Learning Chinese: December 2007

Monday, December 31, 2007

Chinese Online Class - Boeing: Air travel in China to soar fivefold by 2026

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BIZCHINA / Center

Boeing: Air travel in China to soar fivefold by 2026

By Lu Haoting (China Daily)
Updated: 2007-09-19 09:48

China's domestic air travel market will grow nearly fivefold in the next
20 years, Boeing said yesterday.

With an annual growth rate of 8.1 percent, China's domestic airline
traffic is expected to increase from under one-fifth the size of the
North American domestic market today, to over half its size by 2026,
according to a Boeing report issued yesterday.

The country will remain the largest commercial aircraft market outside
the US in that period.

China will need about 3,400 new airplanes, worth US$340 billion, over the
next two decades, and the country's fleet will nearly quadruple to 4,460
by 2026, said Randy Tinseth, vice-president of marketing at Boeing
Commercial Airplanes.

The nation's air cargo market will continue to lead the world and Chinese
airlines are expected to add 300 freighters during the period,
quadrupling its fleet, Tinseth said. But only 84 new freighters will be
added, with the rest to be converted from passenger jets.

China Aviation Industry Corp I (AVIC I), the country's leading aircraft
manufacturer, will unveil its forecast on China's aviation market today
during Aviation Expo/China 2007, which runs from today until Saturday at
the China International Exhibition Center in Beijing.

China will need only 340 regional jets by 2026, accounting for 10 percent
of new aircraft deliveries, Boeing said yesterday. But AVIC I previously
forecast the country would need up to 900 feeder-line aircraft by 2025.
The Chinese company has been promoting its 70 to 100-seat ARJ21 and
50-seat MA60.

"The regional jet market is a relatively small segment in the global
aviation market and there are many competitors. It is just a market we
choose not to serve," Tinseth said.

Air travel between China and North America as well as between China and
Europe will more than double in the next 20 years, and the number of city
pairs will more than triple, Boeing said.

Single-aisle airplanes, such as the B737 and A320, will still be the
largest category, with new airplane deliveries reaching 2,200 in China,
the Seattle-based company said.

(For more biz stories, please visit Industry Updates)

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� China needs 3,400 planes over 20 years, Boeing says
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� China becomes largest foreign supplier of parts for Boeing
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Chinese Mandarin - China's postal business volume exceeds 80b yuan

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BIZCHINA / Center

China's postal business volume exceeds 80b yuan

(Xinhua)
Updated: 2007-09-17 15:28

China's post service business has witnessed an 11.6 percent average
annual growth to exceed 80 billion yuan (US$10.64 billion) since the
sector was separated from telecommunications business in 1998, according
to a senior postal official.

Ma Junsheng, director of the State Post Bureau, told a Sino-US seminar on
postal reforms and express delivery on Monday that the business volume of
express delivery in China had reached 30 billion yuan, with more than
2,400 express service companies.

In 1998, China carried out the reform to separate postal and
telecommunications businesses in the whole country, and in 2005 the
government carried out further reforms to separate administration from
business operation in the postal sector.

Under the new postal system, postal enterprises operate independently
while administrative departments supervise the industry according to law,
Ma said.

On January 29 this year, Ma said, the restructured State Post Bureau and
the China Post Group had officially started operation. By September 4,
all postal businesses at the provincial level have been separated from
administrative functions.

(For more biz stories, please visit Industry Updates)

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Learn Chinese online - China to maintain sizeable trade surplus for some time

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BIZCHINA / Center

China to maintain sizeable trade surplus for some time

(Xinhua)
Updated: 2007-09-15 10:47

China will continue to have a sizeable trade surplus for some time due to
its trade structure and the global industry shift, vice commerce minister
Gao Hucheng said on Friday.

China's trade surplus grew at an annual rate of almost 33 percent to
US$24.98 billion in August, the General Administration of Customs said on
Tuesday.

The figure was slightly higher than the US$24.36 billion in July, but
short of the record US$26.91 billion in June.

"China's surplus growth will slow down with the implementation of a
series of tightening measures," Gao told a press conference in Beijing.

"But it takes time for the measures to yield results as most of them went
into effect after July 1. We are watching what possibilities might
arise," he said.

Since the end of last year, the government has introduced a raft of
measures ranging from export rebate cuts to export tariff increases for
many exports especially those from the high polluting, and high energy
and resource-consuming sectors, said Gao.

"Similar measures have been unveiled for the fast-growing polluting
industries and those that can easily trigger trade frictions," he said.

"The government has also adjusted policies on processing trade as it
contributes to more than 50 percent of China's total foreign trade volume.

"We stick to the concept of scientific development and also consider the
concerns of some trading partners when (promoting) exports."

Gao told reporters that two-way trade between China and the Association
of Southeast Asian Nations (ASEAN) was expected to exceed US$200 billion
in 2008, two years ahead of expectations.

He forecast the trade volume to hit US$190 billion this year. It stood at
US$127.95 billion in the first eight months.

The markets between China and the members of ASEAN were more open as
goods and services trade agreements came into effect, Gao said.

"China's average tariff rate to ASEAN members has been reduced to the
current 5.8 percent from 9.9 percent in July 2005."

The fourth China-ASEAN Expo would be held in Nanning, capital of south
China's Guangxi Zhuang Autonomous Region, from October 28 to 31, Li
Jinzao, vice governor of Guangxi Zhuang Autonomous Region, announced at
the press conference.

(For more biz stories, please visit Industry Updates)

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Chinese Online Class - Chinese oil reserve to quadruple in three years

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BIZCHINA / Top Biz News

Chinese oil reserve to quadruple in three years

By Hao Zhou (chinadaily.com.cn)
Updated: 2007-09-13 16:10

China hopes to have 12 million tons of strategic oil reserves by the end
of 2010, said Chen Deming, deputy director of the National Development
and Reform Commission (NDRC), the Shanghai Securities News reported today.

Current strategic oil reserves are recorded at between two and three
million tons. The NDRC hopes to quadruple this number by the end of 2010,
said Chen, speaking at the 8th US-China Oil and Gas Industry Forum which
was held September 9-11 this year in San Francisco, California, the
United States.

He also suggested planned oil reserves in 2010 will equal one month of
China's net import of crude oil, and that number will be raised further,
to an equivalent of three months of imports, by 2020, in conformity with
recommendations of the International Energy Agency (IEA). China is not
currently a member of IEA.

Hu Weiping, principal of NDRC's oil and natural gas department, said
China's oil reserve is for any unexpected energy emergencies and not for
manipulating market oil prices, in answer to the international
community's doubts about the country's oil reserve policies.

World crude oil futures prices yesterday topped US$79 per barrel,
indicating this moment is definitely not a good opportunity to raise
national oil reserve levels.

The national strategic oil reserve plan was launched in 2003, and the
country planned to construct four oil reserve bases along the coastal
areas. Two are located in Ningbo City's Zhenhai district and Zhoushan
City, both in Zhejiang Province, east China. The other two are in the
Huangdao district of Qingdao City, Shangdong Province, and Dalian,
Liaoning Province respectively.

The Zhenhai and Zhoushan bases are already in use. The construction of a
third base in Huangdao, with a reserve capacity of three million cubic
meters, will be completed by the end of this year and it will enter into
usage next year.

Referring to the Sino-US cooperation in terms of oil and gas assets, Chen
said he hoped the US would outline clear policy regarding Chinese energy
enterprises' procurement of American oil and gas assets.

Given China's trade surplus with the US, it is appropriate for its
enterprises to invest in oil and gas assets in the US, Chen added.
However, he said he is uncertain about whether the US is interested in
allowing Chinese enterprises to purchase domestic assets of the US.

China National Offshore Oil Corp (CNOOC), the third biggest oil company
in China, tried in 2005 to buy US oil company Unocal Corp for access to
its Asian gas reserves, but dropped the bid after US politicians
interfered. Later that year, Chevron Corp, another American oil giant,
who bade far less cash than CNOOC, ultimately acquired Unocal.

(For more biz stories, please visit Industry Updates)

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Sunday, December 30, 2007

Chinese language - Market rules?should be?followed

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BIZCHINA / Review & Analysis

Market rules?should be?followed

(China Daily)
Updated: 2007-09-12 13:49

Local officials should respect the rules of the market and regulate the
economy accordingly, says an article in China Economic Weekly. The
following is an excerpt:

When the price of pork kept increasing, officials of the commerce
department in Chongqing worked out a countermeasure last month with a
union comprising 11 supermarkets that have 151 outlets across the city.

The union agreed to sell pork below the market price, in fact at zero
profit. And the commerce department asked the union to maintain it until
there was a decrease in prices.

Regretfully, the union has been reportedly broken its undertaking.

The incident is a natural result of the market economy.

The supermarkets are entities pursuing profits. They have costs like
salaries bank loans, taxes, and equipment maintenance. All these costs
must be covered by the return from their businesses.

Supermarkets are in the business of selling, to make a profit and cover
their expenditure.

It is against the basic rules of the market economy for administrative
departments to ask supermarkets to sell pork at zero profit. Such a rule
is destined to fail at the outset.

The union obeyed the commerce department, most probably, out of fear. It
soon found the decision to be costly, and its only option was to withdraw.

It is understandable that Chongqing's commerce department was eager to
bring the price of pork down, but its move was obviously not in
accordance with the rules of a market economy.

To manipulate commodity prices is strictly forbidden by law.

When the Chongqing commerce department asked the supermarkets to sell
pork at zero profit, it committed such a violation.

The collusion affected market order, the interests of pork retailers and
the rights of consumers by attempting to establish a monopoly.

(For more biz stories, please visit Industry Updates)

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Chinese Mandarin - China to issue 200b yuan special T-bonds

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BIZCHINA / Center

China to issue 200b yuan special T-bonds

(Xinhua)
Updated: 2007-09-11 08:48

China is to issue 200 billion yuan (US$26.7 billion) of special treasury
bonds as the second tranche of a planned 1.55 trillion yuan basket to
finance the country's new foreign exchange investment firm.

The bonds would be sold to the public, with outstanding terms of more
than 10 years, the Ministry of Finance announced on Monday.

The first 100 billion yuan bonds will be issued later this month in three
batches, while sale of the second half is scheduled for the fourth
quarter.

Learn mandarin - Intel starts building chip plant in China

? ?

BIZCHINA / Center

Intel starts building chip plant in China

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

US computer chip giant Intel Corp began on Saturday to build its first
chipset plant in Asia, which involves US$2.5 billion in the first stage
investment.

Intel Chairman Craig Barrett attended the ground breaking ceremony of the
plant, which is located in the Dalian Economic and Technological
Development Zone in Northeast China.

Learn Chinese - BT Group ramps up investment in China

? ?

BIZCHINA / Overseas Investment

BT Group ramps up investment in China

By Wang Xu (China Daily)
Updated: 2007-09-07 09:24

Leading telecom operator BT Group will invest at least US$70 million in
China in the coming years as part of its efforts to more than double
revenue in the country by 2009.

The UK firm opened a technology and service center in Dalian and a
research and development (R&D)?facility in Shanghai yesterday, as part of
the investment.

"We are very committed to pursuing long-term development in China," said
Bill Lam, vice-president of BT Global Services' Northeast Asia operation,
adding the new facilities will help the company to meet demand from
global and local clients.

BT has recruited about 60 employees for its Dalian center to provide
software development, service delivery and support for clients in China,
Japan and South Korea. Its R&D center in Shanghai, the fourth globally,
will be used for research and will also provide services to clients in
China.

"Our strategy is to support Chinese companies going abroad and companies
from outside to be successful in China," said Ben Verwaayen, chief
executive officer (CEO) of BT Group. "The more Chinese companies become
successful in the world, the better for BT."

BT said it has signed an agreement with ZTE Corp, a Chinese telecom
equipment and solution provider, to provide connection services for ZTE
in the Asia-Pacific region and South America.

The telecom operator entered the Chinese market in 1995, with its main
business of serving multinationals' Chinese operations. It said last year
that it expected annual revenue could amount to US$250 million by 2009.

"We will continue to expand our business here, through partnership or
even merger and acquisition," said Francois Barrault, CEO of BT Global
Services.

BT has partnered with China Netcom, one of the top four Chinese telecom
operators, to provide MPLS, an important technology for fixed and mobile
services on a converged network.

China's booming telecom market has proven enticing to overseas operators
since the nation entered the World Trade Organization. Foreign operators
can now take a stake of up to 49 percent in a joint venture providing
"basic services" such as voice telecom services, and a share of up to 50
percent in foreign-invested companies offering value-added telecom
services.

Leading foreign operators Vodafone and Telefonica have bought stakes in
Hong Kong-listed China Mobile and China Netcom in recent years. In
August, South Korea's SK Telecom acquired a 6.7 percent stake in China
Unicom, the nation's smaller mobile service operator.

(For more biz stories, please visit Industry Updates)

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Saturday, December 29, 2007

Chinese School - Sino-US trade benefits all

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BIZCHINA / Review & Analysis

Sino-US trade benefits all

(China Daily)
Updated: 2007-09-06 09:14

Sino-US trade will benefit both countries as well as the world, says an
article in the overseas edition of People's Daily. The following is an
excerpt:

Last year, the Sino-US trade volume was US$262.68 billion and China's
trade surplus was US$144.26 billion.

Commenting on the trade imbalance, Minister of Commerce Bo Xilai said:
"China has the trade surplus while the United States has the profits."
This is because of the characteristics of the Sino-US trade.

First, the trade relations between China and the United States are
complementary rather than competitive. The customs statistics show that
China had a trade surplus of US$229.18 billion from 1996 to 2003.
According to statistics provided by Morgan Stanley, Chinese products had
saved more than US$600 billion for US consumers in the eight-year period,
cut costs for US manufacturers and helped control inflation.

Second, China's foreign trade is mainly in the processing sector. The
sector accounted for 63.3 percent of the total products exported to the
US in 2006. According to an article in Washington Post by Susan L. Shirk,
nearly two-thirds of Chinese exports are produced by foreign companies,
mainly Japan and the United States. For every Barbie doll priced at
US$20, only 35 cents stays in China.

Third, there is much more US investment in China than the other way
round. Up to the end of last year, US direct investment in China exceeded
US$54 billion while Chinese investment in the US was only US$957 million.
The more than 50,000 US companies in China have gained much profit.

Statistics show that of the total sales of US companies in China in 2003,
71 percent was to the Chinese market, 11 percent to the US and 15 percent
to other countries and regions. Last year, US companies in China had
total sales of US$80 billion in China's domestic market with the profit
of about $10 billion.

According to a survey by the American Chamber of Commerce in China, 73
percent of US companies in China think they are making profits here and
37 percent think their profit rates in China are higher than their global
profit rates. Thus 51 percent of these companies list China as their No 1
investment destination in the next five years.

(For more biz stories, please visit Industry Updates)

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Learn Chinese - Chery works on listing plan

? ?

BIZCHINA / Center

Chery works on listing plan

By Gong Zhengzheng (China Daily)
Updated: 2007-09-04 10:49

Chery Automobile Co, the top Chinese passenger car brand by unit sales,
is planning a long-awaited stock listing to fuel its aggressive expansion
at home and abroad.

Li Feng, deputy general manager of the partner of Chrysler LLC and Fiat
Auto SpA, said Chery expects to be a listed firm in the next two to three
years "at the earliest".

Owned by the government of the eastern city of Wuhu, Chery is conducting
internal financial restructuring to pave the way for the listing, Li said.

An industry source told China Daily that the carmaker will float shares
both on the mainland and Hong Kong.

Zhang Xin, an auto analyst with Guotai & Jun'an Securities Co, estimated
that Chery would need to raise at least 10 billion yuan (US$1.32 billion)
through the dual listing.

The company, which was set up in 1997 and started making cheap cars in
2001, is believed to be hungry for cash to feed its ambition of spreading
out globally though, as Li put it, the company now enjoys "fairly good
profits and a sufficient cash flow".

Chery last month announced it aimed to move 1 million cars annually by
2010, up from 305,000 units last year. It expects to quadruple its
overseas sales to 400,000 units.

But Zhang said: "Chery should wait some time to secure a sizable listing
as its current financial results are not very attractive for investors."

Its post-tax profit tripled year-on-year to 347 million yuan in the first
half of this year on core sales of 11.1 billion yuan, according to
industry data.

The profit is no match to that of rivals, such as General Motors Corp's
venture with SAIC Motor Co and Honda Motor Co's tie-up with Guangzhou
Automobile Corp, the two most lucrative carmakers in the world's
second-biggest vehicle market.

Chery now has total assets of 22 billion yuan, according to sources in
the company.

Li said the firm has "diversified" fundraising channels, such as bank
loans and investment from foreign partners.

Huishang Bank, a local commercial bank in Wuhu, last month agreed to
raise its credit line for Chery to 3.26 billion yuan from 860 million
yuan in March.

(For more biz stories, please visit Industry Updates)

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

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Learn mandarin - Food safety in rural areas to be scrutinized

? ?

BIZCHINA / Center

Food safety in rural areas to be scrutinized

(Xinhua)
Updated: 2007-09-02 08:49

China will launch a nationwide inspection on food safety in its rural
areas and urban-rural conjunctive regions, according to a notice released
by China's food and drug watchdog on Friday.

As a part of a four-month nationwide campaign to improve the quality of
goods and food safety in China, the special inspection will target
"small-sized food companies, workshops and restaurants in rural areas,"
in an effort to eradicate hidden dangers of food accidents, the notice
said.

Related readings:
?China to launch nationwide checkup on food safety
?China takes measures to enhance product quality, food safety
?White paper: China builds law regime for food safety
?China urges global cooperation to improve food safety
?Govt pours $1b on drug, food safety
?Food safety better but still imperfect: official

The State Food and Drug Administration (SFDA) said that by the end of
2007, the governments at township and county levels must establish food
accident response systems.

Local governments should shoulder their responsibilities to discover,
report and handle food safety accidents timely through the systems.

Compared with citizens in the affluent urban areas, people in China's
rural areas are easier to be victims of inferior goods and unsafe food
because of lax supervision and financial difficulties.

The SFDA also asked local food and drug agencies to severely punish those
who engage in producing and marketing fake or substandard goods.

Late last month, the Chinese government started a four-month nationwide
campaign to improve the quality of goods and food safety.

The campaign will target farm produce, processed food, catering sector,
drugs, pork, imported and exported goods and products in close link to
human safety and health.

(For more biz stories, please visit Industry Updates)

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Learn Chinese - Air China: Merger a possibility

? ?

BIZCHINA / Center

Air China: Merger a possibility

By Hui Ching-hoo (China Daily)
Updated: 2007-08-30 09:23

The mainland's largest freight carrier Air China Ltd said yesterday it
would not rule out the possibility of merging with rivals including China
Southern Airlines to raise its competitiveness.

Air China President Cai Jianjiang made the remarks in response to
speculation that the country's three largest airlines might be
restructured.

Cai said the mainland's aviation industry is looking into the issue, "but
we have yet to make a submission to the central government to express our
view".

A string of small State-owned and central government-controlled airlines
are being restructured in an effort to fend off competition from
outsiders. Against that backdrop, rumors are flying that the three
largest airlines will be restructured.

Air China on Tuesday posted a 1.5 billion yuan net profit in the first
half of the year, a year-on-year increase of 240 percent, while its
operating revenue rose 17.17 percent to 23.3 billion yuan.

Li Jiaxing, Air China's chairman, attributed the growth to accelerating
demand for air travel that effectively mitigated the negative effect of
increased fuel costs.

Fan Cheng, the company's executive director and chief financial officer,
said the hedging ratio of fuel was at 40 percent during the period. He
stressed that the company would continue to adopt fuel-saving strategies
to minimize the impact of oil price fluctuation.

Fan said oil prices would hoves around $75 per barrel in the second half.
He said Air China would change its freight routes and hedge oil prices to
combat the higher cost.

Air China has launched about 700 Olympics products and has posted 158
million yuan in sales revenue. Its income is expected to reach 580
million yuan during the Olympic Games next year.

Cai said the operation and debt ratio of China Eastern Airlines will be
substantially enhanced by Singapore Airlines buying a stake in the
carrier.

But he said the purchase would not affect Air China's strategies in the
eastern region.

Air China holds 53 percent and 43.8 percent of the cargo and passenger
markets in Beijing, which it expects to increase to 55 to 60 percent for
cargo and 45 to 50 percent for passengers by 2010.

(For more biz stories, please visit Industry Updates)

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Friday, December 28, 2007

Chinese language - Energy: China becomes the world's largest solar power market

? ?

BIZCHINA / Biz Media Digest

Energy: China becomes the world's largest solar power market

(CRIENGLISH.com)
Updated: 2007-08-27 16:49

With the rapid development of the solar power industry, China has become
the world largest consumer of solar energy, industry experts say.

Statistics show that China currently tops the world in production and
retention of solar energy, it is also the largest producer of solar water
heaters and a major consumer. The country is turning into the world
largest market for solar energy.

In the coming September, China will see the opening of the 2007 Solar
Word Congress in Beijing, which is the first time to be held in the
country. So far, experts from over 50 countries have confirmed their
attendance.

(For more biz stories, please visit Industry Updates)

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Chinese Online Class - Home buyers hurry to clinch deal, avoid tax

CHINA / Regional

Home buyers hurry to clinch deal, avoid tax
By Xue Wen (Shanghai Daily)
Updated: 2006-05-31 06:05

Though some sellers rushed to clinch a deal by today to evade a tax
increase, key analysts expect a slowdown in transactions in the coming
months as market participants need time to digest the news.

Residents in Nanjing, capital of East China's Nanjing Province, walk past
a newly-constructed apartment building May 10, 2005. [newsphoto]

Fei Hongbo, a sales person with Centaline Real Estate Agency, a major
property agency, was at the Minghang District Housing Transaction Center
with clients yesterday.

"The center was full of people that wanted to clinch a deal before June
1," he said.

The Shanghai Housing and Land Administration Bureau declined to provide
the latest secondhand home transaction figure, which it doesn't publish
regularly. Data on secondhand home prices usually come from property
agencies and analysts.

The new tax policy will extend the applicable period for a 5.5 percent
tax on property transactions to five years from the current two years.
The policy starts tomorrow.

Xu Wei, a 28-year-old professional who is looking to buy an apartment,
said she received three calls from a property agency on Monday after the
central government announced a string of new loan and tax policies.

"All of them cut the previous asking price and want to sign contracts by
tomorrow," Xu said. "But I don't want to make a rash decision as it's
hard to say what will happen to prices."

According to a survey by real estate agent Midland Shanghai, of its 31
outlets across the city, more than 80 percent of sellers chose to keep
the previous quoted price. About 10 percent of sellers, who are under
cash flow pressure, chose to lower the price in hope of signing a deal
before the tax increase. The remainder want to raise the price to
transfer the sales tax to buyers.

The index tracking listed real estate companies unexpectedly posted a
1.55 percent gain to 1,308.6 points yesterday after the regulatory
measures were issued.

"The sector remained relatively stable as major developer stocks had
already seen an average 15 percent drop since the beginning of April when
speculation of more austere measures mounted." said Zhang Qi, an analyst
with Haitong Securities Co Ltd.

"Potential sellers may try to hang on to properties longer and avoid the
tax. This will probably also mean fewer secondhand homes for sale in the
near term. It may drive buyers back to developers who are pre-selling
properties." said Michael Hart, Head of Research, China (North) Jones
Lang LaSalle.

Chinesepod - Growth slows for PetroChina in 1st half

? ?

BIZCHINA / Center

Growth slows for PetroChina in 1st half

By Wang Yu, Lillian Liu (China Daily)
Updated: 2007-08-24 10:14

China's top oil and gas producer witnessed slackening growth in the first
half of this year as a result of rising operating costs and lower crude
prices.

But PetroChina, Asia's top oil company by market value, still managed to
post a slim rise in net profit, beating analysts' forecasts of negative
growth.

From January to June, PetroChina's net income was up 1.4 percent to a
record 81.83 billion yuan from 80.68 billion yuan a year earlier, the
company said in a statement yesterday.

"It (the net profit figure) doesn't sound like much but it's actually a
very strong result since crude oil prices have gone down over the last
few months, and rising costs make it all the more difficult," said Castor
Pang, a strategist with Sun Hung Kai Financial Group, a securities
consulting firm in Hong Kong.

For the six months ended June 30, PetroChina recorded a turnover of
392.73 billion yuan, up 20.3 percent year-on-year. The half-year
operating profit reached 109.13 billion yuan, recording a decrease of 5.3
percent year-on-year.

"The decrease in operating profit was due to various factors including
the special levy imposed by the State, increased expenses for safety, the
company's business expansion and the surge in commodity prices,"
PetroChina said.

Witnessing a falling operating profit, PetroChina must have spared no
efforts to lower its financial expenses to maintain a positive net profit
growth, said Yin Xiaodong, an oil analyst at CITIC Securities Co.

According to PetroChina's statement, the increase in net profit primarily
resulted from the company's reassessment of its taxation position
following the requirements of the Corporate Income Tax Law.

PetroChina's refining and marketing segment achieved a turnaround during
the first half. The segment recorded an operating profit of 3.93 billion
yuan, representing an increase of 17.82 billion yuan over the same period
of 2006.

Since most of the crude for refining comes from PetroChina's own
production, the firm is less vulnerable in the face of rising global
crude prices and low prices of domestic oil products, according to
analysts.

PetroChina is positive about its business prospects in the second half of
this year.

"Crude prices remained at a good level in July. A rebound in prices will
fuel earnings growth for PetroChina in the second half," said Pang from
Sun Hung Kai Financial Group.

(For more biz stories, please visit Industry Updates)

Related Stories ?

� PetroChina net profit up 1.4% in first half
===========================================================================
� PetroChina proven oil reserves revised up
===========================================================================
� PetroChina to list A shares
===========================================================================
� PetroChina eyes mainland listing in 4th quarter
===========================================================================

Learn Chinese, Chinesepod

Learn Chinese - Subprime crisis dampens QDII demand

? ?

BIZCHINA / Center

Subprime crisis dampens QDII demand

By Wang Zhenghua (China Daily)
Updated: 2007-08-22 10:15

Thursday, December 27, 2007

Chinese language - Shanghai property market?keeps?pace

? ?

BIZCHINA / Major Cities

Shanghai property market?keeps?pace

By Zheng Lifei (China Daily)
Updated: 2007-08-20 06:50

SHANGHAI: The property market in the city is expected to remain buoyant
in the second half of the year, driven by growing numbers of retailers,
corporate office rentals and demand from the manufacturing and logistics
industries, analysts say.

The commercial real estate sector, fueled by an economy that grew by 13
percent in the first half, continued its momentum from last year and is
likely to sustain the pace in the second half.

Retail market

Strong retail sales and the arrival of more foreign retailers in the city
will continue to propel the retail property market in Shanghai, analysts
note.

Total property revenues in the city reached 188.7 billion yuan (US$24.83
billion)?in the first half of this year, up 14.2 percent year-on-year,
the fastest pace in a decade, according to figures released by the
municipal statistics bureau.

Foreign capital has been expanding in the retail industry as the market
further opens and domestic consumption continues to accelerate.

Contractual foreign direct investment (FDI) in both wholesale and retail
industries in Shanghai totaled $1.711 billion in 2006, accounting for
11.7 percent of the total FDI in the he city, up 3 percent year-on-year.

International retailers of all types, from fashion, food and beverage
operations to big-box hypermarkets, continued to flock to Shanghai, the
most cosmopolitan city in China, driving up average ground floor rentals
to $120.60 per sq m a month in the first half of the year, a 8.8 percent
year-on-year increase, according to Colliers International, a global real
estate consultancy.

Total foreign-funded retail property purchases reached almost 8.8 billion
yuan in the first quarter of the year, growing 15.4 percent year-on-year
and accounting for 9.4 percent of all retail property purchases,
according to official figures.

"The future development of high-end retail properties (in Shanghai) will
be driven by the robust growth of foreign retail businesses," Colliers
International says in a research note.

It is a view shared by other property analysts.

"Inquiries from European retailers alone have risen by more than 50
percent over the previous quarter and more are expected to enter Shanghai
later this year," says Kenny Ho, research head for global real estate
services firm Jones Lang LaSalle, Shanghai.

"Their entry will definitely fuel the demand for retail space," Ho says.

(For more biz stories, please visit Industry Updates)

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

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Chinese School - Xie Qihua: Made of Steel

CHINA / Face to Face

Xie Qihua: Made of Steel
(Beijing Review)
Updated: 2006-01-07 09:56

Xie Qihua, holding the reins to China's biggest steel manufacturer, is
optimistic about the metal's future.

Xie Qihua has one strict rule: No interviews about her personal life.
Apart from this she is happy to answer any questions about Baosteel Group
and the steel industry as a whole.

The woman who manages the world's No.6 steel group with a 20-million-ton
yearly output has a gentle simplicity about her. But don't let external
appearances fool you; she's not known as the "iron lady" for nothing.
Baoshan Iron and Steel Co. Ltd. under Baosteel Group is a listed company
credited as being a stabilizing factor in the Chinese capital market,
something which is widely seen as being due to Xie's no nonsense attitude
and inspirational influence.

Apart from Board Chairwoman of Shanghai Baosteel Group Corporation, Xie
boasts a string of other titles that include Alternate Member of the 16th
Central Committee of Communist Party of China, President of China Iron
and Steel Association, "Top 100 Powerful Women in the World" and "Most
Powerful Business Leader of China." It's clear that this dynamic woman's
efforts in the business world are not going unnoticed.

On October 31, Forbes magazine published the list of "Top 50
Businesswomen in the World 2005." Xie Qihua and Ma Xuezheng, Chief
Financial Officer of Lenovo Group Limited, broke into the top 10
rankings. As if to confirm her power status, Xie was simultaneously
listed by the Wall Street Journal in their "Top 50 Businesswomen to
Watch" rankings, an honor of significant prestige.

Heavy Metal Woman

Xie Qihua hails from Shanghai where she was born in 1943. After
graduation from Tsinghua University in 1968, she went to work as a
technician at the Shaanxi Steel Plant.

In October 1978, Xie joined Baosteel when it was still under
construction, heading up the technical division, rising through the ranks
to become company president in 1994 and part-time board chairperson of
Baoshan Iron and Steel Co. Ltd. in 2000. Since February 2003, this role
model to many women has taken on the awesome responsibility of board
chairwoman and general manager of Baosteel Group and board chairwoman of
Baoshan Iron and Steel Co. Ltd. Today she still holds the twin positions
of board chairwoman for Baosteel Group and Baoshan Iron and Steel Co. Ltd.

Since 1978, Xie has projected most of her energy towards the development
of the Baosteel Group. She formed Shanghai Baosteel Group Corporation,
the largest iron and steel united corporation in China, after receiving
authorization from the State Council to amalgamate Shanghai Iron and
Steel Plant and Meishan Iron and Steel Company with her Baosteel Group.

In April 2001, after working hard to improve the industrial concentration
of Baosteel, Xie turned her attention to the strategic alliance between
Baosteel Group and Capital Iron and Steel Company and Wuhan Iron and
Steel Company, in the process propelling Baosteel Group into the world's
top 12 steel corporations with over 10-million-ton yearly output.

New Targets

In January 2004, the Baosteel Group signed a cooperation framework
agreement with France's Arcelor, an international steel maker, and
Brazil's Companhia Vale do Rio Doce (CVRD), to jointly build a steel
plant in Brazil. This was regarded as China's largest direct investment
in projects overseas at the time and became the entry point of Baosteel
into the foreign market.

On July 12, 2004, Fortune formally published the ranking of the top 500
companies in the world for 2003. Baosteel Group ranked No.372 with a
120.4 billion yuan ($14.548 billion) income in 2003, being the first
Chinese manufacturer to enter the ranking of the world's top 500
companies. This year, Baosteel's ranking leapt to 309, advancing 63
places.

"Xie led the Shanghai Baosteel Group Corporation in setting record
earnings and revenue and successfully pioneered a path in the trades
traditionally dominated by men," said Fortune.

Xie has big plans for Baosteel during the "11th Five-Year Plan" period.
"We will form the framework of our comprehensive operation system by the
end of 2005 and realize our integrated operation by 2010, entering the
ranks of the world's three strongest steel corporations," she said.

Page: 1 2

Learn mandarin - CSRC to restrict unqualified trading accounts

? ?

BIZCHINA / Center

CSRC to restrict unqualified trading accounts

By Ding Qi (chinadaily.com.cn)
Updated: 2007-08-14 16:29

The China Securities Regulatory Commission (CSRC), in a circular to
financial institutions and brokers, called for a complete clearance and
standardization of third-party managed stock accounts, the financial web
portal jrj.com reported on Tuesday.

According to the circular, regulators and securities companies should
suspend trading of accounts inactive for a long time and with assets
below requirements. These accounts can be re-activated only upon their
holders' request and after verification by the securities regulators.

Special coverage:
Markets Watch
Related readings:
?Stock market value tops last year's GDP
?Booming equity market attracts more money
?Riding the bull is certainly not easy sport
?New fund investors outnumber stock investors

For other unqualified trading accounts with false registration
information or transaction irregularities, CSRC also laid down another
series of measures.

According to the circular, China Securities Depository and Clearing Corp
should limit unqualified accounts from stock trading, designation
transfers and guaranteed funds movement until they meet requirements for
eligible accounts. The clearing body is also authorized to close
unqualified accounts without outstanding assets.

Meanwhile, both exchanges in Shanghai and Shenzhen are to help restrict
irregular transactions involving unqualified accounts. If an account
fails to return to normal in time, bourses should suspend its trading,
although protective measures are needed accordingly to minimize the
relevant impact on the stock market, the circular said.

In addition, securities regulatory bureaus from all regions should work
out a detailed schedule urging brokers to weed out the existing
unqualified accounts in time and prevent adding new ones, according to
the circular.

(For more biz stories, please visit Industry Updates)

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Chinese School - Buying books online

? ?

BIZCHINA / Biz Life

Buying books online

(Xinhua)
Updated: 2007-08-13 11:29

On-line shopping is growing rapidly in China, and more and more Chinese
are buying books on the net.

An earlier report issued by AC Nielsen revealed that China has the
highest online book-purchasing rate in the world.

About 63 percent of Chinese Internet users had made online purchases and
56 percent of the purchasers had bought reading materials, the highest
ratio in the world, said the report issued by AC Nielsen Consulting
Group, a leading world marketing information company in late 2005.

"The figure hasn't been updated yet, but the rate is definitely going
higher," said Li Guoqing, CEO of Dangdang.com, China's biggest online
bookseller.

But the whole picture is different. According to the fourth national
reading survey released by China Research Institute of Publishing Science
(CRIPS), there's a decrease in China's national reading ratio over the
past six years.

However, as E-commerce became part of people's daily life, the book
market has seen a big leap in sales volume and readership. Dangdang.com
recently saw a boom in its sales volume and readership respectively.

"Online bookstores made it possible for people to have access to more
options, at the same time, boosting the print book market."Qu Mingying, a
researcher with the Beijing-based CRIPS said.

Yet things are not so rosy with traditional bookstores. "Many people come
to our bookstore,just to write down the names of the books they want and
then go online shopping. We are embarrassed, " said a sales clerk at a
traditional bookstore in Beijing.

A fierce "price war" is taking shape between traditional bookstores and
their online counterparts. Faced with the low-cost advantage of online
bookstores, traditional ones can do nothing but lower the prices.

During the recent release of " Harry Potter and the Deathly Hallows",
Joyo.com offered the book at about 70 percent of its regular price. As a
result, traditional bookstores, especially chains and large-sized ones
also have to cut the price sharply.

"Generally speaking, the prosperity of virtual bookstores has had some
impact on their real-world counterparts, but not that significantly," Qu,
the researcher commented.

However,Huang Yuhai,Chairman of 99read.com, another online bookseller
told the reporter that online-bookstores pose no threat to traditional
ones, instead can serve as a beneficial complement.

And despite the growth, online booksellers still have a long way to go in
terms of sales."It is still too early to tell,"Huang said. "The total
sales volume of three online bookstores including Dangdang,Joyo,and
99read reached 500 million yuan (about 66.7 million U.S. dollars),taking
up only 2 percent of the book market in China while Amazon.com alone
holds 40 percent to 50 percent of the American market."

Established in 1999 and 2000 respectively,Dangdang.com and Joyo.com are
China's leading online shopping platforms. Though Dangdang claimed its
clients increased more than 100 percent in each of the past six years, it
still remains unprofitable. Its main rival Joyo, which has been acquired
by Amazon .com, is also operating in the red.

(For more biz stories, please visit Industry Updates)

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Wednesday, December 26, 2007

Learn Chinese online - Carmakers join race to get into Europe, US

? ?

BIZCHINA / Center

Carmakers join race to get into Europe, US

By Gong Zhengzheng (China Daily)
Updated: 2007-08-10 11:18

?
Visitors inspect a BYD car at an exhibition in Beijing. BYD Auto will
join the legion of local carmakers racing to get into Western Europe and
the US. [newsphoto]

BYD Auto, the car unit of Hong Kong-listed battery producer BYD Co Ltd,
will join the legion of local carmakers racing to get into Western Europe
and the United States - the two most competitive car markets.

Xia Zhibing, general manager of BYD Auto, told China Daily that it plans
to sell its 1.6 and 1.8-liter F3 compact sedans in Western Europe as
early as next year, with the Netherlands and Portugal its first
destinations.

The emerging low-cost car manufacturer also plans to ship its 2 and
2.4-liter F6 mid-range sedans to the US in 2009 or 2010, Xia said.

"We are in discussions with European and US dealerships to build networks
there," he said.

But he didn't reveal the price tags of the two models for the two regions.

In China, the F3 retails between 71,500 and 105,800 yuan. The F6, to go
on sale in October, will sell for around 150,000 yuan.

BYD follows local carmakers like Brilliance, Chery and Geely, looking to
Western Europe and the US.

But May Arthapan, an analyst with industry consultancy Automotive
Resources Asia Ltd, said local carmakers won't be able to sell cars based
only on low prices in the two regions. Arthapan said the automakers will
need brand reputation, quality products with good designs and after-sales
service.

"Chinese brands still have work to do to improve their vehicles to meet
the US and Europe's safety and quality standards. That's the first
barrier," Arthapan said.

It will take "a lot of time and investment" to sell large volumes there,
she said.

Cars from China, the world's No 3 vehicle producer, have already faced
safety problems in the West.

The BS6 mid-sized sedan from Brilliance, which started shipping to Europe
in November, only scored one star out of five in a crash test by
Germany's ADAC auto club in June.

BYD's Xia said: "It's an arduous task to build our brand there."

(For more biz stories, please visit Industry Updates)

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

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Learn Mandarin online - Medicine: Drug watchdog warns against illegal online drugstores

? ?

BIZCHINA / Biz Media Digest

Medicine: Drug watchdog warns against illegal online drugstores

(Xinhua)
Updated: 2007-08-09 15:24

The State Food and Drug Administration (SFDA), China's drug watchdog, has
warned the public against buying pharmaceutical products from illegal
online drugstores.

Those websites operators who do not obtain proper licenses from the drug
administration are illegal and will be held to account, said Yan
Jiangying, spokeswoman of the SFDA at a press conference in Beijing on
Wednesday.

The administration grants two kinds of licenses, one to websites
providing solely information on drugs, the other to those trading online.

By the end of July this year, 1,211 websites had received licenses on
providing information on drugs and only nine had been licensed to sell
drugs or act as brokers, according to the SFDA. Of the nine, only four
are allowed to sell drugs "over the counter" and the remaining five act
as brokers between sellers and buyers.

"Every website is required to display its license at the top of its
website so that consumers can check and validate the license number with
the list on the SFDA official website," Yan said.

"The administration will work with the Ministry of Information Industry
to crack down on illegal drug websites. We also expect more citizens to
tip us off if they find such websites," she said.

As online shopping becomes more and more popular, more online drugstores
have emerged, some claiming to sell imported drugs at lower prices and
even selling banned drugs like anesthetics.

The drug administration in Shanghai has set up a special team to monitor
the drug business on the Internet.

It is convenient to buy drugs online, especially for some patients who
want to protect their privacy, but it is hard to guarantee the quality
and safety of drugs if the websites are not registered by the authority
and evade our monitoring, said an official from the administration.

"For some illegal drug websites, all they need to start up business are a
computer and a telephone. You don't know where their drugs come from.
They not only threaten the health of consumers but also harm legal
drugstores like us," said Yi Hui, deputy manager-general of Shanghai
Pharmacy Ltd. which runs a legal online drugstore.

(For more biz stories, please visit Industry Updates)

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Learn Chinese online - PetroChina may list in October

? ?

BIZCHINA / News

PetroChina may list in October

By Chen Jialu (China Daily)
Updated: 2007-08-08 08:50

Two men pass by a billboard for China National Petroleum Corp, parent of
PetroChina, in Shanghai.

PetroChina plans to debut on the Shanghai bourse in October by raising at
least 40 billion yuan, in a bid to tap the red-hot mainland equity market.

PetroChina, the Hong Kong-listed arm of China National Petroleum
Corporation (CNPC), the nation's No 1 oil and gas group, will issue 4
billion A shares at around 10 yuan each, which will probably account for
approximately 2 percent of its enlarged share capital, a CNPC executive
told China Daily yesterday.

"The new shares will be priced on the basis of PetroChina's share price
in Hong Kong. The indicative price for the initial public offering might
hover around 10 yuan".

If thus priced, it will be the mainland's biggest IPO this year.

The oil giant has chosen UBS Securities Co, China International Capital
Corp and CITIC Securities Co to underwrite the highly anticipated
offering, the source said. "We have tentatively set October for the
listing."

The Beijing-based company will hold a shareholders' meeting on August 22
to approve its IPO plan, the source said.

But in a statement in June, the company had said its shareholders would
vote on the offering on August 10.

Related readings:
?PetroChina eyes mainland listing in 4th quarter
?PetroChina meets six-month targets
?PetroChina to build oil base in Xinjiang

Special Coverage:
Markets Watch ?

The draft prospectus was submitted to the China Securities Regulatory
Commission last Friday.

The proceeds from the IPO will fund the company's construction of
refinery, petrochemical and gas pipeline projects, overseas acquisition
of petroleum and gas resources and the development of its domestic
petroleum and gas resources.

PetroChina is the latest State-owned conglomerate listed overseas seeking
a mainland listing. China is encouraging its flagship State-owned
companies listed in Hong Kong and elsewhere to list on the mainland,
which could help soak up excess liquidity and increase the supply of new
shares.

PetroChina posted a 3.7 percent production increase in the first half of
the year.

The company began trading in Hong Kong and its American Depositary
Receipts were also listed on the New York Stock Exchange in 2000.

(For more biz stories, please visit Industry Updates)

Related Stories ?

� PetroChina eyes mainland listing in 4th quarter
===========================================================================
� PetroChina meets six-month targets
===========================================================================
� PetroChina to build oil base in Xinjiang
===========================================================================

Learn Chinese online

Chinese Mandarin - Asset prices may keep rising in 2nd half

? ?

BIZCHINA / Center

Asset prices may keep rising in 2nd half

By Du Xiaoli (chinadaily.com.cn)
Updated: 2007-08-06 16:59

China's asset prices are likely to continue rising in the second half,
said Fan Jianping, director of the economic prediction department under
the State Information Center, at a forum on financial investment.

Although the stock market will not surge as much as it did in the first
half of the year, it may reach continuously new records and accumulate
increasing risk. Economic growth in the second half is predicted to be
slightly lower than the first half as the GDP growth reaches 11.3 percent
for all of 2007.

China's current price hike is not cost-push inflation due to rising wages
and the country should attach greater significance to the difficult
problem of inflation in the form of asset price bubbles, said Fan. Real
estate prices will probably also keep increasing in the second half, he
said.

Related readings:
?Property investment up 28.5% in 1st half
?Beijing average housing prices up 1,000 yuan since May
?New fund investors outnumber stock investors
?Top leadership warns on overheated economy

Fan believes the trend toward overheating is more obvious and that this
year's economic growth will be slightly higher than last year. China's
economy will still be on the climbing period in this round of economy
cycle, he said.

China's CPI growth will not reach 5.5 percent definitely this year, noted
Fan. "The whole year's price level will be within the controllable range
and there is no need to launch stricter price control policies."

Fixed assets investment maintained a high level in the past six years and
the growth rate of fixed assets will keep growing quickly in the second
half, according to analysis of combined factors such as loan interest
rate and return on investment.

Growth of consumption is accelerated following increased income and
improved psychological anticipation for urban and rural residents, Fan
said. It is predicted that the growth of total consumption this year will
be higher than that of last year.

Fan also predicted that growth in China's foreign trade surplus will slow
down in the second half as the effect of exchange rate and tax rebate
policies gradually emerge. Rapidly improving international
competitiveness of Chinese enterprises is an important reason for the
country's expanding foreign trade surplus.

(For more biz stories, please visit Industry Updates)

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Chinese Online Class - Gov't can help investors overseas more

? ?

BIZCHINA / Review & Analysis

Gov't can help investors overseas more

By Jiang Wei (China Daily)
Updated: 2007-08-03 11:27

The Chinese government can provide more help to overseas Chinese
investors who often find themselves hamstrung when trying to invest
abroad, experts say.

China's outward direct investment totaled $16.1 billion in 2006, up 31.6
per cent over the previous year, according to Ministry of Commerce
statistics.

When they try to invest abroad, Chinese enterprises lack a network of
people and sales channels, knowledge about the local market and
communication, Wu Jianmin, president of China Foreign Affairs University,
told China Daily.

"They need help from diplomatic resources," Wu said.

"Diplomatic resources" refers to a wide range of people and institutions
that could provide Chinese investors with knowledge of local markets.

The resources include China's embassies in the investment destinations,
scholars, and retired diplomats and officials with a good command of the
country.

For example, an investor might find it very difficult to get in touch
with key officials in a country when he intends to invest, Wu said. "But
diplomatic resources can easily help them find the right person."

"We lag behind by countries such as the United States (in terms of
helping enterprises' outward investing)," he said.

The Chinese government will encourage and help qualified enterprises to
invest abroad, Vice Commerce Minister Liao Xiaoqi told the East Asia
investment forum in Beijing. A main measure is to establish overseas
economic cooperation zones, which both accelerate Chinese investors'
"going out" and benefit local industrial clusters.

(For more biz stories, please visit Industry Updates)

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

Learn Chinese, Chinese Online Class

Tuesday, December 25, 2007

Chinesepod - Chinese stake in UK's BG Group?

? ?

BIZCHINA / Center

Chinese stake in UK's BG Group?

(Bloomberg)
Updated: 2007-08-02 09:13

A Chinese State investment fund may increase its shareholding in BG Group
Plc after acquiring 0.46 percent of the UK's third-largest gas producer,
Cazenove Group said.

An investment fund with China's central bank purchased 15.5 million
shares of Reading, UK-based BG Group between June 15 and July 13,
Cazenove analyst Fred Lucas said in a note yesterday.

Related readings:
?Forex company to officially open in September
?Blackstone to buy into State-owned firm
?Cash for Barclays, expertise for CDB
?CDB makes global finance foray

The Chinese government recently set up a State investment fund to switch
US dollar reserves into high-yielding equity investments, the report said.

"Given the scale of US dollar reserves that it is understood to be trying
to redeploy for higher returns, there ought to be potential for it to buy
a much larger stake," the Cazenove note said.

BG spokeswoman Trina Fahey confirmed the People's Bank of China is a
shareholder. She declined to say how many shares they held.

A spokesman for the People's Bank of China in Beijing said the bank
didn't have a direct holding in the company and the purchase may have
been made on behalf of a State investment fund.

Higher liquefied natural gas shipping volumes and prices helped BG's
second-quarter net income rise 13 percent from a year earlier, BG said
last week.

(For more biz stories, please visit Industry Updates)

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Learn Mandarin online - Israeli producers eye China high-end market

? ?

BIZCHINA / Center

Israeli producers eye China high-end market

By Mitch Moxley and Zhang Qi (China Daily)
Updated: 2007-07-27 09:55

?
A visitor at Experience Israel, a consumer goods event in Beijing, checks
Israeli wine. [newsphoto]

Producers of Israeli wines, food and cosmetics are hoping their high-end
products can find a way into the homes of China's increasingly affluent
consumers.

But they could face an uphill struggle in China, where consumers still
know little about the Mediterranean country's consumer products.

At Experience Israel, a consumer goods promotional event at Beijing's
posh LAN Club on Wednesday, Israeli companies offered Chinese buyers
samples of products ranging from hand lotion from the Dead Sea to wines
from the Golan Heights.

"Taste the wine, taste the bread, taste everything that can be tasted,"
said Yehoyahda Haim, Israel's ambassador to China, during the event's
opening ceremony. "Maybe you think that as an Israeli and as an
ambassador I am biased, (but) let me know if you think they are good. I
think they're very good."

The event, sponsored by the Israeli Embassy, the Israel Export &
International Cooperation Institute and other organizations based in
China, was a packed house, a sign of growing trade between the two
countries. In 2006, bilateral trade between China and Israel reached $3.3
billion, an increase of 28 percent from the previous year.

Response from Chinese buyers at the event was encouraging, Israeli
company representatives told China Daily.

Amnon Siva, vice-president of marketing for Mehadrin Tnuport Export,
Israel's biggest exporter of citrus fruits, sees a huge growth
opportunity in the Chinese market.

Related readings:
?Trade:China No 1 in Israeli Asian trade
?High-end consumers feel low
?A sweet tooth for luxury goods

"We are trying to analyze demand. I think there is a future (in China),
because quality of life is improving and people would like to buy
good-quality imported fruits," Siva said.

Avivit Turgeman was in Beijing with her husband promoting Stybel Ltd, a
72-year-old, third-generation family-owned flour milling business,
Israel's largest.

The company is hoping to cash in on China's burgeoning middle class and
their appetite for breads and other products that require high-quality
flour. Stybel produces 80 different kinds of flour - including whole
wheat, organic and enriched - each for a different purpose, ranging from
baguettes to croissants to pizza dough.

"The use of flour (in China) is growing, and the use of bread will
increase before the Olympics. We wanted to introduce to the Chinese
market and we're having good feedback right now," Turgeman said.

(For more biz stories, please visit Industry Updates)

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

Learn Mandarin online

Chinese Online Class - Chinese economists warn of risks of continued yuan appreciation

? ?

BIZCHINA / Center

Chinese economists warn of risks of continued yuan appreciation

(Xinhua)
Updated: 2007-07-25 14:15

Chinese economists have warned that the continued yuan revaluation in a
single direction may adversely affect the country's economic and
financial security, as they saw the yuan kept going higher at a faster
pace since the beginning of this year mainly due to outside pressure.

The Chinese currency, the yuan, had been rising in small steps during the
first year after the central bank dropped the peg to the US dollar in
July 2005 and linked the yuan to a basket of foreign currencies.

The driving force behind the yuan appreciation then was the economic
growth itself and the progress in the financial sector, said Tan Yaling,
a research analyst with the Bank of China.

However, in 2006 and 2007, the yuan picked up in the speed of
appreciation, becoming the prey of global investors and speculators.

Meanwhile, the yuan is getting more closely related to the performance of
the US dollar. The central parity price of the yuan would go up against
the weak dollar, and the pressure of appreciation would be relieved when
the dollar rebounded.

China is under great pressure to revaluate its currency as the US blamed
China's currency controls for a bulging trade gap between the two
countries, saying the yuan was undervalued to give Chinese exporters an
unfair price advantage.

China's central bank announced in May to allow the yuan to fluctuate
against the US dollar by 0.5 percent a day, up from the previous 0.3
percent, in a bid to make the currency more flexible.

The real value of the yuan has gone up by 4.41 percent since it was
revalued by 2.1 percent from 8.28 yuan in July 2005, according to latest
statistics from the Bank for International Settlements.

The accelerating pace of the yuan revaluation and the amounting pressure
for the yuan appreciation are independent of the country's monetary
policy, said Tan, adding that the trend might be going against the real
situation of the Chinese economy.

Many, including the US Federal Reserve Chairman Ben Bernanke, said the
yuan appreciation was in the interest of China.

They have too much focused on the price of the currency and neglected the
structural problems of the country's economy and its financial sector,
Tan said.

The Chinese economy is still at the low end of market economy, compared
with the high-end developed economies to which the yuan is linked, in
terms of technologies, production efficiency, industrial development and
consumption, she said.

(For more biz stories, please visit Industry Updates)

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

Chinese Online Class

Monday, December 24, 2007

Chinese language - Work starts on wind stations in Beijing

? ?

BIZCHINA / Center

Work starts on wind stations in Beijing

By Zhang Chunmei (China Daily)
Updated: 2007-07-24 09:17

Work has begun on the first of 33 wind generators that will eventually
supply clean energy to?Beijing and next year's Olympic Games.

There are currently 44 wind power stations nationwide. The newest
additions to the country's wind-power industry will sit on the outskirts
of Beijing at Guanting. They are expected to help reduce the capital
city's reliance on emissions-heavy coal-fired power generators.

The wind-power stations will produce an estimated 100 million kwh of
electricity a year, enough to meet the demands of 100,000 Beijing
families.

"Beijing has never had any large windmills before, much less wind-power
stations," said Deng Mao, an official with the energy sources department
of the Beijing municipal development and reform commission. "There are a
few rural households with small windmills. Wind power could arouse
people's awareness of energy conservation and environment protection."

Xue Xing, a researcher with the Chinese Academy of Meteorological
Sciences, said the station was located in a spot with ideal wind
conditions and at the optimal altitude for wind turbines.

The project will cost an estimated 580 million yuan ($76.7 million).
Electricity generated by wind turbines will cost about 0.7 yuan per kwh,
0.3 yuan more than electricity from a coal-fired plant. The government is
considering a package of subsidies to encourage people to use wind power.

According to the Beijing Electric Power Corporation, the city needs an
annual supply of 60 billion kwh of electricity to meet demand.

Although wind power's contribution is insignificant at the moment, the
sector will cut carbon dioxide emissions by at least 10 million tons per
year, said the commission.

The Chinese Olympic Committee wants at least 20 percent of the Olympic
venues to be powered by wind-generated electricity.

"This is the first time we have moved in the direction of large-scale
utilization of wind power," said Cai Xiaozhong, deputy director of the
commission.

The project's total installed capacity for wind-power generation is 1.26
million kilowatts, the 10th largest in the world and the third largest in
Asia.

"China has the greatest wind power reserves in the world. But the high
cost and China's reliance on imports of equipment have slowed down the
development of wind power," said Huang Yicheng, honorary chairman of the
China Energy Research Society.

"The Guanting wind power generation station will offer a new way to ease
Beijing's ever-increasing demand for electricity. "

(For more biz stories, please visit Industry Updates)

Chinese language

Chinese Online Class - China raises benchmark interest rate by 27 basis points

? ?

BIZCHINA / Center

China raises benchmark interest rate by 27 basis points

(Xinhua)
Updated: 2007-07-20 18:11

China will raise one-year deposit and loan interest rates by 27 basis
points to 3.33 percent and 6.84 percent respectively as of July 21, the
central bank announced on Friday.

This is the third time that China raised the one-year benchmark interest
rates this year as a further move to curb the country's booming economy.

China's GDP grew by 11.5 percent in the first half of 2007, 0.5
percentage point higher from the previous year, the National Bureau of
Statistics said on Thursday.

The consumer price index (CPI), the main gauge of inflation, rose 3.2
percent in the first half of this year compared with the same period last
year. In June, CPI jumped by 4.4 percent compared with the same month
last year, well above the government's target of 3 percent for 2007.

The move aims to "rationalize the growth of lending and investment,
adjust and stabilize expectancy of inflation and maintain price
stability", the People's Bank of China said in a statement on its website.

China raised the one-year deposit and loan interest rate by 27 basis
points in March and by 27 and 18 basis points respectively in May.

(For more biz stories, please visit Industry Updates)

Chinese Online Class

Learn mandarin - SUEZ Environment plans big bucks for China

? ?

BIZCHINA / Overseas Investment

SUEZ Environment plans big bucks for China

By Zheng Lifei (China Daily)
Updated: 2007-07-19 14:52

SUEZ Environment, one of the world's largest water and waste treatment
service providers, plans to pour 100 million euros a year into China over
the next five years to capitalize on the country's soaring water and
waste treatment business.

SUEZ Environment, which manages the water and waste businesses of French
utility giant SUEZ SA, also expects to maintain 15 percent annual growth
in revenue in China at the same time, said Jean-Louis Chaussade,
executive vice-president of SUEZ SA.

"The Chinese government's efforts to build an environmentally friendly
economy and country will translate into huge business opportunities in
areas we cover such as water and waster treatment sectors," said
Chaussade, who also serves as the CEO of SUEZ Environment.

"We have generated over 15 percent growth annually in the past years in
China and expect to maintain it in the next five years," the CEO said.

China accounts for a "larger chunk" of SUEZ Environment's business in its
Asia operations, Chaussade said.

The region accounted for about 5 to 6 percent of its global revenue of
11.4 billion euros in 2006, the CEO said.

The French firm inaugurated a 53 million euro incineration plant in
Shanghai yesterday, its second single largest investment in China, said
the CEO.

The French giant's water and sewage treatment joint venture in Chongqing,
a deal signed last year, will involve an investment of 100 million euros,
becoming its single largest investment project in China since its entry
into the country more than three decades ago.

The incinerator, located in Shanghai Chemical Industry Park, is designed
to treat all forms of hazardous waste produced by industrial and
petrochemical customers in the park and by other major industries in the
city.

(For more biz stories, please visit Industry Updates)

Learn mandarin

Chinese School - PetroChina eyes mainland listing in 4th quarter

? ?

BIZCHINA / News

PetroChina eyes mainland listing in 4th quarter

(Chinadaily.com.cn)
Updated: 2007-07-18 14:32

PetroChina, China's largest oil and gas group, is targeting a share
offering in the fourth quarter of this year, although the timetable
depends on how quickly it can gain approval from the Chinese securities
regulator, the Financial Times reported.

The latest large State-owned company is expected to offer as many as 4
million new shares. It is poised to use the funds raised to buy oil and
gas resources overseas and fund exploration and development projects at
home.

It has chosen UBS to help raise up to US$6 billion in what is poised to
be one of the biggest listings on the country's mainland market.
PetroChina's offering is likely to fall just short of the biggest
mainland initial public offerings (IPOs), by Industrial and Commercial
Bank of China, which raised US$6.1 billion last year.

The deal highlights UBS' determination to grab a big slice of the Chinese
public offering market after securing control of a Chinese brokerage,
which gave it the license to arrange mainland share offerings, five
months ago.

The Swiss bank last week handled the initial public offering of Western
Mining, a Chinese lead and zinc producer, which surged 144 per cent on
its first day of trading. UBS was the sole manager of the Western Mining
IPO but is expected to work together with local firms on the PetroChina
listing – which still requires regulatory and shareholder approval.

China has been trying to persuade large Chinese companies listed in Hong
Kong and other overseas markets to sell shares on the Shanghai market.
China Mobile is among other large companies that are eyeing a Shanghai
listing. If it goes ahead, the telecom company's IPO would almost
certainly set a new record in terms of size.

(For more biz stories, please visit Industry Updates)

Related Stories ?

� PetroChina to build oil base in Xinjiang
===========================================================================
� PetroChina to import more for refining
===========================================================================
� PetroChina appoints A-share underwriters
===========================================================================

Chinese School

Sunday, December 23, 2007

Chinese language - Nike files suit over shoe logo

? ?

BIZCHINA / Copyright

Nike files suit over shoe logo

By Cao Li (China Daily)
Updated: 2007-07-17 09:36

SHANGHAI: American sporting goods giant Nike is suing two Chinese shoe
manufacturers for alleged copyright infringement and a French supermarket
for displaying and selling the shoes.

The infringement involves the use of a logo - silhouette of former
basketball star Michael Jordan slam-dunking - on the sports shoes of the
Chinese companies.

The Shanghai No 2 Intermediate People's Court held its second hearing
yesterday. No verdict was announced.

Nike International Ltd is demanding the three - the shoe companies based
in Jinjiang, Fujian Province, and the Shanghai branch of France-based
retailer Auchan - to stop the infringement, make a public apology, and
pay compensation of one million yuan (US$131,000).

But the three contend the logo is not well-known in China though it might
be in other countries, and therefore, no apology is necessary. They also
contend the compensation is too high.

As one of the most frequently copied brands, Nike has been fighting
numerous counterfeits of its goods in recent years. Other major
international brands are also doing the same.

Felicia Deng, Cartier's Shanghai representative, said the company is
seeing counterfeits of its products worldwide. "We have a group of
lawyers to deal with it."

(For more biz stories, please visit Industry Updates)

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Chinese language

Chinese language - New rules set for lake basin factories

? ?

BIZCHINA / Center

New rules set for lake basin factories

By Sun Xiaohua (China Daily)
Updated: 2007-07-13 09:03

Discharges from various industries into the Dianchi, Chaohu and Taihu
Lake basins will be lowered due to spreading algae that feeds on
chemical-rich pollutants.

Effluent thresholds have been raised for the iron and steel, iron alloy,
coking, calcium carbide copper smelting and auto-making industries, said
the nation's top environmental official, to stop degradation and improve
water quality.

Zhou Shengxian, head of the State Environmental Protection Administration
(SEPA), told a meeting on protecting lake quality held in East China's
Anhui Province yesterday that projects from those five industries without
sufficient pollution prevention and treatment systems will be suspended.

Approval of new projects that have the potential to release heavy metals,
nitrogen, phosphorus and organic pollutants is now forbidden, Zhou added.

A group of small factories for papermaking, brewing, chemical production,
textile making and dyeing, will be closed down by 2010.

Zhou said pollution emissions in lakes will be strictly inspected. At the
end of this year, factories unable to meet on pollution standards will be
shut down.

After a one-year grace period, in 2008 all industries in the three lake
basins will need to hold a license issued by the environmental watchdog,
Zhou said.

SEPA made the decision following a large-scale outbreak of blue and green
algae this summer in China's big freshwater lakes - Taihu and Chaohu in
East China and Dianchi in Southwest China - which threatened the source
of drinking water for local residents.

Blue and green algae grow rapidly in water overly rich in nutrition, such
as nitrogen and phosphorus. SEPA is making it mandatory for wastewater
treatment plants in the lake regions to upgrade their equipment to reduce
nitrogen and phosphorus levels. Technological improvements are scheduled
for completion in June 2008 at Taihu Lake and at the end of 2010 in other
lake basins.

Not only industries, but also agriculture and fishing are included in the
campaign for cleaner water.

SEPA will also control the amount of fertilizer used in the lake basins.
Rural areas around Taihu Lake have also become part of the first pilot
project in the countryside to construct treatment facilities.

Nets for fish farming in the three lakes were ordered to be removed by
the end of 2008 to avoid introducing fish food into the water that
increases nitrogen levels.

To support the central government's decision, local governments have also
mapped out their plans.

Yunnan Province will fund 8.4 billion yuan in 2010 to treat Dianchi Lake
water. Cities around Taihu Lake said they will spend 3 percent of their
gross domestic product every year for water treatment.

(For more biz stories, please visit Industry Updates)

Chinese language

Chinese School - Bank of Nanjing sets IPO price range

? ?

BIZCHINA / News

Bank of Nanjing sets IPO price range

(XFN-Asia)
Updated: 2007-07-12 09:31

Bank of Nanjing, in which BNP Paribas holds a 19.2 percent stake, said it
has set the price range for its initial public offering (IPO) in Shanghai
at 9.8-11 yuan (US$1.29-1.45) per share.

That translates to a price-to-earnings ratio of between 30.69 and 34.45
times the company's diluted earnings for 2006, the company said in a
statement filed with the Shanghai Stock Exchange.

The bank, in which the IFC also holds a 5 percent stake, said it plans to
issue 630 million A-shares, representing 34.3 percent of its enlarged
share capital. The issue volume was down from previous plans of up to 700
million shares.

Up to 189 million A-shares, or 30 percent, will be sold to institutional
investors, and the remainder to retail buyers.

China CITIC Securities will be the main underwriter for the float.

(For more biz stories, please visit Industry Updates)

Chinese School

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