Monday, December 31, 2007

Chinese School - European aviation suppliers set sights on China

?  ?

BIZCHINA / Center

European aviation suppliers set sights on China

By Lu Haoting (China Daily)
Updated: 2007-09-18 09:46

The Airbus booth at Aeromart Beijing. More than 150 aviation suppliers,
most of them SMEs, attended the two-day convention yesterday, hosted by
China for the first time. Aeromart has been held for 12 years in
Toulouse, France. [China Daily]?

European small and medium-sized enterprises (SMEs) are trying to get a
share of China's aviation and aerospace industry, as the world's
second-largest air transport market becomes a battleground for large
multinationals.

More than 150 aviation suppliers, mostly small and medium-sized
enterprises, attended yesterday's Aeromart Beijing. It was the first time
the convention, which has been held for 12 years in Toulouse, France, was
hosted in China. The two-day event was sponsored by Airbus, China
Aviation Industry Corp I (AVIC I) and AVIC II.

"Airbus wants to help Tianjin develop its aeronautical activities not
only with the A320 final assembly line, but also by bringing good
companies to Tianjin for development," said Marc Bertiaux, Airbus
vice-president for industrial cooperation and partnership with China.

As China's fleet numbers increase, there is also a growing after-sales
market for foreign companies to support Chinese airlines by providing
maintenance, repair and consulting services in the country, said Bertiaux.

About 60 percent of the foreign companies attending the event are
suppliers to Airbus.

Some of them will visit the Airbus A320 final assembly line site in
Tianjin on Thursday. The final assembly line, Airbus' first outside
Europe, is now under construction. It will start assembling the A320
family jet next summer and will deliver the first aircraft in the first
half of 2009.

Around 70 Chinese companies, mostly subsidiaries of AVIC I and AVIC II,
also attended the event.

"Having established stable partnerships with large companies such as
Airbus and Boeing, we want to promote cooperation between our
subsidiaries and SMEs in Europe," said Chen Guanjun, vice-president of
AVIC I's department of marketing and international cooperation.

LATecis, a French supplier to Airbus, plans to manufacture jigs and tools
for the Tianjin A320 final assembly line in the northern coastal city,
said Jacques Smeyers, LATecis chairman, at the event.

The company will sign a contract on Wednesday with Chinese manufacturer
Tianjin Saixiang Technology (TST) Co Ltd. TST will manufacture the jigs
and tools designed by LATecis.

"There is a possibility for us to increase our presence in China, maybe
by starting a joint venture. But as an SME we have to wait so that we can
better understand how things work in China. We are in the observation
phase," Smeyers said.

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Learn Mandarin online - China, US sign energy accord

?  ?

BIZCHINA / Center

China, US sign energy accord

(China Daily)
Updated: 2007-09-17 08:55

Energy officials from China and the United States signed a memorandum of
understanding (MOU)?last weekend to cooperate on increasing energy
efficiency in China's industrial sector, which accounts for 70 percent of
the country's energy demand.

Karen Harbert, assistant secretary for policy and international affairs
of the US Department of Energy (DOE), and Chen Deming, vice-minister of
the National Development and Reform Commission, signed the agreement at a
meeting in San Francisco, the China News Service reported.

The MOU followed discussions this week at the third China-US Energy
Policy Dialogue, where the two sides agreed to jointly conduct audits to
increase national, regional and local energy efficiency. Teams from each
country will conduct joint audits of as many as 12 facilities from "The
Top 1,000 Energy Enterprises in China".

"This agreement signifies the importance of our strategic energy and
economic cooperation with China," Harbert was quoted as saying.

As global energy use continues to rapidly increase, the US is working to
identify ways to increase industrial energy efficiency both domestically
and across the globe."

Harbert said the MOU could serve as a conduit for American companies to
export environment-friendly US-made equipment and services to China.

"Our US industry has significant expertise and products that can improve
energy efficiency in China," she said.

The MOU signifies the intention of the two governments to promote energy
efficiency in energy-intensive factories, which will reduce greenhouse
gas emissions, the two officials said.

The DOE will provide tools to conduct the plant audits and train factory
personnel on plant auditing techniques.

The DOE will then conduct a comparison study of these Chinese enterprises
and US manufacturing plants to identify differences in best practices.

The DOE intends to host training sessions in the United States to
familiarize Chinese officials with US laws, policies, procedures and
technologies and best practices involving energy use. Demonstrations of
efficient US-made boilers, fired heaters and combined heat and power
units will be part of the training.

The signing of the MOU is the latest addition to a series of bilateral
and multilateral partnerships aimed at increasing energy efficiency,
reducing greenhouse gas emissions and removing barriers to private
investment in clean energy technologies.

These partnerships include the US-China Strategic Economic Dialogue, the
US-China Oil and Gas Industry Forum, the Carbon Sequestration Leadership
Forum and the International Thermonuclear Experimental Reactor.

The DOE does similar energy audits at home, working with US businesses
through a program called Save Energy Now Assessments to assess energy use
and devise strategies for savings.

Since 2006, DOE officials said, the agency has conducted 344 industrial
energy assessments, identifying potential energy cost savings of more
than US$585 million per year. The DOE said that when these improvements
are fully implemented, the greenhouse gas emissions savings will be
equivalent to removing nearly 850,000 vehicles from the road each year.

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Learn mandarin - PICC-led consortium to insure?ethene project

?  ?

BIZCHINA / China Insurance

PICC-led consortium to insure?ethene project

By Hao Zhou (chinadaily.com.cn)
Updated: 2007-09-14 09:43

Related publication:

Related readings:
?Zurich banks on insurance market
?CIRC mulls rules for pension insurance management
?Regulators plan environmental liability insurance

PICC Property & Casualty Insurance Company and another four property
insurers have inked a contract with Sinopec's Fujian Refining and
Petrochemical Co Ltd to insure its ethene project last week, the China
Insurance News reported.

The insured amount will top 20 billion yuan (US$2.66 billion), making it
the largest petrochemical project insurance in China this year. PICC
Property insured the biggest stake, 40 percent, while the other 60
percent was partaken by China Pacific Property Insurance, Ping An
Property and Casualty Insurance, Huatai Insurance, and Yongcheng Property
Insurance.

The ethene project of Fujian Refining and Petrochemical Company is also
backed by Exxon Mobil (China) Corp and Saudi Arabian Oil Company, with a
total investment of more than 35 billion yuan. The project was launched
last year and is scheduled for completion in 2009.

...

The full text is available in the?China Insurance.

?

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Chinese Online Class - 9.5 million sit college exam this year

CHINA / National

9.5 million sit college exam this year
By Zhu Zhe (China Daily)
Updated: 2006-06-07 05:52

Today's college entrance exam is often likened to thousands of people and
horses trying to cross a narrow footbridge.

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.

Students smile when they went to schools to familiarize themselves with
the test rooms in Nanjing, Jiangsu Province June 6, 2006. [newsphoto]

With the rest of their lives ahead of them, it's a tense day. And one
that 9.5 million families have been building up to.

Concerned parents will have taken time off work to cook for their
revising children. They'll have mapped out the route to the exam hall,
booked hotel rooms nearby and looked out cabs with lucky number plates.

Teachers have been busy answering last-minute queries, and many students
will have suffered sleepless nights as tension builds towards the big day.

But not everyone is that nervous. Eighteen-year-old Kong Lingqiang turned
up at the Dongdan Sports Centre in central Beijing yesterday afternoon,
basketball in hand.

Although he will begin the two-day exam today, Kong, a graduate from
Guangqumen Middle School, played basketball with three of his friends for
about an hour, showing no signs of pre-exam nerves.

Asked about the looming exam the fair-skinned boy paused for a few
seconds, saying he fully realized the importance of the test and that the
two-day exam would decide his future life, and that he would not let his
parents down. "But last-minute revision won't give you an additional
point, and nervousness will make things worse," he said. "Playing
basketball helps me relax."

He said he planned to watch TV in the evening, before heading to bed at
about 9:30pm. "And I'm looking forward to the World Cup after the exam,"
he added with excitement.

Page: 1 2

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Sunday, December 30, 2007

Chinese School - CITIC Securities wins private equity approval

?  ?

BIZCHINA / Top Biz News

CITIC Securities wins private equity approval

(Reuters)
Updated: 2007-09-11 11:40

CITIC Securities, China's biggest listed brokerage, said on Tuesday it
had won approval to operate a private equity business on a trial basis,
investing in companies before their initial public offerings.

The brokerage would spend 831 million yuan (US$110.5 million) to set up a
private equity unit, it said in a statement published in the China
Securities Journal. The arm would use its own funds for the business, it
said.

The securities regulator restricts domestic private equity firms to
invest only in companies that had firm plans to issue new shares and
places a three-year cap on such investments, the newspaper reported.

China International Capital Corp, about one-third owned by Morgan Stanley
, has also won such approval, the report said.

?

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Chinesepod - No threat of foreign monopoly in any industry

?  ?

BIZCHINA / Center

No threat of foreign monopoly in any industry

By Jiang Wei (China Daily)
Updated: 2007-09-10 09:04

The country does not face an imminent risk of monopoly by foreign
companies in any industry, according to the China Foreign Investment
Report 2007 released by the Ministry of Commerce.

Wang Zhile, director of the Multinational Enterprise Research Centre
affiliated to the Ministry of Commerce, made the observation in an essay
for the report in response to people's rising concerns about possible
foreign monopolies in the country.

Related readings:

?Landmark anti-monopoly law passed
?State breaks own monopoly in oil trade
?Need to break monopoly

He explained that although foreign investors do have a large market share
in certain industries, it does not necessarily mean monopolies.

The market share is usually held by different foreign-funded enterprises
that compete with each other and those who have a large share do not use
it to restrain competition in the market, which is the nature of a
monopoly.

China had approved the establishment of more than 610,000 overseas-funded
companies by the end of July, with actual use of overseas investment
totaling US$720 billion, a Ministry of Commerce official said yesterday.

The report was released in Xiamen, Fujian Province, yesterday during the
China International Fair for Investment and Trade (CIFIT) along with a
series of booklets introducing Chinese provinces and cities to potential
foreign investors, and guidelines for Chinese enterprises' outward
investment.

Policy revisions

In a related development, Zhou Xiaochuan, governor of the People's Bank
of China, told the main CIFIT forum on Saturday that the country is
likely to adjust its financial polices to support Chinese companies'
outbound investment.

Revisions will be made to the current foreign exchange policies that
encourage currency inflows while limiting outflows, he said.

The central bank will further develop the foreign-exchange market to help
companies hedge currency risks and simplify procedures for companies
investing outside.

"We will remove unnecessary controls on reviewing sources of
foreign-exchange funds and on foreign currency purchase and remittance
procedures to allow companies to use their own funds or converted
currencies to invest abroad," Zhou said.

The government also encourages qualified commercial banks to set foot
abroad by establishing branches or acquiring stakes in overseas
counterparts, he said.

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Chinese School - Stocks fall 2.2% on tightening measures

?  ?

BIZCHINA / Index & Statistics

Stocks fall 2.2% on tightening measures

By Li Zengxin (chinadaily.com.cn)
Updated: 2007-09-07 16:57

The Chinese stock market tumbled today in response to a set of tightening
measures by the central bank to reduce money supply and curb excessive
liquidity. The Shanghai Composite Index dropped 116.48 points or 2.16
percent, the largest single-day fall since August 1 in absolute terms.

Turnover of the stocks in the major indices was 286.8 billion yuan,
higher than yesterday.

Shanghai Composite Index
Source: sina.com.cn

The Shanghai index opened slightly lower at 5,381.19, climbed up to
5,405.36, the highest for the day for the only trading period above
yesterday's close, but then fell to 100 points lower than the opening.
Once there it turned up and hit the second highest place before the noon
break. In the afternoon, the index?slid again to the lowest at 5,269.25
soon before the close. Finally, it finished the day at 5,277.18.

Of the A shares listed in Shanghai, as many as 609 closed down, 75 ended
flat?but 158 went up against the trend, including 16 of them rising at
the 10 percent growth cap. The Industrial and Commercial Bank of China,
with the largest trading volume, fell 2 percent and CITIC Securities,
with the largest transaction value, dropped over 4 percent.

Shenzhen Component Index
Source: sina.com.cn

The Shenzhen Component Index, tracking the smaller Shenzhen Stock
Exchange, opened lower at 17,986.88 and closed 399.66 points or 2.21
percent lower at 17,674.10. It went through the whole day below
yesterday's close, within a range between 17,649.09 and 18,052.37.

Of the A shares, 132 closed up, 71 remained unchanged and 436 fell. Large
traders TCL and China Vanke were both down.

Stocks in the culture and media, timber and machinery industries were
more resistant to depressing forces. On the other hand, financial shares
lost ground today as all of them except Huaxia Bank and Bank of Nanjing
slipped, dragging down the indices.

The central bank yesterday announced two tightening measures to rein in
excessive liquidity. China will raise the reserve requirement ratio by
0.5 percentage points for commercial banks as of September 25. It is the
seventh time this year the Chinese government has opted to raise the
reserve requirement ratio.

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Chinese language - Zhang Xiaohu Vineyard in Zhenjiang

CHINA / Jiangsu in Photos

Zhang Xiaohu Vineyard in Zhenjiang
(people.com.cn)
Updated: 2006-06-05 11:25

Clusters of green grapes hanging on the grape vines. [people.com.cn]

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Saturday, December 29, 2007

Chinesepod - Official rules out?threat of big rise in inflation

?  ?

BIZCHINA / Top Biz News

Official rules out?threat of big rise in inflation

By Zhao Huanxin (China Daily)
Updated: 2007-09-05 09:02

There is no threat of high inflation despite recent steep rises in food
prices, a senior planning official said yesterday.

The rising consumer price index (CPI), driven up largely by more
expensive food, will become stable when pork prices stabilize, Bi
Jingquan, vice-minister of the National Development and Reform
Commission, told a press conference in Beijing.

Related readings:

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?Analysts say CPI may hit 5 percent
?China's inflation to surpass 3% for full year
?Interest rate raised to curb inflation

Special Coverage:
Markets Watch??

T he CPI - a key gauge of inflation - hit a 10-year high of 5.6 percent
in July and rose by an average of 3.5 percent in the first seven months
of the year, of which 2.9 percentage points were contributed by rising
food costs, he said.

Pork, in particular, was 70.3 percent more expensive year on year at the
end of August in 36 large cities, according to the commission's
statistics.

The rise was mainly because of a rise in animal-feed prices and the
blue-ear epidemic which shrunk the stock of pigs.

"There are ups and downs in the prices of other goods, but not a
continuous rise because demand has not vastly exceeded supply," he told
the news briefing held by the State Council Information Office.

"Therefore, there is no serious inflation."

The country has experienced only some structural short supply, such as
that of pork, but overall supply and demand in the economy is balanced,
he said.

A series of government measures are stabilizing pork prices, but this
does not necessarily mean the overall inflation rate will recede to the
full-year target of 3 percent in the short term, he said.

"The 3 percent target set at the beginning of this year is only a
guideline, it's natural that the actual data are below or above that
target."

Pork prices stabilized in the past three weeks because of improved
supply, but fluctuations in the meat market are inevitable, he said.

The odds are low that pork rates would continue to rise drastically for a
long time, he said.

The skewed supply-demand situation with livestock is expected to be
substantially balanced by mid-2008, he said.

Farmers have been given incentives - increased price and government
subsidies - to raise more pigs.

Meanwhile, supply of alternative food is sufficient. The output of
poultry, eggs and mutton has increased this year, he said.

The official ruled out the possibility of large volumes of pork imports
to ease prices.

The country produced 53 percent of the world's total pork last year. It
imported 30,000 tons and exported 95,000 tons through July this year.

"Because China is the world's largest pork producer, the country is very
unlikely to import pork by the millions of tons every year - there is
simply no country that could satisfy such as a huge need."

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Learn Chinese - Trade: 3rd Northeast Asia Expo opens

?  ?

BIZCHINA / Biz Media Digest

Trade: 3rd Northeast Asia Expo opens

(CRIENGLISH)
Updated: 2007-09-03 11:28

The 3rd Northeast Asia Investment and Trade Expo opened on Sunday in
Changchun, capital of Northeast China's Jilin Province.

The expo, with the theme of "opportunity, exchange, cooperation and
development", has attracted more than 50,000 investors and merchants from
61 countries and regions.

Chinese Vice Premier Zeng Peiyan announced the opening of the five-day
fair.

Wang Min, Party chief of Jilin Province, said at the opening ceremony
that China's strategy to revitalize the northeast old industrial bases,
has provided enormous opportunities for the region's development and the
expo serves as a platform for cooperation between China and countries in
Northeast Asia.

The expo will hold a series of activities, including a summit forum on
investment and cooperation.

The expo is co-sponsored by the Chinese Ministry of Commerce, the Office
of the Leading Group of Revitalizing the Old Industrial Base in Northeast
China under the State Council, and the Jilin provincial government.

More than 40,000 investors and merchants from 54 countries and regions
attended the second expo in 2006, which reaped a foreign trade value of
US$384 million.

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Chinese Mandarin - Ministry welcomes NZ probe findings

?  ?

BIZCHINA / Center

Ministry welcomes NZ probe findings

By Jiang Wei (China Daily)
Updated: 2007-08-31 09:47

China welcomes the results of a New Zealand probe into the safety of
made-in-China children's pajamas, commerce ministry spokesman Wang Xinpei
said yesterday.

The New Zealand government launched an investigation last week into
children's nightwear from China to determine whether it meets garment
fire safety standards. The probe came after two complaints of children
suffering minor burns while wearing pajamas imported from China.

Testing was conducted by an independent laboratory.

The investigation found the Red Stamp brand of pajamas sold at outlets of
New Zealand retailer Warehouse Group Ltd met product safety standards for
children's nightwear, according to a statement on the New Zealand
Commerce Commission's website.

Stuart Wallace, acting director of fair trading with the commerce
commission, said the pajamas passed both the dimension requirements for
close-fitting garments and the surface burn after washing test.
Compliance with each is required for a garment to carry the "low fire
danger" label as set out in the safety standards.

"However, low fire danger does not mean no fire danger," he said. "All
clothing and fabric will burn."

"While the aim of the product safety standard is to reduce the danger of
night garments catching fire or the likelihood of them burning if they do
catch fire, there is always a risk when children are near heat sources.
Extreme vigilance is needed," he said.

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Chinese language - A more accurate CPI

?  ?

BIZCHINA / Review & Analysis

A more accurate CPI

(China Daily)
Updated: 2007-08-28 07:14

The reality of people's daily lives should be respected in calculating
the consumer price index (CPI), says an article in Yanzhao Metropolis
Daily. The following is an excerpt:

Beijing's municipal bureau of statistics on Saturday released a detailed
explanation of how the CPI is calculated. It said investigators surveyed
the prices of 200 kinds of commodities. The prices of pork and eggs are
surveyed once every five days, while those of other commodities are
surveyed every 10. As to why housing prices are not included in the
calculation of the CPI, statistics officials said housing prices are in
the investment category, which is in line with international statistical
practices.

The CPI has become a sensitive thing as commodities prices have risen. It
is of course a good thing that the statistics bureau explained how it
calculates the CPI. This helps satisfy citizens' right to know and will
ease public concern.

But the explanation of why the CPI does not include housing prices fell a
little short of the mark. It is true that housing prices are not factored
into the calculation of the CPI under international practices. But as
housing prices are so closely connected to people's daily lives, we
should not stick so fast to such international practices.

In countries with well-developed market economies and stable social
structures, housing prices are not included in the calculation of the CPI
not only because housing prices belong to the category of investment, but
also because housing transactions mainly involve existing housing instead
of new construction. Under such circumstances, it is appropriate to
factor rent into the CPI.

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Friday, December 28, 2007

Learn Chinese - Ticket price is the issue

?  ?

BIZCHINA / Review & Analysis

Ticket price is the issue

(China Daily)
Updated: 2007-08-25 11:25

Restructuring China's theater chains is needed to meet people's demand
for movie consumption, said a signed article in Shenzhen Business Daily.
An excerpt follows:

Many people were injured in the mayhem caused by the sale of eight yuan
movie tickets in Hangzhou earlier this month. This reflects common
people's enthusiastic demand for low-price movie tickets.

Many commentators have criticized theater operators for setting high
ticket prices. Some said that rising ticket prices is the major reasons
for the shrinking box-office revenues. Decreased revenues have led to
insufficient input in the movie industry.

Such an analysis seems reasonable but actually the crux lies more in the
irrational structure of theater chains than high prices.

Movie theaters were all the rage two or three decades ago, when
televisions were not popular, but they lost their glamor when Chinese
people's recreational activities diversified.

After years of struggle, deluxe movie theaters began popping up. The
operators have turned theaters into places for high-end leisure and
tapped the new concept of up-market movie consumption. And such
upper-bracket theaters are making good money by targeting high-end
consumers.

A healthy movie industry should have a rational structure that is
composed by high-, medium- and low-end parts aiming at different
consumption levels.

Now the high-end market has taken the lead in development while the
medium- and low-end reaches of movie showing are still underdeveloped.
There will also be good economic results if the empty fields get filled.
For example, a Shenzhen-based Yatu digital theatre chain has lowered
ticket prices to five yuan each and is still making a profit.

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Chinese language - Xiamen to hold int'l investment and trade fair

?  ?

BIZCHINA / Top Biz News

Xiamen to hold int'l investment and trade fair

By Dai Yan (chinadaily.com.cn)
Updated: 2007-08-24 14:04

The 11th China International Fair for Investment and Trade (CIFIT) will
open in Xiamen on September 8-11, 2007, emphasizing exchanges between the
two sides of the Taiwan Straits.

CIFIT, a nationwide international investment promotion activity held
annually in Xiamen, is sponsored by the Ministry of Commerce (MOFCOM) and
organized by the Fujian Provincial Government, the Xiamen Municipal
Government and the Investment Promotion Agency of MOFCOM. It is also
co-sponsored by several international organizations including the United
Nations Conference on Trade and Development and International Finance
Corporation.

The event will highlight international trade cooperation. For example,
the second China-Caribbean Economic and Trade Cooperation Forum is to be
held concurrently with the fair. The forum includes a seminar on
bilateral cooperation in agriculture, fishery and tourism, and the
Caribbean Pavilion Day, according to the organizing committee.

The third Cross-Straits Tourism Exposition is also planned together with
the fair, from September 6 to 11.

Workshops to facilitate discussion on the consolidation of corporate
income taxes, service outsourcing and regional economic co-development
are on the agenda as well.

More emphasis will be placed on cross-Straits cooperation at the fair.
MOFCOM will meet with the Taiwanese Affairs Office of the State Council
to present the Cross-Straits Economic Cooperation and Development Forum.

To promote two-way investment, a matchmaking symposium for service
outsourcing projects will be held for the first time during the fair.
Such matchmaking symposiums will include those concerning transportation
projects and listed companies' investment projects.

A special exhibition area for imported commodities will be plotted for
the first time to promote products made by countries that are in trade
deficit with China.

Enterprises and institutions from 64 countries and regions will showcase
their products, and more than 140 senior government officials,
international organizations' heads and presidents of multinational
corporations from 88 countries and regions will attend the fair.

At the 10th session last year, members signed agreements on 1,086
investment projects worth a total of US$21.66 billion, including US$15.08
billion worth of foreign investment.

During the last 10 years, over 100,000 overseas business people from 144
countries and regions visited the fair. More than 1,000 overseas
enterprises and organizations from 70 countries and regions displayed
their products at the exhibition, and 13,000 inbound and outbound
investment projects have been signed.

(For more biz stories, please visit Industry Updates)

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Chinese School - China, India 'could slash energy use'

CHINA / National

China, India 'could slash energy use'
(Agencies)
Updated: 2006-05-30 09:21

China, India and Brazil could reduce energy use by a quarter with simple
efficiency schemes but banks have been sluggish to lend to such projects,
an international study suggests.

The three-nation report, led by the World Bank and the UN Environment
Program, said many banks had overlooked chances to boost their profits by
lending to help businesses cut energy waste while oil prices hover at
around $US70 a barrel.

"Cutting energy waste is the cheapest, easiest, fastest way to solve many
energy problems, improve the environment and enhance both energy security
and economic development," said Robert Taylor, a World Bank energy
specialist who led the study.

Cost-effective retrofits in buildings and factories could reduce energy
use by at least 25 per cent in China, India and Brazil, it said of the
four-year study. The conclusions were likely also to be true of other
developing nations.

Cutting energy waste would save hundreds of millions of dollars, cut
noxious air pollution and reduce emissions of greenhouse gases released
by burning fossil fuels such as oil, coal and natural gas.

China, India and Brazil are home to almost 2.6 billion people, about 40
per cent of the world's population. Their energy use and emissions from
fossil fuels, widely blamed for global warming, are set to double by 2030.

Many scientists say that rising temperatures could wreak havoc with the
climate, bringing more heatwaves, floods, desertification and a gradual
rise in world sea levels.

Measures to offset waste include retrofits for buildings and factories,
such as higher efficiency lighting or air conditioning systems, better
boilers or waste heat recovery systems.

"The key source of financing is the local banking sector," said Jeremy
Levin, one of the authors from the World Bank, adding that banks have yet
to realise the potential for lending to unglamorous-sounding energy
efficiency schemes.

"Energy efficiency may not have the same sizzle as alternative solutions
such as renewable energy," he told Reuters. Still, cutting waste would be
the most important path to improving energy efficiency until about 2030.

Among successes, a unit of India's Pragati Paper invested $US91,000
($A120,000) in energy efficiency for a pulp plant, giving estimated
annual savings of $US139,000 ($A184,000).

"The payback period was less than one year," Levin said.

In India, five major banks were now lending to help stop energy waste.
Projects in China sometimes faced hurdles because of the state grip on
the banking sector while in Brazil, high interest rates had discouraged
lending.

Apart from curbing energy waste "this is about getting the banks to
realise that this is a profitable business area that they have overlooked
for too long," said Mark Radka, head of UNEP's Paris-based energy branch.

Greater energy efficiency will improve businesses' profits and so make
them more solvent clients for the banks.

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Chinese School - Chinese stocks rocket 5.33% amid Asian resurgence

?  ?

BIZCHINA / Index & Statistics

Chinese stocks rocket 5.33% amid Asian resurgence

By Li Zengxin (chinadaily.com.cn)
Updated: 2007-08-20 16:29

Chinese stocks rocketed 5.33 percent amid a full-range comeback in Asian
stock markets today. The comparative growth rate was the largest
single-day surge since May 30.

Instead of a few heavyweights lifting the whole market up as in recent
cases, today both index-drivers and smaller-cap shares surged in waves,
as 1,312 of the total 1,476 A shares surged in waves to higher price
levels.

Total turnover of the stocks enclosed by the major indices was 219.8
billion yuan, higher than that of last Friday.

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

The Shanghai Composite Index opened at 4,773.83, 117 points higher than
the previous close and marched steadily all the way to a high of
4,906.00, except at a drawback point of 4,758.40 soon after the opening.
Finally, it closed at 4,904.85, up 248.28 points, a new record-high close.

Of the A shares listed in Shanghai, as many as 765 went up, while only 14
dropped and 63 finished flat. Guizhou Wire Rope rose 10.04 percent to
10.41 yuan, leading another 22 stocks surging with the maximum growth cap
of 10 percent on the top. Shandong Hiking International, a special
treatment stock, slumped 4.94 percent on the bottom.

The Industrial and Commercial Bank of China, the largest trader both in
terms of trading volume and transaction value, surged 9.75 percent to
7.09 yuan, driving the index higher to 4,900-points.

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

The Shenzhen Component Index, tracking the smaller Shenzhen Stock
Exchange, opened higher at 16,078.84 and closed at the daily high of
16,589.80, up 900.8 points or 5.74 percent. It almost broke the previous
record of 16,680.38, from August 8. The index hit its low of 16,078.84 in
the morning but afterward seemed unstoppable.

Of the A shares, 546 closed up, 15 fell, and 73 finished unchanged.
Twenty stocks, led by Shandong Luneng Taishan Cable, with the largest
trading volume, ranked on top of the table with the maximum growth rate
of 10 percent. Zhejiang Baoxiniao Garment, however, slipped over 5
percent as the biggest loser today. China Vanke, with the largest
transaction value, rose 7.2 percent to 33.07 yuan.

Stocks in the mining, finance, and real estate industries were the best
performers. All the mining and financial shares were up today. Most of
the B shares and closed-end mutual shares also enjoyed big gains.

(For more biz stories, please visit Industry Updates)

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Thursday, December 27, 2007

Learn Chinese online - China may loosen forex controls for? the individuals

?  ?

BIZCHINA / Center

China may loosen forex controls for? the individuals

By Du Xiaoli (chinadaily.com.cn)
Updated: 2007-08-17 14:27

Related readings:

?Fresh controls on foreign exchange
?China seeks more channels to use foreign exchange reserves
?Surplus in goods trade expands foreign exchange reserves
?China to set quota for foreign-exchange by individuals

The State Administration of Foreign Exchange (SAFE) is researching
further reform on individual foreign exchange management amidst
expectations of further loosening of individual foreign exchange under
capital account regulations, said Deng Xianhong, deputy administrator of
the SAFE.

The research includes individual direct investment and securities
investments. When China will open individual overseas direct investment
is still uncertain, said Deng. That mainly depends on the results of the
research and consideration of whether effective supervision can be
achieved, according to the?China Securities News.

Individual foreign exchange purchases increased 259.42 percent
year-on-year during the period from February to June this year.

Currently there are many investment options for domestic residents'
foreign exchange, including investment in B-shares, foreign exchange
financial products issued by commercial banks and various products from
the qualified domestic institutional investors.

?

?

?

(For more biz stories, please visit Industry Updates)

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Chinesepod - Preparations on for rice futures

?  ?

BIZCHINA / News

Preparations on for rice futures

By Wang Lan (China Daily)
Updated: 2007-08-15 11:16

?

Customers buy rice at a supermarket in Ningbo, East China's Zhejiang
Province.

Zhengzhou Commodity Exchange (ZCE) said it is preparing for the launch of
rice futures.

Zhang Jing, assistant to the general manager of ZCE, said: "Rice futures
would be among the next futures products we are going to introduce in the
years to come."

"Rice futures are in the research stage and the target date has not yet
been decided," said Wei Zhenxiang, director of ZCE's research department.

Related readings:
?Palm oil futures likely this year
?New futures likely soon
?Zhengzhou Commodity Exchange gears up for rapeseed oil trade

Industrial analysts said the introduction of rice futures would help
stabilize the price movement in the spot market and provide guidance to
the growers to arrange planting.

Mao Xiaofei, a senior analyst on agricultural produce futures at China
International Futures Co Ltd, said the prospective rice futures means a
lot to Chinese people, for rice is the most important staple for the
Chinese and is always in great demand.

Figures compiled by China Oil and Food Net show the planting area for
paddy this year is expected to reach 29.30 million hectares, up 0.7
percent from the year before, and the output is estimated to increase
3.32 percent to 186 million tons from a year earlier.

In the first six months of 2007, China's import of rice plummeted 36.3
percent to 238 thousand tons year-on-year and the export figure was
601,000 tons, remaining at the same level as a year earlier, according to
statistics from the General Administration of Customs.

The average price of early indica rice has increased from 2,120 yuan to
2,360 yuan per ton since last year.

Industry analysts said the upcoming rice futures market would protect
growers and traders from risks resulting from unpredictable price
fluctuations caused by bad weather.

"A rice futures market may help establish a pricing system that may
properly reflect the supply and demand situation in the spot market and
provide the barometer for rice growers and traders," said Li Jingyuan, an
analyst at Hai Fu Futures Co.

"The domestic pricing system would also strengthen China's links with the
international rice market and increase the country's influence in price
discovery in the global market," said Ma of China International Futures
(Shanghai) Co.

(For more biz stories, please visit Industry Updates)

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Learn Mandarin online - Microsoft doc standard meets opposition in China

?  ?

BIZCHINA / Center

Microsoft doc standard meets opposition in China

(Xinhua)
Updated: 2007-08-13 16:55

Ni said that the UOF and the ODF should combine to fight the OOXML since
the two standards have a significant integration potential as 70 percent
of them are the same and 20 percent of them are transferable.

"Although the MS Office has more than 400 million users globally, users
of StarOffice and OpenOffice, software based on ODF, have reached tens of
millions worldwide," Hu Caiyong told Xinhua.

Meanwhile, there are more than 60 million computers in China and 20
million are added every year, Hu said.

Related readings:
?Microsoft's monopoly' comes under fire
?IT: Microsoft cuts Vista's China price to fight piracy
?Microsoft to buy stake in Changhong
?Microsoft buys land for R&D operations

"Considering the potential Chinese market and the maturity of the
self-developed software, the integration of the UOF and the ODF is quite
realistic and able to gather enough strength to fight the OOXML," Hu said.

China's decision is important since the OOXML standard will be rejected
as long as 11 out of the 30 ISO-JTC1 members vote against it, Hu said.

The OOXML has raised widespread attention in China. Enter "resist",
"Microsoft" and "document standard" in Baidu, the largest search engine
for the Chinese language, 112,000 web pages will show up.

Meanwhile, in an online survey conducted by the CCS, which has more than
100 organization members and more than 40,000 individual members, 6,400
votes were recorded against the OOXML with just 502 votes in support.

However, the OOXML has received other sources of support - the European
Computer Manufacturers Association has taken it as the European standard.

China Software Association secretary general Zou Bian also supported the
OOXML and said that it was "a very good thing" to support the OOXML to
become an ISO standard.

It will provide government organizations and common users multiple
choices on creating, storing and integrating their electronic documents,
he said.

Local independent software vendors can also develop applications on this
standard which will be beneficial for the progress of the software
industry, he added.

The Ministry of Information Industry, who is responsible for the vote
regarding the ISO, told Xinhua that it would not comment at the present
moment.

(For more biz stories, please visit Industry Updates)

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Learn Chinese - More foreign firms can sell yuan bonds

?  ?

BIZCHINA / News

More foreign firms can sell yuan bonds

By Xin Zhiming (China Daily)
Updated: 2007-08-10 16:57

The government will allow more foreign institutions to sell
yuan-denominated bonds in the country and buy foreign exchange with the
proceeds to remit the money overseas, Deng Xianhong, deputy head of the
State Administration of Foreign Exchange, said yesterday.

China permitted foreign institutions to issue yuan bonds in the country
in 2005. Two international financial institutions, the Asian Development
Bank and the International Finance Corp, have got the green light to do
so but have been told it's mandatory to spend the money in China.

The new move will not only quench the capital thirst of some foreign
institutions in China, but also help reduce the country's
balance-of-payment surplus, and thus ease the pressure on the government
to revaluate the yuan, analysts said.

Some foreign banking institutions need to extend yuan-denominated loans,
but they are weak in absorbing yuan deposits, said professor of finance
in Renmin University of China Zhao Xijun. "The new move will add to their
source of yuan capital."

China slashed quotas for short-term overseas borrowings both by domestic
and foreign financial institutions in March. Foreign banks and
non-banking financial institutions can borrow from overseas up to only 60
percent of the 2006 level by the end of next March, increasing their
thirst for the Chinese currency if they are do renminbi business.

The move will also help reduce China's capital account surplus, Zhao
said. The surplus was $10 billion last year, which, coupled with the
country's whopping current account surplus, constitutes the pressure on
the government to revaluate the yuan and rein in liquidity in the market.

Related readings:
?Bank to sell RMB bonds today
?EximBank to issue 2b yuan RMB bonds in HK
?Expert: Beijing could issue more bonds to buy FX

Special Coverage:
Markets Watch ?

The measure is similar to China's qualified domestic institutional
investor (QDII) scheme, he said, which was launched last April to allow
domestic institutions to channel client funds overseas.

The scope of qualified institutions was expanded with the authorities
recently allowing banks, brokers, insurers and asset management companies
to invest in overseas equities using client money.

Initially, Zhao said, the yuan bonds issued by foreign institutions would
be small. But in the long run, they could become sizable to have a
substantial impact on the market. "The process should be gradual to avoid
risks and shocks."

Some financial institutions with adequate capital and high ratings will
be selected first and later other non-financial institutions will be
allowed, he said.

During the Asian financial crisis a decade ago, some foreign institutions
in Hong Kong had issued bonds to pool in the HK dollar before joining
hands with international speculators to dump the currency to attack the
financial market of the island.

"It is a lesson we should learn from," Zhao said.

(For more biz stories, please visit Industry Updates)

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� Bank to sell RMB bonds today
===========================================================================

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Wednesday, December 26, 2007

Chinese School - History of development of SCO

?  ?

CHINA / Background

History of development of SCO

(Xinhua)
Updated: 2006-06-12 15:16

The SCO prototype - the "Shanghai Five" mechanism, initially developed on
the basis of strengthening trust and disarmament in border regions of
China with Russia, Kazakhstan, Kyrgyzstan and Tajikistan. After the end
of Cold War, changes in international and regional situation has
undergone were very big; peace and development have become trend of the
epoch. After that the question of strengthening good-neighborly relations
of mutual trust, friendship and cooperation among five neighboring
countries - China, Kazakhstan, Russia, Tajikistan and Kyrgyzstan has come
on the agenda. In 1996 and 1997, heads of five states, at their meetings
in Shanghai and Moscow signed "Agreement on deepening military trust in
border regions" and "Agreement on reduction of military forces in border
regions", which became an important historical stage and resulted in
launching the mechanism called "Shanghai Five". Thereafter such a form of
annual meetings has become established practice and is being held
alternately in each of five countries. From 1998 to 2000 "Shanghai Five"
summits were held in Almaty, Bishkek, Dushanbe (during Dushanbe meeting
President of Uzbekistan I.Karimov was invited by host state as a guest to
take part in the meeting). The contents of meetings was also gradually
extending from discussing matters of strengthening mutual trust in border
regions to developing comprehensive mutually beneficial cooperation in
spheres of politics, security, diplomacy, as well as trade-economic,
cultural-humanitarian and other areas. Besides Heads of states meetings,
mechanisms of regular meetings of Ministers of Foreign Affairs, Ministers
of defense, law enforcement bodies, ministers of economy, culture,
transport, extreme situations, border services, Public Prosecutor and
National Coordinators have also been established.

With joint efforts of parties concerned big results have been achieved in
practical activities of "Shanghai Five". It successfully moved forward
the process of solving issues left history concerning boundary matters in
relations of China with four member states, facilitated peace and
tranquility in border regions; strongly fights and constrains "three evil
forces" - terrorism, separatism and extremism, safeguarded security and
stability of states of the region; actively promoted trade and economic
relations among member states, carried out useful search in unfolding
regional economic cooperation; continuously strengthens coordination
among member states on international arena, became an important regional
force in promoting of peace and development throughout the world.

In the history of modern international relations, creation and
development of "Shanghai Five" represents diplomatic practice of creative
value. It initiated new global vision with regards to security,
containing principles of mutual trust, disarmament, cooperation and
security, enriched new type of interstate relations started by Russia and
China, with partnership, not union as a basic; provided model of regional
cooperation with such distinctive features as joint initiative, priority
on security, mutually beneficial interaction of big and small states.
This new world vision has raised human society above cold war ideology
and made an invaluable contribution to creation of a new model of
international relations.

With entering the 21st century, economic globalisation has received
further development, science and technology is being developed at high
tempo. In order to effectively seize the historic chance for peace and
development, obtain lowering of different risks and challenges, all
countries of the world are spending up their steps towards regional
cooperation. At the same time, activity of terrorist, separatist and
extremist forces in Central Asian region accrues day by day, seriously
threatening security and stability of states, which influences in
regional peace and development. China, Russia and Central Asian states
carry an important mission of providing regional security and stability,
protection of peace throughout the World. They also face a difficult task
of developing self-economy, realization of national revival. Only as a
result of further deepening the mutual relations of good-neighborhood,
friendship and cooperation it is possible effectively protect
self-interests, realize purposes of joint development and prosperity.

According to the above-mentioned, celebrating the fifth anniversary of
"Shanghai Five" on June 15, 2001 at a meeting in Shanghai, "cradle" of
the mechanism, Heads of "Shanghai five" member-states and President of
the Republic of Uzbekistan unanimously decided to lift the mechanism of
"Shanghai Five" to a higher level, in order to make it strong base and
important support for developing under new conditions cooperation among
six states. To these purposes Heads of six states signed the Declaration
on Establishment of the Shanghai Cooperation Organisation, declared a
birth of the new organisation of regional cooperation - SCO. During the
meeting "the Shanghai convention on fight against terrorism, separatism
and extremism" was also signed. It happened three months prior to the
tragedy of September 11, 2001. Thus, the SCO has become the pioneer
organization, which has precisely proposed fighting against terrorism on
the international level.
On September 14, 2001 the first meeting of Heads of governments of SCO
member states took place in Almaty. The Heads of governments of six
states signed "Memorandum among Governments of SCO member states on the
basic goals and directions of regional economic cooperation and launch of
process on creating favorable conditions in the field of trade and
investments", and also declared official establishment of regular
meetings of heads of governments mechanism within SCO frameworks.

On July 7, 2002 the second meeting of heads of SCO member states took
place in Saint Petersburg. Heads of six states adopted "The Charter of
Shanghai Cooperation Organisation", precisely fixing there goals,
principles and basic directions of SCO cooperation. Adoption of the
Charter has laid strong international legal foundation under the new
organisation. Furthermore during the summit "The agreement among SCO
member states on Regional Anti-Terrorist Structure" was signed and "The
Declaration of Heads of SCO member states" was proclaimed.

On May 29, 2003 the third meeting of heads of SCO member states took
place in Moscow. The main achievement of this meeting was the passing of
a number of regulations and decisions regulating the functioning of the
Organisation’s internal mechanism. During this meeting the assignment
of Zhang Deguang, citizen of the People’s Republic of China, for the
post of SCO Secretary-General was approved.

On September 23, 2003 the meeting of heads of governments of SCO member
states took place in Beijing. During the meeting "The Program of
multilateral trade and economic cooperation amomg SCO member states" was
signed and the first budget of the Organisation for 2004 was approved.
The program precisely determined basic goals and objectives of economic
cooperation within the SCO framework, priority directions and concrete
practical steps of cooperation with special emphasis on long-term
planning, it also pointed out to a course of SCO economic cooperation,
free movement of goods, capital, services and technologies for a period
of two decades.

On January 15, 2004 the major ceremony of the establishment of the
Shanghai Cooperation Organisation Secretariat took place in Beijing.
Leaders of the host country, Ministers of Foreign Affairs, National
Coordinators of six SCO member states, representatives of some
international organisations and diplomatic missions accredited in China
were invited to the ceremony and witnessed this historic moment. The
establishment of the Secretariat symbolised the end of the formation
phase of the Shanghai Cooperation Organisation and the beginning of a
completely new phase of its development. As a mature and confident
regional force, the SCO is entering the international stage at a rapid
pace.

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Today's Top News ?

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Chinese language - Trade: Mainland reports booming trade with Taiwan, HK and Macao

?  ?

BIZCHINA / Biz Media Digest

Trade: Mainland reports booming trade with Taiwan, HK and Macao

(Xinhua)
Updated: 2007-08-08 15:47

The Chinese mainland saw its trade with Taiwan, Hong Kong and Macao
continue to rise in the first half of the year, said sources with the
Ministry of Commerce (MOC) on Tuesday.

Trade volume across the Taiwan Straits rose 10.1 percent year-on-year to
US$55.3 billion in the January to June period, with the mainland's
exports up 15.1 percent to US$11 billion and imports up 9 percent to
US$44.3 billion.

By the end of June, the island had invested an accumulative US$44.6
billion on the mainland, taking a 6.2-percent share in the total
investment the mainland received from overseas.

With a 40.5-percent share and direct investment totaling US$290.3
billion, Hong Kong maintained its position as the biggest investor on the
mainland.

In the first half, the mainland's exports to Hong Kong surged 24.3
percent to US$83.9 billion, while imports rose 12.8 percent to US$5.79
billion.

Meanwhile, the mainland saw the number of its Hong Kong-invested projects
increase seven percent to 7,517, worth US$10.5 billion, up 19.3 percent.

The mainland's exports to Macao rose 28.1 percent to US$1.2 billion,
while imports were down by 9.2 percent to US$130 million.

(For more biz stories, please visit Industry Updates)

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Chinese language - Martin Currie, SIG Asia invest $10m?in Jiamei Dental

?  ?

BIZCHINA / Overseas Investment

Martin Currie, SIG Asia invest $10m?in Jiamei Dental

By Hu Yuanyuan (China Daily)
Updated: 2007-08-07 11:19

Jiamei Dental Medical Management Group, the country's largest privately
owned chain of dental clinics, got a $10 million capital boost yesterday
from private equity firms Martin Currie and SIG Asia.

"The money will be used to expand our outlets in the Yangtze Delta, Pearl
River Delta and Bohai Bay area," said Liu Jia, chairman of Jiamei Dental.

Established in 1993, Jiamei Dental has over 60 clinics in Beijing,
Dalian, Shanghai, Shenyang and Nanjing.

"We plan to increase our clinics to 100 by the end of this year, and to
open another 200 next year," said Liu, adding that most of the new
clinics will be in Shanghai, Beijing, Guangzhou and Shenzhen.

The company expects to wrap up its second round of capital-raising,
targeting a further $40 million, before the year is out, Liu said.

"That money will be from another two firms," Liu said, declining to
reveal their names.

Although Jiamei Dental is reportedly mulling over a listing plan on the
NASDAQ, Liu said it doesn't have a timetable for going public.

"What we'll do for now is consolidate our resources. When the time is
ripe, we will go public."

Dental services are expected to be one of the fastest growing chain
businesses in the country in the future, after retail and hospitality.

As living standards improve, more Chinese want dental check-ups and
cosmetic work done. That's creating more demand for dentists - and
especially private services.

"We invested in Jiamei Dental because of its management team and brand
value," said Shifeng Ke, director of Martin Currie, a private equity firm
based in Edinburgh, Scotland, managing $28.3 billion.

"Most private dental clinics are in the metropolises and key second-tier
cities, so they have very low market penetration and that means huge
potential," he said.

He said the private equity company focuses on China's healthcare services
sector, including hospitals and community centers.

(For more biz stories, please visit Industry Updates)

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Learn Mandarin online - CPI may grow 5% in July

?  ?

BIZCHINA / News

CPI may grow 5% in July

Updated: 2007-08-03 16:38

Price pressures are being passed on from producers to the consumers. The
nation's consumer price index (CPI) growth could reach the year's highest
of five percent in July, the Shanghai Securities Journal reported Friday.

According to the report, three major factors have contributed to the CPI
growth. They are fast growth in currency supply, last year's low CPI
figure, and the latest surge in food prices.

The report found that rapid growth of currency supply had created a loose
monetary environment for price increases.

Related readings:
?Economy on verge of overheating
?CPI to rise record 4.5% in 3rd quarter, rate hike likely
?CPI growth to slow in 2nd half

According to the report, currency supply has a lagged effect on prices.
The growth of M1, which mainly includes currency held by the public,
reached its peak in February this year, so the CPI will probably respond
around half a year later. That may create a CPI peak in July or August.

Meanwhile, CPI went down between May and July last year due to lower food
prices. But the index regained strength after April this year and formed
an ascending trend, which could last two or three months. These factors
combined may contribute to rapid CPI growth around July.

According to the report, rising prices of agricultural products have
contributed to CPI growth. Although eggs and aquatic products were
cheaper in July, grains, meat, edible oil, and fruit were more expensive.
Vegetable prices also followed suit due to recent flooding in many areas.

Therefore, the year's highest CPI, possibly as high as five percent, may
appear in July, and the second highest may come in August before it falls
below three percent by the end of the year. Meanwhile, due to the hike in
grain prices this year, CPI growth for the whole year may reach 3.5 to
3.6 percent, slightly higher than previous expectations, according to the
report.

(For more biz stories, please visit Industry Updates)

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Tuesday, December 25, 2007

Learn mandarin - Kaplan to acquire greater ACE stake

?  ?

BIZCHINA / Overseas Investment

Kaplan to acquire greater ACE stake

By Mao Lijun (China Daily)
Updated: 2007-08-02 14:10

A Beijing resident checks the Internet to see how to register for the
IELTS exam. [newshpoto]

Kaplan Inc will buy a further stake in ACE Education, China's leading
provider of international education training, in an attempt to further
expand into the country's educational services sector, the company's
chief executive told China Daily.

Kaplan, the world's largest education services provider and a subsidiary
of the Washington Post Company, already holds a 40 percent stake in ACE
and hopes to become its majority shareholder, said Jonathan Grayer,
Kaplan's chairman and CEO.

Kaplan formed a joint venture with ACE Education, called Kaplan ACE, in
April 2007.

"One of the main purposes of my Chinese trip this time is to negotiate
with ACE to acquire more stake and become its majority shareholder,"
Grayer said. He declined to reveal how much of a stake Kaplan seeks and
how much they are willing to pay.

Through the acquisition of ACE, Kaplan can enlarge its business network
of campuses in major cities across the country, including Beijing,
Shanghai, Chengdu, Chongqing, Qingdao and Suzhou, where ACE Education has
been operating.

ACE's experience in China will enable Kaplan to provide a wide variety of
education and training services in the country. At the same time, Kaplan
is seeking other cooperation agreements in the country to expand its
business.

"We are considering forming more partnerships and we are in contact with
New Oriental now," Grayer said. New Oriental Education & Technology Group
is the country's largest English tutorial provider.

Kaplan has developed a detailed plan to enlarge its business in the
country, Grayer told China Daily.

Kaplan will provide a variety of international education services and
products in the Chinese market, including preparatory programs for entry
to UK universities and international-standard degree programs at campuses
throughout China.

"ACE's involvement in the establishment of Sino-British College, the
University of Shanghai for Science and Technology, provides Kaplan a
platform for cooperation with education services providers in the
country," Zhou Yong, president of former ACE Education and CEO of Kaplan
ACE, told China Daily.

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Learn Chinese - Yuan steady despite pressure

?  ?

BIZCHINA / News

Yuan steady despite pressure

By Xin Zhiming (China Daily)
Updated: 2007-08-01 10:15

The yuan remained relatively stable despite anticipated pressure from the
United States while its Treasury Secretary Henry Paulson visits Beijing.

The yuan's central parity rate was 7.5737 against the US dollar
yesterday, up slightly from Monday's 7.5824.

During his visit, Paulson was scheduled to meet top Chinese officials to
discuss issues ranging from trade to the opening up of China's financial
sector and yuan flexibility.

Last week, some US lawmakers managed to pass legislation by the Senate
Finance Committee that would allow firms to appeal for anti-dumping
duties against countries with "fundamentally misaligned" currencies.

Special coverage:
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Related readings:
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?Economists warn of risks of continued yuan appreciation

Paulson has openly expressed opposition to the Senate's stance.

"The Senate bill opens a door for the US to exert pressure on China to
revalue its yuan faster," said Chen Xingdong, chief economist of BNP
Paribas Peregrine Securities.

"The US government is in a dilemma."

Currency dealers said the yuan's relative stability this week is a result
of a technical correction after it surged to close at 7.55 yuan against
the dollar last Wednesday. They said the yuan's movement is likely to
stall and remain stable in the coming days.

The US side has pressed China to revalue the yuan, but the strategy will
not work, Chen said.

"The Paulson visit will not achieve much in this respect," he told China
Daily.

China has held steady the yuan's exchange rate reform will go steadily
but not hastily.

"China has its own tempo in revaluing the yuan," said Zhao Xijun, a
researcher with Renmin University of China.

China's goal remains making the yuan more flexible, but under a
controlled and gradual progress, he said.

The US has demanded that the yuan's revaluation must be faster, but
critics have said this could be disastrous to the Chinese economy.

If the yuan was revalued by a bigger margin, rising costs would become
unaffordable for many sectors, Chen said.

"It will create great uncertainty for the Chinese economy."

(For more biz stories, please visit Industry Updates)

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Learn Chinese online - Online travel services ready for take-off

?  ?

BIZCHINA / Center

Online travel services ready for take-off

By Xin Dingding (China Daily)
Updated: 2007-07-31 08:58

China's online travel services are taking off, with even greater growth
forecast for the next few years.

Last year, at least 2.75 million Chinese booked hotel rooms, air tickets
and other travel services on the Internet, up 72 percent from the
previous year, according to a report recently released by Shanghai-based
iResearch Consulting Group.

China's online travel market was worth some 1.54 billion yuan ($204
million) last year, a growth of 82 percent from 2005, the report said.

The findings are based on a month-long survey in November with responses
from 60,000 Internet users across China.

Analysts with the consulting company are optimistic about China's online
travel market, saying the number of users will more than double to 5.7
million in 2008, and hit 9 million by 2010.

The online sector is expected to be worth 6.5 billion yuan by 2010,
analysts said.

Their optimism is based on three factors - the overall bloom of tourism,
the soaring amount of money netizens spend on tourism, and improved
online marketing systems.

Compared with the US online travel market, with revenues of $83 billion
in 2006, China's market is still small.

In the US, online sales of travel services accounted for 30 percent of
total tourism industry revenue in 2005 according to Merrill Lynch & Co.
The percentage in China is less than 1 percent, Dai Bin, professor at
Beijing International Studies University, told China Daily.

"Looking at it from the good side, this means there is still huge
potential for developing this market," he said.

But he warned that the current boom is mostly due to a few companies.

The biggest success so far in China's online travel market is the
NASDAQ-listed Ctrip.com, accounting for 54.2 percent of the market last
year. In second place was another listed company, eLong.com, with 17.8
percent of the market.

The rest of China's travel websites, mostly for traditional travel
agencies, work as "a platform to release information, a substitute for
traditional marketing and communication", Dai said. Actual payment is
completed offline in traditional ways.

Explaining why travel agencies prefer traditional means of payment, Hu
Guodong, manager of the Internet department of Beijing UTS International
Travel Service Co Ltd, said: "If a customer uses an online payment
service, our agency has to hand 1 percent of our revenue to the bank,
which is too much to bear for travel agencies with a thin profit margin."

In contrast, if the customer pays by swiping a credit card, the agency
only pays a 0.1 percent fee to the bank, he said.

"We need the banks to give us better conditions to make online payment
more feasible," he said.

(For more biz stories, please visit Industry Updates)

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Chinese Mandarin - Survey: RMB revaluation manageable for exporters

?  ?

BIZCHINA / Center

Survey: RMB revaluation manageable for exporters

(chinadaily.com.cn)
Updated: 2007-07-27 14:50

A recent survey showed that despite continuous RMB revaluations in the
past two years, two thirds of exporting enterprises find the impact
manageable.

Over one third of the surveyed considered exchange rates their biggest
concern. Statistics show that RMB has gained 7.02 percent in value since
July 2005.

Another one third said some shifts in policies, such as export tax
rebates, caused much impact on exports. The government eliminated or cut
tax rebates for more than 2,800 export items from July 1.

Despite all the government restrictions on exports, China saw a
year-on-year export increase of 27.6 percent in the first half of this
year, compared with the 25.2 percent growth in the same period last year.

This reflects Chinese products' comparative advantages in the global
market and Chinese exporters' confidence in offsetting impact from RMB
appreciation.

Half of the surveyed won't trim their staff if RMB keeps appreciating,
one quarter may cut work force by 5 percent, while some companies even
plan to employ more.

Special coverage:
RMB in Spotlight
Related readings:
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?Economists warn of risks of continued yuan appreciation
?Economist: Yuan could top Asia's currency market
?Yuan likely to be more flexible

Almost no companies intend to deal with RMB appreciation by laying off
workers, reducing payments or transferring production to less costly
places, partly because rising product prices may bridge the gap created
by RMB revaluation. Some 70 percent of companies expect product prices to
increase between one and five percent.

Statistics from the Ministry of Labor and Social Security showed that in
the second quarter labor demands and supplies in 89 cities increased by
14.4 percent and 9.1 percent respectively from a year earlier to 470,000
and 315,000 people.

An economist from Citibank China said average export prices jumped 21
percent from a year earlier. In comparison, the figures for 2006 and 2005
were 11.7 percent and four percent respectively, signaling high
bargaining abilities for Chinese companies.

Despite the bright outlook, risk abounds. Three fourths of the companies
surveyed are taking no anti-risk measures, and only one-third try to
minimize risks by boosting efficiency, upgrading products and employing
more technology.

In the survey, two-thirds of enterprises can withstand appreciation of
five percent and another one-third will survive if RMB revalues by five
to 10 percent.

China Business News carried out the survey in July among 130 exporting
companies in over ten industries such as clothes, electronics, hardware,
food processing, and chemical. Eighteen percent of the companies surveyed
have revenues below 300 million yuan (US$39.7 million), which are typical
of Chinese exporters.

(For more biz stories, please visit Industry Updates)

Chinese Mandarin

Learn Mandarin online - CPI growth to slow in 2nd half

?  ?

BIZCHINA / News

CPI growth to slow in 2nd half

By Fu Jing (China Daily)
Updated: 2007-07-26 08:34

Consumer prices in China are projected to grow at a slower pace in the
second half of this year after rapid increases from January to June, an
official from the National Development and Reform Commission (NDRC) said
yesterday.

The level of the increase in the months ahead will depend on the harvest
of farm products this autumn, as food has been the main factor driving
this year's rise in the consumer price index (CPI), said Cao Changqing,
the NDRC pricing director.

His projection came following a 3.2 percent CPI growth in the first six
months and a 4.4 percent rise in June, the most rapid increase in 34
months. Up to 78 percent of the jump in the first six months was due to
rising food prices.

"We feel that prices are now climbing slowly, in a relatively steady
manner," Cao said.

He added that the nation's grain reserves are adequate.

China's Agriculture Minister Sun Zhengcai recently forecast a fourth
consecutive bumper harvest this year, and expects to meet the annual
target set for 2010, three years ahead of schedule.

The NDRC said the government's main role is to prevent the economy from
overheating.

Zhu Hongren, deputy director of the macroeconomic development department
under the NDRC, said the government will use economic and legal policy
tools to cool the growing pace of the economy.

Accelerating inflation also pushed real interest rates further into
negative territory, prompting regulators last week to raise interest
rates and slash taxes on interest income from bank deposits.

China's gross domestic product expanded by 11.9 percent in the second
quarter and by 11.5 percent in the first half of the year. Fixed-assets
investment in urban areas jumped 26.7 percent in the first half over a
year earlier, up from 25.3 percent in the first quarter, while industrial
output climbed 19.4 percent in June.

(For more biz stories, please visit Industry Updates)

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Monday, December 24, 2007

Learn Mandarin online - Insurers to be allowed to increase overseas investment

?  ?

BIZCHINA / Center

Insurers to be allowed to increase overseas investment

By Rong Xiandong (chinadaily.com.cn)
Updated: 2007-07-24 15:51

The Chinese government is to release amended rules on management of
insurance companies' overseas investment soon, allowing the nation's
insurers to put more of their assets overseas to compensate for higher
interest rates at home, the industry regulator said.

The China Insurance Regulatory Commission (CIRC) is working on the
revised regulations together with other regulatory bodies and that the
rules will be released soon, said the CIRC spokesman and assistant
president Yuan Li at today's press conference.

Special coverage:
Market Watch
Related readings:
?Insurers to invest in stocks
?China to allow more insurance funds into stock market
?China allows trusts, insurers into interbank market
?Insurers' securities investment rises 53%

In 2006, the commission publicized draft rules under which domestic
insurers are permitted to invest overseas using their own foreign
currency or by buying other currencies.

The State Council allowed insurance companies to use their own foreign
exchange (forex) for offshore investments in 2004 and gave the nod to
their purchasing forex for investments in overseas markets in 2006,
according to Yuan.

These measures have played an important role in promoting domestic
insurance capital's investment abroad. As of June this year, domestic
insurers had invested a total of 19.7 billion yuan in overseas markets.

China raised interest rates and cut the withholding tax on interest
income on Friday in a coordinated move to get the blistering economy onto
a healthier footing.

(For more biz stories, please visit Industry Updates)

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Chinesepod - Human Resource: Tsinghua to recruit 134 teachers worldwide

?  ?

BIZCHINA / Biz Media Digest

Human Resource: Tsinghua to recruit 134 teachers worldwide

(Xinhua)
Updated: 2007-07-23 11:03

The prestigious Tsinghua University will recruit 134 teachers worldwide,
the Beijing News reported here Sunday.

Tsinghua will recruit 49 professors or researchers and 85 associate
professors and researchers, the paper quoted the sources from the
University as saying.

"We will strictly verify recommendation letters, theses and other related
information submitted by applicants to root out academic fraud," said an
official in charge of personnel affairs of the university.

Tsinghua required the applicants from out of Tsinghua to submit at least
five theses, and overseas applicants to submit at least three
recommendation letters.

In March 2006, Liu Hui, a professor was removed from his post for
fabricating his academic achievements and work experience.

Currently, Tsinghua encourages professors and associate professors from
both in and out of Tsinghua to compete for the academic posts available
each year as part of its reforms of existing teachers' employment system.

The recruitment will be terminated on October 10 and the final results
will be unveiled by the end of December, university sources said.

(For more biz stories, please visit Industry Updates)

Chinesepod

Learn Chinese online - Planning of marine development in Jiangsu

CHINA / Invest in Jiangsu

Planning of marine development in Jiangsu
(jschina.com)
Updated: 2006-05-25 11:33

The sea areas of Jiangsu Province locates in the middle along the coast.
It is a strategic pass of transportation on the sea both in China and in
North-east Asia and South-east Asia. Also it is a gateway from China,
European and Asian continent to America and Australia.

The areas along the coast of Jiangsu Province are located in the crossing
of three main axes of productivity, which are China coastal areas, the
Yangtze River and the Longhai-Lanxin railways. With the development of
Yangtze River Delta area and areas along the Yangtze River leaded by
Shanghai, and after the operation of Asian and European Continental
Bridge and the establishment of the International Shipping Center headed
by Shanghai, the strategic position of this area will be further enhanced.

The general economic objectives of marine in Jiangsu during the period of
the Ninth-Five-Year plan and until the year of 2010 are as followed:

In the period of the Ninth Five-Year Plan, we will develop the marine
industry in omnibearing, laying emphasis on shoal farming, forestry,
animal husbandry and marine fishery and infrastructures.

We will make further exploitation and utilization of shoals, mainly
develop the production of grain and cotton and also develop the shoal
farming, forestry and animal husbandry. Thus the new bases for grain and
cotton production and for poultry will be enlarged.

With the utilization of advance technologies, the sea-farming industry
will be upgraded to a new level, and the technical equipment and the
production level of ocean fishing will make great progress. The early
stages preparation of industrial development bardening on the sea must be
well done in order to create conditions for the breakthrough of coastal
industries.

The deep-processing industry of farming and fishery products will be
developed together and will form a certain scale. The marine chemical
industry, marine pharmaceutics, marine food, marine tourism and the
tertiary industry served for the primary and secondary industries will
also be well developed.

At the same time, we will put more strength on the construction of
coastal infrastructures and the construction of sea ports. The conditions
of transport, communication, water supply and electricity supply will be
greatly improved. Thus a new phase that all marine industries develop in
an all-around way will come into being.

After entering 21 century, we more efforts will be made on the
construction of coastal ports and power stations , so that the coastal
industries and modern marine chemical industry can be greatly developed,
and the new groups of coastal ports and the heavy chemical base can be
formed.

With the development and the modernization of shoal farming, shoal animal
husbandry, and shoal breeding, we will lay emphasis on ocean fishing so
that it will be upgraded to world advanced level.

We will make further exploitation of tourism resources and set up seaside
tourism with Jiangsu characteristics. The modernization of
infrastructures will be generally accomplished and advanced tertiary
industry will be set up.

The output value of marine industries will keep increasing by 18% per
year and will reach RMB150000 million yuan till the year of 2000. This
value will be 5.5% of GNP and will be 450% of that in the end of the
Ninth Five-Year.

The dominant position of marine industries in the coastal economic belt
in Jiangsu will be established. This makes the coastal areas in our
province one of the advanced areas in China coastal belt.

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Learn Chinese online - Majority says 'no' to buying property now

?  ?

BIZCHINA / Owning a Home

Majority says 'no' to buying property now

By Liu Jie (China Daily)
Updated: 2007-07-13 07:20

As property prices in China continue to increase despite government
measures to cool the market, the majority of respondents to a recent
China Daily survey said they will not buy houses amid spiraling prices.

The recent survey by the website www.chinadaily.com.cn showed that 685,
or 54.17 percent of the 1,266 respondents, said they would not purchase
property now, while 373 or 29.46 percent indicated they still want to
buy. The rest gave no comment.

Property prices in China's 70 large- and medium-sized cities jumped by
6.4 percent year-on-year in May, faster than the 5.4 percent growth in
April, despite government efforts to rein in the overheated sector.

Five cities saw a double-digit growth in prices for new homes. Shenzhen
led the pack with a 12.3 percent hike, while Beijing witnessed a 10.3
percent increase.

The majority of people choosing to not buy houses currently said they
simply could not afford the high prices.

"The price is unreasonable," said one respondent living in Beijing. "The
monthly salaries for my wife and I are around 10,000 yuan together, and
the average prices for commercial apartments on the Fourth Ring Road has
exceeded our total income."

Some said they believe that there is a bubble in the Chinese real estate
market and have adopted a wait-and-see attitude.

"I firmly believe the property bubble will be burst in two to three
years. After housing prices slump to a reasonable level, I will consider
getting my own house," one respondent said.

The reasons for people to select "no" in the survey seemed similar, while
causes for "yes" answers were more diverse.

Some of those willing to buy suggested that home values are increasing
faster than annual salaries.

"Why not buy now and increase your wealth?" asked one.

Another respondent felt lucky to buy an apartment years ago and be able
to witness prices climbing every year.

"I think buying a house as soon as possible is better - if I have the
money I will buy now of course," the respondent said.

Another participant agreed, noting that China has a large population with
limited land resources, so the conflict between land supply and
development will inevitably intensify and housing prices will certainly
increase further.

Some others chose to buy for personal reasons like marriage and
immigration.

An American respondent said that he married a woman in Dalian and would
like to settle down in China. "I am going to buy a flat in Dalian for my
new family, though it is too much money," he said.

Some respondents said they have invested in property due to recent
volatility in China's stock market, as real estate is seen as a more
stable investment channel.

Other respondents noted that current soaring property prices prevent
people who really need apartments from purchasing them.

"The government has taken measures to solve the dilemma, but there is no
obvious effect," said one respondent. "It is because the root of the
problem has not yet been found - what is the root?"

Some urged the government to find the fundamental reasons for rising real
estate prices and adopt policies to solve the problem, closely related to
people's lives and social development, as soon as possible.

(China Daily 07/13/2007 page15)

(For more biz stories, please visit Industry Updates)

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