morocco-China trade has grown rapidly reaching US$1.48 billion in 2005,
according to Chinese Foreign Ministry figures.

Hu arrived in Rabat on Monday local time to begin the third leg of his
five-nation tour, which has taken him to the United States and Saudi
Arabia and will see him travel on to Nigeria and Kenya.

During talks on Monday with King Mohammed, Hu said bilateral relations
have progressed smoothly since the two countries forged diplomatic ties
48 years ago.

"Measures should be taken to expand bilateral trade and partnership in
the fields of science and technology, telecommunications, agriculture,
oil and gas development, labour, project engineering and human resources
training, and encourage two-way investment," Hu said.

Commodities that China exports to Morocco mainly include light industrial
products, textiles, green tea, and mechanical and electronic products. It
imports phosphates, chemical fertilizer and cobalt sand.

China has dispatched hundreds of medical workers to offer medical
services to Morocco.

Responding to his Chinese guest, King Mohammed VI said his country is
ready to strengthen co-operation with China in such fields as fishery,
tourism, culture and infrastructure construction.

Both agreed to work together within the framework of the China-Africa
Co-operation Forum.

Yesterday, Hu met with Moroccan Prime Minister Driss Jetto in Rabat.

Zhu Weilie, director of the Institute of Middle East Affairs at the
Shanghai International Studies University, describes Hu's visit to
Morocco as "a trip of boosting traditional friendship."

"China has been attaching importance to its relations with African
countries," Zhu said. "Hu's trip to Morocco, Nigeria and Kenya this week
takes place in the context of the 50th anniversary of the diplomatic ties
between China and African countries."

China unveiled a document on its policies on Africa in January,
highlighting its determination to strengthen ties with African countries.
Its investment in Africa has been on the rise in the past years,
particularly in project, energy development and infrastructure
construction.

According to the official statistics, trade volume between China and
Africa increased from US$12 million in the 1950s to US$40 billion last
year.

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Chinesepod

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