Monday, December 31, 2007

Chinesepod - High prices to 'persist' next year

?  ?

BIZCHINA / Center

High prices to 'persist' next year

By Fu Jing (China Daily)
Updated: 2007-09-18 09:04

High prices will continue to make life difficult for consumers next year
because the government is likely to further deregulate prices of public
utility items such as water, power and natural gas.

The Asia Development Bank (ADB) has forecast higher inflation. But it
said China's economy would still be running on the fast track.

The sharp rise in food prices this year is going to ease next year but it
would also open the way to implement planned reforms of items controlled
by the State such as water, power and natural gas, the ADB said yesterday.

Related readings:
?ADB: China's GDP growth to hit 11.2%, CPI to top 4% in 2007
?Price down for 5th week in a row
?Pork price down, vegetable prices up
?ADB: China should avoid drastic policies to curb growth

The government plans to deregulate the prices to let them reflect how
scarce these necessities are becoming. Rising food prices have so far
forced the government to defer reforms in public utilities.

On this basis, the inflation forecast for 2008 will be 3.8 percent," the
bank said at the release of its Asian Development Outlook in Beijing.

The central government considers a 3 percent inflation as a warning sign.
But the rate has been higher than that for five consecutive months, with
the August figure reaching 6.5 percent.

The ADB's higher inflation assessment coincides with the analysis of some
leading domestic economists. Led by Peking University professor Justin
Lin, they believe the country has entered a cycle of high prices because
of the growing cost of labor, raw material, capital and other production
factors.

The ADB forecast the national economic growth rate will reach 11.2
percent this year and 10.8 percent in 2008. The inflation projection,
pushed up mainly by rising food prices, is 4.2 percent this year and 3.8
percent in 2008. Which means there is a risk that the actual inflation
rate could be higher.

The ADB's confidence in China's economy conforms to the World Bank's
forecast that it can maintain a strong growth momentum and absorb the
impact of a slight global financial turmoil.

ADB economist Zhuang Jian said China needs fast development to create
more jobs and balance income disparity, as well as take further steps to
cool down investment.

Its "top priorities remain creating jobs for nearly 8 million surplus
rural workers migrating to cities each year, and lifting the income of
people in underdeveloped areas," Zhuang said.

The ADB report, however, says investment will remain high, supported by
local governments that want to generate employment and expand their urban
areas. Banks willing to lend and enterprises eager to increase their
earnings, too, would like to see an increase in investment.

The ADB didn't show much confidence in the government's efforts to tame
its fast-paced economy, saying more tightening measures have been taken
to check the investment spree "but their effects are yet to be seen".

It accepted, though, that the country's economic growth slowed slightly
during July and August after the GDP growth accelerated from 11.1 percent
in first quarter to 11.9 percent in the second, the fastest since 1994.

(For more biz stories, please visit Industry Updates)

Learn Chinese, Chinesepod

Learn mandarin - Pork prices fall with live pigs rise

?  ?

BIZCHINA / Top Biz News

Pork prices fall with live pigs rise

(Xinhua)
Updated: 2007-09-16 09:54

Pork prices have been declining since August, as the supply of live pigs
was on the rise, said?Chinese Agriculture Minister Sun Zhengcai Saturday.

The price of pork, the country's staple meat, had fallen to 18.98 yuan
(US$2.53) per kilogram on September 5, down from 21.4 yuan (US$2.85) on
August 9, representing a 11.3 percent drop within nearly a month,
according to figures from the ministry.

Related readings:

?Pork prices continue to decline
?Pork prices have CPI over a barrel
?Pork price peaks, unlikely to plummet soon

Live pigs in stock went up by 3.4 percent compared with the previous
month, and pigs ready for sales reported a 9.9 percent increase year on
year to reverse the declining trend recorded in July, according to Sun.

The number of sows in stock nationwide rose 3.8 percent in August from a
month earlier, which is 3.1 percentage points higher than the figure for
July, said the minister at a pig production conference held in Chengdu,
capital of southwest China's Sichuan Province.

The blue ear pig disease, which caused pork supply shortage and fuelled
price hikes in recent months, was gradually brought under control within
the affected area, the minister said.

He said cases of the outbreak of the blue ear pig disease were down by 52
percent in July from a month earlier, with pig deaths from the disease
falling 36 percent over that for June.

The disease still lingers in 14 Chinese counties, according to previous
figure.

Chinese officials repeatedly reassured the citizens that pork prices were
unlikely to rise by a large margin in the long run, but admitted that
short-term turbulence in the pork market could be "inevitable".

(For more biz stories, please visit Industry Updates)

Related Stories ?

� Pork prices continue to decline
===========================================================================
� Pork prices have CPI over a barrel
===========================================================================
� Pork price peaks, unlikely to plummet soon
===========================================================================

Learn Chinese, Learn mandarin

Chinese language - FDI grows steadily this year

?  ?

BIZCHINA / Top Biz News

FDI grows steadily this year

By Jiang Wei (China Daily)
Updated: 2007-09-14 09:07

Actual foreign direct investment (FDI) in China maintained steady growth
in the first eight months and government agencies are investigating the
latest batch of "Made in China" toy recalls, a senior commerce official
said yesterday.

The Ministry of Commerce approved 24,848 foreign-invested enterprises in
the past eight months, with actual spending rising 12.79 percent
year-on-year to US$41.95 billion, ministry spokesman Wang Xinpei told a
news conference.

For August alone, realized FDI in China jumped to US$5.02 billion, up
11.87 percent from a year earlier. The ministry did not release the
statistics for contracted foreign investments.

Wang said the Ministry of Commerce had dispatched teams to Dongguan and
Shenzhen in Guangdong Province after it learned about the latest toy
recall case in the United States.

Toy giant Mattel recalled around 848,000 toys earlier this month - its
third recall of Chinese products this summer - because of the high lead
content in the paints used.

The latest recall follows a similar move last month, when the company
recalled 18 million Chinese-made products worldwide over high lead levels
and small magnets that have allegedly injured at least three children.

"Our initial investigation shows all the recalled toys are products under
original equipment manufacturing and were exported in processing trade.
Three companies in Guangdong were involved in Mattel's third recall,"
Wang said.

He said the products in question were made according to US
specifications, adding that the government will conduct further
investigations and punish whoever is accountable.

"These are stray cases, considering the fact that there are 8,000
toymakers in China and the quality of China-made toys in general is
reliable," Wang said. "As toys concern children's health, we are treating
each case seriously, regardless of whether the case is one out of a
hundred or one out of a thousand."

The government also urged toymakers to improve their quality control
system to meet both Chinese quality standards and those set by importing
countries.

Large-scale training courses on quality enhancement are being held in
Jiangsu and other provinces famous for toy exports.

Canadian business professor Hari Bapuji recently said most recalls of
toys made in China are due to design errors, not manufacturing flaws.

We should be asking the toymakers: 'Are you guys learning from the errors
you are making? What are your systems to test? What are your systems to
make sure that an error doesn't get repeated in the future?'" he said in
an interview on Canadian Television recently.

(For more biz stories, please visit Industry Updates)

Related Stories ?

� Cumulative FDI exceeds $750b
===========================================================================
� FDI up 13% in 7 months
===========================================================================
� China posts 13 percent growth in FDI
===========================================================================

Learn Chinese, Chinese language

Learn Chinese - Tianjin gets the nod for new-area plan

CHINA / National

Tianjin gets the nod for new-area plan
By Liu Jie (China Daily)
Updated: 2006-06-07 05:49

The port city of Tianjin has finally won the central government's
approval for its development zone dubbed "Pudong of North China" by
international investors.

In a statement released yesterday by the State Council, the cabinet,
Binhai New Area was officially designated an experimental zone for
comprehensive reform, with a short-term emphasis on financial and allied
services.

Tianjin is 120 kilometres southeast of Beijing; and Binhai is 50
kilometres away from the city's downtown.

For the last couple of years, the Binhai plan has been promoted by the
municipality's officials as of key importance for the port city's future
development.

But the significance of the Binhai New Area will be far greater than the
potential benefit for just one city.

At a meeting on promoting Binhai's development organized by the State
Council yesterday, Vice-Premier Zeng Peiyan said: "The development of
Binhai New Area is of strategic importance in China's economic and social
development. Its development will promote the growth of Beijing and
Tianjin municipalities, Hebei Province and areas around the Bohai Sea."

The Binhai New Area, which covers nearly 2,300 square kilometres, will be
turned into a gateway to North China, a modern manufacturing and research
base and an international shipping and logistics centre, he said.

A series of experimental schemes will be launched in Binhai, according to
the State Council announcement, including financial initiatives, land
administration methods, a bonded area and preferential tax policies.

The government will allow Binhai to pilot key reforms related to
financial services and the capital market, and to be more open to
international business development. Experimental schemes may also cover
areas of venture capital, foreign exchange administration and offshore
banking.

The reform in land administration will focus on efficient use of
available resources. Tianjin Dongjiang Bonded Area will be set up in the
new area with an emphasis on international distribution, global
procurement and export processing.

The development of the bonded area will be open to international
partners, the announcement indicated.

Most Commented/Read Stories in 48 Hours

Today's Top News 

� Cofferdam of Three Gorges demolished in seconds

� Over 60% of land use in China illegal

� Doctors remove third arm from baby

� Japan's sensitivity on loans tapped

� Doctors remove third arm from boy

Top China News 

� China set to close more unsafe coal mines

� Japan unfreezes delayed loans to China

� More protections to avoid attack on police

� Pollution costs equal 10% of China's GDP

� 90% worry privacy divulged: Survey

Alibaba is the largest B2B marketplace in the world. Source model ship,
wooden puzzle, one-piece toilet, RC hovercraft, photo album, prom dress,
pocket bike, Vaginal Speculum, Samurai Sword, String Panty and PVC Pipe.

Learn Chinese

Sunday, December 30, 2007

Chinese language - Securities: No new brokerages in sight

?  ?

BIZCHINA / Biz Media Digest

Securities: No new brokerages in sight

(Shenzhen Daily)
Updated: 2007-09-11 10:18

Regulator aren't likely to approve the opening of new brokerages for the
next few years, the Shanghai Securities News reported yesterday.

"The existing 107 brokerages (in China) are basically adequate for the
market to develop. The major task (for the regulators) in the near future
will be to support well-established brokerages and crack down on
poor-performing ones and meanwhile improve corporate governance within
the sector." the report quoted?an official as saying.

(For more biz stories, please visit Industry Updates)

Related Stories ?

� Securities dealers vying for brokerage business
===========================================================================
� CICC may be first brokerage with QDII license
===========================================================================
� Firms licensed for financial futures brokerage
===========================================================================

Learn Chinese, Chinese language

Chinese language - Hu urges scientists to help innovation

CHINA / National

Hu urges scientists to help innovation
By Zhang Feng (China Daily)
Updated: 2006-06-06 06:05

President Hu Jintao yesterday urged scientists to work towards building
an innovation-oriented nation and strongly support the country's
development.

The 13th conference of academicians of the Chinese Academy of Sciences
and the Chinese Academy of Engineering opens in the Great Hall of the
People in Beijing June 5, 2006. [Xinhua]

"Science and technology, especially strategic high technology, is
increasingly becoming the decisive force in economic and social
development and the focus of competition in comprehensive national
strength," Hu said.

He urged quick action to catch up with developed countries in scientific
and technological development as well as the fostering of young talents.

Hu made the remarks in a speech at the conference of the Chinese Academy
of Sciences (CAS) and the Chinese Academy of Engineering (CAE).

He praised members of the two academies as the pride of the Chinese
nation and the people, noting that they had made significant
contributions to major science projects, including manned space flights,
super hybrid rice and high-performance super servers.

But more needs to be done to accelerate progress and innovation, Hu said.

He asked governments to invest more in science and technology, adding "we
must strengthen research in energy and improve energy efficiency."

The president encouraged Chinese scientists to work hard and secure their
own intellectual property rights.

He pledged that the authorities would strengthen support in the
information, biology, energy, nanoscience and materials sectors.

He also promised to reform the education, training and reward mechanisms
to encourage more talents.

Seven foreign members of CAE who were elected in 2005 were given
certificates yesterday.

"I have been closely co-operating with Chinese scientists for 20 years
and I am very proud of becoming a member of CAE," said Wladyslaw
Wlosinski, corresponding member of the Polish Academy of Sciences.

Under the CAS and CAE constitutions, the two academies organize
conferences of academicians once every two years.

The CAS has 704 academicians and foreign associates while the CAE has 701
academicians and foreign associates.

Other top Party and state leaders also attended yesterday's opening of
the science summit.

Xinhua contributed to the story

(China Daily 06/06/2006 page1)

Most Commented/Read Stories in 48 Hours

Today's Top News 

� Three Gorges Dam takes the first strain

� Hu urges scientists to help innovation

� Pollution costs US$200b each year

� 'China should expand military spending'

� Japan to end freeze on China aid loan

Top China News 

� China solves insecurity in drinking water

� NPC delegate urges halt of new bank fee

� Japan to end freeze on China aid loan

� China leads world in rainmaking

� Spending on services rising in big cities

Alibaba is the largest B2B marketplace in the world. Source model ship,
wooden puzzle, one-piece toilet, RC hovercraft, photo album, prom dress,
pocket bike, Vaginal Speculum, Samurai Sword, String Panty and PVC Pipe.

Learn Chinese, Chinese language

Learn Chinese online - Hu: China not to seek large trade surplus

?  ?

BIZCHINA / Center

Hu: China not to seek large trade surplus

(Xinhua)
Updated: 2007-09-07 16:58

Chinese President Hu Jintao said?in Sydney?Thursday that China does not
seek a large trade surplus and is ready to forge closer business ties
with other APEC member economies and non-APEC countries and regions on
the basis of equality and mutual benefit.

He made the remarks in a speech delivered at the business summit of the
Asia-Pacific Economic Cooperation (APEC) forum, which opened Thursday in
Australia's largest city of Sydney.

Related readings:

?Trade surplus down 10% in July
?Export cut to close trade surplus gap
?Surplus growth expected to slow
?Trade surplus up 84% in 1st half, growth set to slow

Hu is on a state visit to Australia and will attend the 15th APEC
Economic Leaders' Meeting, scheduled for September 8-9.

China takes an active part in regional economic cooperation and promotes
trade and investment liberalization and facilitation in the Asia-Pacific
region, he told the gathering of APEC business leaders.

China, which has concluded free trade agreements with the Association of
Southeast Asian Nations, Chile and Pakistan, is now holding free trade
negotiations with Australia, New Zealand and Singapore, and conducting
feasibility studies with India and the Republic of Korea on free trade.

The growth of international trade has benefited all countries. China's
enormous domestic demand and vast domestic market are driving its
economic growth, he added.

"China does not seek a large trade surplus," Hu said.

China will continue to transform the pattern of trade growth, increase
import and strengthen protection of intellectual property rights to
ensure coordinated and balanced growth of import and export as well as
contribute to the sustainable growth of global trade, he pledged.

The two-day APEC business summit, an important forum of the APEC
meetings, will focus on trade, market and structural issues as well as
energy, clean development, climate change and education. The theme of the
business summit is "strengthening our community, building a sustainable
future."

(For more biz stories, please visit Industry Updates)

Learn Chinese online

Learn mandarin - Lanqi Community in Nanjing

CHINA / Jiangsu in Photos

Lanqi Community in Nanjing
(people.com.cn)
Updated: 2006-06-05 11:25

Residents of Lanqi (Blue Flag) community performe dances.

Page: 1 2 3 4

Most Commented/Read Stories in 48 Hours

Today's Top News 

� President Hu mourns for military plane crash victims

� Japan to end freeze on China aid loan

� Paper calls to protect environment

� China must stick to direction of reform

� Floods kills 29 in southern China

Top China News 

� Japan to end freeze on China aid loan

� China leads world in rainmaking

� Spending on services rising in big cities

� Taiwan opposition parties step up pressure on Chen

� 10 jailed for organized crime

Alibaba is the largest B2B marketplace in the world. Source model ship,
wooden puzzle, one-piece toilet, RC hovercraft, photo album, prom dress,
pocket bike, Vaginal Speculum, Samurai Sword, String Panty and PVC Pipe.

Learn Chinese, Chinese language

Saturday, December 29, 2007

Chinese Mandarin - Toxin-free farm produce promised

?  ?

BIZCHINA / Center

Toxin-free farm produce promised

By Li Fangchao (China Daily)
Updated: 2007-09-04 15:41

The government will clamp down on the use of illegal or excessive
chemicals in agricultural products in the latest move to restore
confidence in food and product safety.

"The overall quality of the agri-products in the country will be
ensured," Sun Zhengcai, minister of agriculture, said. "Consumers can be
at ease when eating them."

The average acceptance rate regarding pesticide residues in vegetables
was 93.6 percent in the first half of 2007; those regarding clenbuterol
hydrochloride contamination and sulfa drug residues in livestock products
was 98.8 percent and 99.0 percent respectively, Sun said in a statement
posted on the ministry's website.

Related readings:

?Food safety in rural areas to be scrutinized
?China to launch nationwide checkup on food safety
?City tightens food safety system
?US, China tackle food safety issues

He added that more than 99 percent of Chinese food exports to the United
States, the European Union and Japan met quality standards over the last
four years.

The recent results showed that "the ratio of agricultural products
passing inspections is the highest in history", Sun was quoted as saying
by the People's Daily yesterday.

He said close attention has been paid to establishing a food safety
supervisory process "from farmland, to market and to the dining table".

Sun also pledged to get tough with the use of toxic pesticides and
addictives to reduce residues in farm produce.

He said the ministry has launched a campaign to put all wholesale
agri-products markets in the large- and medium-sized cities under
surveillance, and to eliminate the use of forbidden veterinary medicines
and foodstuff addictives in major production bases.

In a related development, the General Administration of Quality
Supervision, Inspection, and Quarantine said yesterday that since last
weekend, food exports have not been allowed to leave the country without
a quarantine label.

The compulsory label system is a new measure to strengthen the
supervision of food exports, said the administration.

The move came after the administration introduced a landmark recall
system last week, requiring producers to take back unsafe toys and food.

(For more biz stories, please visit Industry Updates)

Learn Chinese, Chinese Mandarin

Chinese School - Sinopec heads list of country's top earners

?  ?

BIZCHINA / News

Sinopec heads list of country's top earners

By Zhang Ran (China Daily)
Updated: 2007-09-03 09:03

The China Enterprise Confederation (CEC) has released its latest list of
the country's top 500 companies.

State-owned China Petrochemical Corporation, also called Sinopec, was the
largest company by revenue, with 1.06 trillion yuan (US$139.5 billion) in
2006. It was the only company to top 1 trillion yuan.

Foreign trade dealer Zhucheng Waimao Co Ltd ranked 500. The Shandong
province-based company recorded 7.216 billion yuan.

Special Coverage:
Markets Watch ?
R elated readings:
?Top 500 Enterprises 2007 take up 84% of GDP
?Ranking shows top 500 manufacturers
?Sinopec's net profits up 65.3% in first half

Companies in the list witnessed a 23.7 percent increase in revenue and
25.9 percent hike in profits from the previous year, largely because of
continued growth from mergers and acquisitions.

However, the money-earning performance of the 500 still falls far behind
that of the world's top 500 as compiled by Forbes.

China's top performers recorded a modest 4.72 percent on profit margin,
lower than the average 7.32 percent of the world's top 500, the CEC
report said.

The return on equity of the top 500 was 10.1 percent, much lower than the
16.1 percent of the world's top 500.

"The top 500 China is still mainly ranked in size instead of
performance," Li Wei, deputy director of the State-owned Assets
Supervision and Administration Commission of the State Council said.

"That is a gap between China and developed countries."

A total of 22 Chinese companies were among the world's top 500 in 2007.
Sinopec, the largest company in China, ranked 17th.

"China's top firms have still focused their business on traditional
industries, mainly manufacturing," Yang Du, professor at Renmin
University of China, said.

As many as 280 companies, accounting for 56 percent of the top 500, are
from manufacturing industries, and less than 30 percent are from
service-related industries.

China's top 500 have been continually expanding, with 131 of them,
merging and acquiring some 408 other businesses last year.

"But these merger and acquisition (M&A) activities are mainly limited
within the same industries and few of the M&A deals are
cross-industries," Yang said.

Among the top 500, 96 are headquartered in Beijing and 40 are from East
China's Jiangsu Province.

(For more biz stories, please visit Industry Updates)

Learn Chinese, Chinese Online Class

Chinese Online Class - Hu, Bush discuss Iran nuclear issue

CHINA / National

Hu, Bush discuss Iran nuclear issue
(Xinhua)
Updated: 2006-06-02 10:22

Chinese President Hu Jintao on Thursday told U.S. President George W.
Bush that he welcomed the U.S. stance on resolving the Iran nuclear issue
through diplomatic means and its willingness to join negotiations on the
issue.

The Chinese government believed the international non-proliferation
system should be maintained and the Iran issue be resolved in a peaceful
way through diplomatic means and talks, Hu said in a telephone
conversation with Bush Thursday night.

British Foreign Secretary Margaret Beckett (R) addresses the media as
Deputy Foreign Minister of China Dai Bingguo (L), French Foreign Minister
Philippe Douste-Blazy (2nd L) and U.S. Secretary of State Condoleezza
Rice (3rd L) watch during a news briefing in the British residence in
Vienna June 1, 2006. Major world powers on Thursday agreed on a package
of incentives for Iran to halt sensitive nuclear fuel work, as well as
penalties if it does not, Beckett told reporters. [Reuters]

"China is ready to maintain contact and coordination with the United
States and play a constructive role in resuming negotiations at an early
date," a statement from the Chinese Foreign Ministry quoted Hu as saying.

Bush told Hu that his country was determined to resolve the Iran nuclear
issue through diplomatic means.

He said as long as Iran agreed to suspend its uranium enrichment
activities in verifiable ways, the United States would join relevant
negotiations.

The Iran nuclear issue is reaching a critical stage.

Earlier on Thursday, Iranian Minister of Foreign Affairs Manouchehr
Mottaki told reporters in Teheran that Iran welcomed direct talks with
Washington, but would not give up its nuclear rights.

Senior representatives from the five permanent members of the United
Nations Security Council and Germany were to meet in Viennaon Thursday to
discuss the issue, China's Foreign Ministry said earlier.

Chinese Vice-Foreign Minister Dai Bingguo would attend the meeting, which
was expected to focus on a decision to offer Iran apackage of incentives
in return for suspension of its nuclear activities.

The six nations achieved some progress in forming a common position at a
meeting in London last Wednesday.

Meanwhile, France, Germany and Britain, or the EU-3, have been trying to
work out a package of both incentives and possible penalties to persuade
Iran to suspend its nuclear programs.

Mottaki said in Malaysia on Tuesday that Iran was ready to restart
negotiations with the three European countries.

Hu also told Bush he was ready to work with Bush to advance bilateral
relations in a healthy and stable way.

Hu said during his visit to the United States in April, he and Bush
reached an important consensus on promoting bilateral constructive and
cooperative relations in the 21st Century.

"This is of great significance to the development of relations between
China and the United States," Hu said.

Bush said it was important for both leaders to exchange ideas on
strategic cooperation through such ways as telephone conversations.

Calling Hu's visit to the United States a success, Bush said hewas
looking forward to meeting Hu again to exchange opinions on bilateral
ties.

Hu paid his first state visit to the United States from April 18 to 21
this year. Bush's last visit to Beijing was in November 2005.

Most Commented/Read Stories in 48 Hours

Today's Top News 

� Nuke fusion reactor gives nation a headstart

� Canadian court stays Lai's deportation

� 6 world powers agree on Iran incentives

� Sino-US trade deficit beneficial to both

� China, Arab nations sign action plan

Top China News 

� New ministry recommended to handle energy challenges

� Scandal-hit Chen cedes some power to 'premier'

� China, Arab nations sign action plan

� Experts push for westward water diversion route

� Project to benefit poor students

Alibaba is the largest B2B marketplace in the world. Source model ship,
wooden puzzle, one-piece toilet, RC hovercraft, photo album, prom dress,
pocket bike, Vaginal Speculum, Samurai Sword, String Panty and PVC Pipe.

Learn Chinese, Free Chinese Lesson

Chinese School - Singapore Airlines gets nod to invest in China Eastern

?  ?

BIZCHINA / Center

Singapore Airlines gets nod to invest in China Eastern

(Xinhua)
Updated: 2007-08-28 14:34

Chinese regulators have approved Singapore Airlines to buy stake of China
Eastern and the final deal is due to be made public on Sunday.

Details of the cooperation is under talk between the two aircraft
companies and China Eastern will announce a specific proposal in its
press conference held this Sunday, the Shanghai Securities News reported
on Tuesday.

Li Fenghua, chairman of China Eastern, said earlier that Singapore
Airlines would not get more than 25 percent of his company, which is the
maximum allowed by Chinese law.

For China Eastern, the deal means a major cash injection that will
improve the quality of its assets.

Singapore Airlines will also bring to China Eastern managerial expertise
and in return get access to China's rapidly growing mainland aviation
market.

Related readings:
?China Eastern gets nod for stake sale
?China Eastern to buy 10 A320s with $612.84m
?China Eastern approved to sell stake to Singapore Airlines

China Eastern said the company's profit totaled 263 million yuan (US$34.6
million) in the first six months after suffering losses for two
consecutive years, on the back of better performance and income generated
from the rising yuan.

It carried 18.33 million passengers and 422,800 tons of cargo in the
first half, up 9.17 percent and 0.81 percent respectively.

As one of the three largest carriers in China along with Air China and
China Southern Airlines, China Eastern Airlines registered losses of 2.78
billion yuan in 2006 and 510.86 million yuan in the first quarter of 2007.

Trading of the company's stocks has been suspended since May 22 for the
announcement. Its stock price last closed at 9.6 yuan.

(For more biz stories, please visit Industry Updates)

Related Stories ?

� China Eastern gets nod for stake sale
===========================================================================
� China Eastern to buy 10 A320s with $612.84m
===========================================================================
� China Eastern approved to sell stake to Singapore Airlines
===========================================================================

Learn Chinese, Chinese Online Class

Friday, December 28, 2007

Learn Chinese - First futures license issued

?  ?

BIZCHINA / Center

First futures license issued

By Wang Lan (China Daily)
Updated: 2007-08-25 10:26

SHANGHAI: The country's securities watchdog has issued a license to the
first commodities futures trading company qualified to apply to become a
member of the China Financial Futures Exchange.

The move was widely seen as an indication that the China Securities
Regulatory Commission (CSRC) and the exchange are ready to establish the
clearing facilities necessary for the trading of financial futures and to
minimize counter-party risks.

Representatives of the Hangzhou-based Zhejiang New Century Futures Co
told China Daily on Friday the company had won approval from the CSRC to
do clearing business in financial futures. They said the company was
preparing to apply to the exchange for membership.

The exchange has said that it plans to introduce stock index futures
based on the CSI 300 indicator as the first such product. But it has not
specified a target launch date.

A crucial part of futures trading, the clearing system facilitates the
matching of trades, ensures smooth deliveries and keeps track of
counter-party risks arising from margin trading.

Zhou Zhiqiang, a futures analyst at Great Wall Futures Co, said issuing
the first license for a clearing business was a key step toward the
formation of the membership system.

"Clearing members occupy a core position among the participants of the
upcoming index futures market," Zhou said. "It is seen as a prelude to
the introduction of all-round and special clearing members, leading to
the completion of the whole membership system."

Zhang Fan, a futures analyst at Changjiang Securities, said: "As a
follow-up to the flood of brokerage business licenses issued during the
past two months, clearing business licenses are expected to be issued in
the coming month or two."

Analysts said the decision to issue clearing business licenses had
accelerated the process of introducing index futures. But the
time-consuming process of assessing the qualifications of all-round
clearing and special clearing members has not started.

(For more biz stories, please visit Industry Updates)

Learn Chinese

Learn Mandarin online - License a positive for foreign players

?  ?

BIZCHINA / Review & Analysis

License a positive for foreign players

By Xiao Wan (China Daily)
Updated: 2007-08-24 11:45

Shanxi Asian American-Daning Energy Co (SAADEC) is the first Sino-foreign
venture to get a license to develop a coal mine in China for some time.

It got the go-ahead to develop the Daning mine in North China's Shanxi
from the provincial coal bureau in July. The approval gave SAADEC its
sixth and final license needed to develop the Daning coal mine, which
will have an annual production capacity of 4 million tons. The mine is in
Jincheng, in the south of Shanxi.

SAADEC is 56 percent owned by Asian American Coal Inc (AACI). Local firm
Shanxi Lanhua Sci-Tech Venture Co Ltd takes a 36 percent share in the
venture, and Shanxi Coal Transportation & Sales Corp (Jincheng) the
remaining 8 percent stake.

US private equities including Resource Capital Funds, First Reserve Corp,
Evan Energy Investments, and Thai coal company Banpu Public Co Ltd are
all stakeholders in AACI.

"The Daning coal mine is our first project in China. The total investment
of the project is $230 million," said Michael Cosgrove, CEO of AACI.

AACI was set up in 1999 to develop coal and related assets in China. It
set up its Shanxi office in August 1999, and a Beijing office in March
2002. It set up SAADEC with two Chinese companies in April 2000, said
Cosgrove.

AACI set up another joint venture in 2006, Shanxi Gaohe Energy Co, with
Lu'an Mining Group to develop the Gaohe coal mine in Shanxi Province's
Changzhi. AACI owns 45 percent of the joint venture, while the Chinese
firm takes 55 percent.

In the pipeline

The Gaohe project is expected to get a production license in 2009,
Cosgrove told China Daily.

"AACI's success in getting a license for Daning comes down to good
preparation. The company has been focused on China's coal industry for
several years, and it has adapted to the local market," said Liang
Dunshi, an analyst at the China Coal Transport and Distribution
Association.

The firm said it hired Chinese staff for its senior positions to help
ease its way in the local coal industry.

China's booming coal industry has attracted many foreign investors in
recent years. Global coal giants such as Anglo American and Peabody
Energy have all entered the Chinese market.

Apart from coal, coal-bed methane, which is similar to natural gas, is
also luring foreign investors. For instance, Asian American Gas Inc,
which has the same stakeholders as AACI, has two coal-bed methane
projects in operation in China.

Aside from the upstream business, including developing coal mines and
coal-bed methane, downstream sectors such as coal-to-chemicals are also
generating foreign interest.

(For more biz stories, please visit Industry Updates)

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

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

Related Stories ?

� New coal find to yield 5b tons
===========================================================================
� Coal chemical industry lures $50b of foreign capital
===========================================================================
� China's coal export increases after months of decline
===========================================================================
� Coal output hits 1.1b tons in 1st half
===========================================================================

Learn Chinese, Chinese School

Learn Chinese online - No relief in sight on realty prices

?  ?

BIZCHINA / Major Cities

No relief in sight on realty prices

By Chen Weihua (China Daily)
Updated: 2007-08-22 11:30

Rising housing prices and changing policies have brought both angst and
excitement to homebuyers in Shanghai.

Many new buyers are talking to agents to revise contracts after the local
government recently announced that first-time homebuyers can borrow up to
500,000 yuan from the city's housing fund from September 1.

The loan, which carries a relatively low interest rate, is currently
capped at 300,000 yuan.

The new policy will be a relief for homebuyers that have to take out
hefty commercial loans to finance purchases.

Many of the city's homebuyers jokingly refer to themselves as "mortgage
slaves", because most of their salaries are used for loan repayments. But
this situation is not going to change much for those who borrow ?under
20- to 30-year terms.

Many homebuyers have been waiting for the last two years for prices to
come down, after a number of policies were introduced to rein in the
red-hot property market.

But as housing prices in Shanghai and most Chinese cities continue to
rise, they could be waiting in vain. "And there is absolutely no sign
that the prices will go down," said Li Zong, from a local real estate
company.

"It actually costs more now to buy a small apartment in Pudong because
the price has shot up from 15,000 yuan per square meter last year to
17,000 yuan," said Xiao Lu, a woman in her early 30s.

As housing prices continue to go through the roof, reports that some
cities might raise the down-payment ratio from 30 percent to 40 or even
50 percent are causing many panics.

In fact, cities such as Shenzhen in Guangdong Province and Wenzhou in
Zhejiang Province have already tightened up lending on home purchases.

But the Shanghai head office of the People's Bank of China has dismissed
any increase in the down-payment ratio.

Unlike Wenzhou and Shenzhen, banks in Shanghai have shown no sign of
cutting back on mortgages.

High land prices and the enthusiasm of local and overseas investors in
Shanghai's real estate market have pushed the city's property prices,
especially in the downtown area, to rise at a rapid pace in the last few
months and many believe it's set to continue.

(For more biz stories, please visit Industry Updates)

Learn Chinese, Learn Mandarin online

Learn Chinese - Degussa expands operations in China

?  ?

BIZCHINA / Center

Degussa expands operations in China

(People's Daily Online)
Updated: 2007-08-20 14:43

Degussa, a specialty chemicals supplier?in Germany, is expanding its
operations in China, planning to boost sales in the country to 800
million euros in 2009.

The Beijing-headquartered Degussa China Co Ltd has spent over 22 million
euros to expand its research and development center in Shanghai. The
investment included the construction of a pilot facility for polymer
engineering in a four-story building with a space of 1,250 square meters.

In fiscal year 2006, 4,000 employees generated sales of 460 million euros
in China, up 60 percent from 288 million euros in 2005.

Degussa has also planned an annual investment of about 100 million euros
in China for the coming few years.

Since the early 1990s, Degussa has been producing specialty chemical
products in China. The group has more than 20 companies in China, with 13
production sites including Changchun, Dalian, Jining, Qingdao and
Shanghai.

(For more biz stories, please visit Industry Updates)

Learn Chinese

Thursday, December 27, 2007

Chinese Mandarin - China Mobile profit surges 29%

?  ?

BIZCHINA / News

China Mobile profit surges 29%

By Janet Ong (China Daily)
Updated: 2007-08-17 10:25

China Mobile Ltd's profit surged 29 percent in the second quarter as the
company added a record number of users, driven by gains in rural areas,
where lower-income residents were attracted by reduced charges.

Net income of the world's largest mobile phone operator by subscribers
rose to 20.3 billion yuan ($20.7 billion) from 15.8 billion yuan a year
earlier, according to calculations based on the first-half earnings
reported by the Beijing-based company yesterday.

The company's shares fell 4.9 percent to HK$80.85, or 3.92 percent, in
Hong Kong.

China Mobile, whose 332.4 million users outnumber the US population, has
shifted focus from cities to smaller towns and villages, where there is
less competition. Chief executive officer?Wang Jianzhou waived some
charges to attract rural residents, who make up three-quarters of China's
1.3 billion population.

"China Mobile has executed the rural strategy very well, and more than
half of the company's new subscribers are from the rural areas," said
Desmond Tjiang, who manages $1.3 billion in Asian equities at Fortis
Investment Management in Hong Kong, including China Mobile shares. "It's
the right move."

Sales are estimated to have risen by 23.5 percent to 88.9 billion yuan.
Rainie Lei, a spokeswoman at China Mobile, declined to comment on the
second-quarter numbers.

The company's stock has risen 53 percent in the past year, compared with
an 18 percent gain in the benchmark Hang Seng Index. China Mobile is the
world's 10th largest company by market value.

?

(For more biz stories, please visit Industry Updates)

Related Stories ?

� Stocks climb on China Mobile, credit woes persist
===========================================================================
� China Mobile adds record number of subscribers for 9th month
===========================================================================
� China Mobile overtakes HSBC as top listed firm in HK
===========================================================================

Learn Chinese, Chinese Mandarin

Learn Chinese - Founder sues Blizzard over game fonts copyright

?  ?

BIZCHINA / Center

Founder sues Blizzard over game fonts copyright

By Ding Qingfen (China Daily)
Updated: 2007-08-15 06:57

?
A woman plays a Founder Group game at a show in Shanghai. [newsphoto]

Beijing Founder Electronics Co Ltd said yesterday it has sued US game
company Blizzard Entertainment over alleged copyright infringement of its
fonts.

The case is the latest in a string of lawsuits launched by Chinese
companies against US firms recently as the rift over intellectual
property rights protection continues.

Beijing High People's Court has accepted Founder Electronics' case.

Founder Electronics is asking for compensation of 100 million yuan for
the alleged infringement - the largest amount claimed by a Chinese
company in a copyright case.

Founder Electronics, a wholly owned subsidiary of Founder Group, is the
nation's largest font supplier and has developed hundreds of
multi-language fonts that are widely used in the country.

It alleges its fonts were illegally used in Blizzard's popular online
game World of Warcraft.

The game is operated by NASDAQ-listed The9 Ltd, a Shanghai-based company.

"Blizzard Entertainment's World of Warcraft has been illegally copying
and using five fonts exclusively developed by Founder Electronics,
without our permission, which is an infringement of our copyright," said
Song Zhenying, a spokesperson for Founder Group.

Founder claims it has suffered a loss of 1 billion yuan.

The lawsuit could affect The9's online game business, given the
popularity of World of Warcraft.

According to market analyst iResearch, World of Warcraft was one of the
top three online games in terms of downloads.

The9 said in a statement that it is discussing the case with lawyers,
without giving further comment.

Blizzard was not available for comment yesterday.

China's online gaming market was worth 7.8 billion yuan last year, a
year-on-year increase of 60 percent.

?

(For more biz stories, please visit Industry Updates)

Related Stories ?

� Online game market to hit $1.3b in 2007
===========================================================================
� Online game industry on a roll
===========================================================================
� Chinese online game companies support anti-addiction system
===========================================================================

Learn Chinese

Chinese Mandarin - Motorola wins $394m in China Mobile deals in H1

?  ?

BIZCHINA / Top Biz News

Motorola wins $394m in China Mobile deals in H1

(Reuters)
Updated: 2007-08-13 16:24

Motorola Inc sealed contracts worth $394 million in the first half of the
year to supply telecoms gear to China Mobile, the larger of China's two
wireless carriers, the firms said on Monday.

Motorola, which in July posted its second straight quarterly loss, said
it would book about three-fifths of the revenue from the contracts in the
first half.

The US firm, long one of the largest foreign multinational investors in
China, had been working with the Chinese operator for more than two
decades, it said in a statement.

The contracts were for equipment operating under the GSM standard
prevalent in Europe and Asia, including base stations and other
infrastructure, to expand and upgrade China Mobile's network across the
country.

(For more biz stories, please visit Industry Updates)

Learn Chinese, Chinese Mandarin

Learn mandarin - Aviation industry set to take off

?  ?

BIZCHINA / Review & Analysis

Aviation industry set to take off

By Lu Haoting (China Daily)
Updated: 2007-08-10 15:07

Chinese airlines raked in an aggregate profit of 1.54 billion yuan in the
first half of this year thanks to brisk market demand, appreciation of
the renminbi and lower jet fuel prices.

The strong performance in the first six months, usually a slack season
for the airline industry, could be a prelude to continued robust growth
in the next three years, analysts said.

Chinese carriers have seen first-half losses over the past two years. The
industry's aggregate loss for the first half last year skyrocketed to
2.57 billion yuan on record-high oil prices.

"Strong market demand brought by China's fast economic growth is the main
driver (of this year's results)," said Ma Xiaoli, an aviation analyst
with CITIC Securities.

Chinese carriers transported 86.7 million passengers and 1.82 million
tons of cargo from January to June, up 16.7 percent and 15.3 percent over
the same period last year, according to the General Administration of
Civil Aviation, the industry regulator.

Average passenger loads were at 73.9 percent during the first half of
2007, a year-on-year increase of 1.6 percent.

"Besides the sound economic growth, the Chinese airline industry will
benefit a lot from a series of global events in the coming three years,"
Ma said. The three events are the 2008 Olympic Games in Beijing, the 2010
Shanghai World Expo and the Asian Games Guangzhou in 2010.

The CAAC expects China's aviation industry to maintain an average annual
growth rate of 14.6 percent during the 11th Five-Year Plan period
(2006-10).

"The growth rates for last year and the first half of this year have
exceeded that expectation," Ma said, adding that a capacity increase in
the coming three years would be stable despite brisk market demand.

"The CAAC and Chinese airlines' planned capacity increase for the 11th
Five-Year Plan period is based on their previous forecast of a
14.6-percent annual growth rate. They are unlikely to significantly
change their original plans," Ma said.

"On the other hand, due to the global aviation industry revival, Boeing
and Airbus have sold so many aircraft that it is difficult for them to
respond to short-term needs and their production positions are basically
sold out till 2010," Ma added.

The renminbi appreciation has also helped Chinese airlines cut costs,
analysts said.

(For more biz stories, please visit Industry Updates)

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

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

Learn Chinese, Learn mandarin

Wednesday, December 26, 2007

?  ?

CHINA / Background

Declaration on Establishment of SCO

(Xinhua)
Updated: 2006-06-12 15:14

The heads of state of the Republic of Kazakhstan, the People’s Republic
of China, the Kyrgyz Republic, the Russian Federation, the Republic of
Tajikistan and the Republic of Uzbekistan,

Highly appraise the positive role played by the "Shanghai Five", in the
five years since its founding, in promoting and deepening mutual trust,
relations of friendship and good-neighborliness among the member states,
consolidating regional security and stability and facilitating common
development;

Unanimously recognise that the founding and development of the "Shanghai
Five" have conformed to the post cold-war historic trend that mankind
aspires to peace and development, shown the great potentiality of
peaceful and friendly coexistence, unity and cooperation realized through
mutual respect and confidence by countries with different civilization
backgrounds and traditional cultures;

Point out, in particular, that the two agreements signed by the five
heads of state of the Republic of Kazakhstan, the People’s Republic of
China, the Kyrgyz Republic, the Russian Federation and the Republic of
Tajikistan respectively in Shanghai in 1996 and in Moscow in 1997, on
confidence-building in the military sphere in border areas and on mutual
reduction of military forces in the border areas, and the summary
documents signed during their meetings in Alma-Ata (1998), Bishkek
(1999), Dushanbe (2000), have made important contributions to preserving
regional and world peace, security and stability, greatly enriched
contemporary diplomatic and regional cooperation practices and exerted
extensive and positive influence in the international society;

Firmly believe that against a background of the rapid development of the
process of political multipolarisation and information globalization in
the 21st century, it is conducive to the member states more effectively
jointly making use of the opportunities and replying to the new
challenges and threats;

And hereby solemnly declare:

1. The Republic of Kazakhstan, the People’s Republic of China, the
Kyrgyz Republic, the Russian Federation, the Republic of Tajikistan and
the Republic of Uzbekistan have founded the Shanghai Cooperation
Organisation (SCO).

2. The purposes of the SCO are: strengthening mutual trust and
good-neighborly friendship among the member states; encouraging effective
cooperation among the member states in political, economic and trade,
scientific and technological, cultural, educational, energy,
communications, environment and other fields; devoting themselves jointly
to preserving and safeguarding regional peace, security and stability;
and establishing a democratic, fair and rational new international
political and economic order.

3. The SCO shall hold a formal meeting of heads of state of the member
states a year, hold meetings of heads of government regularly; the
meetings shall be held in rotation among the member states. With a view
to expanding and strengthening cooperation in all fields, in addition to
the established meeting mechanisms for the leaders of the relevant
departments, new meeting mechanisms may be set up in accordance with
circumstances, and permanent and temporary expert groups may be formed to
study work plans and proposals for further developing cooperation.

4. The "Shanghai Spirit" formed during the "Shanghai Five" process, with
"mutual trust, mutual benefit, equality, consultation, respect for
multicivilisations, striving for common development" as its basic
contents, has been precious treasure accumulated in the cooperation among
the countries of the region in recent years. This spirit should be
carried forward so that it will become the norm governing relations among
the SCO member states in the new century.

5. The SCO member states shall abide by strictly the purposes and
principles of the Charter of the United Nations, mutually respect
independence, sovereignty and territorial integrity, not interfere in
each other’s internal affairs, not use or threaten to use force against
each other, adhere to equality and mutual benefit, resolve all problems
through mutual consultations and not seek unilateral military superiority
in contiguous regions.

6. The SCO has been evolved on the basis of the two agreements signed
respectively in 1996 in Shanghai and in 1997 in Moscow on
confidence-building in the military sphere in the border areas and on
mutual reduction of military forces in border areas. Its cooperation has
been expanded to political, economic and trade, cultural, scientific and
technological, and other areas. The principles embodied in the
above-mentioned agreements have determined the basis of the mutual
relations among the SCO member states.

7. The SCO adheres to the principle of non-alignment, does not target any
other country or region, and is open to the outside. It is ready to
develop various forms of dialogue, exchanges and cooperation with other
countries, international and regional organisations. On the basis of
consensus, it shall admit as its new members those countries which
recognise the cooperation purposes and tasks within the framework of the
organisation, the principles expounded in Article 6 of the this
declaration and other articles, and whose joining will facilitate the
realisation of cooperation.

8. The SCO sets special store by and makes all necessary efforts to
ensure regional security. The member states will cooperate closely to
implement the Shanghai Convention on Combating Terrorism, Separatism and
Extremism, including setting up an Antiterrorist Center of the SCO in
Bishkek. Moreover, relevant multilateral cooperation documents will be
formulated to restrain illegal weapons and narcotics smuggling, illegal
immigration and other criminal activities.

9. The SCO will make use of the huge potential and extensive
opportunities in the mutually beneficial cooperation in economic and
trade fields among its member states, strive to enhance further
development of both bilateral and multilateral cooperation among the
member states and plurality of this cooperation. For this purpose, a
negotiating process on trade and investment facilitation will be
initiated within the framework of the SCO to formulate an outline of
long-term, multilateral economic and trade cooperation and relevant
documents will be signed.

10. The SCO member states will strengthen their consultations and
coordination of activities in regional and international affairs, support
and cooperate with each other closely on major international and regional
issues, and jointly promote and consolidate peace and stability of the
region and the world. In the current international situation, it is of
particular significance to preserve global strategic balance and
stability.

11. To coordinate the cooperation of the departments in charge of the SCO
member states and organise their mutual collaboration, a National
Coordinators Council of the SCO member states is hereby set up and
foreign ministers of the SCO member states will approve the council’s
temporary rules to regulate its activities.

The heads of state instruct the National Coordinators Council, on the
basis of this declaration and the documents signed by the heads of state
of the "Shanghai Five", to start drafting the Charter of the Shanghai
Cooperation Organisation which, among other things, shall clearly
enunciate the purposes, goals and tasks of future cooperation of the SCO,
the principle and procedures for the admission of new members, legal
effect of the decisions made and the way to conduct mutual coordination
with other international organisations. The document will be signed at
the 2002 meeting of heads of state.

Summarising the past and looking forward into the future, the heads of
state firmly believe that the founding of the SCO marks the entry into a
brand new development phase for the cooperation of the member states.
This is in conformity with the trend of the times, the realities of this
region and the fundamental interests of the peoples of the member states.

June 15, 2001, Shanghai

Top China News ?

* China's shares hit another new record high
* Govt pumps in $1b to raise drug, food safety
* Income disparity getting worse: Report
* Legal body confirms new guidelines
* US candidates discuss China 'to get votes'

Today's Top News ?

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

Most Commented/Read Stories in 48 Hours

Learn Chinese online

Learn Mandarin online - Sub prime loan crises may affect some Chinese banks

?  ?

BIZCHINA / Center

Sub prime loan crises may affect some Chinese banks

By Ding Qi (chinadaily.com.cn)
Updated: 2007-08-08 14:39

The latest US sub prime loan crises didn't render Chinese banks safe. A
US report said Chinese financial institutions had bought US$107.5 billion
worth of US mortgage securities by the end of June last year, accounting
for 47.6 percent of similar investments amongst Asian countries.

And a part of those may be the highly risky sub prime loan securities,
the Shanghai-based Oriental Morning Post quoted an industry insider as
saying today.

According to?a report from the United States Department of the Treasury,
several large banks from China have bought sub prime loan backed
securities.

Related readings:
?Central bank urges caution on real estate fluctuations
?Chinese stake in UK's BG Group?
?CDB makes global finance foray
?Gov't can help investors overseas more

Bank of China (BOC) was thought to be the biggest buyer. Sources said
that by the end of last year, BOC held US$90.1 billion worth of US bonds.
Assuming five percent of them are securities related to sub prime loans,
capital at risk could total in the multi-billion dollar range.

However, BOC officials didn't expect such a serious outcome. Zhu Min,
vice president of the bank, said BOC did invest several billion dollars
in the sub prime loan bonds, but the loss is thought to be only millions,
only slightly impacting the bank's overall operations.

The report also said investment from Industrial and Commercial Bank of
China, Bank of Communications, and China Construction Bank also included
sub prime loans, although most of them said the amount was not large
enough to seriously affect revenue.

Chinese banks may want to remain vigilant against the looming depression
trend in the US property market.

The US American Home Mortgage Corporation, the nation's second largest
mortgage loan institution, filed for bankruptcy due to financing
limitations from banks. In addition, major mortgage loan companies also
started to reject new loan applications. These events should serve as a
warning call for financial investors from China.

(For more biz stories, please visit Industry Updates)

Learn Chinese, Chinese School

Learn Chinese - IT: Microsoft cuts Vista's China price to fight piracy

?  ?

BIZCHINA / Biz Media Digest

IT: Microsoft cuts Vista's China price to fight piracy

(Xinhua)
Updated: 2007-08-07 10:57

Microsoft Corp has slashed the price on its Windows Vista operating
system in China by more than half, in a bid to curtail piracy, The Wall
Street Journal reported on Monday.

Beginning August 1, Microsoft cut the retail price for its Vista Home
Basic package to 499 yuan (US$66) from 1,521 yuan, and its Vista Home
Premium package to 899 yuan from 1,802 yuan, the report quoted the
company as saying.

The price cut is the latest tactic by the Redmond, Wash, software company
in its efforts to spread legitimate products in the China market, said
the report.

"Pre-installed Windows Vista is already getting popular in China,"
Microsoft spokesman Jim Lin was quoted as saying. "This program gives
customers who bought a computer before the Vista launch an opportunity to
upgrade."

(For more biz stories, please visit Industry Updates)

Learn Chinese

Learn Mandarin online - Foreign media criticized for fabricating food reports

?  ?

BIZCHINA / Center

Foreign media criticized for fabricating food reports

(Xinhua)
Updated: 2007-08-03 17:54

A senior Chinese official has lambasted foreign media for fabricating
scares over Chinese food products.

Some foreign media had viciously sensationalized product quality problems
and food scares concerning a small number of Chinese goods or companies,
said Vice Commerce Minister Gao Hucheng.

Some media fabricated safety problems in campaigns to block imports of
Chinese goods, which he described as de facto trade protectionism, he
said.

Gao said some foreign media reports told of Chinese boys as young as six
growing moustaches and girls aged seven growing breasts after eating
hormone-tainted food.

He also said some media had branded China-made products "killers".

"We welcome impartial media reports as they will help us seek truth from
the facts and take appropriate measures to rectify problems."

"Like other governments around the world, the Chinese government pays
great attention to safety and when problems occur, we never shirk, but
deal with them responsibly after finding the facts," Gao said.

Related readings:
?Trade with China benefits all US congressional districts
?Protectionism - the real threat to growth, stability
?1,028 US economists urge no protectionist against China
?Exports reflect 'safety of products'
?Foreign media rapped over food reports

The government has long been cracking down on fake, low-quality and
unsafe products, but it was almost impossible to eradicate them as a
small minority of local companies lacked social responsibility.

The government had taken measures to tackle product safety problems,
including blacklisting firms that exported unsafe products, he said.

In July, the government revoked the business licenses of Xuzhou Anying
Biotechnology Development Company, in eastern Jiangsu Province, and
Binzhou Futian Biotechnology Co Ltd, in neighboring Shandong Province,
for exporting melamine-tainted wheat protein that ended up in pet food in
the US.

Gao said the quality of Chinese products was improving steadily. A survey
showed that 94 percent of Chinese vegetables were up to standard in terms
of pesticide residue in the first half, 12 percentage points higher than
in 2003.

Commerce Minister Bo Xilai said in a statement posted on the website of
the Ministry of Commerce that more than 90 percent of Chinese imported
products were good and safe.

Bo hoped all the parties could treat China-made products objectively,
fairly and rationally and would not let problems affect normal trade.

The Ministry of Health, Labor and Welfare in Japan, China's biggest food
importer, said in July that 99.42 percent of the imported food from China
in 2006 met safety standards, trailing 99.38 percent of the European
Union and 98.69 percent of the US.

(For more biz stories, please visit Industry Updates)

Learn Chinese, Chinese School

Tuesday, December 25, 2007

Chinese Mandarin - China authorises 1st JV fund to invest overseas under QDII

?  ?

BIZCHINA / Center

China authorises 1st JV fund to invest overseas under QDII

(Xinhua)
Updated: 2007-08-02 11:39

Related readings:
?Fund management firms to invest in overseas stock markets
?Southern Fund wins nod to invest abroad
?Insurers to be allowed to increase overseas investment
?New QDII measure takes effect

Tan said, "Foreign capital markets are more mature and better regulated,
and the long term investment returns in those markets can be quite
satisfactory."

Last year, Shanghai-based Hua An Fund Management Co Ltd became China's
first fund management firm to be allowed to invest overseas as a pilot
QDII, with a quota of US$500 million.

Its first QDII product, launched in November, raised US$197 million and
yielded five percent in the following six months.

(For more biz stories, please visit Industry Updates)

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

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

Learn Chinese, Chinese Mandarin

Learn Chinese - US's allegations of subsidies are groundless

?  ?

BIZCHINA / Center

US's allegations of subsidies are groundless

By Jiang Wei (China Daily)
Updated: 2007-08-01 09:34

Allegations in the United States that China's iron and steel industry is
being subsidized and aided by the government are groundless, according to
an industrial body.

The development of China's steel industry is not a result of so-called
government subsidies, China Chamber of Commerce of Metals Minerals &
Chemicals Importers & Exporters (CCCMC) told China Daily yesterday.

The chamber of commerce made the comments over claims by US steel
manufacturers that it is subsidies and government intervention that have
created China's steel industry - the largest in the world.

"The development of China's market economy injects infinite vigor and
vitality into the steel industry, which is exactly the 'market force'
mentioned by the US side," CCCMC said.

Related readings:
?Steel pipe makers unite against US charges
?Steel export growth to slow down
?Steel output to rise 14% in 2007
?Trade body 'regrets' US charges on steel pipes

It argued that the subsidy claim made by US steelmakers is biased because
it denies the achievements of the Chinese steel industry over the past
three decades.

CCCMC pointed out that it is in fact the US government that has provided
"long-term and all-round subsidies" as high as $100 billion to its steel
industry over the past three to four decades.

The Chinese government mainly leverages economic rules and measures such
as taxes in macro-regulation to adjust the market rather than intervening
in individual operation of enterprises, CCCMC said.

"It's contradictory for the United States to accuse, on one hand, the
Chinese government of intervening with the steel industry, and require,
on the other, the Chinese government to adopt other administrative
approaches such as licensing of steel exports," the industry body said.

The US iron and steel sector, led by the American Iron and Steel
Institute, the Steel Manufacturers Association, the Specialty Steel
Industry of North America and the Committee on Pipe and Tube Imports, has
been complaining against "government subsidies and interferences" in
China since last year.

The US industry has also asked the government to launch both anti-dumping
and countervailing investigations against two kinds of steel products
imported from China.

The iron and steel industry's claims partially led to the US complaint at
the World Trade Organization saying China's state subsidies allow it to
export its goods on the cheap and prevent US companies from competing
fairly, both at home and in third markets.

(For more biz stories, please visit Industry Updates)

Learn Chinese

Chinese Mandarin - Retail: Carrefour China buys from local farms to cut costs

?  ?

BIZCHINA / Biz Media Digest

Retail: Carrefour China buys from local farms to cut costs

(Agencies)
Updated: 2007-07-27 14:07

Carrefour SA, Europe's largest retailer, has begun buying agricultural
produce directly from farmers in China to cut costs.

Paris-based Carrefour opened its first China direct procurement center in
Shanghai last week and plans to set up more such centers in Beijing,
Guangzhou and other cities, the company said in an e-mailed statement.

Direct procurement enables Carrefour to bypass wholesalers, reducing
costs and giving farmers a secure outlet for their produce, the retailer
said.

Carrefour's direct procurement comes amid growing concern both in China
and abroad over the safety of Chinese food products.

Carrefour sent inspectors to closely examine water quality at Shanghai
Shatian Lake Ecological Breeding Base before signing a one-year agreement
last week on the supply of prawns -?its first direct procurement contract
in the country, the company said. Carrefour said it would monitor the
entire breeding procedure and would inspect water and feed, to ensure the
quality of the prawns.

Carrefour opened its 100th Chinese superstore earlier this month and
plans to open 20 to 25 stores a year in the world's fastest-growing major
consumer market.

Carrefour, the world's second-biggest retailer, competes for market share
with bigger rival Wal-Mart Stores Inc, which this month is offering more
than 1,000 discounted products at its 80 stores in China.

(For more biz stories, please visit Industry Updates)

Chinese Mandarin

Chinese language - Export cut to close trade surplus gap

?  ?

BIZCHINA / Center

Export cut to close trade surplus gap

By Jiang Wei (China Daily)
Updated: 2007-07-26 08:38

The government has pledged to further curb exports of cheap
labor-intensive products and enlarge imports, narrowing the bloating
trade surplus.

China will again expand the list of processed goods subject to export
limits by the end of this year, Wang Qinhua, director with the Ministry
of Commerce (MOFCOM)'s department of Mechanic, Electronic and Hi-Tech
Industry, said yesterday.

The announcement followed a similar expansion of the list announced on
Monday by MOFCOM and the General Administration of Customs. Enterprises
who work processing certain items will have to deposit half of the levy,
including duty and value-added tax, to customs.

"The new policy will add to the cost burden on exporters and will affect
their cash flow. Those engaged in the labor-intensive part of the
industry will be most affected," Wang said.

She said she expected the new policy would force exporters to increase
the value to their products, upgrade technology and move up the
industrial value chain.

She added that the changes will not apply to western and central China,
giving regions with cheaper labor a chance to develop processing bases
previously clustered in the coastal provinces.

Processed goods are regarded as a major source of China's record high
trade surplus, which hit $112.5 billion in the first half of 2007.

While restricting exports of labor- and resource-intensive products,
China is also adopting various measures designed to enlarge imports and
help balance the trade surplus, said Wang Shouwen, director of MOFCOM's
foreign trade department.

He said China will double the size of the import pavilion at the Canton
Fair - the nation's largest trade event - this autumn, encouraging
foreign businesses to take advantage of recently-signed trade
arrangements, such as free trade agreements and tariff reductions.

Sino-EU textile trade

China's textile exports to the European Union are not expected to see a
sharp increase next year after the European economic bloc removes quota
restrictions on the textile trade according to a bilateral agreement
signed in June 2005, Wang Shouwen said.

"China is seeking some measures to guarantee a steady growth in textile
trade with the EU," he said, adding textile exports to the EU were only
up 5.5 percent in the first five months of this year from a year earlier.

Doha talks

MOFCOM spokesman Wang Xinpei said the latest proposals at the Doha world
trade talks on cutting farm export subsidies are "positive to moving the
multilateral talks forward", but added that "there are still a few
improvements to be made in the content".

Last week the World Trade Organization's chief agriculture negotiator
suggested reducing farm export subsidies to below $16.2 billion a year,
compared with the current $19 billion.

Wang said China is studying the recommendations, which are aimed at
breaking a nearly six-year deadlock which has paralyzed the WTO's Doha
Round of trade talks.

(For more biz stories, please visit Industry Updates)

Chinese language

Monday, December 24, 2007

Chinesepod - Property prices up 7.1% in major cities

?  ?

BIZCHINA / Photo

Property prices up 7.1% in major cities

By Hu Yuanyuan (China Daily)
Updated: 2007-07-24 08:40

?

A ballon rises in front of buildings in Shanghai. Property prices in
China's 70 large and medium cities rose by 7.1% on a yearly basis last
month. [newsphoto]

Property prices in the country's 70 large and medium cities rose by 7.1
percent on a yearly basis last month despite the government's efforts to
cool down the market, the National Development and Reform Commission
(NDRC) said yesterday.

The growth rate, the highest since 2006, contributed to the strong
economy, experts said.

"China's sizzling property market is closely linked with the overall
economy," said Anna M Kalifa, head of the research department at Jones
Lang LaSalle Beijing.

The country's gross domestic product grew by 11.5 percent in the first
half of the year, beating experts' forecasts.

Beihai, Shenzhen, Nanjing and Beijing led the country in terms of price
increases, with growth rates of 15.5 percent, 13.9 percent, 11.3 percent
and 10 percent, respectively. Beihai, a small city at the southern end of
South China's Guangxi Zhuang Autonomous Region, has been at the top of
the list for four months in a row, reflecting the strong growth in
second- and third-tier cities.

June and July are generally key times for property deals, not only in
China, but also for the entire world, Kalifa said.

Related readings:
?Beijing housing prices up 10.1% in 1st half
?Guangzhou property prices hit new high in June
?Property price growth in May quickens; Up 6.4% on year
?Housing, a too heavy burden

"Property prices in China will continue to grow in the next half of the
year, but at a slower pace," Kalifa told China Daily. "We expect the
property price to grow by around 8 percent from January 2007 to January
2008, and we've seen most of that growth already."

The sales prices of pre-owned houses jumped by 7.8 percent last month.
That was one percentage point higher than in May. Shenzhen and Beijing
are still among the top four cities in terms of price hikes, with growth
rates of 16.1 percent and 9.4 percent, respectively.

(For more biz stories, please visit Industry Updates)

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

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

Chinesepod

Learn Chinese - Life more difficult for most home buyers

?  ?

BIZCHINA / Biz Life

Life more difficult for most home buyers

By Tu Lei (chinadaily.com.cn)
Updated: 2007-07-23 10:34

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.??

Eagerness to pay off loans as soon as possible may be a main attitude
towards the hike.?

“My first apartment’s monthly payments increased by 20 percent after
the bank raised interest rate in 2004, and I will be forced to pay off
the debts in advance because of the new interest rates,“ said a girl
surnamed Qu.?

She bought a 50 square meter apartment, her second property, near the
North Fourth Ring Road in Beijing, with a price of above 8,200 yuan for
per square meter. She borrowed a bank loan of 160,000 yuan.
But it seems she is not worried about the hike. “I can add my income
with proceeds from stock and fund investments, which can offset the
losses.” said she.?

“The possible hike has little impact on my living, because the money is
taken from my bank card directly. But yesterday I talked with my wife,
and we planed to pay off all loans by the end of this year, then things
will be better,” said Mr. Yang, another home buyer.??

“I feel nothing about the possible interest hike, for you still own
bank a lot of money. The truth is that when you are heavily in debt, the
total amount is unimportant,“ said Zhu Bo, a girl who also bought a 64
square meter apartment near North Four-Ring.??

She loaned 420,000 yuan from the bank, and the monthly payment is 2,983
yuan.??

Zhu Bo is not alone. Many buyers have apathetic attitudes towards the
hike. In fact, they are almost numb in some instances.??

“I do not care about interest rates too much. For now, I can only try
to pay it,” said Zhang Weide, a teacher in Beijing Union University. He
loaned 400,000 yuan and will pay 2,800 yuan monthly for 20 years. “The
hike targets all the buyers, and I am not alone.”?

Investors have a different attitude.?

“Increasing interest rates is a macro-control policy by the government.
The growth of interest rates is far behind that of housing price, so real
estate still can get a good return,” said a sales manager surnamed Zou
in an IT company,?

Last year, he bought a 107 square meter apartment in Tongzhou District,
east of Beijing, for investment. The housing price increased to 7,000
yuan from 5,000 yuan when he bought.

(For more biz stories, please visit Industry Updates)

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

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

Learn Chinese

Learn Chinese - Zhangjiagang Free Trade Zone

CHINA / Invest in Jiangsu

Zhangjiagang Free Trade Zone
(jschina.com)
Updated: 2006-05-25 11:33

Zhangjiagang port is a first class international trade port along the
golden waterway of Yangtze River.

It has 21 10,000-ton class berths in use and other 10 more berths under
construction. In its south, is the bonded area of 4.1 square km which
approved by the State Council in October 1992 and is the only inland
river port bonded area in China.

It is a free trade zone constructed with Chinese characteristics and
operating in accordance with the international practice. RMB �� 700
million has been invested in the infrastructure construction and basic
facilities for the starting area ( 2.1 square km ) are ready for use. 51
projects are under construction with total investment of RMB �� 2.39
billion. The building construction of 310,000 square km has been
completed. By the end of 1996 there are 666 enterprises in th
zone?including 42 project with investment over US $ 10 million per
project and 12 projects over US $ 30 million.

Most Commented/Read Stories in 48 Hours

Today's Top News 

� Pentagon paper shows 'Cold-War mentality'

� Price hike 'to raise fuel efficiency'

� Man purchases 17 girls' virginity

� How far have I run? Ask the iPod

� Pentagon: US surprised by rapid arms modernization

Top China News 

� Kazakhstan oil piped into China

� Price hike 'to raise fuel efficiency'

� Canada court delays Lai's deportation

� Code set to safeguard academic ethics

� China to promote currency reform

Alibaba is the largest B2B marketplace in the world. Source model ship,
wooden puzzle, one-piece toilet, RC hovercraft, photo album, prom dress,
pocket bike, Vaginal Speculum, Samurai Sword, String Panty and PVC Pipe.

Learn Chinese

Chinese School - Weighing the costs of luxury

?  ?

BIZCHINA / Weekly Roundup

Weighing the costs of luxury

By Liu Shinan (China Daily)
Updated: 2007-07-18 15:21

It is unreasonable to blame people for craving a higher resolution TV
set, a faster computer or an automobile that is easier and more
comfortable to drive. It is human nature to constantly seek greater
enjoyment. Hundreds of years of development of modern industry have led
us to believe that science and technology are invincible and omnipotent,
and that so long as human beings are willing to explore new ideas, they
have the power to raise the level of human enjoyment without limit. In
other words, we assume that painstaking effort is the only fee we need to
pay in exchange for a life of constant improvement.

However, the huge piles of electronic garbage remind us that we have
ignored a more fundamental cost of modern luxury - the draining of
resources and the pollution of the air, earth and water. We should ask
ourselves: Is it moral for us to mine the resources of this planet beyond
what our generation needs, cutting into our offspring's stake just to
pander to our incessant avarice for luxurious enjoyment?

Email: liushinan@chinadaily.com.cn

(For more biz stories, please visit Industry Updates)

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

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

Chinese School

Sunday, December 23, 2007

Chinese language - Telecom: Chinese phone users reach 860m by May

?  ?

BIZCHINA / Biz Media Digest

Telecom: Chinese phone users reach 860m by May

(Xinhua)
Updated: 2007-07-17 15:43

China had more than 860 million phone users by the end of May this year,
partly thanks to a growing rural market, statistics from the Ministry of
Information Industry have shown.

The figure included 494 million mobile phone users and 372 million
fixed-line subscribers, according to the ministry.

The number of rural users has been on the rise since the second half of
2006. With new registration of about 1.7 million in the January-May
period this year, the total rural phone subscribers have topped 118.1
million, according to the ministry.

In May alone, the nation recorded new mobile phone subscribers of 7.16
million, while the number of new fixed-line users in the first five
months was 4.39 million.

The revenue of the country's telecommunications business rose 10.1
percent from a year earlier to 318.67 billion yuan (US$43.65 billion) in
the first five months this year, said the ministry.

(For more biz stories, please visit Industry Updates)

Chinese language

Chinese Online Class - Hot money influx is 'cooling down'

?  ?

BIZCHINA / Center

Hot money influx is 'cooling down'

By Zhang Ran (China Daily)
Updated: 2007-07-13 10:36

The influx of speculative money from overseas, or hot money, into China's
stock market is showing signs of slowdown thanks to recent cooling-down
measures by the government, analysts said.

The increase in foreign exchange reserves not attributed to trade surplus
or foreign direct investment declined from $73 billion in the first
quarter to $48 billion in the second quarter, according to data from
investment bank Lehman Brothers and CEIC, an international financial
information provider.

China registered a rise in foreign exchange reserves of $131 billion in
the second quarter. Despite its high percentage in annualized terms, the
actual amount is less than the $136 billion that China earned in the
first quarter.

The change "suggests that hot money inflows may be slowing," Sun
Mingchun, vice-president and Asia economist of Lehman Brothers Asia Ltd,
told China Daily yesterday.

He attributed it to strict checks by the government on illegal capital
inflows and slow trading in the equity market since the rise in the stamp
tax on stock transactions in early June.

The hot money may now go to Hong Kong or other markets to seek better
investment returns, Sun said.

In another development, the State Administration of Foreign Exchange
(SAFE) repeated its call yesterday to control illegal capital inflows, or
money going into the stock or real estate markets betting on the yuan's
appreciation, under the pretext of trade payment or direct investment.

"The regulatory authorities will continuously strengthen monitoring and
administration of cross-border flows of funds, and block the inflow of
foreign capital on fictitious trade claims," said a statement posted on
the SAFE website yesterday.

Sun of Lehman Brothers said that the government should publish the
results of the investigations and penalize companies violating the
regulations, "to prevent more companies from following suit".

(For more biz stories, please visit Industry Updates)

Chinese Online Class

Chinesepod - Overseas listing fervor remains

?  ?

BIZCHINA / News

Overseas listing fervor remains

By Li Weitao, Wang Xu and Wang Xing (China Daily)
Updated: 2007-07-12 07:50

Mainland companies' fervor for overseas listings has yet to cool despite
stricter application processes and a government attempt to encourage more
to list on the mainland, a market researcher said yesterday.

But foreign venture capital and private equity firms in the long run need
to consider establishing yuan-denominated funds and look at the A-share
market to profit from the mainland companies in which they have invested.

According to Beijing-based Zero2IPO Group, 21 mainland companies launched
overseas initial public offerings (IPOs) in the second quarter, compared
with 14 in the previous quarter and 21 a year ago.

Money raised totaled $11.50 billion compared with $2.06 billion in the
first quarter and $12.61 billion a year ago. That is an indication
overseas IPOs remain brisk, said ZeroIPO founder and CEO Garvin Ni.

Mainland companies earlier formed offshore firms in which foreign
investors could invest and then be listed overseas. A revised regulation
issued last September requires that the formation of such offshore
companies must be approved by the Ministry of Commerce (MOFCOM).

None has so far secured a MOFCOM approval, a sign that the government
wants more domestic companies to choose to list on the mainland instead
of in overseas bourses.

Ni said many private companies already completed their restructuring
plans before the revised regulation was issued, so that they have
eventually managed to launch overseas IPOs.

As well, intensifying competition among overseas bourses to attract
mainland companies also boosted overseas listings.

Yet overseas venture capitalists and private equity firms could have
difficulty cashing in on overseas listings because the process could
become lengthy and complicated due to the new rules.

But an exit from an A-share listing could pose an even bigger risk than
an overseas listing for venture and private equity firms, said Neil N.
Shen, founding managing partner of Sequoia Capital China, noting that
rules for a mainland listing are unfamiliar to many foreign investors.

Lingering regulatory uncertainty and volatility in domestic stock markets
are also baffling foreign investors, according to Tina Ju, managing
partner of KPCB China and Kevin Wang, founder of Natixis Private Equity
Asia.

Zero2IPO's Ni suggested venture and private equity firms launch
yuan-denominated funds, partnering with local companies to avoid risks
brought by the revised regulation.

"It's time to raise renminbi (yuan-denominated) funds to exit an
investment from the A-share market," he said.

(For more biz stories, please visit Industry Updates)

Related Stories ?

� China shares fall 2.1 pct on policy, IPO worries
===========================================================================
� HK becomes world's 2nd largest IPO market
===========================================================================
� Western mining seeks US$815m in Shanghai IPO
===========================================================================

Chinesepod

Chinese School - The long road to index futures trading

?  ?

BIZCHINA / Comments & Analysis

The long road to index futures trading

By Wang Lan (China Daily)
Updated: 2007-07-04 08:55

The long-awaited debut of CSI300 index futures, the mainland's first
financial futures product, is testing the patience of many market
participants, particularly institutional stock investors who would
welcome an effective hedging tool to help minimize looming risks in an
increasingly uncertain market environment.

But Shanghai-based China Financial Futures Exchange insiders said the
exchange and the government regulatory agencies insist on getting
everything right before the launch.

As a result, much time and effort is being spent on the regulations that
cover trading practices, participants' rights and obligations, risk
management and clearing facilities. Finding a shortage of experienced
financial futures traders, many prospective participants are conducting
training courses for selected staff members.

The preparation process is further complicated by the diversity of the
participants, whose specific interests must be equally protected.

"The birth of stock index futures represents the transition of China's
financial market, from the previously divided operations and supervisions
in separated markets to an integrated financial system with coordinated
efforts from all markets," said Yu Yiran, an analyst with China
International Futures (Shanghai) Co Ltd.

In the past years, a number of key rules and regulations have been
introduced to pave the way for the launch of the index futures market.
The Regulation on Futures Trading, which came into effect in April, has
effectively laid down the ground rules for all participants.

China Financial Futures Exchange (CFFEX) last week said China Securities
Regulatory Commission (CSRC) has approved the trading rules and contract
specifications for CSI300 futures. The approved rules cover trading
practices, clearing procedures, members' rights and obligations, risk
control, information management, hedging operations and investigation and
penalties for irregular trading.

The approval of the trading rules and contract specifications is widely
seen as having cleared one of the final hurdles in the long preparation
process.

The assessment of members' qualifications is expected to be the next
focus for CFFEX in the coming months. The exchange has said the approval
of the trading rules and the contract specifications was a major boost to
the preparation work, although the specific trading date for the index
futures is yet to be fixed.

But industry experts pointed out that other supplementary rules and
regulations will have to be added to form a complete legal system for the
proposed market.

Before that happens, it's difficult for the prospective market
participants, including broking firms, fund management companies,
institutional investors and clearing banks, to make any real progress in
their preparation work.

"We just can't speed things up within our organization before all the
relevant rules are put in place," said Yu.

TCSRC on June 22 said it began the process of vetting futures brokerage
companies that have applied for approval to conduct clearing business.

The securities watchdog also started the qualification assessment of
securities companies for IB, or introducing broker, business. IB enables
an approved stock brokerage companies to earn commissions by introducing
clients to futures trading through futures brokerages.

The futures market is also facing a shortage of industry professionals.
This year, the total number of those who have cleared the futures
employee qualification examination rose 26 percent from last year to
36,165, according to statistics from China Futures Association.

Related readings:
?Regulator approves index futures trading rules
?CSRC warms up for launch of index futures
?No timetable set for stock index futures launching

Special Coverage:
Markets Watch?

T he frequency of such examinations has been increased to three times a
year. Before last year, it was held once or twice a year.

Many futures employees in China, despite having gained expertise in the
commodity futures markets, have very limited knowledge of the financial
futures market.

Educating investors is also a key factor in preparing for index futures.
In 2006 alone, China Futures Association hosted 37 seminars on financial
futures for individual investors.

In the past two years, the association has organized 20 lectures aimed at
institutional investors. Alongside hundreds of lectures by the
association and futures companies, investor education has also been
conducted in other forms.

The simulated trading of CSI300 futures, started in October, is widely
considered invaluable in providing a lifelike market experience to
participants.

(For more biz stories, please visit Industry Updates)

Chinese School