US-China Business News

News for June 29, 2006

2006-06-29T14:04:00.000-04:00

China rolls out the big guns, aiming for a dry Olympics (June 29, 2006) USA Today - rainmakers face their toughest challenge: making sure it stays dry for the opening ceremony of the 2008 Beijing Olympic Games. The idea is for the peasant gunners to work with meteorologists watching radar in the capital.

Mainland, HK ink new deal to boost economic cooperation (June 29, 2006) People’s Daily - The Chinese mainland and Hong Kong signed the third supplementary agreement of the mainland/ Hong Kong Closer Economic Partnership Arrangement.

China's income distribution gap (June 29, 2006) People’s Daily - China is a country where the cities remain separate from villages and development is uneven amongst regions. Since 1990s, the income distribution gap has begun to widen. At present, the gap is measured in four areas: within urban areas, within rural areas, between urban and rural areas and amongst regions.

Competitive machine making firms needed (June 29, 2006) Shanghai Daily - The Chinese government has laid out plans to establish a group of competitive machine manufacturing firms by 2010 in order to reinvigorate the nation's machine industry.

Biggest wind power project starts construction (June 29, 2006) Shanghai Daily - China’s largest wind power generation project started construction in Dongtai City, eastern China's Jiangsu Province.

Beijing tops Shanghai in cost-of-living (June 29, 2006) China Economic Review - Beijing and Shanghai are respectively the 14th and 20th most expensive cities in the world in which to live.

Chinese Lawmakers Try to Head off Land Sale Irregularities (June 29, 2006) CRIEnglish - Chinese lawmakers have suggested that land sale incomes collected by local governments should be incorporated into their budgets to prevent corruption and uncontrolled spending.

China's Baidu to Offer Blog Service (June 29, 2006) CRIEnglish - China's Internet search leader Baidu.com Inc. plans to launch a new service, Baidu Space, which Chinese media said would offer Web logs like those from Microsoft and Google.

U.S. Eco-fiber Producer Enters Chinese Market (June 29, 2006) CRIEnglish - Buckeye Technologies, the world's largest producer of specialty cellulose fiber based in the United States, has announced its entry into the Chinese market with a eco-friendly product that efficiently reduces cracks in concrete.

Foreigners scramble for China investment abroad (June 29, 2006) Reuters - Dozens of foreign financial services firms, are vying to be part of China's plan to invest some of its growing wealth in overseas markets.

News for June 28, 2006

2006-06-28T13:30:00.000-04:00

China gets a spurt of new energy (June 28, 2006) Asia Times Online - To help ease its oil shortage while reducing its increasing reliance on oil imports, China is putting effort and money into research and development for new sources of energy, in addition to speeding up its ambitious coal-to-liquid fuel projects, intended to convert the country's abundant coal resources into liquid fuel.

China discloses $1.1 billion bank fraud (June 28, 2006) MSNBC - The Chinese government disclosed $1.1 billion worth of fraud at one of the country's largest state-owned banks this week, underscoring the risks confronting foreign investors as they seek big stakes in China's precarious banking system.

Chinese, English Speakers Vary at Math (June 28, 2006) NewsMax.com - Things add up differently for native English speakers compared with people who learned Chinese as a first language. Simple arithmetic was easily done by both groups, but they used different parts of the brain, a new study shows.

US firms in China awarded for social responsibility (June 28, 2006) China Economic Net - U.S. firms Merck Sharp and Dohme and UPS China were given the U.S. Secretary of State's Award for Corporate Excellence. The Award for Corporate Excellence emphasizes the important role U.S. businesses play to promoting the best practices and good corporate governance.

Wary firms 'can't afford to ignore China' (June 28, 2006) Times Online - British companies are still being put off doing business in China by fears over protection of their intellectual property rights, according to a senior diplomat.

China’s government administers shot in arm to outsource services (June 28, 2006) Shanghai Daily - The government will invest 100 million yuan (US$12.5 million) annually in the next three to five years to support outsource service firms.

Yangshan Port lures international freight (June 15, 2006) Shanghai Daily - Shanghai cut shipment transfer fees at its newly opened Yangshan Deep-Water Port last month as the city strives to compete with neighboring Ningbo Port. The move came just before peak season and before the opening of the second phase of the Yangshan port, which will be China's biggest container port when construction is completed at the end of this year.

News for June 27, 2006

2006-06-27T10:17:00.000-04:00

Four major obstacles to Chinese foreign trade (June 27, 2006) People’s Daily - The period of the 11th five-year plan is very important for China. According to Zhang Lichuan, a Director with the Statistical Department of General Administration of Customs of China, to be a recognized trading power China must commit to the search for solutions to emerging issues in foreign trade. She also said that the Chinese government should focus on four major hurdles in the field of foreign trade.

China outlines blueprint for shaping Tianjin into financial hub (June 27, 2006) People’s Daily - China has made known a tentative plan with the purpose of building Tianjin into a financial center in the north through introduction of a range of reform measures at the city's Binhai New Area.

EMC Corp to boost China investment (June 27, 2006) Shanghai Daily - EMC Corp, a US-based data storage system company, said today it plans to invest an additional US$500 million in China by 2010, extending its push into Asia.

Auditors find billions in fraud at Agricultural Bank (June 27, 2006) China Economic Net - Auditors say they've uncovered 60.3 billion yuan (US$7.5 billion) worth of financial crimes and bookkeeping irregularities at the Agricultural Bank of China, underscoring the challenges regulators face as they attempt to reform the weakest of the nation's state-owned banks.

Siemens sets up venture capital arm in Beijing (June 27, 2006) China Economic Net - The venture capital arm of Siemens has been formally set up in Beijing to tap into opportunities in China's innovative technology sector.

China's financial reform has long way to go (June 27, 2006) Asia Times Online - Over the past 25 years, China has witnessed steady and fundamental economic reform by embracing market economy. Moving from a socialist economy to a market-oriented economy was in itself a challenge posed by the contradiction. Indeed, an evolving China faces a number of challenges: solving the remaining problems of the old system, resolving the contradictions generated during the period when the new and the old systems co-existed, and establishing a suitable environment for the new one.

Unified tax rate likely to be under 30% (June 27, 2006) China Economic Review - Shi Yaobin, director of the Tax Policy Department at the Ministry of Finance, said a unified tax law expected to come into effect in 2008 would likely set corporate income tax below 30%.

Alleged IPO manipulation probed (June 27, 2006) China Economic Review - The Shenzhen Stock Exchange has opened an inquiry into trading last week in shares of CAMC, an engineering company that floated on June 19 in the first initial public offering of the year.

Chinese truck maker plans HK$7.8 billion IPO (June 27, 2006) China Knowledge - China National Heavy Duty Truck Group Co. is seeking to raise between HK$5.5 billion and HK$7.8 billion in an IPO on the Hong Kong Stock Exchange some time this year, according to a report in the South China Morning Post citing anonymous sources.

MP3 Market Shrinking in Major Chinese Cities (June 27, 2006) CRIEnglish - Recent data from German-based GfK research institute shows that the market for MP3 players in China's seven major cities has fallen over the past three months.

Early News for June 23, 2006

2006-06-22T23:57:00.000-04:00

Oracle opens support center in China (June 23, 2006) ZDNet Australia - The Dalian Global Support Centre will not only service China, Taiwan and Korea, but also future expansions in the Asia-Pacific, Oracle said in a statement.

Google sells stake in Baidu.com (June 23, 2006) Shanghai Daily - Google said it has sold its stake in Chinese rival Baidu.com.

Shimao IPO to defy fears of property slowdown (June 23, 2006) Asia Times Online - Shimao Property Holdings, a Shanghai-based luxury property developer, is expected to defy fears of a slowdown in the property sector due to state macroeconomic cooling measures by raising as much as HK$5 billion (US$643.8 million) in Hong Kong this month.

China's population to peak at 1.5 billion in 2030s (June 23, 2006) People’s Daily - China's population will peak at 1.5 billion in the mid-2030s, experts predict.

Maxthon: China's hip browser (June 23, 2006) ZDNet Australia - Web surfers in China frustrated by censorship in search engines are increasingly turning to a little-known Internet browser with a big following.

PwC predicts change of tune for music, video (June 23, 2006) People’s Daily - The distribution of music and video in China will see fundamental change in 2007, as selling music and music videos on mobile and Internet networks becomes the norm, according to global consultancy firm PricewaterhouseCoopers (PwC).

Guangdong pushes energy-saving appliances (June 23, 2006) Asia Times Online - The development of new and renewable energies in China has laid a solid foundation for the faster development of energy-saving household appliances.

Butadiene sector urged to speed up innovation (June 23, 2006) Asia Times Online - China's butadiene industry, which produces the main raw material for synthetic rubber, has been urged to speed up technical innovation to save energy and cut costs.

News for June 22, 2006

2006-06-22T10:51:00.000-04:00

China to cut import tariffs (June 22, 2006) People’s Daily - China's import tariffs for sedans and cross-country vehicles will be cut from 28 percent to 25 percent on July 1. The import tariffs of auto parts will be lowered from the 13.8-16.4 percent range to 10 percent.Apple Audits Chinese iPod Factory (June 22, 2006) Dealerscope - Apple issued details of an internal investigation into claims made on June 11th by British newspaper The Mail that Apple was using sweatshop labor in China to produce iPods.

Tianjin Binhai sees large influx of foreign investment (June 22, 2006) China Economic Net - The fact that the Tianjin Binhai New Area (TBH) has been included in China's national developmental strategy and listed as an experimental zone of China's comprehensive reform aroused widespread investor attention, both at home and abroad.

Cargill invests (June 22, 2006) Shanghai Daily - The largest US agricultural company, invested about US$60 million in a soybean-crushing plant in China.

Texas Pacific keen on PCCW (June 22, 2006) Shanghai Daily - Texas Pacific Group may offer more than HK$50 billion (US$6.4 billion) to buy Hong Kong's largest phone company from PCCW Ltd, preparing for a bidding contest with Macquarie Bank Ltd, people familiar with the plan said.

Cosco inks container lease-back sale (June 22, 2006) China Economic Review - Hong Kong's unemployment rate fell to a 57-month low of 4.9 percent in the period from March to May, from 5.1 percent in the February-April period because of a sustained economic revival.

Goldman Sachs Launches China Fund (June 22, 2006) CRIEnglish - Goldman Sachs Asset Management has launched a $200 million offshore Chinese equity fund that will invest exclusively in China's domestic A-share market.

Auditing firms to raise staff strength (June 22, 2006) Shanghai Daily - Three of the most influential auditing firms in China - PwC, DTT and KPMG - will greatly increase their employee numbers in the nation due to demand from the fast-growing accounting.

Additional News for June 21, 2006

2006-06-22T07:01:00.000-04:00

Trade fairs and expos (June 21, 2006) China Internet Information Center - Schedule of trade shows and expositions for July, 2006.

How China's universities fuel tech growth (June 21, 2006) CNET News.com - Universities are at the heart of the IT world in China, some would argue. Many of China's IT executives are alumni of prestigious universities, and a good proportion of companies are based close to college campuses to simplify human resources and research and development requirements. It is common for CEOs to have Ph.D.s, just as it's common for lecturers to have their own companies.

Feeding frenzy (June 21, 2006) Shanghai Daily - China’s restaurant sales are expected to exceed 1 trillion yuan (US$125 billion) this year with people spending 17.6 percent more eating out than last year, a commerce ministry official said.

News for June 21, 2006

2006-06-21T09:43:00.000-04:00

US exchange to launch futures trading in yuan (June 21, 2006) Shanghai Daily - The Chicago Mercantile Exchange, the biggest US futures market, plans to start trades in yuan futures and options, offering tools for investors to hedge against fluctuations as China moves to a more flexible currency system.

China to be top M&A destination (June 21, 2006) People’s Daily - China is set to become the top choice in Asia for financial services investment and mergers and acquisitions (M&As), according to a PricewaterhouseCoopers report. The report said M&A activity in the region's financial services sector is expected to gather impetus over the next five years, fuelled by growing expectation of market liberalization.

China Set for Big IPO Year (June 21, 2006) CRIEnglish - Bolstered by a pair of multi-billion dollar bank listings, China IPO activity is set for a robust 2006 after issuance hit $24.3 billion last year, a 51 percent increase over 2004, Ernst & Young said on Wednesday. China, including Hong Kong, became the world's second-biggest market for IPOs last year, not far behind the United States with $33.1 billion in issuance, according to a global survey by international auditing firm Ernst & Young.

Playtime is over for China's toy industry (June 21, 2006) Asia Times Online - Growing public concern at home and abroad over child safety, environmental protection and working conditions will soon force China's giant toy-manufacturing industry to restructure drastically. China is now the world's largest toymaker and exporter. Customs statistics state that China's toy exports in 2005 totaled US$15.18 billion, taking 70% of the world toy market.

China Carmakers' Global Talent Hunt (June 21, 2006) CRIEnglish - It's a startling trophy hire, and further evidence for auto executives at Toyota, Ford Motor, Hyundai, and elsewhere that their Chinese competitors are deadly serious about moving up in the global auto industry. On June 18, SAIC Motor announced it had hired former GM executive Philip Murtaugh to run its overseas operations from its Shanghai headquarters.

Automakers miss out in used-car race (June 21, 2006) Shanghai Daily - Foreign automakers are investing more in China's nascent used-car industry than their domestic rivals, analysts say. And analysts said foreign companies would speed up their development of the emerging market now that the first batch of automakers are expected to replace their cars and the younger generation starts to buy second-hand.

Hydrogen-powered buses debut in China (June 21, 2006) People’s Daily - Three hydrogen-powered buses appeared in streets of Beijing on Tuesday, bringing emission-free public transport to China for the first time.

China's Mobile Phone Users Exceed 420 Million (June 21, 2006) CRIEnglish - The number of China's mobile phone subscribers reached more than 420 million at the end of May, reported the Ministry of Information Industry on Wednesday.

SOEs urged to pay more attention to risk management (June 21, 2006) China Daily - State-owned enterprises (SOEs) should set up a risk management commission to prevent losses and enhance their competitiveness, the State-owned Assets Supervision and Administration Commission (SASAC) urged in a guideline issued yesterday.

Fast food widening gap with hotpot chains (June 21, 2006) Shanghai Daily - Yum! Inc China is still the largest restaurant in China, according to the "100 largest Chinese restaurants of 2005" list issued by the Ministry of Commerce. Yum! extended its lead with the second and third ranked restaurant chains, two Inner Mongolia hotpot chains. Yum! China had a total income of 13.3 billion yuan (US$1.66 billion) last year, 1.5 billion yuan more than a year ago.

Restructuring of various business sectors (June 21, 2006) CRIEnglish - China is poised to restructure the textile industry, revive the equipment sector and make changes to the telecom sector.

Additional News for June 20, 2006

2006-06-20T22:23:00.000-04:00

China automaker to plow $420 million in Ssangyong (June 20, 2006) JongAng Daily - Shanghai Automotive Group, the top shareholder in Ssangyong Motor Co., will spend 400 billion won ($419 million) on developing new cars at the Korean automaker this year, 30 billion won more than 2005.

Top 100 listed private enterprises unveiled (June 20, 2006) People’s Daily - Out of the top 100 Chinese private enterprises of 2006, China Minsheng Banking, Midea, and GOME Appliance were crowned the top three.

Law firms gear up for M&As in China (June 20, 2006) Shanghai Daily - Bruckhaus Deringer, the fourth ranked legal adviser on mergers and acquisitions involving Chinese companies this year, plans to add as many as 65 lawyers in China in the next five years as deals increase.

Chinese Officials Judged on Energy Efficiency (June 20, 2006) PlanetArk - Chinese officials, for decades expected to foster economic growth at almost any cost, will now have to weigh up the amount of energy their firms are burning.

HK unemployment falls to near 5-year low (June 20, 2006) INQ7money - Hong Kong's unemployment rate fell to a 57-month low of 4.9 percent in the period from March to May, from 5.1 percent in the February-April period because of a sustained economic revival.

China's top wind-power plant maker wants US IPO (June 20, 2006) Reuters - China's largest homegrown maker of wind-power generators, Goldwind Science and Technology Co. Ltd., is pursuing an overseas listing in the United States to fund an expansion aimed at driving an eight-fold increase in sales to 4 billion yuan ($500 million) by 2008.

News for June 20, 2006

2006-06-20T11:33:00.000-04:00

Chinese investment in Newnan, Georgia (June 20, 2006) Atlanta Journal-Constitution - A soy sauce plant in Newnan will be the first significant investment by a Chinese company in metro Atlanta. Lehui Enterprises, China's largest producer of food packaging equipment, will partner with an American firm to open a condiment manufacturing plant that could create more than 200 jobs in Coweta County over the next two years.

China remains investors' darling (June 20, 2006) China Economic Net - China last week has called on local authorities around the country to control new projects, as the government tries to restrain breakneck economic growth.

More cold showers for China (June 20, 2006) Asia Times Online - A soy sauce plant in Newnan will be the first significant investment by a Chinese company in metro Atlanta. Lehui Enterprises, China's largest producer of food packaging equipment, will partner with an American firm to open a condiment manufacturing plant that could create more than 200 jobs in Coweta County over the next two years.

Foreign trade grows in first 5 months (June 20, 2006) China Economic Net - China's total value of import and export in the first five months of 2006 reached 647.85 billion US dollars, an increase of 23.9% over the same period of last year. Among the total value, export contributed 347.32 billion US dollars, and import yielded 300.53 billion US dollars.

Tyco Electronics to expand production (June 20, 2006) China Daily - Tyco Electronics, one of the world's leading electronic components manufacturers, will launch two new facilities in China by next March in a bid to reinforce its production base in the country.

China's most valuable brands (June 20, 2006) China Economic Net - China's 500 Most Valuable Brands in 2006 released by World Brand shows that Haier, with a brand value reaching 63.989 billion yuan, keeps the first place, followed by Lenovo, China Mobile, CCTV, Chang Hong, Bank of Communications, GOME, China Life, CREC, and Sinochem.

Drivers to Pay US$125 Compulsory Insurance (June 20, 2006) China Internet Information Center - Drivers across China will be compelled to pay about 1,000 yuan (US$125) for compulsory insurance before getting behind the wheel of a vehicle. The vehicle liability insurance will become compulsory on July 1.

Additional News for June 19, 2006

2006-06-20T06:31:00.000-04:00

Warner Music in China wireless venture (June 19, 2006) Financial Times - Warner Music has signed a deal with China Unicom, the Chinese mobile phone operator, to sell music to Chinese wireless users, potentially opening the path towards profitably distributing music in a market dominated by physical and digital piracy.

NetPower Technologies R&D Center (June 19, 2006) PowerPulse.Net - NetPower Technologies, Inc. recently opened a research and development center in Shanghai, China. The new facility is located in the Zhangjiang Hi-Tech Park, providing easy access to customers, suppliers, and testing facilities.

PacificNet Selected as a Component of the NAI China Small Cap Index (June 19, 2006) Digital Media Online - PacificNet Inc. (Nasdaq: PACT), a leading provider of call center, Customer Relationship Management, and Value-Added telecom Services in China announced that it was selected as a component of the NAI China Small Cap Index.

Hawking Takes Beijing; Now, Will Science Follow? (June 19, 2006) New York Times - Like an otherworldly emperor, Stephen Hawking rolled his wheelchair onto the stage of the Great Hall of the People, bringing with him the royalty of science and making China, for this week at least, the center of the cosmos.

Achievo Builds Software Engineering Center in China for NETGEAR (June 19, 2006) Media Press Release - Achievo Corporation, the leading global software and information technology outsourcing provider with a local front-end and China back-end service model, today announced the grand opening of its new Beijing location, which includes an innovative software engineering center for U.S. networking giant NETGEAR.

McDonald's, Sinopec to Open China Eateries (June 19, 2006) Newsday- McDonald's Corp. and China Petroleum and Chemical Corp. announced an alliance Tuesday to build drive-through McDonald's outlets, hoping to combine forces to profit from soaring Chinese car ownership.

China's middle-class going for total makeovers (June 19, 2006) Lanka Business Online - Image is everything in modern China and in a drab-looking office in the capital, a steady stream of housewives, single women and even men file through its door daily to seek a complete makeover.

New projects to be limited (June 19, 2006) China Economic Net - A reform of Chinese labor laws may lead foreign investors to leave the People’s Republic in favor of rival Asian nations with weaker labor standards, employers have said.

Fuyao to produce 11m pieces auto glass (June 19, 2006) China Economic Net - Fuyao Glass Industry Group Co Ltd, China's largest automobile glassmaker, will produce 11 million pieces of automobile glass by the end of the year and 13 million pieces by the end of next year.

News for June 19, 2006

2006-06-19T10:46:00.000-04:00

Joint R&D centers play important role for multinationals in China (June 19, 2006) People’s Daily - Multinationals have set up more than 200 research and development (R&D) institutions with local universities in China by the end of last year, said Xue Lan, professor of public management at Qinghua University, at a recent forum.

Foreign investors may quit if China tightens up labor law (June 19, 2006) Times Online - A reform of Chinese labor laws may lead foreign investors to leave the People’s Republic in favor of rival Asian nations with weaker labor standards, employers have said.

CAMC shares more than double on debut (June 19, 2006) Shanghai Daily - Shares of China CAMC Engineering Co, the first company to hold an initial public offering on China's mainland since a yearlong ban was lifted, more than doubled on their first day of trade after investors ordered 481 times the shares on offer.

Fraud fears keep investors away (June 19, 2006) China Economic Review - One in five companies looking to invest in China and other emerging markets may ditch their plans due to fears of corporate fraud, according to a global survey by Ernst & Young.

China, India to reopen historic trade route (June 19, 2006) SiliconIndia - China and India have agreed to reopen border trade at the historic Nathu-la pass after more than 40 years, a symbol of rapprochement between the two Asian giants.

New M&A rules set to boost activity (June 19, 2006) China Economic Review - Proposed new merger and acquisition rules will give buyers more flexibility and boost M&A activity in China.

China to Tighten Screening of Foreign Acquisitions (June 19, 2006) CRIEnglish - Worried that it may be selling industrial assets to foreigners too cheaply, China will tighten screening of deals and impose new curbs on foreign acquisitions in its heavy industry.

Foster's worn down in China (June 19, 2006) NEWS.com.au - Last week, Foster's sold the last of three breweries in China into which it had pumped large amounts of money, management, technical expertise and hopes. What went wrong? What does the failure of Foster's and its competitor Lion Nathan, which pulled out of its three Chinese breweries nearly two years ago, say about the capacity of Australian manufacturing to follow the rest of the world into China?

Western media losing their way (June 19, 2006) The Standard - Turning China's 1.3 billion pairs of eyes into the world's top viewing audience is proving tough work for the world's major media firms, which are finding that big numbers do not always translate into billions of dollars.

Survey shows nearly two thirds of nurses suffer burnout (June 19, 2006) InterFax China - A new survey on nurses' job satisfaction in Hangzhou shows that more than 62.80% suffer from job burnout. The survey was conducted by Dr. Luo Hong of the No. 7 People's Hospital in Hangzhou and a psychological professor in Zhejiang University in east China's Zhejiang Province.

News for June 17 & 18, 2006

2006-06-19T07:39:00.000-04:00

Drugmakers to appeal Viagra decision (June 17, 2006) Shanghai Daily - Twelve domestic drugmakers that lost a patent suit to Pfizer Inc over Viagra will appeal to the higher court on Monday, the lawyer who represents the companies said yesterday.

Haier Group targets developing regions (June 17, 2006) Shanghai Daily - Haier Group Corp, China's largest maker of home appliances, is focusing on growth in developing markets overseas to offset sluggish sales at home. "We are expanding in developing markets, which we classify as Southeast Asian, South Asian and African markets, where it is easier to expand business and earn high profits," Haier Group President Zhang Ruimin said. The group, which pulled out of a bid to buy US appliance maker Maytag Corp last year, is expanding overseas as rising costs in China erode margins.

Infosys plans more staff in US, China (June 17, 2006) Shanghai Daily - Infosys Technologies Ltd, India's second-biggest software company, plans to hire as many as 300 graduates in the United States to more than double the work force in its biggest market, said Chief Executive Officer Nandan Nilekani.

China boosts banks' reserve ratios (June 17, 2006) Shanghai Daily - China’s central bank said it will raise reserve requirements for commercial banks as part of its efforts to rein in excessive lending and fixed-asset investment.

China's SAIC Hires Former GM China Chief (June 18, 2006) CRIEnglish - General Motors' main partner in China, which will soon roll out its first independently developed car, said on Sunday it was appointing GM's former China chief as executive vice president.

China prudent in developing genetically modified farm produce (June 18, 2006) People’s Daily - China is prudent in developing genetically modified (GM) farm produce but it will keep working in bio-engineering for agriculture, said an agricultural official at a forum on food safety.

China grants another $250 million quota to foreign investors (June 18, 2006) People’s Daily - China's foreign exchange authority has awarded additional investment quotas totaling 250 million U.S.dollars to two qualified foreign institutional investors (QFII). The two QFIIs are the Bank of Nova Scotia in Canada and the KBC Financial Products UK Limited, which received investment quotas of 150 million dollars and 100 million dollars respectively from the State Administration of Foreign Exchange.

News for June 16, 2006

2006-06-16T20:55:00.000-04:00

The limits of captive manufacturing (June 16, 2006) Asia Times - Many Asian successes in original equipment manufacturing have been built on the basis of providing large US retailers with inexpensive products. Much of this productive capacity has been built at the request of various retailers to parallel the production capacities of existing vendors in North America. But as US retailers have grown increasingly dependent on low-cost Asian manufacturing capacity, many Asian OEMs are beginning to become sensitive to the nature of their changing relationship with such companies as Wal-Mart, Home Depot, Lowe's, Best Buy and others.

Watching China for next wave of dot-bombs (June 16, 2006) MarketWatch news - Some of the nation's Internet stocks may have risen too high, too fast. As investors have sold off foreign stocks during the last six weeks, stocks of China-based companies have remained the most resilient.

CNOOC shares rise on huge discovery (June 16, 2006) China Knowledge - Shares in CNOOC Ltd, China's largest offshore oil producer, rose as much as 8.6% after its Canadian partner found a natural gas field big enough to supply China for four years.

China Sugar Group Eyes $205 Mln HK IPO (June 16, 2006) CRIEnglish - Chinese sugar producer Guangxi State Farm Group wants to raise at least HK$1.6 billion (US$205 million) by spinning off its sugar unit in an initial public offering in Hong Kong later in 2006.

The East is (Johnnie Walker) Red (June 16, 2006) Asia Times - These days, it seems, Johnnie Walker is as Chinese as taking your shoes off at the door.

Sany Poised to Make Hostile Bid for Rival (June 16, 2006) CRIEnglish - China could soon witness a rare hostile takeover battle after the chief executive of Sany Heavy Industry insisted his company would make a bid this month for rival Xugong Group Construction Machinery, which then dismissed him as "irresponsible."

DuPont Expects China Sales Growth to Quicken (June 16, 2006) CRIEnglish - DuPont Co. , the second-largest U.S. chemicals maker, expects sales growth in China to accelerate as it expands its workforce by as much as 9 percent annually.

Asset investment soars (June 16, 2006) Shanghai Daily - Investment in factories, infrastructure and real estate increased in the first five months of the year, despite efforts by the Chinese government to cool off the country's booming economy.

HK Disneyland eyes summer season crowds (June 16, 2006) Shanghai Daily - Foreign and domestic private enterprises are calling for greater access to the Chinese refined oil products wholesale market in response to new market regulations.

JPMorgan can sell A-shares fund in HK (June 16, 2006) Shanghai Daily - JPMorgan Chase and Co, the third-largest US bank, has been approved to sell Hong Kong's first fund investing in China's A-share market.

China Mobile tests new service (June 16, 2006) People’s Daily - China Mobile Communications Corp, the larger of the country's two mobile operators, has launched an instant messaging (IM) service trial with its own brand.

Designer meets his match in Nike (June 16, 2006) People’s Daily - Nike did not plagiarize a Chinese designer's "matchman" character in an advertisement, the Beijing High People's Court ruled.

Construction Bank sells 960 million yuan in mortgage assets (June 16, 2006) People’s Daily - China Construction Bank announced Friday it has sold a mortgage assets portfolio with a book value of 960 million yuan (120 million U.S. dollars) to a French bank and asset management company.

China adopts anti-dumping measures against imported wear resistant overlay (June 16, 2006) People’s Daily - China's Ministry of Commerce (MOC) said on Friday that it will adopt temporary anti-dumping measures against a critical component used in the installation of laminate flooring which is produced in the United States and the European Union.

Tariffs on imported autos, parts to decline (June 16, 2006) Shanghai Daily - China will further cut tariffs on imported automobiles and components on July 1, the last step in opening up the auto sector under commitments made during its bid to join the World Trade Organization.

Shenzhen Airport to expand (June 16, 2006) Shanghai Daily - Shenzhen Airport will expand its flying area and facilities, including a new runway, by investing 5.93 billion yuan (US$741.25 million) to meet the demand of growing air transport and ensure flight safety.

Additional News for June 15, 2006

2006-06-16T08:53:00.000-04:00

China Easing Its Stance On Taiwan (June 15, 2006) Washington Post - Gradually and without fanfare, China has substantially softened its stand on Taiwan, according to senior officials and diplomats. President Hu Jintao, they said, has begun to play down China's long-standing vow to recover the self-ruled island by force if necessary and shifted the focus to preventing any move toward formal independence.

China, Taiwan OK limited direct flights (June 15, 2006) CNN - Taiwan and China have agreed to launch direct charter passenger flights during major holidays of the year, Taiwan's government has said, a major development between the rivals who split amid civil war five decades ago.

China Construction, Factory Investment Up (June 15, 2006) SFGate - China reported Thursday that the country's spending on construction and factory equipment surged 30.3 percent in January-May over the same period a year earlier, as central bank Gov. Zhou Xiaochuan said economic fine-tuning measures were on the way.

China to remain "kingdom of bicycles": vice minister (June 15, 2006) China View (Xinhua News) - China's Vice Minister of Construction, Qiu Baoxing, has lashed at city authorities for making it harder for cyclists to get around, saying the country should retain its title as the "kingdom of bicycles.”

More News for June 15, 2006

2006-06-15T14:14:00.000-04:00

Yahoo 'Strictest' Censor in China (June 15, 2006) Wired News - Yahoo is stricter than any other search engine in China when enforcing censorship.

Cisco Systems seeks local Chinese partners with US$200 million venture capital (June 15, 2006) People’s Daily - The world's largest telecommunications network equipment provider Cisco Systems announced it is seeking Chinese partners with 200 million US dollars. Cisco set up a venture capital fund in China three years ago, which has invested 300 million US dollars in more than 30 innovative Chinese companies.

Foreign, private enterprises call for greater access to Chinese oil products market (June 15, 2006) People’s Daily - Foreign and domestic private enterprises are calling for greater access to the Chinese refined oil products wholesale market in response to new market regulations.

China’s media in unusual call for transparency (June 15, 2006) Financial Times - As the shipping industry develops and the price of ships rises, Chinese shipbuilding enterprises have entered into what can be fairly called a golden age.

China's Home Inns Arranging Overseas IPO (June 15, 2006) CRIEnglish - "We have started the process," Home Inns Chief Executive Sun Jian told Reuters on the sidelines of a forum in Shanghai. He confirmed the listing was overseas, but declined to say where or how much the company was hoping to raise.

Building a Business Empire in China (June 15, 2006) New York Times - Every aspect of that story illustrates the present global reality, in which American know-how is building a formidable economy in China while creating echoing opportunities in the United States.

News for June 15, 2006

2006-06-15T06:40:00.000-04:00

Headhunters for skilled labor thrive (June 15, 2006) Shanghai Daily – Huge demand for skilled labor in a rapidly-growing Chinese economy has stimulated a booming headhunting market in the nation, but the nascent industry is experiencing growing pains to achieve a regulated future.

China to openly recruit senior managers for major SOEs (June 15, 2006) People’s Daily - China's state-owned enterprise (SOE) chiefs are hoping to recruit their first foreign managers in the latest international recruitment drive.

China's shipbuilding industry booms (June 15, 2006) Asia Times - As the shipping industry develops and the price of ships rises, Chinese shipbuilding enterprises have entered into what can be fairly called a golden age.

Ernst & Young predicts fast growth (June 15, 2006) Shanghai Daily - Ernst & Young LLP, the second-largest US accounting firm, forecast its merger advisory business in China will grow by more than 30 percent in the fiscal year ending this month, as economic expansion and deregulation spur takeovers.

Drugmakers look at China for clinical trials (June 15, 2006) Asia Times - China's resources for clinical trials and low-cost manufacturing and technology services are attracting growing interest from overseas pharmaceutical companies, according to industry experts.

Shimao plans IPO for home building (June 15, 2006) Shanghai Daily - Shimao Property Holdings Ltd, founded by Chinese mainland's fifth-richest man, plans to raise as much as HK$5.06 billion (US$652 million) in a Hong Kong initial public offering, two bankers familiar with the plan said.

Additional News for June 14, 2006

2006-06-14T22:03:00.000-04:00

Hiring hit by wage inflation (June 14, 2006) China Economic Review – Wages in financial and professional services have climbed 17%. The higher wages and a lack of competent middle management have pushed companies to slow down hiring plans for the third quarter.

HK to select Airport Authority CEO globally (June 14, 2006) People’s Daily - The Airport Authority in Hong Kong, announced that David Pang, chief executive officer of the Airport Authority, has opted not to seek for contract renewal after completion of his second three-year term. A selection committee led by Pang will initiate a global search for his replacement.

Morgan Stanley buys luxury apartment project downtown (June 14, 2006) Shanghai Daily - Morgan Stanley has acquired another luxury apartment project in downtown Shanghai for about 760 million yuan (US$95 million) amid wide speculation the government will soon launch measures to curb foreign investment in the property market. Morgan Stanley has bought one of Chateau Pinnacle's three buildings. The Pinnacle is a luxury residence on Xingfu Road in Changning District. Morgan Stanley paid an average price of 28,000 yuan a square meter.

TiVo to Introduce Service in China This Year (June 14, 2006) CRIEnglish - TiVo Inc. said it planned to introduce its digital video recording service in China this year in a bid to boost its financial performance.

Hejia partners with HP, Microsoft and Intel (June 14, 2006) Interfax China - HP, Microsoft and Intel have formed an alliance with Hejia Software Technology Limited, one of the leading enterprise management software providers in China, to jointly expand their businesses in China's ERP market.

China sets up special fund for renewable energy (June 14, 2006) People’s Daily - China's Ministry of Finance (MOF) and State Development and Reform Commission (SDRC) are in talks to establish a special fund for the development of renewable energy.

China Citic IPO (June 14, 2006) Shanghai Daily - China Citic Bank, an arm of the nation's biggest state-run investment company, plans to raise about US$2 billion from an initial public offering in Hong Kong by the end of this year.

EDS Seeks to Double China Jobs, Eyes Asia Growth (June 14, 2006) CRIEnglish - EDS plans to more than double its workforce in China to 2,000 by the end of 2007 to boost its outsourcing operations.

U.S. bans transactions with four Chinese companies (June 14, 2006) Digital Media Online - The United States prohibited all transactions with four Chinese companies and one U.S. company for allegedly helping Iran acquire weapons of mass destruction and missiles capable of delivering them.

Twenty-one foreign invested travel agencies exist in China (June 14, 2006) People’s Daily - There are now 21 foreign invested travel agencies in China, according to the latest statistics from China National Tourism Administration.

Chinese aircraft manufacturer receives record export order (June 14, 2006) China Economic Net - Indonesia's second largest airline is to buy 15 of China's Xinzhou 60 aircraft, the biggest export order of the short and medium-range, 50-seater passenger aircraft to date.

Air China poised for 8 billion yuan A-share offering (June 14, 2006) People’s Daily - Air China, China's biggest air carrier, plans to get listed on the Chinese mainland later this year.

Construction Bank tops "China's top 100 banks" list (June 14, 2006) People’s Daily - China Construction Bank (CCB), which became the first of the "big four" state lenders to go public last October, topped the list of "China's top 100 banks" announced by the British finance magazine The Banker.

News for June 14, 2006

2006-06-14T14:17:00.000-04:00

China's 15m students learning to buy (June 14, 2006) Asia Times – University students, it is said, form a major class of consumers. And nowhere is this more true than in China, where a 15-million-strong army of undergraduates is increasingly keen on buying the latest high-tech products, fashionable cosmetics and clothing, as well as other famous name-brand goods, and shaping their future consumption habits. And the market potential represented by Chinese collegians will become even more enormous in the coming years as their number is expected to grow steadily to reach 30 million (including undergraduates and graduate students) by 2010.

Culture shocks Chinese firms investing abroad (June 14, 2006) China Economic Net - Cultural conflict, a slow reaction to changes in local markets, and a shortage of capital top the list of challenges that Chinese firms face abroad, according to a survey of 150 firms conducted by the World Bank Group.

Tax breaks for foreign companies may be ended (June 14, 2006) Asia Times - Preferential taxes have been a major attraction for foreign companies investing in China for years, but that could all be about to change. With the recent drafting of a new corporate income tax law, to be reviewed by China's top legislature in August, the unification of tax rates for foreign-funded and domestic companies seems just a matter of time.

SCO firms, banks expected to sign US$2 billion in deals (June 14, 2006) China Economic Net - Companies and banks from the six economies represented by the Shanghai Cooperation Organization are expected to sign cooperation and loan extension deals worth nearly US$2 billion during this week's summit in Shanghai. The deals will play a significant role in fueling economic development in the region and within the countries. The projects include construction of a highway linking China to Tajikistan and Uzbekistan, high voltage transformer wires in Tajikistan, Kyrgyzstan's first cement plant with a daily capacity of 2,500 tons and Kazakhstan's first self-built hydropower station since its independence.

China’s software industry sales to top US$162b (June 14, 2006) People’s Daily - The annual sales income of China's software industry will climb to 1.3 trillion yuan (162.5 billion U.S. dollars) by 2010, as against 390.1 billion yuan (18.8 billion U.S. dollars) in 2005, according to a prediction made in a development masterplan issued recently. The industry will achieve a growth of at least 30 percent in each of the coming five years.

Late News for June 13, 2006

2006-06-13T23:21:00.000-04:00

Amazon subsidiary signs Chinese deal (June 13, 2006) Puget Sound Business Journal – Amazon.com Inc. subsidiary Joyo.com has signed an advertising and marketing deal with Sohu.com, which is one of China's leading media companies.

China to impose new tax policy over diamond trade (June 13, 2006) People’s Daily - China is to impose new policies on diamond trade in an attempt to rectify the diamond market, and balance the tax burden. The new policy will take effect on July 1.

China targets illegal explosives, guns (June 13, 2006) China Daily - Chinese authorities have admitted they are struggling to cope with a "rampant" illegal market in explosives and small arms, as they launched a crackdown.

Fresh trouble for Carlyle bid (June 13, 2006) China Economic Review - US venture capital firm Carlyle’s protracted bid to takeover Xugong could be derailed by Sany Corporation, another domestic heavy machinery maker.

Agricultural Bank to be reformed in 2-3 yrs (June 13, 2006) China Knowledge - Problems surrounding the reform of the Agricultural Bank China will be resolved within two to three years although no definite schedule has been fixed yet.

Starbucks still brewing up a storm in China (June 13, 2006) China Economic Net - In Starbucks' headquarters in Seattle, a group of company executives meet regularly, but not to discuss new items on the menu or what marketing campaign should be adopted. Instead, their topic of conversation is China.

Otis Elevator establishes itself in TEDA (June 13, 2006) China Knowledge - Otis Elevator recently held a ground-breaking ceremony for its new manufacturing base in TEDA (Tianjin Economic-Technological Development Area).

Early News for June 13, 2006

2006-06-13T07:54:00.000-04:00

China's middle class soaks up Australian wine glut (June 13, 2006) The Australian – Australia's lake of surplus wine could find a new home in China, with the emerging middle class developing a taste for their reds. Australia's wine exports to China grew by 482% to 11.75 million liters over the past year, according to statistics from the Australian Wine & Brandy Corp.

New Cadillac model to be made in China (June 13, 2006) Shanghai Daily - Shanghai General Motors Co Ltd, which halted the production of its Cadillac in China a month ago, said it will introduce another home-made Cadillac model early next year. Shanghai GM, General Motors' joint venture with Shanghai Automotive Industry Corp, said the new model to be made in China will be its mainstream Cadillac model. The new car would be unveiled at the Beijing Autoshow at the end of the year.

Chinese newspapers mull Internet boycott (June 13, 2006) Asia Times - The advertising market of China's print media is now threatened by Internet portals, search engines and other websites, just like everywhere else in the world, so much so that some large newspaper groups are trying to form an alliance to boycott the provision of content to Internet news providers, in a desperate tactic that most analysts see as doomed.

Three constraining factors in foreign trade (June 13, 2006) China Economic Net - Chai Haitao, President of Chinese Academy of International Trade & Economic Cooperation recently said that the three major constraining factors for China's foreign trade were roughshod growth, accelerating trade frictions and the "short leg" of service trade.

News for June 12, 2006

2006-06-12T20:32:00.000-04:00

China allows insurers to buy into banks (June 12, 2006) Reuters – China's insurance regulator has said that it would start letting insurers take stakes in the country's banks, in a step towards allowing more interaction between the banking, insurance and securities sectors.

Adidas eyes China (June 12, 2006) Shanghai Daily Adidas AG expects sales growth in China to help it overtake Nike Inc as the No. 1 sporting-goods maker.

Stone Energy announces possible China oil discovery (June 12, 2006) China Knowledge - Stone Energy Corp., an oil and natural gas company based in Louisiana, the U.S., announced that its first well drilled in Bohai Bay, China encountered potential oil pay in two separate intervals. The initial drill stem test in one of the zones indicated an average flow rate of approximately 700 barrels of oil per day. The possible discovery is awaiting appraisal by additional wells to determine if it is commercial and whether development will proceed.

Auto industry profit up 88.65% (June 12, 2006) Shanghai Daily - Profits from China's auto industry reached 23.25 billion yuan (US$2.9 billion) in the first four months of this year, surging 88.65 percent from a year earlier.

China cuts auto import duties down to 25% in July (June 12, 2006) People’s Daily - From July 1, China will drop car import tariff from the present 28% to 25%, but market experts do not think 3-percentage-point's decline will have much influence on auto prices.

China's tech scene (June 12, 2006) Silicon.com - A common mistake when talking about China is to assume its entire population is driving the economy - "the billion people market", it has been called - but this is just a myth. Engaging the wider population may take years or may never even happen. So when experts talk about the technology economy in China, they are talking about a much smaller number of people who live in a few mainland large cities on the east coast such as Beijing, Dalian, Guangzhou, Shanghai and Shen Zhen as well as the island of Hong Kong where huge numbers of people live in densely populated areas.

Lacoste sues Beijing market over knock-offs (June 12, 2006) MSNBC - Sports and leisure clothing group Lacoste SA, best known for its crocodile logo, has sued a popular market in Beijing for allegedly selling knock-offs of its products.

Rising costs in China could affect America (June 12, 2006) International Herald Tribune - Rising production costs in China might soon turn the smiley faced Wal-Mart logo on that rack of $7 cardigan sweaters into a frown. Increasing wages and new environmental regulations, along with higher prices for raw materials, are pushing up the cost of manufacturing in China. That would lead to higher prices for the clothing, toys, electronics and other products that the nation exports, said economists, manufacturers and others involved in the China trade.

Dai Shin cans China plan, expands operations in U.S. (June 12, 2006) The Business Journal Serving Greater Milwaukee - Dai Shin Technologies, which outsources manufacturing to China, has halted plans to open its own factory there in favor of adding jobs at a new plant in Pewaukee. Rising labor and material costs in China played a role in reversing the manufacturing strategy of where to build the medical monitoring sensors, said Dai Shin chief executive officer Sharon Banaszewski.

China, Citing Corruption, Fires Olympic Building Chief (June 12, 2006) New York Times - A senior Beijing official responsible for overseeing construction projects for the 2008 Olympics was dismissed from his post for corruption.

Toyota debuts SUV in China (June 12, 2006) Shanghai Daily - Toyota Motor Co boosted its total capacity to 23,000 units from 20,000 units and began making Land Cruiser Prado GX sport utility vehicles at its plant in the southwestern city of Chengdu. The Prado GX costs 558,000 yuan (US$70,000).

HK to stage largest ever shopping festival (June 12, 2006) Peoples Daily - The Hong Kong Tourism Board ( HKTB) announced that it will stage the 2006 Hong Kong Shopping Festival between 24 June and 31 August 2006. According to a press release from the HKTB, a record of more than 7,500 merchant outlets have already confirmed their participation, making this year's festival the largest ever.

News from June 10-11, 2006

2006-06-12T08:31:00.000-04:00

US alters policy on exports of sensitive technology to China (June 11, 2006) Taipei Times – The US said on Friday it would revise laws to facilitate the export of sensitive high-technology equipment to China under a new policy designed to prevent such products from being used for military purposes. The new policy will spare the need for US exporters in critical sectors such as semiconductor equipment and electronics to apply for licenses for sales to companies in China.

WPP loses partnership with Citic over bad 'manners' (June 10, 2006) China Economic Net - WPP Group Plc, the world's second-biggest advertising company, lost its 14-year partnership with China International Trust & Investment Corp's advertising unit as relations between their chief executive officers soured. Martin Sorrell, chief executive of London-based WPP, "had absolutely no manners, no upbringing and no culture" in the way he responded when Citic Guoan Group chief executive Yan Gang met him to discuss some problems, Yan told reporters. The Citic unit will form a venture with WPP rival Omnicom Group Inc, Yan said.

Bank confirms fraudulent loans (June 10, 2006) Shanghai Daily - Pudong Development Bank Co said yesterday it is investigating 126 million yuan (US$15.7 million) in possibly fraudulent mortgage loans and pledged to improve risk management to avoid further trouble. The bank, the Chinese partner of Citigroup Inc, said it discovered 32 unsecured home loans at its Lujiazui financial district branch during an internal audit in October, according to a statement filed with the Shanghai Stock Exchange.

Foreign corporations will get transition on tax adjustment (June 10, 2006) Shanghai Daily - The Chinese government says it will allow "a reasonable transitional period" to help foreign-funded companies adjust to a new tax system that would scrap the privileges they have held for more than 15 years. A draft tax law for companies will be submitted to the Standing Committee of National People's Congress in August for preliminary examination. If approved by the legislature, the tax rate will be unified for all companies.

HK Customs to crack down piracy during World Cup (June 10, 2006) People’s Daily - Hong Kong Customs officers will enhance enforcement against all forms of piracy during the World Cup and maintain close surveillance of the Internet.

Shanghai's rapid growth has work cut out for hotelier (June 10, 2006) China Economic Net - There is a new face behind the desk of the Sofitel Jin Jiang Oriental in Pudong New Area and although General Manager Douglas A. Barber is fresh to Shanghai, he is no novice in Asia. The Canadian has been living and working in Asia for 17 years now, 14 of those in Hong Kong. He comes to Shanghai fresh off a three-year stint in Seoul, South Korea.

Texas Pacific to expand Chinese high-tech sectors (June 10, 2006) China Daily - Texas Pacific, a US private equity giant, is planning to pour hundreds of millions of US dollars into China's high-tech, services, and new energy sectors in the next three to five years.

News for June 9, 2006

2006-06-09T11:12:00.000-04:00

US regulator: No action on China Life (June 9, 2006) China Daily – China Life Insurance Co, the country's biggest insurer, said the US Securities and Exchange Commission (SEC) has terminated a probe into its Hong Kong and US initial public offering (IPO) in 2003, which raised US$3.5 billion. The securities regulator's enforcement division, in a letter dated June 2, said it had ended the investigation and didn't recommend action.

Google co-founder says company is staying in China (June 9, 2006) Washington Post - Google Inc. is committed to doing business in China despite criticism the company has faced for abiding by Chinese government censorship restrictions, co-founder Sergey Brin said this week.

China makes U-turn to embrace small, efficient cars (June 9, 2006) Reuters - Small cars were banned from Beijing's main roads less than a decade ago, as China's rulers worried that cheap, spluttering vehicles would clog lanes they hoped to fill with sleek modern autos. Today, pollution, traffic jams and a growing dependence on imported oil have forced a radical rethink that has made China an unlikely pioneer of some of the world's tightest fuel efficiency standards and stricter emissions limits. Forward-thinking policy-makers are steering the world's second-biggest oil user onto a very different road than top guzzler America, where low taxes and static standards coddle a motoring populace addicted to long trips and inefficient SUVs. China burns about as much gasoline as Japan but has 10 times more people, and transportation is expected to account for over 60 percent of oil use by 2020 versus around 30 percent now.

China Warns State Shareholders to Free Up Capital (June 9, 2006) CRIEnglish - Beijing, eager to maintain the health of the stock market as it recovers from a four-year slump, will make such holdings an offence under criminal law. At least 34 billion yuan ($4.24 billion) in 189 listed firms' capital is illegally held by their major shareholders or related parties, the official Shanghai Securities News said.

SciClone Acquires Exclusive Rights in China to Market Device (June 9, 2006) Investors.com - SciClone Pharmaceuticals, Inc. announced that it has entered into a three year agreement with Biocompatibles International plc. granting SciClone exclusive rights to market Biocompatibles' DC BeadTM chemotherapy releasing device within China, particularly for the minimally invasive treatment of malignant hypervascular tumors such as primary liver cancer, hepatocellular carcinoma. Liver cancer is one of the most prevalent and deadly forms of cancer in China accounting for over 300,000 deaths each year.

China's economy shows no cooling signs as loans soaring (June 9, 2006) China View (Xinhua News) - China's economy is facing heightened overheating signs, as outstanding bank loans surged 15.97 percent year on year by the end of May amid a seemingly unabated investment binge. Chinese banks extended 209.4 billion yuan (26.1 billion U.S. dollars) worth of local currency loans in May alone, nearly double that of the same month last year. The "big four" state banks accounted for half of the new loans.

China leapfrogging to become major media nation (June 9, 2006) China Economic Net – A new research report issued by Morgan Stanley on China's media shows that China's media industry is full of vigor and China is leapfrogging to become a global leading media country.

Beijing Markets and Foreign Brands Agree to Fight Fakes (June 9, 2006) CRIEnglish - The agreement sets out a new framework for trademark owners and landlords to cooperate in the fight against sales and offers for sale of counterfeit goods under a proposed "two-strike rule.”

China committed to building fair investment environment (June 9, 2006) China Economic Net - China's Vice Premier Zeng Peiyan said in Beijing on Thursday that the Chinese government is committed to building a fair and favorable environment for foreign investors.

Late News for June 8, 2006

2006-06-08T22:20:00.000-04:00

Toyota to open 1,000 dealers in China by 2010 (June 8, 2006) Forbes - Toyota Motor Corp. plans to open 1,000 dealerships in China by 2010 as part of an effort to capture a 10 pct slice of that country's auto market.

The Value of China’s Middle Class (June 8, 2006) China Digital Times - A huge middle class with enormous spending power is expected to emerge over the next 20 years.

China Mobile Acquires Stake From News Corporation (June 8, 2006) New York Times - China Mobile said today that it had acquired a 19.9 percent stake in Hong Kong's Phoenix Satellite Television from the News Corporation. The deal, worth an estimated $180 million, gives one of China's largest telecommunications companies a sizable stake in the country's largest foreign owned television broadcaster.

Foreign Investment in China Up $72B in '05 (June 8, 2006) CRIEnglish - Strong foreign investment in financial services like banking and securities boosted China's total foreign direct investment last year to $72.4 billion. That's up significantly from the $60.3 billion first reported for 2005.

Port Everglades inks shipping deal with China (June 8, 2006) South Florida Business Journal - The Broward delegation on a trade mission to China has called home with some good news: Port Everglades has struck a deal that could double service to the region. Starting June 14, service is to include eight ships capable of carrying between 2,702 and 3,400 of the standard 20-foot, equivalent unit containers. The service is to be operated by a joint venture between Cosco Containers, of Beijing, and Evergreen Marine, of Taiwan. The ships are to dock in Hong Kong, Shanghai and Yantain, China; Colon, Panama; and Savannah, Ga., in addition to Port Everglades.

Timken Supplies Drill-Collar Tube for Chinese Energy Market (June 8, 2006) PRNewswire - The Timken Company (Ohio-based) announced that Julong PetroMaterials, Inc., based in Tokyo, has ordered more than $6 million of Timken(R) seamless tubes for its drill collars for the Chinese market.

News for June 8, 2006

2006-06-08T10:27:00.000-04:00

Tianjin to become north China's growth locomotive (June 8, 2006) People’s Daily - The North China port of Tianjin has received the central government's nod for an ambitious plan that will help its Binhai New Area (BNA) become another Chinese boom area. BNA has been designated an experimental zone for comprehensive reforms and will be built into a third economic powerhouse after Shenzhen and Pudong of Shanghai. The area, covering 2,270 square kilometers, will become the gateway to North China, a modern manufacturing and research base and an international shipping and logistics center.

Tianjin wins Airbus assembling plant project (June 8, 2006) Shanghai Daily - Tianjin city has claimed victory over three other Chinese cities, Shanghai, Xi'an and Zhuhai, after months of competition for the Airbus A320 assembly plant. The National Development and Reform Commission has officially approved the plant to be built in the Binhai New Area in Tianjin.

Chevron, CITIC China gas station deal abandoned (June 8, 2006) Reuters - U.S. oil firm Chevron Corp has been frustrated in a bid to expand its petrol station business in China after a venture with Beijing-backed CITIC Resources Holdings failed to win government approval. The collapse of the agreement will deal a blow to the U.S. company's plans to expand its operations in the country, where BP, Exxon Mobil, Royal Dutch and Total have set up service station ventures with Chinese state oil firms.

Las Vegas Sands, Fairmont plan Macau resort (June 8, 2006) China Post - Gaming company Las Vegas Sands Corp. plans to develop and own a resort in Macau that will be managed by Fairmont Raffles Holdings International, the two companies said. The resort will include 1,500 rooms, and be part of the Cotai Strip development on Cotai -- an area of reclaimed land between the islands of Taipa and Coloane in Macau, the companies said in a statement issued late Tuesday.

United Tech eyes Chinese air-con acquisition (June 8, 2006) Washington Post - Diversified U.S manufacturer United Technologies Corp. is looking for acquisitions in China to keep pace with the fast growth in the market, with residential air conditioning as a particular area of interest.

China to build first nuclear power plant in northeast region (June 8, 2006) People’s Daily - Construction of northeast China's first nuclear power plant is expected to begin next year. Preparations have begun for construction of the first phase of the Hongyanhe Nuclear Power Plant, located at the Donggang Town of Wafangdian City in Liaoning Province.

China to promote rivals to ‘big four’ (June 8, 2006) Financial Times - China is encouraging the growth of accounting “national champions” to reduce the country’s reliance on the big four international firms that monopolise the auditing of Chinese companies listed overseas.

Foreign collectors flock to Beijing art auctions (June 8, 2006) People’s Daily - Chinese art is generating more international interest than ever before, with unprecedented crowds of foreigners packing into a series of Beijing auctions which ended on Tuesday. Foreign buyers showed most interest in Chinese oil paintings which are becoming increasingly familiar at art fairs in New York and London.

Shanghai Port firms to merge and list (June 8, 2006) China Knowledge - Shanghai International Port Group Co., China’s biggest port operator, plans to merge with its Shanghai-listed unit and apply for a group listing on the Shanghai Stock Exchange in a deal valued at over US$1 billion. The proposed merger and listing will make the group one of the largest firms by market capitalization on the exchange.

CAMC Engineering China IPO Draws Heavy Bidding (June 8, 2006) Bloomberg - China CAMC Engineering Co., the first company to hold an initial public offering in the nation since a yearlong ban was lifted, said it has attracted 204.6 billion yuan ($25.5 billion) worth of bids from individual investors. The maker of farming machinery said 1.1 million investors offered to buy 576 times the stock offered to them, it said in a statement to the Shenzhen Stock Exchange today. Institutional investors ordered 9.3 billion yuan worth of shares, 100 times the stock offered to them.

China Big Four state bank loan growth slows (June 8, 2006) Reuters - Growth in loans at China's "Big Four" state banks slowed significantly in May, suggesting Beijing's efforts to curb excess investment are bearing fruit.

Exports & Imports of cars more than double in the first four months (June 8, 2006) People’s Daily - In the first four months, a total of 87,176 vehicles (including the complete sets of auto spare parts) have been exported, 1.4 times as much as the number of the same period of last year. The value of export was 1.8 times as much as that of the same period of last year. Boosted by expectations for consumer tax adjustment, the imports more than doubled, reaching 72,132 units and US $2.39 billion.

China to make state research plans more transparent to combat fraud (June 8, 2006) People’s Daily - China is going to make its state research plans more transparent to the public as well as the scientific community in response to repeated research frauds which have squandered millions of yuan in public funds.

Early News for June 8, 2006

2006-06-07T22:55:00.000-04:00

Chongqing seeks shipbuilding investment (June 8, 2006) Asia Times - Southwest China's Chongqing Municipality is set to construct a small and medium-sized ship production base and supporting industrial facilities. By 2015, the base is designed to realize a sales value of 50 billion yuan (US$6.2 billion) and an export delivery value of over $800 million. Plans call for the city to construct four to five shipbuilding industrial bases along the Yangtze River, construct and expand small and medium-sized docks for special ships, and construct a supporting logistic center and other supporting facilities. The Chongqing Municipal Government's Proposals on the Development of Shipbuilding Industry include a series of preferential measures to encourage foreign investors and private enterprises in China to invest in the industry.

China's rapid trade expansion lures US warehouse builder (June 8, 2006) Shanghai Daily - AMB Property Corp, a US builder and owner of industrial properties, plans to invest several hundred million dollars in China in the next three years as expanding trade spurs demand for warehouses and distribution centers. San Francisco-based AMB follows larger rival ProLogis in seeking to tap a logistics market that's growing as much as 20 percent a year. China last year ended restrictions on overseas distribution companies, allowing AMB clients such as FedEx Corp to expand in the world's fastest-growing major economy.

Glass industry growing pains (June 8, 2006) Shanghai Daily - China’s flat glass industry may suffer from a rapidly-growing capacity. Too much capacity plus rising costs in raw materials, power and transport may affect the industry's earnings.

China eases restriction on foreign investment of listed companies (June 8, 2006) People’s Daily - Multinationals will be allowed to invest in the Chinese currency-dominated A share market through their investment subsidiaries in China as of July 1.

Blind speculation in China art (June 8, 2006) Shanghai Daily - As a real-estate and hotel developer, Richard Born has looked for value in ramshackle buildings and undeveloped lots, not in emerging sectors of the global art market. But that changed early last year, when a childhood friend, art adviser and collector Larry Warsh, approached Born with an idea: Buy Chinese contemporary. "It struck me as a brilliant way to invest in China," said Born, 48, trim, agile and plain-spoken. Within a year he purchased approximately 300 pieces, spending more than US$2 million.

China duo mark IPO range (June 8, 2006) The Standard - China's Datong Coal Industry and Shenzhen Coship Electronics said Wednesday they have set indicative price ranges for their initial public offerings.

GE - Plastics and PetroChina Agree to Cooperate on Polycarbonate Production in China (June 8, 2006) Chemie.DE Information Service - GE and PetroChina Company Limited announced that they would cooperate by creating a world-scale polycarbonate resin manufacturing joint venture in China.

China agrees to a draft of anti-monopoly law (June 8, 2006) Shanghai Daily - The State Council (China's Cabinet) approved in principle a draft of an anti-monopoly law at an executive meeting. The draft law, after further revision, will be submitted to the Standing Committee of the National People's Congress for deliberation.

Late News Update for June 7, 2006

2006-06-07T21:44:00.000-04:00

Sohu.com launches entertainment company in China (June 7, 2006) Interfax China - NASDAQ listed Sohu.com Inc., a leading Internet and wireless Internet provider in China, announced on June 6 the founding of Sohu Entertainment, a new wholly-owned company that will develop entertainment, culture and media business in China.

New centers aim to help foreign trade (June 7, 2006) China Economic Net - China's commerce ministry, the trade watchdog, yesterday set up 19 service centers in a bid to help Chinese companies better acquaint themselves with possible technical barriers in foreign trade.

Dow invests in Yangtze River area (June 7, 2006) China Daily - The Dow Chemical Company is well-established in the Yangtze River Delta: four of its seven mainland production facilities are located in the region; a world-class research and development centre and a global information centre will be established in Shanghai; its most important production base in the Asia-Pacific region is in Zhangjiagang; and it plans to invest further in the region.

ING to launch $300 mln fund for Chinese housing (June 7, 2006) Reuters - The property arm of Dutch financial services firm ING Groep is launching a fund worth US$300 million in equity to invest in housing development in China's secondary cities. The move comes at a time when foreign property investors are flocking to buy and build housing for a burgeoning middle class, despite government attempts to cool property markets through administrative measures.

Drive-by burgers (June 7, 2006) Chicago Tribune - McDonald's Corp. said more than half its future expansion in China will involve drive-through restaurants, taking advantage of China's increasing car ownership and taste for Western lifestyles.

China seeks legal lessons from India (June 7, 2006) WebIndia123 - An Indian lawyers delegation is currently on a visit to China to discuss bilateral co-operation between the legal communities of the two Asian countries. A 12-member delegation of lawyers from the Bar Association of India (BAI) is visiting Beijing at the invitation of China Law Society Deputy Director General Yin Baohu. Baohu feels that China can learn a good number of legal aspects from India.

Google voices doubt over China (June 7, 2006) International Herald Tribune - Sergey Brin, a co-founder of Google, has raised the prospect that the Internet company could abandon its new China-approved search engine, which takes politically sensitive information out of the reach of Chinese Web surfers. Brin, the company's president of technology, told reporters in Washington on Tuesday that Google had agreed to the censorship demands in January only after the Chinese authorities blocked its regular commercial service in China. "Perhaps now the principled approach makes more sense."

Dow Jones to launch China index (June 7, 2006) MENEFN.com - Dow Jones Indexes said it's launching a blue-chip index to track the performance of the 50 biggest and most liquid companies in Brazil, Russia, India and China. The Dow Jones BRIC 50 Index will comprise 15 companies from Brazil, India and China and five from Russia.

DuPont Begins Construction on Second Production Line in China for LCDs (June 7, 2006) Web Wire - DuPont today announced that it has begun construction on a second production line for liquid crystal display (LCD) direct bonding in Shenzhen, China. The new line, which will more than double the company’s direct bonding production capacity and clean room space in the region, is in response to increased demand for affordable direct-bonded products such as tablet personal computers and marine electronics.

News Update for June 7, 2006

2006-06-07T09:59:00.000-04:00

UPS to provide logistics and express delivery services for Beijing 2008 Olympic Games (June 7, 2006) People’s Daily - Atlanta, Georgia-based United Parcel Service (UPS) and the Beijing Organizing Committee for the Olympic Games (BOCOG) signed a Memorandum of Understanding (MOU), outlining the logistics and express delivery services UPS will provide for the Beijing 2008 Olympic Games. Since signing a Beijing 2008 sponsorship agreement in July 2005, UPS has worked closely with BOCOG to develop unique solutions for the Games. Under the plan outlined in the MOU, UPS will support BOCOG in the development and coordination of the delivery plans as well as providing the logistics service between all the Olympic venues.

9.5 million sit college exam this year (June 7, 2006) China View (Xinhua News Agency) - This year a record figure of 9.5 million high-school graduates will sit down for the first day of tests, each vying for one of only 2.6 million undergraduate places.

China to investigate illegal land acquisitions (June 7, 2006) China Knowledge - China’s Ministry of Land and Resources has called for prompt investigations into developers suspected of breaking land laws. About 60% to 90% of the total land used since Sep. 2004 was illegally acquired. An investigation conducted by the ministry in 2005 showed that the number and total area of illegal land acquisition cases accounted for 63.8% and 52.8% respectively, out of the newly-allocated construction projects in 70 districts in 15 cities.

Citigroup eyes China real estate (June 7, 2006) International Herald Tribune - Citigroup's property unit plans to increase its investment in China's real estate markets tenfold to $800 million in the next three years as economic growth fuels demand for offices, shops and homes. Citigroup joins rivals like Morgan Stanley and Goldman Sachs Group in seeking to tap demand from an economy that has grown an average of 10 percent for the past three years.

Deloitte hit by staff shortage (June 7, 2006) The Standard - Deloitte Touche Tohmatsu became the latest international audit firm to cite the mainland's shortage of accounting talent as its biggest obstacle to expansion in the country, where runaway economic growth and a thirst for capital is fueling demand for audit services. Deloitte plans to double its mainland headcount from 3,200 by 2009. The firm, which had the smallest presence in the mainland among the Big Four accounting firms in 2003, has grabbed market share from its rivals after adding about 1,600 staff in China in the past two years.

Microsoft mobilizes push into China with new partner (June 7, 2006) ZD Net Asia - Microsoft has partnered mobile device and application developer TechFaith to raise Windows Mobile's slice of the world's largest cell phone market.

China's average wage to reach global level in 10 years (June 7, 2006) China Economic Net - Jiang Xinning, a researcher of the policy research center of Guangdong, said that in the next five to ten years, China's labor cost and income distribution will come to a reasonable scope and the social average wage will be geared to international level.

ICBC looking at dual listing (June 7, 2006) China Knowledge - Only one day after Bank of China Ltd. (BOC) officially announced its intention to list on the domestic stock market, the Industrial and Commercial Bank of China (ICBC) has followed suit by announcing that it is planning to sell its shares in China soon.

Importer Delays Rollout of Chinese Cars in U.S (June 7, 2006) LA Times - Chinese cars from Chery Automobile Co. may not go on sale in the U.S. until 2008, the investor who is bringing the cars to the U.S. market said.

Chinese CCTV Digital Video Recorders Market Expected to Increase (June 7, 2006) Forbes - The Chinese CCTV Digital Video Recorders Market is Expected to Increase by 70%, Reaching US$139 Million.

Google Launches Book Search In China (June 7, 2006) China Tech News - Global search engine giant Google.com has launched a book search China partnership program in China. Tsinghua University Publishing House and Juvenile and Children Publishing House have become its first batch of partners for the program. Google.com's new service is free to publishing houses, printing institutions and individual writers.

China 'blocks' main Google site (June 7, 2006) BBC - Chinese authorities have blocked most domestic users from the main Google.com search engine, a media watchdog said. Internet users in major Chinese cities faced difficulties accessing Google's international site in the past week, Reporters Without Borders said. But Google.cn, the controversial Chinese language version launched in January, has not been affected.

News for June 7, 2006

2006-06-07T08:40:00.000-04:00

Krispy Kreme to open in China (June 7, 2006) Shanghai Daily - Krispy Kreme Doughnuts Inc, the second-largest US doughnut maker, said it will open a store in China for the first time after awarding development rights for Hong Kong and Macau to restaurateurs Wayne and Brian Parfitt.

'Big pharma' investing in China R&D (June 7, 2006) Asia Times - This year, the fifth year after China's access to the World Trade Organization, transnational pharmaceutical enterprises, which used to build joint venture plants in China, have started to pay more attention to investing in research and development (R&D) in the country. To date, the world's top 20 transnational pharmaceutical enterprises all have set up joint venture plants in China, and some even own solely-funded enterprises.

Communications industry growth near 25% (June 7, 2006) Asia Times - China's communications industry, which includes terrestrial and wireless telephone users as well as postal services, registered 467.71 billion yuan (US$58.3 billion) in business volume in the first four months of 2006, increasing by 24.6% year-on-year.

China to become Asia's 2nd biggest tourist destination in 2006 (June 7, 2006) People’s Daily - According to a new Visa Asia Pacific tourism spending report, the biggest increase in tourist spending in Asia in 2005 was in China, where Visa cardholders spent 636 million US dollars more last year than they did in 2004. Destinations that drew the most tourist dollars in 2005 were Australia, Thailand and China. China is expected to overtake Thailand this year as the market receiving the second-largest amount of tourist dollars.

News for June 6, 2006

2006-06-06T13:34:00.000-04:00

Chinese Take Longer Time to Cross Streets (June 6, 2006) China Internet Information Center - Beijing's media observed on the streets that the lack of urgency when pedestrians crossed streets and roads was a major problem in road crossing etiquette. Experts also pointed out that Chinese take longer to cross streets than people overseas.

China Learns M&A (June 6, 2006) Forbes - Reports that Citic Group, China's Hong Kong-based overseas investment arm, is in talks to buy Nations Energy, a closely held Canadian oil company whose main asset is a field in Kazakhstan, is further evidence that Beijing is learning to play the global mergers and acquisitions game.

Scientists to help achieve goal of innovation (June 6, 2006) China Daily – President Hu Jintao urged scientists to work towards building an innovation-oriented nation and strongly support the country's development, arguing that science and technology are increasingly becoming the decisive forces in economic and social development. He also encouraged Chinese scientists to work hard and secure their own intellectual property rights.

China to lead Asia's IT services market by 2010 (June 6, 2006) Reuters - China will overtake Australia to become the largest information technology (IT) services market in the Asia Pacific region, excluding Japan, by 2010, a data tracking firm forecast on Tuesday.

Chinese insurers to invest high-speed railway (June 6, 2006) Shanghai Daily - China’s insurance companies can invest up to 80 billion yuan (US$10 billion) into the Shanghai-Beijing high-speed railway, which is expected to be complete by 2010. The Ministry of Railway has decided to raise funds from insurance companies to reconstruct the railway between Shanghai and Beijing.

Bank of China to Sell Up to $2.5 Billion of A-Shares (June 6, 2006) Bloomberg – Bank of China Ltd., the nation's No. 2 lender, aims to raise as much as 20 billion yuan ($2.5 billion) through an A-share offer in China. The bank made an application to the China Securities Regulatory Commission yesterday to issue not more than 10 billion A shares, the Beijing-based lender said in a statement carried in Hong Kong newspapers today. Bank of China raised $9.73 billion in an initial public offering in Hong Kong last month, completing the biggest IPO in six years as investors bet China's accelerating economy will sustain loan growth.

China's auto makers spurn foreign suitors (June 6, 2006) Asia Times - Editorial comments: Until the recent past, most Chinese companies relied on their foreign joint-venture partners for technology. However, that situation is changing. Chinese companies are becoming more and more self-sufficient by purchasing technology from foreign companies without engaging in joint-venture arrangements.

Explosion forecast in market research (June 6, 2006) China Economic Review - China's booming economy and rising consumer purchasing power are good news for the market research sector. China generated 3.9 billion yuan (US$487 million) in market research revenue last year, up 22 percent from the year before.

Pollution Getting Worse, China Admits (June 6, 2006) LA Times - Despite steady efforts to protect the environment in recent years, China's pollution continues to worsen in the face of relentless industrial growth, the Chinese government acknowledged Monday. The report issued by the State Council, China's Cabinet, is the latest in a string of rare admissions by the Communist Party leadership that it has not done enough to prevent environmental damage.

Pollution costs equal 10% of China's GDP (June 6, 2006) China Daily - China's pollution problems are costing the country more than US$200 billion a year, a top official said yesterday as he called for stronger action to balance environmental protection against economic development. Environmental damage is costing the government roughly 10 percent of the country's gross domestic product.

Unified tax rate looms (June 6, 2006) China Economic Review - The long-awaited unification of local and foreign corporate income tax rates could take effect in early 2008. A new draft of the law will be tabled for a first reading by the National People's Congress Standing Committee in August and could be approved as early as March 2007.

US-based AOBO buys herbal medicine firm (June 6, 2006) Asia Times - American Oriental Bioengineering Inc (AOBO), a US-based biotech company listed on the American Stock Exchange with production and research facilities in Harbin, China, recently purchased Guangxi Lingfeng Pharmaceutical Co Ltd, a traditional Chinese medicine producer in South China's Guangxi Zhuang Autonomous Region. This is the first time a traditional Chinese pharmaceutical producer has landed in AMEX via a merger.

PetroChina looks for LNG suppliers (June 6, 2006) China Daily - PetroChina Co Ltd, the nation's biggest oil company, is in talks with more than 10 LNG (liquefied natural gas) sellers worldwide to secure fuel sources for its three government-approved terminals along the east coast.

Tokyo panel approves resuming loans to China (June 6, 2006) International Herald Tribune - Japanese government panel has approved the resumption of aid loans to China, as Tokyo stepped up efforts to reverse a steep deterioration in relations with Beijing.

China Approves Third-largest Hydropower Project (June 6, 2006) CRIEnglish - The National Development and Reform Commission has given the go-ahead to the proposed Baihetan hydropower station on the lower reaches of the Jinsha River on the border between southwestern Sichuan and Yunnan provinces. As well generating an average 56 million megawatt-hours of power annually, the project aims to help prevent silt building up in the reservoir behind the Three Gorges Dam. With an installed capacity of 12 gigawatts, Baihetan will be China's third-largest hydropower station, behind the Three Gorges and the Xiluodu power station. All are run by the China Three Gorges Project Corp., parent of Shanghai-listed Yangtze Electric Power Co.

Chinese spend more on services, leisure (June 6, 2006) Asia Times - New statistics have shown that urban Chinese are spending increasing amounts on services and leisure. Beijing residents spent one-third of their income on cultural and recreational activities in 2005, up 8% over 2004. People are expected to spend more this year. For example, Beijingers will spend 3 billion yuan (US$374.6 million) on weddings alone.

News for June 5, 2006

2006-06-06T11:31:00.000-04:00

Focus Media to sell ADRs to fund expansion (June 5, 2006) Shanghai Daily - Focus Media Holding Ltd, China's biggest overseas-listed advertising company, will sell 1 million American depositary receipts to pay the cash portion of an earlier acquisition and to fund expansion. The ADRs are worth US$66.75 million, based on Friday's closing price on the Nasdaq Stock Market, according to Bloomberg calculations.

Fortune magazine lists most valuable brands in China (June 5, 2006) China Economic Net - Five domestic brands are enumerated among the top 25 most valuable brands on the list. Chinese brand Lenovo has jumped from No. 19 last year to No. 14 this year, making the fastest progress among Chinese brands. China's Haier leads the domestic brands and Chinese brewery giant Tsingtao Beer appears on the list for the first time in history. The top 25 most valuable brands in China are, BMW, Microsoft, Intel, Mercedes-Benz, Coca-Cola, IBM, Haier, Nokia, Wuliangye, Maotai, Air Bus, Porsche, Audi, Lenovo, Motorola, Walmart, Boeing, Google, Tongrentang, Tsingtao Beer, Pepsi-Cola, Siemens, Sony, Nike, and GM.

Pension fund seeks deals with global asset firms (June 5, 2006) Shanghai Daily – China’s social welfare fund is busy seeking partnership accords with investment benchmarks and overseas partners to smooth its pending trade in foreign securities as it tries to boost returns amid an estimated pension shortfall. China's National Council of Social Security Fund, the pension fund's manager, signed deals last month with Standard & Poor's and Xinhua FTSE to use their indexes as benchmarks for its US and Hong Kong equity portfolios. The fund manages 212 billion yuan (US$26.5 billion) in assets.

Big four firms plan boost to China staff (June 5, 2006) China Digital Times - The big four accountancy firms are planning to boost their staff numbers in China by more than 20 per cent this year as they grapple with staff shortages that threaten attempts to boost investor confidence in the domestic stock market.

Brilliance vehicle sales up 57 percent (June 5, 2006) China Economic Net - Brilliance China Automotive Holdings Ltd., China's largest minibus maker, sold 57 percent more of its own brand vehicles in the first five months thanks to new models and improved consumer sentiment. The company, a joint venture with Germany's BMW AG, sold 13,800 Zhonghua brand cars in the first five months, up 254 percent from 3,900 cars in the same period last year.

New auto models to hit the road (June 5, 2006) People’s Daily China - In the first fourth months, the passenger vehicle sales on the Chinese market soared nearly by 50 percent over the same period of last year. Automakers sped up the launch of new models after the May Day holiday to further boost the sales.

China Netcom to sell Asia Netcom (June 5, 2006) Shanghai Daily – Chinese fixed-line operator China Netcom Group Corp. (Hong Kong) Ltd. said today it has agreed to sell its wholly owned underwater cable operator Asia Netcom Corp. Ltd. for US$168.84 million to two investment funds, Ashmore Emerging Markets Liquid Investment Portfolio and Spinnaker Global Opportunity Fund Ltd.

World's retail giants focus China growth plans on M&As (June 5, 2006) China Economic Net - The world's major retailers, facing reports that the China market is becoming saturated, are increasingly turning to mergers and acquisitions to advance their expansion plans. Given the difficulty of finding a good location to build a new store from the ground up, the big retailers from overseas will follow industry trends in other sectors and start snapping up existing businesses, industry analysts said. The most recent acquisition involved Best Buy Co Inc, which bought a majority stake in Jiangsu Five Star Appliance Co Ltd - China's fourth-largest home appliance chain.

News for June 4, 2006

2006-06-05T22:32:00.000-04:00

Chinese dentists seek NASDAQ listing (June 4, 2006) People’s Daily - Jiamei Dental Medical Management Group (Jiamei), a privately-owned chain of dental clinics, is seeking a listing on the NASDAQ. If successful, Jiamei will be the first Chinese healthcare and medicine company to be listed on the exchange.

China's Meat Industry Grows Steadily (June 4, 2006) CRIEnglish- China's meat industry is growing steadily, with more investment, larger demand, more sales and higher profits. The country had 2,544 meat processing companies in 2005, with 312 new companies established during the year.

China-U.S. cooperative industrial park project starts in central China (June 4, 2006) People’s Daily – A China-U.S. cooperative industrial park project "California industrial city" has started construction in Zhengdong District of Zhengzhou, capital of central Henan Province. The project will be built in three phases, to accommodate industries such as aerospace, pharmacy, new materials, building materials, automobiles and electronics.

China "world leader" in artificial rain (June 4, 2006) Reuters - Drought-plagued China has used an arsenal of rockets, artillery and aircraft to seed clouds and produce enough artificial rain to fill one of the country's biggest rivers four times over. China has created "the world's leading force" in artificially inducing rain to relieve droughts and fight fires.

Exchanges speed change in accounting (June 4, 2006) People’s Daily – More Chinese financial officials and accountants will participate in exchange programs with the International Federation of Accountants (IFAC) to speed up the country's convergence with international accounting standards. The exchanges will facilitate faster change within China's accounting businesses and will eventually benefit the global economy.

News for June 3, 2006

2006-06-05T22:25:00.000-04:00

Solar power plant for North China (June 3, 2006) China Daily - Solar Millennium AG, a Germany-based solar energy technology company, is working with its Chinese counterpart to build a multi-billion-dollar solar power plant in North China. When completed, the plant will be China's first large-scale commercial plant converting sunlight into electricity.

Datong eyes IPO (June 3, 2006) Shanghai Daily – Datong Coal Industry Co plans to raise 1.8 billion yuan (US$224 million) in an initial share sale. The state-owned firm plans to sell 280-million-yuan-denominated shares.

China children outgrow old rules (June 3, 2006) BBC - Beijing officials have been forced to raise the maximum height requirement for children so they can continue to receive free public services. The guidelines were first introduced 50 years ago and stated that any child under 7 years of age and below 1.1m was eligible for free bus rides, free entry to parks and theatres and free school lunches. The average height of children has risen, meaning many are being denied access to services they should be entitled to.

Energy-hungry China warms to solar water heaters (June 3, 2006) Reuters - At least 30 million Chinese households now have one and last year the country accounted for around 80 percent of the world market.

Pfizer Wins Key China Court Ruling (June 3, 2006) Forbes - In what is seen as a landmark ruling in support of greater intellectual property rights protection for foreign companies in China, a Beijing court has backed U.S. drug company Pfizer's patents for its anti-male impotence drug, Viagra. The verdict overturns a ruling by China's patent review board, which in 2004 had supported the challenge of a dozen of the leading generic-drug makers in China against Pfizer's patent.

Dell promotes fastest laptop in China (June 3, 2006) People’s Daily - The world's computer giant, Dell, launched its XPS personal laptop series in Beijing, a move insiders say shows the company's confidence in the Chinese computer game market. Computer games have become a principal feature of computer use for many Chinese.

China Encourages Smaller Banks to Lure Foreign Strategic Investors (June 3, 2006) CRIEnglish - China encourages its small and medium-sized banks to introduce strategic investors from overseas in order to learn from advanced management ideas and techniques to improve their core competitiveness. China has already made important progress in introducing strategic overseas investment. To date, nine city commercial banks, including those in Shanghai, Nanjing, Xi'an, Jinan, Beijing, Hangzhou, Nanchong, Tianjin and Ningbo, have introduced strategic investment from overseas.

China Imports to exceed US$1 trillion by 2010 (June 3, 2006) Asia Times Online - China's domestic market is expected to exceed US$4 trillion in size by 2010 and imports to reach more than $1 trillion, according to Bo Xilai, China's minister of commerce.

News for June 2, 2006

2006-06-05T17:00:00.000-04:00

BOC, RBS to issue joint credit cards (June 2, 2006) Shanghai Daily - Bank of China Ltd and Royal Bank of Scotland Group PLC are moving ahead in their credit card joint venture, an executive from the Edinburgh-based company said yesterday, the Associated Press reported.

eBay China says making inroads (June 2, 2006) Reuters - The Chinese unit of online auctioneer eBay Inc. believes it is taking market share from arch-rival Taobao. EBay has been locked in a war of words and business models for much of the last two years with Taobao, a unit of Alibaba, in which Yahoo Inc holds a 40 percent stake.

China to introduce accounting standards (June 2, 2006) Shanghai Daily – China’s listed companies will adopt international accounting standards next year and improve their information disclosure in an effort to clean financial markets and attract more investors.

China to develop, open up Tianjin-based Binhai new area (June 2, 2006) People’s Daily - China's vice premier Zeng Peiyan called for accelerating the development of Binhai new area in Tianjin, a leading port city in north China. The Binhai new area should be turned into an open gateway to China's northern region, a modern manufacturing and research base and an international shipping and logistic center in north China.

China seen rivaling U.S. as world superpower soon (June 2, 2006) International Herald Tribune - The United States will lose its position as the world's undisputed leading power over the next decade and a half, with China emerging as a rival, according to a new survey from Germany's Bertelsmann Foundation. In the survey, based on interviews with 10,250 people worldwide, 57 percent of respondents said they believed that the United States would be a world power in the year 2020, compared to 55 percent who saw China in that role.

China's first IPO since last year's suspension priced at top of indicative range (June 2, 2006) People’s Daily China - CAMC Engineering Co., the first Chinese firm to launch an initial public offering (IPO) after a year's suspension for State share reform, said it has priced its initial public offering at 7.4 yuan (92.5 US cents) per share. The price is at the top end of the price offering range of 6.17 and 7.4 yuan.

New forms of media in vogue in China (June 2, 2006) Asia Times - The "new media" wave has hit China with tsunami force, unleashing a plethora of digital magazines, blogs, podcasters, mobile phone newspapers, and content aggregators. But the problem of financial viability remains as unsolved in China as elsewhere, save for mobile-phone-delivered content.

China's airline transport ranks second worldwide (June 2, 2006) People’s Daily China - In 2005, the total turnover of scheduled flights of Chinese airlines rose 12 percent over the previous year. That pushed China's ranking up from the third to the second, following the USA and outstripping Germany. The figure does not include Hong Kong,, Macao, or Taiwan.

Fusion reactor 'built in China' (June 2, 2006) CNN - Chinese scientists have completed construction of an experimental superconducting fusion reactor that will replicate the same energy generation process that fuels the sun, with tests to begin as early as July.

DaimlerChrysler to boost parts purchases in China (June 2, 2006) Reuters - DaimlerChrysler plans to boost its purchases of China-made auto parts eightfold by 2008, joining the rush for low-cost local content in the fast-growing Chinese market. The company will spend about $840 million buying components in China in 2008, up from the current annual amount of about $100 million.

Chinese government again denies Internet news censorship (June 2, 2006) Interfax China - China's Ministry of Foreign Affairs has again denied allegations of state control of news and information on the Internet. "China is now home to more than 110 million Internet users who are all able to get the information they want via the Internet," Foreign Ministry Spokesperson of China, Liu Jianchao, said during a press briefing on June 1, 2006. According to rough statistics provided by Liu, China has more than 1.3 million online forums which are frequently visited by Chinese netizens. "The government never controls the opinions of Chinese netizens on the Internet."

eBay launches e-training program (June 2, 2006) China Economic Net - US online trading giant eBay's Chinese arm, eBay Eachnet, has launched an international trade training program in Beijing.

News for June 1, 2006

2006-06-05T16:26:00.000-04:00

Dow Chemical invests in Jiangsu (June 1, 2006) China Economic Net - The Dow Chemical Company, a world leader in the chemical industry, has signed a letter of intent with the Zhangjiagang Free Trade Zone to invest an additional US$200 million in the city. The plants are expected to start production by 2008.

US company to provide logistics center for Beijing Olympics (June 1, 2006) China Economic Net - A leading global provider of distribution facilities and services, ProLogis, announced on Wednesday that an industrial park it was developing in China would be used as the primary logistics and distribution center for the 2008 Beijing Olympics.

Bank of China makes strong debut(June 1, 2006) CNN – Bank of China opened higher, up 8.5 percent, while the broader market was down 0.25 percent. By the afternoon, it was up 14 percent to HK$3.37, after going as high as HK$3.40.

China BAK Battery to start trading on Nasdaq (June 1, 2006) China Knowledge - China BAK Battery, Inc., a Lithium-Ion (Li-Ion) battery cell maker, has received approval to list its common stock on the Nasdaq National Market, and its common stock has begun trading on Nasdaq under the ticker symbol "CBAK."

Insider leaks Airbus plans in China (June 1, 2006) Shanghai Daily - European aircraft manufacturer Airbus will establish its first overseas assembly plant on the Chinese mainland. An unnamed project insider said that Tianjin, a northern city in China, has beat three other Chinese cities including, Shanghai, Xi'an and Zhuhai, after a six-month–long competition for the Airbus A320 assembly plant.

Daimler Chrysler stepping up localization in China (June 1, 2006) People’s Daily - German-US auto giant Daimler Chrysler plans to increase its input on China-made auto parts by eight fold over the next two years in a bid to step up localized production in its Chinese joint ventures.

Cell phones set to offer search engine (June 1, 2006) Shanghai Daily - NTT DoCoMo Inc, the world's second-largest cell phone company, may ally with online search engines this year to encourage users to spend more for Internet services, challenging a tie-up struck between KDDI Corp and Google Inc.

Report: China expects 2010 imports to jump (June 1, 2006) China Economic Net - China's commerce minister says the country's imports in 2010 should exceed US$1 trillion amid U.S. pressure for Beijing to cut its growing export surplus.

News for May 31, 2006

2006-06-05T15:15:00.000-04:00

Dell Completes Second High-tech Factory in Xiamen (May 31, 2006) CRIEnglish - Dell, a world personal computer giant, completed the building of its second factory in China, enabling it to double its annual production capacity in the country. The two factories, both in Xiamen, a coastal city in east China's Fujian Province, make China the third largest manufacturing base globally. China is Dell's fifth largest market.

United Tech's Otis sees 2006 China sales up 25 pct (May 31, 2006) Reuters - Otis, the world's top elevator maker, expects unit sales in China to increase 25 percent in 2006, after seeing similar growth last year. China is the largest market in terms of unit sales for Otis, a unit of United.

King & Wood, China's Largest Law Firm, Expands as Rivals Arrive (May 31, 2006) BBC - King & Wood, China's biggest law firm by number of lawyers, wants to hire about 100 more as takeovers and fund raising in the world's fastest-growing major economy surge, attracting overseas rivals.

Bad loans up to US$220 billion (May 31, 2006) China Economic Review - Chinese banks are still “acutely vulnerable” to economic slowdowns, according to Fitch Ratings. The banking system still has about US$476 billion in non-performing and problem loans despite bailouts of the biggest banks. These loans may cost the banks and government US$220 billion.

Rivals fight to bring mobile e-mail to China (May 31, 2006) M&C Tech - The Chinese have cell phones by the hundreds of millions. Now the international telecom companies are hoping to bring a mobile e-mail service to the 400 million mobile users in China, 10 million of who are also potential 3G subscribers.

Mainland, Taiwan to open new direct shipping route (May 31, 2006) China View (Xinhua News Agency) - Passenger ferry service will begin between another pair of Chinese mainland and Taiwan ports on June 8, expanding a limited direct shipping service across the Taiwan Strait. The ferries will operate between Quanzhou of east China's Fujian province and Jinmen of Taiwan.

China sets fines for Net piracy (May 31, 2006) International Herald Tribune - China will impose fines of as much as 100,000 yuan ($12,500) on distributors of illegally copied music, movies and other material over the Internet, a move likely to put pressure on search engines like Baidu.com.

IPR push sees patent applications rise (May 31, 2006) People’s Daily - China has seen a big improvement in intellectual property rights (IPRs) protection, with patent applications increasing by over 20 per cent for five consecutive years, said the State Intellectual Property Office.

Beijing Worried over Automakers' Expansion (May 31, 2006) CRIEnglish - In a bid to clamp down on overcapacity in the automotive industry, Beijing will require car companies to prove consumer demand warrants further investment before approvals are given. The new rules will require automakers' national sales to exceed four-fifths of productive capacity if they want to build additional plants.

News for May 30, 2006

2006-06-05T15:09:00.000-04:00

China to quiz civil servants on their morality (May 30, 2006) Washington Post - China, trying to rein in official corruption which has blossomed alongside 30 years of economic reforms, is to examine civil servants on their morality as well as work performance. Morality would become a "key criterion" when making decisions on promotions, pay rises and rewards, and even punishment.

Charles River Ventures Backs China Digital Media (May 30, 2006) China Venture News - An interview with Bill Tai, the widely respected general partner of Charles River Ventures, initially established in conjunction with the celebrated MIT (Massachusetts Institute of Technology).

China's ports could leave SE Asia's high and dry (May 30, 2006) Asia Times - No discussion of China's tour de force economic performance would be complete without taking a look at its maritime strengths and port development, as a majority of its international trade is carried by sea. China has been ranked as the world's third-largest trading country by the 2005 US-China Business Council Report. Fourteen of the world's top 20 container terminals are Asian-based and an amazing seven of these terminals are in China.

China to ban smoking for duration of Olympics (May 30, 2006) The Guardian - It is going to come as a shock to tens of millions of lungs, but the Chinese government is planning a tobacco-free Olympics when the world's heaviest smoking nation hosts the event in 2008.

Bank of China to offer A-share listing (May 30, 2006) China Economic Review - Bank of China may also offer an A-share listing on the Shanghai stock exchange but the A-share listing is unlikely to affect its Hong Kong H-shares.

Ctrip may snag acquisitions as it branches out in region (May 30, 2006) Shanghai Daily – Ctrip.com, China's biggest online travel agent, may buy companies in Hong Kong, South Korea and across Asia to tap rising spending on international travel by Chinese consumers.

Chinese Entrepreneur Downplays Censorship Problem in China (May 30, 2006) Mediashift - Freedom of speech online is an important ideal, but perhaps we are inserting our own Western societal norms on an Eastern culture that has different needs and desires. And perhaps we aren’t giving enough credit to the Netizens of China to figure out how to get around the censorship of the vaunted Great Firewall of China , the state’s centralized control of Internet content. That’s the thinking of Marcus Xiang , the CEO of PDX.cn , a cell-phone blogging (or “moblogging”) service based in Beijing.

Futures markets may open wider to investors (May 30, 2006) China View (Xinhua News Agency) - The Chinese government plans to open the futures markets to financial institutions and foreign investors while making it easier for domestic firms to hedge in overseas futures markets.

Euro-based mobile unit may get Sino bid (May 30, 2006) Shanghai Daily - Millicom International Cellular SA, an operator of mobile-phone networks in countries including Pakistan and Ghana, said the entire company may be sold. China Mobile Communications Corp, the world's biggest cellular operator by users, may pay US$5.3 billion, or US$48 a share, in cash to buy Millicom.

China's Seaport Throughput Capacity to Grow 80% by 2010 (May 30, 2006) CRIEnglish - Throughput capacity of Chinese seaports will grow more than 80 percent from the current 2.89 billion tons in the next five years. Meanwhile, the annual throughput of Chinese ports, including seaports and river ports, will total 7.2 billion tons by 2010, up from 4.85 billion tons in 2005.

North Star IPO (May 30, 2006) Shanghai Daily - North Star Co, the Hong Kong-listed property arm of Beijing's city government, plans to raise as much as 3.5 billion yuan (US$436 million) in an initial share sale on China's mainland.

Accounting firms reposition for international business (May 30, 2006) China View (Xinhua News Agency) - China's more than 5,000 accounting firms are expected to undergo more market-driven mergers and acquisitions in the coming years in a bid to tackle competition from foreign counterparts. More large-scale and internationalized accounting companies will be formed in China in the future and they should be able to provide a full range of services to domestic businesses as they become increasingly active in international trade and investment.

Sizzling Mercedes-Benz sales (May 30, 2006) Shanghai Daily - of Mercedes-Benz cars on China's mainland and Hong Kong grew 57 percent in the first four months this year.

China's biggest bank may raise 12 bln USD through Hong Kong IPO (May 30, 2006) People’s Daily - Industrial and Commercial Bank of China (ICBC), China's biggest lender in terms of assets, could raise about 12 billion U.S. dollars in an initial public offering ahead of its listing in Hong Kong later this year.

News for May 29, 2006

2006-06-05T14:49:00.000-04:00

GE says China sales could soar (May 29, 2006) Reuters - General Electric Co. said it expects sales in China could double to $10 billion by 2010.

Major Chinese banks post bad loan ratio decline to 8.9 pct (May 29, 2006) China View (Xinhua News Agency) - Major Chinese banks posted an 8.9 percent non-performing loan ratio by April, down sharply from the 17.9 percent reported at the end of 2003, the regulator said Monday. But the figure was still alarmingly high compared with the one to two percent level reported by sophisticated foreign banks. Chinese officials and analysts acknowledge banks piled up a mountain of bad debts due to reckless lending to state-owned enterprises over the past decades.

Wine not safe from counterfeiters (May 29, 2006) China Economic Review - Winemakers have taken significant steps to battle widespread trade in fakes.

GE invests $50m in 'green' China (May 29, 2006) BBC - US industrial giant General Electric has struck a deal with the Chinese government to invest $50m on developing green technologies. GE, which employs 13,000 people in mainland China, said energy efficiency and water filtration were among the projects to be developed.

Lack of cheap labor hits China factories (May 29, 2006) China Economic Review - Officials claim there are some 150 million excess workers hoping for jobs in cities but there are growing signs that the country’s huge labor pool may be shrinking, state media reported.

News for May 28, 2006

2006-06-05T14:48:00.000-04:00

Ten-year-old Asks Three Million Yuan for Her Manuscript (May 28, 2006) The Epoch Times – A young girl set up a stall near the subway exit at the Shenzhen Conference and Exhibition Center, attempting to sell the manuscript of the book she has written. Behind her, a banner read, "Ten-year-old Zhou Yang, Selling Five Manuscripts for Three Million Yuan (US$ 400,000)."

Tough Restructuring Ahead for Agricultural Bank of China (May 28, 2006) Shanghai Daily - As three of China's big four banks came under the spotlight with behemoth IPOs, the last remains saddled with non-performing loans and is still uncertain when restructuring will begin. Beijing-based Agricultural Bank, which owns 12 percent of China's US$4.7 trillion in banking assets, has the worst debt quality and most employees among the big four state-owned lenders.

News for May 27, 2006

2006-06-05T14:32:00.000-04:00

Chinese president calls for improvement of IPR system (May 27, 2006) ) China View (Xinhua News Agency) - China should work out a national Intellectual Property Rights (IPR) strategy backed up by a sound legal and policy system, Chinese President Hu Jintao said in a study meeting. China should cultivate its own copyrighted and patented brands that are IPR protected, improve its IPR legal system to meet international IPR protection requirements and crack down on IPR infringements, said Hu at the meeting.

China may bail out bank with huge funds (May 27, 2006) Shanghai Daily - China’s government may bail out debt-laden Agricultural Bank of China with a huge injection of funds to shore up the state lender's balance sheet in preparation for a market listing, an economic official said.

Bain Capital China to raise sub $1 billion fund next year (May 27, 2006) China, Tech, and Business - Bain Capital LPs were told in their annual meeting that Bain Capital is expected to raise a sub $1 billion China fund in 2007.

News for May 26, 2006

2006-06-05T14:27:00.000-04:00

Citigroup JV - biggest buyout firm China paper company deal (May 26, 2006) China Knowledge - CVC Capital Partners and Citigroup Inc. will invest RMB 5 billion for a 30% controlling stake in Shandong’s Chenming Paper Holdings Ltd. The deal is expected to be China's biggest by a buyout firm. Chenming Paper Holdings is listed on the Shenzhen Stock Exchange.

Chrysler unit will begin production of five models in China (May 26, 2006) Shanghai Daily - Daimler Chrysler AG’s Chrysler unit will begin production of five models in China with Southeast (Fujian) Motor Corp.

China's rising entrepreneurs (May 26, 2006) The Sydney Morning Herald - It isn’t easy to be rich in a communist country. Chen Tianqiao earned his first $US1 billion ($1.3 billion) at age 30, after his Shanda Interactive Entertainment went public on the US Nasdaq stock market and its shares quadrupled within seven months. A year and a half later, $US1 billion of his net worth evaporated after the stock collapsed as competition heated up in online games.

Yanlord plans Singapore IPO (May 26, 2006) China Knowledge - Yanlord Land Group Ltd. on Tuesday launched a road show for its Singapore IPO, with aims to sell 456 million new shares, or about 25% of its enlarged share issue capital.

China's international investment surges (May 26, 2006) China Daily - China's net international investment position (IIP) more than doubled last year, largely as a result of its fast-growing economy and an improved international clearing capacity. China's net IIP, or overseas financial assets and direct investment minus such liabilities, was US$287.5 billion at the end of 2005, surging by 138 per cent from a year earlier, according to figures released yesterday by the country's top foreign exchange body, or State Administration of Foreign Exchange. This is the first time China has published its IIP figures.

Bank of China Facing Financial Crisis (May 26, 2006) The Epoch Times - On May 18th, 2006, Bank of China launched its $9.9 billion Initial Public Offering (IPO) in the Hong Kong Stock Market. However, according to some Chinese economic experts, it indicates the collapsing of China's financial system. The bank hopes to overcome the crisis by raising capital overseas.

Grumpy man on a bus becomes star of the internet (May 26, 2006) The Guardian - The Da Vinci Code may be dominating the box office but one of the most popular movies online is a six-minute film showing a grumpy man scolding a fellow bus passenger in Hong Kong for interrupting his phone call.

China Citic Hires Bankers to Arrange Initial Public Offering (May 26, 2006) Bloomberg - China Citic Bank, the nation's seventh-largest lender, hired securities firms including Citigroup Inc. and HBSC Holdings Plc to help sell as much as $2 billion of stock in Hong Kong, investment bankers competing for the deal said. China Citic, based in Beijing, also retained Lehman Brothers Holdings Inc., China International Capital Corp. and Citic Securities Co. JPMorgan Chase & Co. was hired as financial adviser.

Possible Bail-out of Debt-Ladden Agriculture Bank Being Mulled (May 26, 2006) CRIEnglish Vice-chairman Wang Jianxi, of the Central Huijin Investment Corporation, a major investment arm of the central government, said, "If the Agricultural Bank starts its transformation into a shareholding firm, there are great possibilities for Huijin to pour funds into it." Analysts agree that it would need up to 70 billion U.S. dollars to clear its non-performing loans before it could meet overseas listing standards. Of China's "big four" lenders, only the ABC has yet to begin major reforms carried out by the others with bail-out packages totaling 60 billion from late 2003 until April 2005.

Piracy down in China (May 26, 2006) China Knowledge - The Business Software Alliance has released a report naming China as one of the four countries with the biggest percentage declines in piracy rates, along with Russia, Ukraine and Morocco. The amount of pirated software sold in China declined four percentage points to 86% of total software sales from 90% last year. Lost sales due to piracy in China totaled US$3.9 billion, putting it in second place in dollar losses after France with US$3.2 billion.

China Center US landmark for Chinese firms (May 26, 2006) Chinanews - 7 World Trade Center announced its re-opening on May 23 on the site of New York WTC which was destroyed during the 9/11 terrorist attacks. It is the first building to be completed at the former address of WTC. Beijing Vantone Real Estate has rented the top five floors to set up "China Center" and started inviting investments. The project is scheduled to formally commence business and start operation early next year and welcome the entry of Chinese enterprises next June.

AIG approved to sell group insurance in China (May 26, 2006) Reuters - American International Group Inc. said on Friday that one of its units had received approval from local Chinese regulators to provide group insurance there, as the world's largest insurer makes a push to boost its business in the world's most populous nation. Earlier this month AIG said it had received approval to sell life insurance in two of China's top three provinces in terms of economic activity. It will also sell property casualty insurance in one of them. AIG, which has roots in China from contacts by former AIG Chairman and Chief Executive Maurice "Hank" Greenberg, is the only foreign insurer in China that doesn't have a domestic partner.

China Fashion looking to raise S$1.8 mln on SGX (May 26, 2006) China Knowledge - China Fashion Holdings Ltd. has lodged a proposed placement of 8.5 million shares on the Singapore Stock Exchange. The offer will represent 8.26% of the company’s issued and paid-up share capital.

Sportswear maker to go international (May 26, 2006) China View (Xinhua News Agency) - Chinese sportswear giant Li-Ning hopes to make inroads into international markets by 2008 when Beijing stages the Olympic games, according to a top company executive. Li-Ning hopes to raise its international sales from the current 1.3 per cent of total turnover to 20 per cent by 2018, said company spokesman Zhang Xiaoyan. "To become one of the world's top-five sporting goods companies, Li-Ning must focus on European and American markets," he said.

International expo opens in SW China city (May 26, 2006) People's Daily Online - An international economy and trade fair opened Thursday in Chengdu, capital of southwest China's Sichuan Province, attracting businessmen from more than 50 countries and regions. With an exhibited area of 60,000 square meters, the four-day fair has attracted 15,000 domestic business people, and 3,000 merchants from 50 countries and regions, such as Russia, the United States, Germany and Vietnam.

Paper maker sells large A-share stake (May 26, 2006) China Economic Review - Shenzhen-listed paper maker will sell a 30% stake to CVC Asia Pacific in a US$623-million deal, one of the biggest private equity investments in China.

Banks told to curb house loans (May 26, 2006) China View (Xinhua News Agency) - China's banking regulatory body has urged commercial banks to take measures to curb the increasing level of lending in the real estate sector. China needs to significantly increase down payments for mortgages on expensive homes and investment properties as part of measures to rein in bank lending, according to Liu Mingkang, chairman of China Banking Regulatory Commission. "Commercial banks need to keep a close watch on borrowers' repayment ability and their credit status."

China, U.S. launches IPR protection cooperation program (May 26, 2006) People's Daily Online - China General Administration of Customs and U.S. Trade and Development Agency signed a cooperation agreement on Intellectual Property Right (IPR) protection in Beijing Thursday. According to the program, IPR protection experts from two countries will introduce to China's customs staff the international customs rules and regulations, rules and laws concerning IPR protection of China and US,IPR professional knowledge, and others. Delegates of U.S.'s commercial field will also have chance to hold talks with Chinese customs staff to exchange their views on IPR protection.

US exec leaves bank after 18 months (May 26, 2006) Shanghai Daily – An American executive at Bank of China Ltd, the nation's No. 2 state-owned commercial bank, is stepping down after a pioneering 18-month stint as one of the country's highest-ranking foreign bank managers, according to the bank. Lonnie Dounn, 53, submitted his resignation in April as the bank's credit officer and is due to leave in September, the lender said in a prospectus for its initial public offering in Hong Kong. It didn't give a reason for Dounn's departure.

News for May 25, 2006

2006-06-05T14:09:00.000-04:00

S&P: ratings on Bank of China not to be affected by global IPO (May 25, 2006) People's Daily Online - Standard & Poor's Ratings Services Thursday said that its ratings on Bank of China Ltd would not be affected by the bank's global Initial Public Offering (IPO). The international rating service said, the impact of the offering on the bank's overall credit profile has already been factored into them. The IPO will strengthen BOC's capitalization significantly, raising about 9.8 billion U.S. dollars in equity through the issue of new common shares.

China & India: Emerging Giants (May 25, 2006) BBC - In depth reporting on how the economic growth in China and India is changing these countries into powerful world forces.

US$623m theme park approved in Tianjin (May 25, 2006) Shanghai Daily - China has approved the construction of a 5 billion yuan (US$623 million) theme park in Tianjin using licensed characters from Viacom Inc's Paramount Pictures films and Nickelodeon children's network. Viacom, which won't invest in the park, will receive licensing fees from the Tianjin Economic Development Authority.

China to formulate policy for the opening up of the financial industry (May 25, 2006) Chinanews - People's Bank of China (PBC) Vice Governor Su Ning said on May 23 that after China entered the World Trade Organization, the policy for the opening up of the financial industry to foreigners would be more transparent, and the liberalization process would be more stable and systematic. China has not only fulfilled its commitment to lift geographical and business restrictions on foreign-funded financial institutions, but has also further expanded the scope of opening up its financial market.

First IPO in one year debuts on domestic market (May 25, 2006) Asia Times Online - International engineering contractor China CAMC Engineering Co Ltd made public an IPO prospectus on May 25, marking the resumption of IPOs on China's domestic stock markets after one year of suspension to facilitate the ongoing split-share structure reform, which many analysts say has been the biggest historic problem hindering the healthy development of the equity markets in China. CAMC Engineering is to make an initial public offering (IPO) of 60 million shares on the Shenzhen Stock Exchange on June 5. It has been revealed that IPOs will also make their debut on the Shanghai Stock Exchange next week.

Partners Sought (May 25, 2006) Shanghai Daily - Citigroup, Inc. is seeking to include China Life Insurance Co and other Chinese companies in its bid for a controlling stake in Guangdong Development Bank.

China to establish postal savings bank (May 25, 2006) People's Daily Online - China's State Council has given the nod to a new Chinese bank to be known as the National Postal Savings Bank, which will be based on the existing savings deposit business at far-flung postal stations, a senior banking official revealed Wednesday. Postal savings services were kicked off in 1986 with the establishment of the China Post Savings and Remittance Bureau (CPSRB). By the end of 2005, CPSRB had a deposit balance of 1.3 trillion yuan (about 162 billion U.S. dollars), making it the fifth largest savings institution just after the "Big Four" state banks.

China's construction gold rush (May 25, 2006) Asia Times Online - Rapid development has created gold-rush conditions in China's construction industry, but foreign companies that have broken ground in the normally profitable market sometimes find it hard to sell value-added equipment and question some of the regulations. Many foreign firms are just starting out. "This is a huge market, but everybody knows everybody," said Alex Hau, Asian division director with the US construction equipment firm Costex Tractor Parts. "You could have another 50 players here and absorb them easily."

China Cellphone Giant Ready to Bid for Emerging Markets (May 25, 2006) New York Times - A Chinese company is poised to make one of the country's largest foreign purchases, a deal worth approximately $5 billion for Millicom International Cellular, a Luxembourg-based mobile phone company with far-flung operations. The state-controlled China Mobile Communications, already the owner of the world's largest cellphone company by subscribers, is close to concluding an agreement for Millicom, which put itself on the block in January.

Chinese Firms Account for 14% of Firms Listed in Singapore (May 25, 2006) CRIEnglish - Lawrence Wong, senior vice-president of the exchange, said the Chinese companies listed on the SGX have understood and accepted Singapore's capital market and used it as a platform for international finance. The Singapore market and investors are fond of Chinese companies and call them the "dragon chips."

State opens bond sales to smaller brokers (May 25, 2006) Shanghai Daily - China’s central bank has allowed brokers and city-level commercial banks to manage sales of short-term corporate bills, a move to let more financial firms tap a lucrative business currently dominated by big lenders. Brokerages that want to underwrite debt with a maturity of one year or less must have total assets of 5 billion yuan (US$625 million) and have posted a net profit of 400 million yuan in the latest fiscal year, the People Bank's of China said in a statement on its Website yesterday.

Regulator approves foreign bank branches in northeast China (May 25, 2006) China View (Xinhua News Agency) - Sixteen foreign banks have received approval to offer financial services in northeast China, said the China Banking Regulatory Commission in a statement on Thursday. Nine banks have been allowed to set up branches and seven others have been given the green light to have representative offices in northeast China.

News for May 24, 2006

2006-06-05T13:59:00.001-04:00

Plunging Tiger, Booming Dragon? Don't Panic (May 24, 2006) Bloomberg - Indian stocks, among Asia's star performers, are plunging, while Chinese shares, those perennial laggards, are surging. It's a startling reversal of fortune by Asia's sexiest markets, and raises a question: Are investors really warming to the financial casinos that pass for Chinese equity markets, and throwing in the towel on India?

Disney to tap China’s online game market (May 24, 2006) Financial Times - Walt Disney is to launch a casual online game in China through a tie-up with Nasdaq-listed local internet company Shanda Interactive Entertainment. Shanda, which has long flaunted its own ambitions to become "China's Disney", will develop and distribute the planned game, which is to be launched in early 2007, the companies said. The game will be based on Disney's characters and will help the US company to raise its online profile in what is fast-growing but tightly regulated media market.

Shadow of corruption lurks behind investors as they queue for $10bn Chinese float (May 24, 2006) The Guardian – It has been billed as the world's biggest share offering in six years, a doorway into the fastest growing asset market on the planet and an opportunity to grab a piece of China's economic miracle. But when the Bank of China makes its US$9.9bn debut on the Hong Kong stock exchange next Thursday, investors will have to ask whether the new bullishness about China's financial system can erase old doubts about corruption, nonperforming loans and economic nationalism.

MetLife chairman visits Beijing (May 24, 2006) China Daily - MetLife Inc chairman, president and CEO Robert Henrikson arrived in Beijing on Saturday to attend the seventh International Business Leaders Advisory Council for the Mayor of Beijing. This is the first time that Henrikson has visited China since he took office as chairman of the largest life insurer in the United States on April 25, 2006. "China is a very important market for MetLife in the Asia-Pacific region," said Henrikson during the meeting in Beijing on Monday.

Changzhou puts itself on investment map (May 24, 2006) Asia Times Online - Sometimes, a decision on where to invest in China might be accidental or the result of a very formalized evaluation process. Why are foreign companies finding their way to the ancient city of Changzhou in Jiangsu province on the Yangtze River Delta? There are as many reasons as there are firms - more than 4,100 from all over the world, with more than 600 from the United States alone.

China says bottoms up to wine (May 24, 2006) Shanghai Daily – China consumes the largest amount of wine in Asia and its market has great growth potential due to relaxed import duties and increased exposure to quality wines, an organizer of a major wine convention said yesterday. "It's a market that's quite new. It has great potential, and will grow more," said Dominique Heriard Dubreuil, chairwoman of the three-day Vinexpo Asia-Pacific, which started yesterday in Hong Kong.

Georgia tourism impact up $2 billion last year (May 24, 2006) Atlanta Business Chronicle - The total economic impact of visitors to Georgia grew to $28.2 billion in 2005 -- $2 billion more than in 2004, according to the annual economic report of the Travel Industry Association of America.

Starwood plans to double its hotels in China (May 24, 2006) China View (Xinhua News Agency) - Starwood Hotels & Resorts Worldwide Inc, the first global hotel manager to enter China, plans to double the number of properties it manages in the country by 2008 to tap a tourism boom and wealthier citizens. The New York-based hotel group will sign another 50 contracts in three years, boosting the total number of properties under its management to 100 in China, said Miguel Ko, Starwood's Asia-Pacific president.

Bank of China raises $9.7 billion in IPO (May 24, 2006) Reuters - Bank of China, the country's second-biggest lender, raised US$9.7 billion after pricing its initial public offering near the top of its indicated range in the world's sixth-largest IPO. The offering, which was heavily oversubscribed as investors scramble to tap China's surging economic growth, will rise to fourth in the all-time IPO rankings if, as expected, Bank of China exercises an over allotment option that will expand the deal to US$11.1 billion.

China to overtake US as top world power (May 24, 2006) Tapei Times - China will replace the US as the most dominant power in world politics in the latter part of this century, a US professor of international politics said yesterday. Jacek Kugler of the School of Politics and Economics at the Claremont Graduate University made the remarks during a book launch held in Taipei yesterday. Kugler is one of the authors of Preventing a Perfect Storm in the Taiwan Strait: A Power Transition Perspective.

China Life joins Guangdong Development Bank bid (May 24, 2006) China Economic Review - A new player in the Citigroup-led bid for an 85% stake in the Guangdong Development Bank may face some regulatory hurdles. China Life Insurance has joined the bid and may help deal with Beijing’s refusal to raise caps on foreign investment on domestic banks. However, the insurance group's participation may face regulatory problems, the South China Morning Post reported, because the market is not yet used to the idea of financial firms playing more than one role. China Life, the leading life insurer in China, may use its parent firm to invest. The bid from the Citigroup-led group totalled more than US$3 billion for the stake in the 11th largest commercial lender.

Money brokers eye China (May 24, 2006) China Economic Review - Leading interdealer brokers, the middlemen in currency and fixed-income markets, are looking to establish themselves in what they believe could become a lucrative China market.

SMEs to go public on Shenzhen board (May 24, 2006) China View (Xinhua News Agency) - The Shenzhen Small and Medium-sized Enterprises (SME) Board is expected to list the first batch of companies since the government lifted a year-long ban on initial public offerings (IPOs). Sources close to the securities regulator said that five SMEs including Hengdian Group DMEGC Magnetics Ltd Co, Shenzhen Tongzhou Electronic Ltd Co and China CAMC Engineering Co Ltd have handed their IPO plans to the China Securities Regulatory Commission (CSRC).

China Laptop sales soar in first quarter (May 24, 2006) China View (Xinhua News Agency) - A total of 922,200 laptops were sold in China in the first quarter of this year, up 38.9 percent over last year, Wednesday's China Securities Journal reports.

News for May 23, 2006

2006-06-05T13:59:00.000-04:00

How Lenovo lost after U.S. 'security' card was played (May 23, 2006) International Herald Tribune - To make a long story short, an influential member of the U.S. Congress played the China card, and the State Department folded. It was a drama that reached a conclusion late last week when the State Department, responding to fears that its security might be breached by a secretly placed device or hidden software, agreed to keep personal computers made by the Chinese company Lenovo off networks that handle its classified government messages and documents. The damage to Lenovo is more to its reputation than to its pocketbook. The State Department will use the 16,000 desktop computers it purchased from Lenovo, just not on the computer networks that carry sensitive intelligence.

US defends curbs on high tech exports to China (May 23, 2006) Financial Times - The US says a planned expansion of its controls on the export of high-technology goods to China will not be a burden for US companies, and has dismissed claims that its restrictions on high-tech exports are fuelling the trade deficit with China. David McCormick, US undersecretary of commerce for industry and security, said in an interview with the Financial Times that the expanded controls would be handled in “in a very targeted way”, and that the department was certain they would “not place a burden on industry.”

Agricultural Bank of China quashes break-up rumors (May 23, 2006) China View (Xinhua News Agency) - The giant, debt-laden Agricultural Bank of China on Tuesday announced it will go public as a whole, quashing rumors that it will sell its Beijing headquarters and become a group of provincial-level banks.

China: Embrace the competition (May 23, 2006) Asia Times Online - Competition from China is only going to intensify, so the developed West needs to stop whining and embrace it. While the United States and Europe are addressing China's rise differently, neither has any alternative but to take up this challenge.

U.S. may ease China export rules (May 23, 2006) CNN - The United States may ease regulations on American technology exported to China if the importers can show they are not using it for military purposes.

Microsoft signs up to China again (May 23, 2006) People's Daily Online - US software giant Microsoft has made another multi-million dollar commitment to the development of the Chinese software industry as it continues to enjoy a honeymoon period in China.

PC-maker Dell sees huge Chinese mainland growth (May 23, 2006) People's Daily Online - The world's No 1 PC-maker Dell Inc is even more sure its direct business model fits China now it is reporting solid growth in Chinese markets in the first quarter of the fiscal year from February 2006.

Every 1,000 Chinese to own 40 cars in 2010 (May 23, 2006) Shanghai Daily - China’s car ownership ratio will rise to 40 cars for every 1,000 citizens by 2010, compared with the current 24.

-ICBC's IPO set for 2006 (May 23, 2006) China Economic Review - China’s largest bank, Industrial and Commercial Bank of China, with 18,000 outlets and 100 million customers, will sell shares to the public this year following the successful IPOs by the China Construction Bank and the Bank of China.

News for May 22, 2006

2006-06-05T13:31:00.000-04:00

China 2026: What will life be like? (May 22, 2006) BBC News - In the past 20 years, Shanghai has thrown up skyscrapers, bridges and highways where none existed before. Twenty years of super-fast economic growth have left China transformed. But where do we go from here? What will China be like in 20 years time?

China looks differently at intellectual property (May 22, 2006) Puget Sound Business Journal (Seattle) - As the recent visit to Seattle by China's President Hu Jintao underscored, China is a market that presents a huge opportunity for U.S. technology companies. Yet, as big as the opportunity is, penetrating that market while protecting intellectual property rights presents an equally large challenge. Protecting intellectual property continues to be a major issue for many companies considering commercial opportunities in China, despite recent encouraging developments against software piracy, such as Beijing's directive that Chinese computer makers pre-install software on computers.

The Port of Savannah (Georgia’s port) continues to grow (May 22, 2006) WSAV News 3 online - In April, the Port of Savannah handled 173,415 containers during the month of April, a 12.7% more than the same period a year ago. Over a ten-month period, the Port has handled almost 1.7 million containers, up 15.4%.

Move to ban overseas grip in SOEs to keep control (May 22, 2006) Shanghai Daily - China intends to enhance scrutiny over foreign investment in state-held equities at listed firms even as it pushes forward reforms with overseas help while ensuring it does not lose control in pivotal sectors.

Cement sector set to grow steadily (May 22, 2006) Shanghai Daily - China ‘s cement industry will likely see a steady recovery following a consolidation that will close smaller inefficient firms while a booming economy will spur domestic demand, Morgan Stanley said.

Ebay China and Taobao.com have started a war on a new battlefield (May 22, 2006) CRIEnglish.com - Ebay China and Taobao.com have expanded their intense competition from the customer-to-customer market to the business-to-customer market.

China's software outsourcing market reached RMB 2.59bln in Q1 (May 22, 2006) China Knowledge – The market size of China's software outsourcing services reached RMB 2.592 billion in the first quarter of 2006, increasing by 43.9% over the first quarter of 2005 and 2.1% over the fourth quarter of 2005, said IT research firm Analysys in a report.

China Citic Bank to name IPO participants (May 22, 2006) China Economic Review - Citigroup, Lehman Brothers and HSBC have been tapped to participate in a US$1 billion initial public offering by China Citic Bank, the seventh-largest commercial lender on the mainland.

China to be biggest economy by 2050 (May 22, 2006) China View (Xinhua News Agency) - As a major player on everyone's lips, China, the world's fastest-growing economy, is set to overtake the United States as the biggest economy globally by 2050, according to a PricewaterhouseCoopers report.

Shenergy given nod to issue additional shares (May 22, 2006) China View (Xinhua News Agency) - Shanghai-based power supplier, Shenergy Co. has received regulatory approval to issue up to 200 million additional shares for potential acquisitions and to boost generating capacity and, as a result will become one of the first listed companies given the nod by the China Securities Regulatory Commission to raise capital after the lifting of a one-year freeze on stock sales.

News for May 21, 2006

2006-06-05T13:25:00.000-04:00

China Opens Up 921 Cultural Projects (May 21, 2006) CRIEnglish.com – China on Saturday opened up 921 cultural projects with a total value of about 70 billion yuan (8.75 billion U.S. dollars) in a hope to draw investment from both home and abroad. The projects cover seven fields, such as publishing, movie and TV, entertainment, industrial arts and cultural tourism, involving 20 provinces, municipalities and autonomous regions.

Charles River VC invests in Beijing-based Browser (May 21, 2006) ChinaVentureNews - Charles River Ventures recently confirmed that they are leading an investment in Beijing-based Maxthon, the originators of the Maxthon Browser, which has been downloaded more than 55 million times since 2003.

China's mobile users reach 416 million (May 21, 2006) China View (Xinhua News Agency) - The number of mobile phone subscribers in China hit a record 416 million at the end of April.

News for May 20, 2006

2006-06-05T13:24:00.000-04:00

China seeks to become world's printing giant (May 20, 2006) China View (Xinhua News Agency) - China, the inventor of movable-type printing in the 11th century, will intensively develop its printing industry in the upcoming five years, but with a moderate pace.

News for May 19, 2006

2006-06-05T13:21:00.000-04:00

Chinese garden first step in themed development (May 19, 2006) The Atlanta Journal-Constitution - A delegation from Suzhou, China is expected to visit Gwinnett next week and donate $3 million in materials for a classical Chinese garden near Atlanta that is part of an ambitious plan to build a Chinatown from scratch.

Six Chinese brands make global top 500 list (May 19, 2006) China Economic Net - Six Chinese name brands including Haier, Lenovo, CCTV, Changhong, China Mobile and China Railway Engineering Corporation (CREC) made the recently issued list of the World's 500 Most Influential Brands.

China can produce 400 million mobile phones a year (May 19, 2006) People’s Daily Online - China says that it is capable of manufacturing 400 million mobile phones a year, accounting for 40 percent of the global total.

China's trade union calls for minimum wage boost (May 19, 2006) China View (Xinhua News Agency) - The All China Federation of Trade Unions has called on provincial governments to raise their legal minimum wage amid concerns the real value of the minimum wage is slipping.

A slice of China comes to city's Portland neighborhood (May 19, 2006) Business First of Louisville - Although it is a bustling area with more than 2 million people and many natural resources, most Louisvillians are unfamiliar with the Yanbian Yanji region of China. But on Tuesday, government and business delegates of Yanji City were in Louisville to celebrate the opening of the Yanbian Yanji Trade Office at 1416 Lytle St., in the Portland neighborhood.

Deal offers power gear to plant (May 19, 2006) Shanghai Daily - Shanghai Electric Group Co, China's largest power generation equipment maker, tied up with Caterpillar Corp to jointly provide equipment for the world's largest gas-generated power plant in Shanxi Province.

First quarter ad spending jumps (May 19, 2006) China Economic Review - Advertisers spent US$10.3 billion in the Chinese media market in the first quarter, up 25% from a year earlier.

Reports: Anheuser-Busch courting another China brewer (May 19, 2006) St. Louis Business Journal - Anheuser-Busch Cos. Inc. is reportedly in talks to buy a stake in Henan Jinxing Beer Group, China's fourth-largest brewer, according to the Chinese newspapers 21st Century Business Herald and the Shanghai Daily News. Several news outlets reported in October 2004 that Anheuser-Busch was considering a $1 billion stake in Jinxing Beer. Steven Burrows, president and chief executive of Anheuser-Busch's international operations, denied at the time that the two companies were engaged in talks.

News for May 18, 2006

2006-06-05T13:18:00.001-04:00

China Vanke, Property Stocks Fall on Plan to Cool Home Prices (May 18, 2006) Bloomberg.com - China’s announcement that it will step up efforts to cool surging home prices has cooled down the stock of Chinese property developers.

BOC IPO a big goldmine for Goldman, UBS (May 18, 2006) China View (Xinhua News Agency) - Goldman Sachs and UBS will split the lion's share of roughly US$250 million worth of fees for the US$9.8 billion initial public offering of Bank of China.

Institutions drawn to BOC IPO (May 18, 2006) China Economic Review - The portion of Bank of China’s initial public offering open to institutional investors is five to six times oversubscribed.
China lifts IPO ban, implements new rules (May 18, 2006) China Knowledge - China’s year-long ban on IPOs has been lifted and companies can start applying for IPOs.

China Mobile Says It's Talking to Google (May 18, 2006) BusinessWeek Online - China Mobile (Hong Kong) Ltd., China's largest cell-phone carrier by subscribers, said Thursday it's in talks with Google Inc. to launch an Internet search engine for mobile services in China.

Yum Brands to open restaurants in China (May 18, 2006) Seattle Post-Intelligencer - Yum Brands Inc., the parent of fast food chains KFC, Taco Bell and Pizza Hut, plans to open at least 400 restaurants in China, 700 in its international division.

News for May 17, 2006

2006-06-05T13:18:00.000-04:00

China is lynchpin for UPS international growth (May 17, 2006) The Atlanta Journal-Constitution - Operations are growing most rapidly in China, where UPS paid $100 million last year to run its own enterprise, and it's quickly ramped up more than 75 of its own brown-logo facilities there.

Greater China IPOs surpass EU, US (May 17, 2006) Asia Times Online - With global investors eager to take advantage of the Greater China growth story, the average take of new initial public offerings in the region now exceeds that of IPOs in the United States and Europe, according to the accounting firm PricewaterhouseCoopers.

Invista plans to invest at least US$300m (May 17, 2006) Shanghai Daily - Integrated fibers and polymers manufacturer Invista (based in Wichita, Kansas), which owns the Lycra brand, plans to invest at least US$300 million in the next six months on China's mainland, according to the company's chief executive officer. Invista was formerly a textiles subsidiary of chemical maker DuPont Co before it was sold to privately held company Koch Industries in 2004.

Small steps in a long fight against piracy (May 17, 2006) International Herald Tribune - Analysis of the effect of Beijing’s announcement that local computer makers must ship all their products with licensed operating systems installed.

China's Alibaba targets search market, eyes IPO (May 17, 2006) Reuters - China's Alibaba.com (whose biggest shareholder is Yahoo Inc.), aims to hold an initial public offering, but has no timetable yet for listing its shares.

Next Wave of Camera-Wielding Tourists Is From China (May 17, 2006) New York Times - For the first time in history, large numbers of Chinese are leaving their country as tourists, resulting in an unparalleled explosion in Chinese travel.

News for May 16, 2006

2006-06-05T13:11:00.000-04:00

China is world's leading investor in renewable energy (May 16, 2006) People's Daily Online - China has become the top investor in renewable energy in the world, experts said a senior research fellow with the U.S.-based Worldwatch.

UK to train top accountants (May 16, 2006) China Economic Review - China is tackling its shortage of professional accountants by enlisting a the UK's professional accountancy body to train the best students to international standards.

US firms optimistic about future (May 16, 2006) People's Daily Online - 91% of US companies operating surveyed are largely optimistic about their future in China, despite certain uncertainties in Sino-US trade relations, according to a report issued by the American Chamber of Commerce in China (AmCham-China).

News for May 15, 2006

2006-06-05T12:59:00.000-04:00

Microsoft launches technology center in Guangzhou (May 15, 2006) China View (Xinhua News Agency ) - Microsoft launched a technology center in China's southern coastal city of Guangzhou on Monday which aims to promote the advance of information technology (IT) in China through cooperation with local software developers.

News for May 13, 2006

2006-06-05T12:57:00.000-04:00

PPG wants to acquire companies in Asia (May 13, 2006) Shanghai Daily - US chemicals company PPG Industries said it would like to expand via acquisitions in China and Asia.

Global luxury brand to expand business in China (May 13, 2006) China View (Xinhua News Agency ) - The world's leading luxury brand, Louis Vuitton Malletier, will open three new stores in China this year.

News for May 12, 2006

2006-06-05T12:49:00.000-04:00

BlackBerry E-Mail Service to Be Offered in China (May 12, 2006) New York Times - Research in Motion has announced that it would introduce its BlackBerry wireless e-mail service in China through its joint venture with China Mobile.

Best Buy to buy majority stake in China retailer (May 12, 2006) Reuters - US Consumer electronics retailer Best Buy Co. Inc. said on Friday it would acquire a majority stake in a Chinese appliance retailer Jiangsu Five Star Appliance Co. Ltd. for $180 million, giving it a foothold in a market dominated by local players.

Carlyle steps into wood flooring market (May 12, 2006) China Daily - The Carlyle Group, one of the world's largest private equity firms, has announced it will spend 230 million yuan (US$27.5 million) buying shares in Shanghai Anxin Flooring Co Ltd, China's largest manufacturer and distributor of solid wood flooring.

HP China to hire over 1,000, biggest ever (May 12, 2006) People's Daily Online - Hewlett-Packard (HP), U.S. technology giant, plans to recruit more than 1,000 workers on the Chinese mainland by the end of this year.

News for May 11, 2006

2006-06-05T12:26:00.000-04:00

China May Draw $6 Billion in Private Equity in 2006 (May 11, 2006) Bloomberg.com - China may attract at least $6 billion in private-equity investments this year as buyout firms raise bets on economic growth and a rebound in stocks lets companies realize profits.

News for May 10, 2006

2006-06-05T10:57:00.000-04:00

Yangtze River Delta uses nearly half of China's foreign capital (May 10, 2006) People's Daily Online - Urban centers along the Yangtze River Delta, one of China's three major city clusters, has absorbed nearly half of the country's total foreign capital.