Monday, December 31, 2007

Learn Chinese online - A sea of sand is threatening China's heart

CHINA / Foreign Media on China

A sea of sand is threatening China's heart
By Joseph Kahn (IHT)
Updated: 2006-06-08 11:13

http://www.iht.com/articles/2006/06/08/asia/web.0608desert.php

MINQIN, China China's own favorite military strategist, Sun Tzu, surely
would have warned against letting two mighty enemies, the Tengger and the
Badain Jaran, form a united front.

Yet a desert pincer is squeezing this struggling oasis town, and China's
long campaign to cultivate its vast arid northwest is in retreat.

An ever-rising tide of sand has claimed grasslands, ponds, lakes and
forests, swallowed whole villages and forced tens of thousands of people
to flee as it surges south and threatens to leave this ancient Silk Road
greenbelt uninhabitable.

Han Chinese women here cover their heads and faces like Muslims to
protect against violent sandstorms. Farmers dig wells down hundreds of
feet. If they find water, it is often brackish, even poisonous.

Chinese leaders have vowed to protect Minqin and surrounding towns in
Gansu Province. The area divides two deserts, the Badain Jaran and the
Tengger, and its precarious state threatens to accelerate the spread of
barren wasteland to the heart of China.

The national 937 Project, set up to fight the encroaching desert,
estimated in April that 1,500 square miles of land, roughly the size of
Rhode Island, is buried each year. Nearly all of north central China,
including Beijing, is at risk.

Expanding deserts and a severe drought are also making this a near-record
year for dust storms carried east in the jet stream. Sand squalls have
blanketed Beijing and other northern cities, leaving a stubborn yellow
haze in the air and coating roads, buildings, cars and lungs.

Prime Minister Wen Jiabao traveled to the northwest in May to offer aid
to drought-stricken farmers and order provincial officials to supply more
water to Minqin.

But while local officials have tried grandiose projects to rescue the
outpost, environmentalists say it will probably have to be at least
partly abandoned and returned to nature if the regional ecology is to be
restored.

"We must find ways to live with nature in some kind of balance," said
Chai Erhong, an environmentalist and writer who lives in Minqin. "The
government mainly wants to control nature, which is what did all the harm
in the first place."

Government-led cultivation, deforestation, irrigation and reclamation
almost certainly contributed to the desert's advance, which began in the
1950's and the 1960's, and has accelerated. Critics warn that some
lessons of past engineering fiascoes remained unlearned.

During the ill-fated Great Leap Forward in the late 1950's, Mao ordered
construction of the giant Hongyashan reservoir near Minqin, which
diverted the flow of the Shiyang River and runoff from the Qilian
Mountains into an irrigation system. It briefly made Minqin's farmland
fertile enough to grow grain.

But Minqin is a desert oasis that gets almost no rainfall. The Shiyang
and its offshoots had been its ecological lifeline. With the available
water resources monopolized for farming, nearly all other land became a
target for the desert.

Today, patches of farmland that cling to irrigation channels are emerald
islands in a sea of beige, an agricultural Palm Springs.

Even the irrigated plots risk extinction. Competing reservoirs on upper
reaches of the Shiyang reduced its flow so severely by 2004 that the
Hongyashan went dry for the first time since its construction in 1959. It
was refilled after Beijing ordered an emergency diversion of water from
the Yellow River, which now runs dry through much of the year here in its
northern reaches.

Local officials, whose promotions in the government and Communist Party
hierarchy depend more on increasing economic output than on improving the
environment, have tried desperately to preserve Minqin's farming.

They have pleaded with cities on the upper reaches of the Shiyang to take
less of its water. They have also dug wells at a furious pace - 11,000 of
them altogether, some reaching more than a thousand feet down.

Minqin also planted ramparts of rose willow, buckthorn and other
deep-root trees in a 200-mile file along the desert fronts.

Such solutions have not worked. The trees are now stranded by sand.

Wang Tao, who heads the 937 Project - priority projects are labeled with
a 9 - said the only viable strategy to save arid land in Gansu, Inner
Mongolia and Ningxia was to move people out, reduce production, form
conservation parks and let nature heal itself.

"Minqin is not going to get more water," he said in a telephone interview
from his base in Lanzhou. "It needs fewer people."

In fact, a 200-year trend of migration into northern Gansu from
overcrowded lands in south and central China has shifted sharply into
reverse, with tens of thousands of farmers being relocated, some as far
away at Heilongjiang, in the northeast.

Along Minqin's northern frontier, villages like Xiqu, Zhongqu, Shoucheng
and Hongshaliang have been fully or partly abandoned. Sand dunes smother
empty homes. Olive, plum and date trees are stacked for firewood.

Shen Tangguo reckons that he is the only remaining farmer in his village,
Huanghui, which once had several hundred. He carries water by motorcycle
from a well a few miles away to irrigate his cotton, which he says is
resilient but low yielding.

He has pictures of Mao and Zhou Enlai and more recent Chinese leaders on
his walls. But he says he has not seen an official in Huanghui since
someone dropped by to collect a road-building tax a few months ago.

"Everyone else left because they have friends who can arrange things," he
said. "I don't have any friends."

Mr. Chai, the Minqin environmentalist, grew up north of the city in a
village now struggling to survive. His father left the village a few
years ago to live with Mr. Chai, who is 44.

Their ancestral home now has two remaining walls and no roof. The local
elementary school closed last year; only three children were showing up
for class.

The village's decline prompted Mr. Chai to study ecology on his own. He
now speaks volubly about the desert ecosystem and writes newspaper and
magazine articles calling on the authorities to abandon water engineering
projects so his native land has a chance to recover.

But he is not optimistic. Just outside his village is a vast wind-whipped
plain where, he said, his father used to fish. It was called Qingtu Lake,
one of the largest in China's northwest until the diversion of the
Shiyang gave the lake to the Tengger.

Six inches down, the soil remains dark. On the surface, there are shells,
fish bones and a snowlike powder left behind by the alkaline waters.

"This is not a natural disaster - it is man-made," Mr. Chai said. "And
unless people study the lesson of Minqin, it will repeat itself clear
across China."

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Chinesepod - Coal producer to make liquid fuel in 2008

?  ?

BIZCHINA / Top Biz News

Coal producer to make liquid fuel in 2008

(Xinhua)
Updated: 2007-09-17 14:38

China's largest coal company Shenhua Group will produce China's first
barrel of liquid fuel from coal in 2008 using self-owned technology known
as direct coal liquefaction.

We have finished 95 percent of the engineering projects at the first
production line in Erdos of north China's Inner Mongolia Autonomous
Region. The line will start making liquid products next year in trial
operation," said Zhang Yuzhuo, who is in charge of Shenhua's coal
liquefaction business, at the ongoing China International Coal and Energy
New Industry Expo 2007.

Zhang said the first production line would use 3.45 million tons of coal
every year to make 1.08 million tons of liquid products including diesel
oil, plus liquefied petroleum gas (LPG) and naphtha, a volatile,
flammable liquid hydrocarbon mixture.

Oil imports have been increased in recent years to fuel China's booming
economy, spurring the nation to look for technologies that can turn some
of its coal reserves, one of the world's largest, into fuel and other
chemicals.

The indirect liquefaction technology was first developed more than 70
years ago. It has been commercialized by South Africa's Sasol Ltd, the
world's biggest producer of motor fuel from coal. The direct liquefaction
technology, however, is yet to be industrialized.

On the basis of imported technologies, Shenhua has optimized the
production flow, built larger facilities and developed new generation
activators to create its own technologies, said Zhang.

"There are no impassable obstacles in developing technologies for
converting coal into oil, but the effect of such technologies should be
tested with small trial operations because they cost much money and call
for sound risk-control abilities," he said.

Listed as a key state project to help deal with China's petroleum
security concerns, the massive Erdos coal liquefaction facility began
construction in August 2004 with the blessings of China's top leaders.

During an inspection tour in June 2006, Chinese Premier Wen Jiabao
described the project as a major scientific and technological experiment.
With a budget of 12.3 billion yuan and an annual production capacity of 5
million tons of oil, the project will be completed in two stages. In the
first phase, three production lines will be installed.

Chen Liming, executive vice president of Sasol China, congratulated
Shenhua on its latest improvement. He also said the direct and indirect
liquefaction technologies should not be simply compared as they have
different evolution paths.

"Our coal-to-liquids technology (CTL) is commercially proven, "said Chen,
whose company planned to develop two CTL plants in cooperation with
Shenhua Ningxia Coal Group and Shenhua Coal Group using Sasol's
Fischer-Tropsch technology, each with a capacity of about 3 million tons
of products per year.

The company and its Chinese counterparts are carrying out feasibility
studies, said Chen.

Royal Dutch Shell Plc, Europe's second-biggest oil company, and Shenhua
Ningxia Coal Group have also agreed to study the feasibility of a plant
in China with a daily capacity of 70,000 barrels of products.

In fact, many Chinese coal companies are keen to develop plants to make
liquid products. But the Chinese government raised the threshold for
projects converting coal to liquid fuel last year, for fear that
excessive development of the fossil fuel would pollute the environment
and strain water supply.

Chen said he was optimistic about the prospects of the CTL application in
China because the International Energy Agency had predicted liquefied
products would take up 29 percent of the 10-million-barrel daily capacity
of all non-petroleum alternative energies by 2030.

"And for such a country rich in coal resources as China, the CTL industry
would be encouraged by the government,"said Chen.

Experts estimated that by 2020, coupled with an annual capacity of 20
million tons of bio-oil, China's coal industry would be able to produce
50 million tons of oil products every year to help reduce the nation's
oil import rate from current 60 percent to 45 percent.

(For more biz stories, please visit Industry Updates)

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Chinese Online Class - Outward FDI hits $21.16b for 2006

?  ?

BIZCHINA / Center

Outward FDI hits $21.16b for 2006

By Jiang Wei (China Daily)
Updated: 2007-09-15 09:35

Outbound foreign direct investment (FDI) reached $21.16 billion in 2006,
according to statistics released on Friday.

And China's overseas foreign direct investment to financial sectors
reached $3.53 billion last year.

The information came via a bulletin compiled by the Ministry of Commerce,
the National Bureau of Statistics, and the State Administration of
Foreign Exchange.

Investment to the financial sector accounted for 16.7 percent of the
country's total overseas investment last year, the bulletin said.

Compared with global foreign investment, China's outward investment was
still low for 2006 in terms of volume and total, said Chen Lin, deputy
director of the commerce ministry's foreign economic cooperation
department.

But he said outward investment will speed up as the country's economic
growth remains steady and foreign investment is increasing.

"We expected the country's outward investment to reach $60 billion during
the 11th Five-Year Program period (2006-10). Now we believe the actual
figure will be much higher than that," he said.

Chinese companies are now encouraged to go overseas. Zhou Xiaochuan,
governor of the central bank, told a forum last week that financial
policies are likely to be adjusted to support local firms' outward
investment.

He said the central bank will further develop the foreign exchange market
to help companies hedge currency risks and simplify procedures for firms
investing outside China.

The country will also remove "unnecessary controls" on reviewing sources
of forex funds, and on foreign currency purchase and remittance
procedures, to allow companies to use their own funds or converted
currencies to invest abroad. Commercial banks are being encouraged to go
abroad by setting up overseas branches or acquiring stakes in foreign
counterparts.

China's outward investment provided over 200,000 jobs for foreigners last
year.

By the end of 2006, more than 5,000 local investment entities had
established nearly 10,000 overseas firms in 172 countries and regions.

(For more biz stories, please visit Industry Updates)

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Chinesepod - China?fund raises 50b yuan?in one day

?  ?

BIZCHINA / Top Biz News

China?fund raises 50b yuan?in one day

(Agencies)
Updated: 2007-09-13 15:40

The long-awaited surge of retail money from China into international
financial markets started to become a reality on Wednesday when a Chinese
investment management company raised at least 50 billion yuan (US$6.6
billion) for an overseas equity fund in a single day.

China Southern Fund Management opened subscriptions on Wednesday morning.
Counting was continuing last night and one industry executive said the
total would reach 60 billion yuan.

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Markets Watch??

T he fund is the first in China to invest only in overseas equities and
is part of a government scheme gradually to allow Chinese investors to
put money into international markets.

Peter Alexander at Z-Ben Advisors, a fund management consultancy in
Shanghai, said: "This is the first real sign of Chinese retail demand for
foreign assets. But there will be much, much more to come."

Some analysts have predicted that Chinese individuals, who have about
US$2 trillion bank deposits, could invest hundreds of billions of dollars
overseas over the next decade and the prospect of such inflows has
boosted Hong Kong share prices.

But until now there had been few signs of genuine demand from Chinese
savers for overseas investment products, in part because the renminbi is
expected to continue appreciating, which would reduce the returns.

The China Southern fund will invest in shares in 10 different markets,
with Hong Kong and the US as the first targets.

In a reflection of how much demand the company had expected, China
Southern originally applied for a foreign exchange quota of 15 billion
yuan. "It exceeded our wildest expectations," a senior fund official said
of the subscriptions.

A large outflow of investment funds could endanger the remarkable rally
in the mainland stock markets, which have seen share prices rise fivefold
in two years and left many analysts warning of a bubble.

However, in a sign of continuing strong demand for Chinese stocks, Bank
of Beijing said last night its initial public offering had attracted
subscriptions of 1.9 trillion yuan, a record for a Chinese flotation. The
offering was subscribed by 126 times.

(For more biz stories, please visit Industry Updates)

Learn Chinese, Chinesepod

Sunday, December 30, 2007

Chinese School - Investment climate in China 'attractive but complex'

?  ?

BIZCHINA / Center

Investment climate in China 'attractive but complex'

(CRI English)
Updated: 2007-09-12 11:31

?

Joerg Wuttke, President of the European Union Chamber of Commerce in
China, speaks at the press conference for the launch of its seventh
annual European Business in China Position Paper on Tuesday. [CRI
English]?

"With the continued strong growth of China's economy, the business
environment remains attractive for European companies. But investment
climate is becoming more complex and challenging for foreign businesses
operating in China," Joerg Wuttke, President of the European Union
Chamber of Commerce in China (EUCCC), said this Tuesday at the press
conference for the launch of its seventh annual European Business in
China Position Paper.

Also the first such paper issued by the EU Chamber of Commerce after
China completed its five-year World Trade Organization (WTO) accession
period, the European Business in China Position Paper 2007/2008 lauds
China's great progress in further opening up its economy and markets, as
well as the significant increase of trade volume during the period.

According to statistics offered in the paper, the two-way trade between
EU and China exceeded 250 billion euros in 2006, an increase of about 22
percent over 2005.

Based on comprehensive and analytical overviews of horizontal issues, and
trade in goods and services, the 330-page and four-part bilingual
Position Paper provides an up-to-date European industry analysis of the
current business environment in China and offers more than 100
recommendations for improvements in various fields.

Meanwhile, the Paper also urges China to work on creating a more proper
framework for further market opening and integration into the global
economy.

"We strongly support China's policies of continuing its economic reform,
development of domestic markets, improved energy efficiency, having more
effective environmental protection and action to reduce social
inequality. We believe that European companies can and do contribute
positively to all these goals," Michael O'Sullivan, Secretary General of
EUCCC adds, "And so we encourage China to continue to open its markets
and provide a level playing field for domestic and foreign companies."

With transparency and intellectual property rights protection remaining
major concerns, the Paper also finds the lack of coordination between
authorities and technical barriers, such as unnecessary or overlapped
standards.

Although expressing welcome to new laws and regulations including the
Property Rights Law, Labor Contract Law and New accounting rules, EUCCC
notes that a more systematic approach is still needed to enhance the
implementation of these new legislations.

The European Business in China Position Paper has been submitted to
Chinese Vice Premier Wu Yi and will be presented to Chinese and European
governments, according to Michael O'Sullivan.

The EU Chamber of Commerce in China was founded in October 2000 by 51
European member companies as the voice of European businesses in China.
So far, the chamber has got more than 1,100 members.

(For more biz stories, please visit Industry Updates)

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Chinese Online Class - Stocks finish up despite multiple pressures

?  ?

BIZCHINA / Index & Statistics

Stocks finish up despite multiple pressures

By Li Zengxin (chinadaily.com.cn)
Updated: 2007-09-10 16:37

Stocks in the paper, petrochemical and culture and media industries were
the best performers of the day. The real estate shares led the fell in
the morning but their resurgence in the afternoon contributed to
stabilize and push up the indices.

This week, a series of macroeconomic data will be released to the public.
The product price index (PPI) for manufactured goods in August grew 2.6
percent year on year, said the National Bureau of Statistics today. The
purchasing price of raw materials, fuel and?power was up 3.8 percent year
on year, 0.2 percentage points higher over July.

Analysts expect the CPI growth rate last month to exceed the 10-year
monthly high of 5.6 percent in July, adding more inflationary pressure to
an already heated economy. More tightening measures may be announced very
soon pending the results, market experts said.

The yuan reached a new high against the US dollar as the central parity
exchange rate was set at 7.5252 yuan today. The yuan bypassed the 7.54
and 7.53 marks and rose 159 basic points from last Friday, refreshing the
record for the 58th time this year.

The mounting foreign exchange reserves, which topped US$1.33 trillion at
the end of June, are one of the forces pushing up the yuan's value. The
good news is China Investment Co Ltd, the State forex investment company
to make better use of the country's huge?forex reserves, is expected to
start operations this week, said Monday's China Securities Journal.

The benchmark Shanghai Composite Index has almost doubled since the
beginning of the year despite a 2.16-percent slump?last Friday. The total
market value of the floating shares on the two stock exchanges surpassed
8 trillion yuan last week. The high price levels of stocks have
introduced higher market volatility, analysts believe.

Shang Fulin, chairman of the China Securities Regulatory Commission
(CSRC), on Friday urged securities regulators and brokerages to conduct
effective education on domestic investors. "The regulators and dealers
should help investors raise their risk awareness and clamp down on market
irregularities," Shang said at a meeting on investors' risk education
held in Beijing.

Fan Fuchun, CSRC's vice chairman, said, "The emphasis of risk education
should be placed on the vast majority of small investors and investors
with low incomes to give them a clear understanding of the current market
situation." "Risks are increasing with the quick market expansion, new
forms of market irregularities and weak risk awareness of many
investors," Shang added.

As one of the new moves by the government to vent steam from the heated
domestic stock market, the H-share investment plan requires more time for
preparation and the exact time for its debut is undecided yet. China has
finished at least half of the preparations for the local residents'
direct investment in the Hong Kong stock market, Zhu Min, vice president
of Bank of China, said Saturday.

"The preparations are going smoothly, but there are still many technical
problems yet to be addressed," Zhu said in Dalian. "It takes a lot of
time to prepare new software and investor education, and train staff
members. However, we have no plan to delay it," he said.

"Tianjin is the only pilot city. It's hard to say if the program will
expand to other cities in the future," Zhu noted in response to earlier
media reports saying the program would be expanded to many other cities
and be launched in early September.

(For more biz stories, please visit Industry Updates)

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Learn Mandarin online - China's auto output, sales both to hit record 9m units in 2007

?  ?

BIZCHINA / Center

China's auto output, sales both to hit record 9m units in 2007

(Xinhua)
Updated: 2007-09-08 16:17

China's auto output and sales are both expected to hit a record?9 million
units this year, said Zhang Xiaoyu, vice president of the China Machinery
Industry Federation.

The figure, compared with a previous prediction of 8.5 million, would
enable China to reach its auto production and sales targets for the
2006-2010 period three years in advance, said Zhang.

China's muscle-flexing and exhaust-emitting auto industry maintained
strong momentum in the past five years, with output soaring an annual
average of 26 percent.

Last year China surpassed Japan to become the world's No. 2 auto market,
with total sales of 7.2 million vehicles and output of 7.3 million.

The country produced 4.5 million vehicles in the first half of 2007, up
22.4 percent on the same period of last year, while sales rose 23.3
percent to 4.4 million, according to the China Association of Automobile
Manufacturers.

(For more biz stories, please visit Industry Updates)

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Chinese School - Baosteel nods to Hebei venture

?  ?

BIZCHINA / Center

Baosteel nods to Hebei venture

By Jin Jing (China Daily)
Updated: 2007-09-07 09:00

Baosteel Co Ltd yesterday said it approved a proposal by its parent
company Baosteel Group to set up a joint venture with Handan Iron & Steel
Group to invest in a steel project in Hebei Province that is expected to
have an annual steel output of 4.6 million tons.

Baosteel Co also said it reserved the right to buy its parent company's
stake in the joint venture, according to the company's statement to the
Shanghai Stock Exchange. Baosteel shares jumped 2.35 percent to close at
19.57 yuan yesterday.

The 50-50 joint venture, with registered capital of 12 billion yuan, was
proposed in May.

The Hebei steel project was started in February last year, with a total
outlay of 19.4 billion yuan. The first phase is expected to be completed
in 2008 and the second phase by 2010.

"Baosteel Co will consider whether to invest in the project after it
begins production," Chen Ying, board secretary of Baosteel Co, told China
Daily yesterday.

Liu Yanqi, an analyst at Haitong Securities, said: "Baosteel has enough
capital and technology to develop the project but market risks, including
changes in fixed-assets investment and other macroeconomic policies may
have a negative impact on the project."

(For more biz stories, please visit Industry Updates)

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Saturday, December 29, 2007

Chinese Mandarin - White paper on environmental protection

CHINA / Official Publication

White paper on environmental protection
(Xinhua)
Updated: 2006-06-05 10:26

Full text: Environmental Protection in China (1996-2005)

The Information Office of China's State Council on Monday issued a white
paper titled "Environmental Protection in China (1996-2005)." The
following is the full text of the document: Environmental Protection in
China (1996-2005) Information Office of the State Council of the People's
Republic of China

Foreword

China is the most populous developing country in the world. Since the
late 1970s, China's economy has developed rapidly and continuously.
During the process, many environmental problems that have haunted
developed countries in different phases of their 100-year-long
industrialization have occurred in China all at the same time. The
conflict between environment and development is becoming ever more
prominent. Relative shortage of resources, a fragile ecological
environment and insufficient environmental capacity are becoming critical
problems hindering China's development. The Chinese government attaches
great importance to environmental protection. It believes that
environmental protection will have a direct impact on the overall
situation of China's modernization drive and its long-term development,
and considers environmental protection an undertaking that will not only
benefit the Chinese people of today but also their children and
grandchildren. Years ago, the Chinese government established
environmental protection as a basic national policy and sustainable
development as an important strategy, and has adhered to the road of a
new type of industrialization. While promoting economic growth, it has
adopted a whole array of measures to strengthen environmental protection.
Especially in recent years, the Chinese government, with the scientific
outlook of development as the guiding principle of environmental
protection, has adhered to focusing on preventive measures, comprehensive
control and overall progress with breakthroughs at some key points, and
worked hard to solve conspicuous environmental problems threatening
people's health. At the same time, it has continued its efforts for
institutional innovation, relied on scientific and technological
advances, strengthened the legal system of environmental protection, and
brought into full play the initiative of people of all walks of life.
Thanks to these efforts, although the amount of resource consumption and
pollutants is increasing greatly, the trend toward aggravated
environmental pollution and ecological destruction is slowing down;
especially, environmental pollution control in some river valleys has
seen some positive results, the environmental quality of some cities and
regions has improved, the amount of pollutant emission of industrial
products has declined, and the people's awareness of the importance of
environmental protection has enhanced. As World Environment Day nears, in
order to let people in other countries have a better understanding about
the situation of environmental protection in China, we would like to give
a systematic introduction to the unremitting efforts made by China in
environmental protection over the past ten years.

Page: 1 2 3 4 5 6 7 8 9 10 11 12

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Chinese School - Chinalco takes over State alloy maker NELA

?  ?

BIZCHINA / Center

Chinalco takes over State alloy maker NELA

By Chen Jialu (China Daily)
Updated: 2007-09-04 10:09

Aluminum Corp of China (Chinalco), parent of its listed arm Chalco, has
acquired the controlling stake of Northeast Light Alloy Co Ltd (NELA), a
State-owned enterprise in the defense industry.

Sources told China Daily that a deal was inked over the weekend in Harbin
- where NELA is headquartered - with Chinalco agreeing to participate in
NELA's restructuring by acquiring 75 percent of its 1.6 billion yuan
(US$212 million)?of assets.

Chinalco is China's largest aluminum and alumina producer. It paid 1.2
billion yuan to gain the controlling stake of NELA, considered the
nation's largest manufacturer of aluminum and magnesium alloy.

The other 25 percent of the company is held by the State-owned assets
supervision and administration commission of the Harbin municipal
government, according to sources.

NELA specializes in making not only aluminum and magnesium alloy for
defense and civilian uses but also the machinery for processing them.

It notched up 1.089 billion yuan in sales revenue in the first half of
this year, with 51 million yuan in net profit. Its aluminum and alloy
products, under the "Swan" brand name, are sold nationwide and exported
to 24 countries and regions.

NELA was developed in the 1950s as part of China's national industrial
backbone with support from the former Soviet Union.

The Harbin-based?State-owned enterprise?has since contributed to China's
first aircraft, first atomic reactor, first nuclear weapon, first
missile, first satellite, first nuclear submarine, first carrier rocket
and first spaceship, say company executives.

NELA plans to attract new investment in production lines capable of
processing 120,000 tons annually in products such as large aluminum alloy
plates.

Chalco's NELA deal was its latest move in a string of takeovers of local
rivals. It came on the heels of its announced takeover of the Inner
Mongolia-based Baotou Aluminum through a share swap in July.

Financial analysts said they anticipate Chinalco will inject NELA's
assets into Chalco, which listed in Hong Kong and New York in 2001,
before issuing A shares in April 2007.

?

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Chinese language - Charter flights between Shanghai, Tokyo to start soon

?  ?

BIZCHINA / Top Biz News

Charter flights between Shanghai, Tokyo to start soon

(Xinhua)
Updated: 2007-09-01 15:09

China and Japan will launch regular charter flights for passengers
between Shanghai's Hongqiao Airport and Tokyo's Haneda Airport beginning
September 29 which marks the 35th anniversary of the normalization of
bilateral diplomatic ties.

Two Chinese air companies, namely?China Eastern, Shanghai Airlines, and
Japan's two largest airlines -- Japan Airlines and All Nippon Airways
(ANA), will start four daily flights between the two airports, sources
with the General Administration of Civil Aviation said on Saturday.

The flights to boost mutual exchanges were agreed by the two governments
during Chinese Premier Wen Jiabao's visit to Japan in April.

According to official data, 16 airlines from both countries are
conducting 738 flights every week, linking 19 Chinese cities and 17
Japanese ones. These companies carried more than 7.5 million passengers
in 2006.

To mark the 35th anniversary of the normalization of diplomatic ties
between China and Japan, the two countries plan to hold cultural and
sports exchange activities this year, including marathons in Beijing and
Dalian, a coastal city in northeast China.

(For more biz stories, please visit Industry Updates)

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Learn Chinese online - China's inflation to surpass 3% for full year

?  ?

BIZCHINA / Center

China's inflation to surpass 3% for full year

By Zhang Ran (China Daily)
Updated: 2007-08-30 09:04

This year's consumer inflation is likely to exceed the central bank's
target of 3 percent, a top official said yesterday.

"Given the relatively high inflation in the first seven months of the
year, even if we step up control measures now, the consumer price rise
will still probably be above 3 percent for the whole year," Su Ning,
vice-governor of the People's Bank of China (PBOC), told a news
conference in Beijing yesterday.

"The central bank is paying close attention to changes in prices and will
take further macroeconomic control measures to keep prices stable," Su
said.

Spurred by surging food prices, the consumer price index, a key gauge of
inflation, hit a 10-year high of 5.6 percent in July, up from 4.4 percent
in June. The average inflation in the first seven months rose 3.5 percent
year on year.

Related readings:

?A more accurate CPI
?CPI to rise at moderate rate, still under control
?Analysts say CPI may hit 5 percent

Food prices, which make up about a third of the inflation basket, rose
15.4 percent year on year last month. Prices in the first seven months
rose 8.6 percent from the same period last year.

In a report to the Standing Committee of the National People's Congress,
Ma Kai, minister of the National Development and Reform Commission
(NDRC), said the government will take a slew of measures such as
encouraging pig raising and increasing grain and vegetable supplies, to
curb inflation.

"The government will also strengthen monitoring of prices and step up
efforts to crack down on price cartels and illegal price rises," the
minister said.

In an effort to curb inflation, the central bank last week raised
interest rates for the fourth time this year. The benchmark one-year
deposit rate is now 3.6 percent while the one-year lending rate is 7.02
percent.

"I expect the central bank to raise interest rates for the fifth time at
the end of October," Li Zhikun, senior analyst at China Investment
Securities Co Ltd, told China Daily.

Li estimated inflation in August to be above 6 percent due to the
continuing rise of food prices, and forecast that inflation for the full
year will likely to be around 4.2 percent.

Jun Ma, China economist at Deutsche Bank in Hong Kong, also estimated
August inflation at round 6 percent; and believes the likely timing of
the next rate hike will be in the second half of September.

(For more biz stories, please visit Industry Updates)

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Friday, December 28, 2007

Learn Chinese - CSRC unveils credit rating management rules

?  ?

BIZCHINA / Center

CSRC unveils credit rating management rules

By Hao Zhou (chinadaily.com.cn)
Updated: 2007-08-27 15:04

The China Securities Regulatory Commission (CSRC) yesterday promulgated
the provisional measures on managing enterprise credit ratings in the
securities market. The measures will enter into force on September 1,
2007, Xinhuanet reported.

Credit rating is a crucial step in issuing corporate bonds. The measures
will lead China further toward a stable bond market and a multi-level
capital market.

Related readings:
?CSRC to launch new rules on securities credit rating
?Credit rating system for all
?Central bank to expand use of credit database

Bonds, assets-backed securities, and other structural financing
securities with fixed return or debt approved by CSRC, as well as those
transacted in the securities market, are supposed to receive rating
classification, with the exception of?treasury bonds.

Meanwhile, bond issuers, listed firms, unlisted public companies,
securities companies, and securities investment fund management companies
are to be rated.

According to the provisional measures, if an agency plans to apply for a
securities rating license, it must first be a legal entity in China, and
either of its paid-up capital and net assets must exceed 20 million yuan
(US$2.6 million).

Those appraisers are also required to have a comprehensive business
system, such as credit levels and distinct definitions, rating standards
and procedures, rating results publishing as well as information
confidentiality systems.

Additionally, the appraisal agencies' personnel or those whose relatives
hold more than five percent shares of an enterprise, which is going to be
rated, should be dodged during the rating period.

(For more biz stories, please visit Industry Updates)

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Learn Mandarin online - Online reporters visit new countryside in Zhenjiang

CHINA / News

Online reporters visit new countryside in Zhenjiang

By Tao Li (chinadaily.com.cn)
Updated: 2006-05-30 22:06

Online reporters embarking on the south route of Jiangsu Web Tour arrived
Tuesday in Zhenjiang, a famous ancient city located at the junction of
Yangtze River and the Grand Canal.

During a visit to the trial site of building new socialist countryside in
Baitu Town, the reporters had a close look at Tangzhuan Village, known
for its characteristic agriculture.

More than 500 households in the village make a living by growing
well-bred grapes, strawberries, cherries, and so on. Zhang Xiaohu
Vineyard is among the most successful and reputed.

In the evening, Yin Weidong, mayor of Jurong County of Zhenjiang City,
had a meeting with the reporters, during which he introduced the social
and economic development of the county as well as their concept and
experience in enriching the local residents and building a new socialist
countryside.

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Chinese Mandarin - Food from China safe, says New Zealand

?  ?

BIZCHINA / Center

Food from China safe, says New Zealand

By Zhu Zhe (China Daily)
Updated: 2007-08-24 09:39

Chinese food exports to New Zealand meet requirements and are safe, the
New Zealand government has said.

Related readings:

?Food safety high on agenda
?White paper: China builds law regime for food safety
?China urges global cooperation to improve food safety
?New move to ensure food safety

Extensive testing of local and overseas food conducted by the New Zealand
Food Safety Authority showed that none of the 15 samples of vegetable
proteins from China - which have been linked to the deaths of pets in
North America - tested positive for the harmful chemicals blamed for the
deaths, China News Service reported yesterday.

Results from the tests of 31 samples of tinned or frozen Chinese seafood,
including anchovy, prawns and shrimps, matched what Australian and US
scientists had found: Despite some samples testing positive for low
levels of chemicals, they were safe to eat, the report said.

"All these results, even the highest at 0.058mg/kg, were well below any
level that would pose a health risk," Glen Neal, the authority's
assistant director, was quoted as saying.

The report also quoted New Zealand Prime Minister Helen Clark as saying
that some Chinese products did have problems, but it did not make all
products from China unsafe.

The New Zealand Herald, the biggest local English newspaper, said in an
editorial last week: "Prejudice against foreign food is easy to arouse
anywhere, and China is suffering that prejudice at present."

(For more biz stories, please visit Industry Updates)

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Chinese Mandarin - Shanghai index nears 5000-point mark

?  ?

BIZCHINA / Center

Shanghai index nears 5000-point mark

By Fei Ya (China Daily)
Updated: 2007-08-22 09:41

The A-share market yesterday rose to nearly 5,000 points, reflecting the
general climate of optimism in the bourse.

The Shanghai Composite Index closed at 4955.207, a 1.79 percent rise
after soaring 5.33 percent on Monday. The market hit a record intra-day
high of 4,982.981, triggering investor speculation of an imminent
crossing of the 5,000 mark.

Rising Shanghai shares outnumbered losers 471 to 384, while turnover in
Shanghai A shares rose to a weekly high of 154.8 billion yuan.

The market's encouraging performance diminished investors' concerns that
the subprime credit crisis might lead to a new round of market correction.

"The global subprime crisis will have limited impact on the A-share
market as the mainland still regulates capital inflow and outflow in the
investment arena," said Sun Daqing, an analyst with China Investment.

In Sun's view, the impact of the subprime credit crisis will be indirect.
"Some A-share companies, especially banks, may lose money by directly or
indirectly investing in overseas subprime products, but that loss will be
very limited."

For the real estate sector, the analyst did not see a similar credit
crisis in domestic mortgage loans. Sun pointed out that unlike the United
States' property market, Chinese banks have to abide by far stricter
requirements in lending money to homebuyers.

As China's real estate prices continue on upward trend, Sun forecast a
positive outlook for the domestic sector.

From the global perspective, Sun said he believes the crisis will stay
confined within the capital market rather than spreading to the entire
economy. "I don't think the US economy will be damaged by the subprime
crisis, and the Fed still has enough measures at its disposal to protect
the economy from a recession."

"The potential impact of the subprime crisis on China is likely to be
non-linear," said Wang Qing, chief economist of Morgan Stanley Greater
China.

Wang pointed out that in a benign scenario, the crisis would remain a
market event instead of an economic one, China's economic growth would
remain robust and the country would experience more capital inflows.

"In an adverse scenario, if the US economy were to be knocked into a
serious recession, China's economy would be negatively affected by the
resultant slower exports. In that case, China's growth would slow,
disinflation or deflation would emerge and asset markets would tumble,"
Wang said.

?

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Thursday, December 27, 2007

Chinese language - Family fabric

?  ?

BIZCHINA / Biz Who

Family fabric

By Liu?Weiling and Diao Ying (China Daily)
Updated: 2007-08-20 06:51

Father and son

He is a good kid, excellent at schoolwork.

That is the way Zhou Haijiang describes his own child, although his son
has barely graduated from kindergarten.

Self-disciplined, working seven days a week, Zhou said he inherited the
characteristic from his father, and that is the way he teaches his own
son.

Zhou's family is typical for a privately owned business in East China's
Zhejiang and Jiangsu provinces. The second generation is born with the
natural mission to be future leaders of their family enterprises.

Zhou was elected president of the company in 2004, in which he took
pride: elected, that is, not inherited.

But businesses in the towns where the factories are located make it a
complex issue to choose a president: over 70 percent of families in
Donggang town, where Hongdou is located, have members working in the
factory. A company often contributes to over half of tax revenue in a
town and the owner of the company is often the head of local government.

Hongdou hired a Chinese Canadian as a general manager in 1998, who worked
for a year and left. So it is a family business.

Zhou would not admit that he is himself the second generation running the
enterprise because he has been with the company since the 1980s. But his
educational background sets him apart from his father's generation. And
he is well aware of that difference.

"In making decisions, my father's generation is more bold, and they have
very strategic vision," he says. "But I tend to wait until I feel totally
confident."

They certainly have one thing in common: Both worked to ensure their
children are disciplined and well prepared for their future roles. Just
like Zhou remembers - the times when he had to stand up for the entire
night for doing something wrong.

Zhou also remembers the day when his father called the brothers together
and told them that only one of them could continue their education.

His younger brother, who "is smart too, and was a good student himself"
volunteered to quit school and Zhou went on to university.

That is why he came back after graduation, knowing and believing in the
responsibility to his family.

(China Daily 08/20/2007 page12)

?

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Chinese School - CNOOC, Newfield sign PSC contracts

?  ?

BIZCHINA / Center

CNOOC, Newfield sign PSC contracts

(Xinhua)
Updated: 2007-08-16 14:12

China National Offshore Oil Company Limited (CNOOC Ltd) announced
Wednesday that its parent China National Offshore Oil Corporation (CNOOC)
has signed two production sharing contracts (PSC) with US-based Newfield
Exploration Company.

The two contracts are for blocks numbered 22/15 and 16/05, both in the
South China Sea.

Block 22/15 in the Beibu Gulf Basin in the western South China Sea covers
5,228 square km, with water depth of 10 to 60 meters.

Newfield will reprocess the two-dimensional seismic data, a technical
survey containing geological clues for hidden oilfields, and conduct
drilling operations.

Located in the Pearl River basin, block 16/05 covers 2,064 square km.

CNOOC and Newfield had signed a geophysical survey agreement on this
block in 2005, under which Newfield committed to exploration drilling.

Under the contracts, all costs incurred during the exploration will be
borne by Newfield. CNOOC Ltd has the right to an interest up to 51
percent in the event of any commercial discoveries.

The two companies signed a PSC in 2005 for block 17/08, also located in
the Pearl River basin.

Incorporated in Hong Kong, CNOOC Ltd is a 70.64-percent owned subsidiary
of CNOOC, China's largest offshore oil and gas producer.

(For more biz stories, please visit Industry Updates)

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Chinese language - Experts rule out further inflation

?  ?

BIZCHINA / News

Experts rule out further inflation

By Fu Jing (China Daily)
Updated: 2007-08-14 15:59

Despite consumer prices hitting a 10-year high, economists have ruled out
the possibility of further rapid price rises and forecast a slowdown in
two or three months.

They based their judgment on the fact that the spurt in the consumer
price index (CPI), which gained 5.6 percent in July year-on-year, was
mainly caused by short supply of food products, especially pork.

But some warned that the growing buying power caused by rising incomes
and anticipated price increases of resources and energy are major worries.

Related readings:
?Analysts say CPI may hit 5 percent
?Chief economist: CPI to rise less than 4% in 2007
?CPI growth to slow in 2nd half

Special Coverage:
Markets Watch ?

Lin Yueqin, a researcher with the Chinese Academy of Social Sciences,
said the government has already taken measures to encourage farmers to
raise more pigs and guarantee meat supply. "I believe meat prices will
fall in two or three months as supply returns to normal."

The outbreak of blue ear pig disease forced farmers to slaughter sows and
piglets this year, affecting pork supply. The wholesale price of the
staple meat as a result soared 74.6 percent year-on-year in June.

Food prices jumped 15.4 percent while non-food items rose only 0.9
percent in July. Meat and meat-related foodstuff rose 45.2 percent
compared with the same period last year.

"China has the capacity to guarantee the supply of meat products," said
Lin.

CPI has risen year-on-year 5.6 percent in July, 4.4 percent in June and
3.2 percent in the first six months.

A research team of the Development Research Center of the State Council
holds that prices of manufactures are still stable. During the first six
months, the core CPI, an internationally accepted inflation index that
excludes food and energy, rose a mere 0.9 percent, meaning inflation is
still at a low level.

(For more biz stories, please visit Industry Updates)

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Learn Chinese online - Consumer price inflation hits 10-year high

?  ?

BIZCHINA / Center

Consumer price inflation hits 10-year high

By Dong Zhixin (chinadaily.com.cn)
Updated: 2007-08-13 10:18

Consumer price inflation in China accelerated to the highest level in
more than 10 years as food prices continue to rise, official figure
released on Monday showed, raising the pressure for the fourth interest
rate hike this year.

The Consumer Price Index (CPI), a barometer of inflation, grew 5.6
percent in July, after a 4.4 percent rise in the previous month, the
National Bureau of Statistics said in a statement on its website.

By contrast, Producer Product Index (PPI), a measure of inflation at the
wholesale level, slowed down to 2.4 percent in July from June's 2.5
percent, the bureau said on Friday.

In a breakdown of July's CPI figure, food prices jumped 15.4 percent,
while non-food items rose only 0.9 percent, the statement showed.

Related readings:
?Time to restructure the CPI
?Economists: 4% CPI rise still healthy
?Central bank warns of inflation risks
?China to crack down on price-hiking producers, sellers

Among foodstuffs, meat and meat products reported the biggest jump, up
45.2 percent, followed by a 30.6 percent increase in eggs and a 30.1
percent rise in cooking oil. Grain prices went up 6.0 percent.

In July, the rural areas saw 6.3 percent price increase, compared with
5.3 percent for the urban areas, according to the bureau.

Inflation risks were on the rise, the central bank admitted in its second
quarter monetary report on Wednesday. It vowed to take necessary measures
to keep the basic stability in prices.

China has raised interest rates three times so far this year, with the
latest coming on July 20 when the benchmark one-year deposit rate rose to
3.33 percent. That rate hike is coupled with a reduction of interest tax
on bank deposits to five percent from 20 percent.

However, the return on deposits is still below the inflation rate,
indicating a loss of purchasing power if people put their money into
banks.

That is encouraging an exodus of bank deposits to the country's red-hot
stock market, which has soared 77.53 percent so far this year on top of a
130 percent rally in 2006, fueling concerns of bubbles building in the
market.

In response, analysts expect the central bank to raise the interest rates
again in the coming months to turn the real interest rate positive,
partly to offset the impact of rising prices and partly to curb the flow
of money into the equity market.

Price hike, especially in foodstuffs, is very sensitive in China as the
Chinese has a relatively low disposable income and food accounts for a
major part in people's daily spending. In 2006, the disposal income for
urban residents stood at 11,759 yuan, and at 3,587 yuan for rural
residents.

(For more biz stories, please visit Industry Updates)

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Wednesday, December 26, 2007

Chinese Mandarin - Environment: Call to abandon use of wooden chopsticks

?  ?

BIZCHINA / Biz Media Digest

Environment: Call to abandon use of wooden chopsticks

By Shan Juan (China Daily)
Updated: 2007-08-10 11:01

Restaurant owners and patrons should abandon the use of disposable
chopsticks for the good of their health and the environment, an official
with the China Cuisine Association (CCA), has said.

Bian Jiang, its secretary-general, recently called on restaurant
operators to phase out one-use cutlery, especially wooden chopsticks, in
preparation for next year's green Olympics. The country produces and
discards more than 45 billion pairs of wooden chopsticks every year, at a
cost to the environment of about 25 million trees, Bian said.

"That's a heavy blow to the country's dwindling forests," he told China
Daily.

"On the run-up to the Olympics, the catering industry should not ignore
the green call from the organizing committee for no disposable tableware
to be used during the grand feast of national pride."

In a bid to discourage the use of wooden chopsticks and protect timber
resources, the government imposed a 5 percent consumption tax on them in
April.

"I think most restaurants will be willing to do their part," Bian said.

The use of disposable chopsticks has been debated for years.

Both restaurant owners and consumers prefer them, their supporters say,
and an industry has grown up around their manufacture.

"I would be happy to stop using wooden chopsticks for environmental
concerns, but some diners prefer them for hygiene reasons." Wang Yucheng,
who runs a restaurant in Beijing, said.

To help restaurants become more environmentally friendly and energy
efficient, the Ministry of Commerce recently issued a range of provisions
relating to the catering industry, which discourage the use of wooden
chopsticks.

Though not mandatory, the provisions, slated for implementation on
December 1, are the first to include the strong suggestion to get rid of
disposable chopsticks, Bian said.

Besides its domestic consumption, China is also a major exporter of
chopsticks, with Japan its largest trading partner. Despite boasting the
world's highest forest coverage at 69 percent, Japan imports all 25
billion pairs of disposable chopsticks it consumes every year.

(For more biz stories, please visit Industry Updates)

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Chinesepod - Hot money: Over $100 billion in 1st half

?  ?

BIZCHINA / Center

Hot money: Over $100 billion in 1st half

By Ding Qi (chinadaily.com.cn)
Updated: 2007-08-09 14:59

How did over $100 billion of hot money flow into China in the first half
alone despite the nation's strict control on foreign exchange?

According to statistics from the Ministry of Commerce and from Chinese
customs, $120.9 billion added to China's foreign reserves came from
unknown sources.

In an analysis by International Financial News, money can enter China
through illegal channels including massive payments or money transfers
through fictitious trade claims or false contracts under the guise of
normal trade and investment.

Related readings:
?Hot money inflows to be curbed
?Central bank calls for supervision of speculative capital
?June FDI rises 21.91% to $6.63b
?More foreign capital flows in property sector
?China tightens rules on foreign property investors

Direct investment is another way for hot money to enter China's market,
according to some experts. Except for industrial and commercial
investment, which has few limitations for settlement of foreign currency,
the Qualified Foreign Institutional Investors (QDII) system is more
lenient in allowing foreign investors to change their funds into renminbi
and buy securities.

The influx of hot money could pressure the central bank in terms of
currency supply and cause serious liquidity problems. It could also
disturb the monetary policy of the government, and even endanger the
nation's financial security, according to the report.

So far, the government has taken a series of measures to curb the illegal
inflow of hot money and guide foreign investment in a reasonable way.
However, some experts said it is hard for the government to eliminate hot
money altogether, because the country had committed to reforming its
financial system and making it more open internationally.

According to Mei Xinyu, an official with the economy and trade research
department of the Ministry of Commerce, it is impossible to rid the
country of overseas speculative funds completely, since the money itself
was a product of excess global liquidity. Financial authorities of all
nations should work together and gradually bring it under control.
Therefore, curbing hot money requires a?long-term campaign.

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Learn Chinese - JP Morgan: QDII to reach US$90b next year

?  ?

BIZCHINA / News

JP Morgan: QDII to reach US$90b next year

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

The investment quota for Qualified Domestic Institutional Investors
(QDII) will reach US$90 billion next year, but huge overseas investments
won't dampen domestic markets, Li Jing, general manager and chairman of
the Chinese securities department of JP Morgan Chase, told the China
Securities Journal on Monday.

According to the estimation of JP Morgan, the 90-billion quota will come
from banks, fund management companies, securities companies and insurers.

Related readings:
?China unit of JPMorgan wins QDII nod
?China AMC plans $1.3b QDII fund in Sept
?China authorises 1st JV fund to invest overseas under QDII
?Banks use only 26% of QDII quota in 1st half
?ICBC raises $585m in China's largest QDII fund

Shares of mainland companies listed in the Hong Kong market will benefit
more from the QDII funds in the short term. Stocks with large price
discount from their A-share counterparts or possibility to return to the
mainland market are particularly preferred. From a longer perspective,
however, QDII will appoint experienced overseas fund managers to invest
more in other markets, Li said.

She anticipated that with more QDII funds flowing out, and more Chinese
firms launching IPOs in Hong Kong in the second half of the year, the
price difference between A-shares and H-shares would gradually disappear.

Although the US sub prime loan crisis caused some fluctuations of the
Asian market recently, Li did not believe it would affect the domestic
market since?few banks in China had invested in foreign credit loan
products.

Instead, both the mainland and Hong Kong stock markets will continue to
grow backed by the nation's economic development, according to Li.

The corporate revenue will keep growing, and huge funds are flowing from
the banks to the stocks market, which may serve as driving force of the
stock prices. Although a structural adjustment was needed currently to
ensure a sustainable development, the upward trend of the nation's
economy as well as the market would not change, she noted.

(For more biz stories, please visit Industry Updates)

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Learn Chinese - Chief economist: CPI to rise less than 4% in 2007

?  ?

BIZCHINA / News

Chief economist: CPI to rise less than 4% in 2007

By Shangguan Zhoudong (Chinadaily.com.cn)
Updated: 2007-08-06 15:59

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

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

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

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

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

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

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

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

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

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

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

(For more biz stories, please visit Industry Updates)

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Chinese School - IT: Lenovo unveils cheap computer

?  ?

BIZCHINA / Biz Media Digest

IT: Lenovo unveils cheap computer

By Diao Ying (China Daily)
Updated: 2007-08-03 11:03

Chinese computer maker Lenovo plans to boost its market share at home by
targeting the country's vast rural area.

The company yesterday unveiled a program to sell cheap computers, which
cost 1,499 yuan upward, in Chinese villages.

"We plan to bring Lenovo products to 100,000 villages, and make the
products affordable for over 3 million families in the rural areas," said
Chen Shaopeng, senior vice-president of Lenovo Group and president of
Lenovo Greater China.

Lenovo has been tapping the rural market since 2004, when it entered the
county and town market by selling computers priced at 2,999 yuan. The
expansion in the rural market has doubled the company's growth, said Chen.

The company's campaign echoes the government's call for development of
rural China.

China aims to connect its 20,000 towns with Internet by 2010, said Chen
Wei, director-general of the department of informatization promotion
under the Ministry of Information Industry.

Lenovo plans to sell its products by establishing over 5,000 sales
outlets, which could be located in supermarkets. It is also planning to
set up over 2,000 information service centers in over 100,000 villages.

(For more biz stories, please visit Industry Updates)

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Tuesday, December 25, 2007

Learn Chinese - Private pumps idle due to tight oil supply

?  ?

BIZCHINA / Oil Prices

Private pumps idle due to tight oil supply

By Hao Zhou (chinadaily.com.cn)
Updated: 2007-08-01 15:58

China Petroleum and Chemical Corporation (Sinopec) and China National
Petroleum Corporation (CNPC) have suspended oil supplies for private
gasoline stations in Fuzhou, the capital of Fujian Province, China
Business Times reported today.

CNPC used to be the major gasoline supplier for Fuzhou's private oil
stations. However, it cut off the supply from the beginning of July, said
a boss of a privately owned petroleum station.

Recently, the wholesale price of 90-octane gasoline climbed up by 100
yuan per ton, forcing Fuzhou oil entrepreneurs to seek help from other
local oil products wholesalers, including those?in Quanzhou and Wenzhou.

Without reliable supply from the two petroleum giants, they have to
conserve oil products. "Now we have 2,000 tons of oil products in reserve
in Quanzhou," said the chief of another private gasoline station.
However, most of their reserves are for orders.

According to a research report on the oil products market in Fujian
Province, although the number of oil refineries increased in the first
half this year, the production of 90-octane gasoline, the most consumed
in the current domestic market, went down.

During the first quarter this year, there was a supply crisis in some
local markets in Fujian.

The governmental report predicted that the supply of oil products will
remain tight in the second half year.

(For more biz stories, please visit Industry Updates)

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Chinese Online Class - Fund management firms to invest in overseas stock markets

?  ?

BIZCHINA / Center

Fund management firms to invest in overseas stock markets

(Xinhua)
Updated: 2007-07-31 11:31

Two Chinese fund management firms are planning to focus their overseas
investments on stock markets, after domestic fund management firms were
allowed by China's securities watchdog earlier this month to follow
commercial banks into overseas securities.

The move would teach domestic fund management firms how to invest
globally and help alleviate the pressure of soaring foreign exchange
reserves on China, said analysts.

China Southern Fund Management Co Ltd, approved last week as a qualified
domestic institutional investor (QDII), will select 48 countries and
regions for its portfolio, with initial investments targeting shares
listed in Hong Kong and global funds.

Related readings:
?Southern Fund wins nod to invest abroad
?Banks use only 26% of QDII quota in 1st half
?Insurers to be allowed to increase overseas investment

Southern Fund, based in the southern city of Shenzhen, expected to launch
its first QDII product in one or two months with a quota of?US$1 billion,
said company general manager Gao Liangyu.

China Asset Management Co Ltd (China AMC) would also have its first QDII
product focus on overseas stock markets, including developed markets in
the United States, Europe, Japan and Hong Kong and in some emerging
markets, the Shanghai Securities News reported on Monday.

A maximum of 30 percent of the Beijing-based firm's quota would be
channeled into the stock market in Hong Kong, while a smaller part would
fund overseas bond purchases.

The investment strategy of the two firms will be different from that of
the commercial banks, which mainly invest in international money markets,
bond markets or a single stock market.

As share values in China's markets continue to rise, "diversified
investments around the globe are the only way to reduce risks", said Xie
Weihong, director of the international department of Southern Fund.

Global investments would also enable domestic investors to benefit from
world economic growth, said the report, citing figures from Morgan
Stanley, showing the A-share market yielded an annual average rate of 45
percent over the past three years, while returns were even higher in the
markets in Egypt, Argentina and Indonesia.

Investing in countries whose currencies were expected to appreciate
against the yuan would help investors evade exchange losses, it added.

Southern Fund has signed an agreement with US-based Mellon Financial
Corp., a US-based global financial services company, to co-develop the
first QDII product, while China AMC has chose the US-based T. Rowe Price
as its consultant for overseas investment.

(For more biz stories, please visit Industry Updates)

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Chinese language - Southern Fund wins nod to invest abroad

?  ?

BIZCHINA / News

Southern Fund wins nod to invest abroad

(Shenzhen Daily)
Updated: 2007-07-30 08:33

China Southern Fund Management Co., one of the country’s three largest
fund companies, said it had won approval from regulators to invest
clients’ money in foreign financial markets.

The company is now preparing to launch its first overseas investment fund
while submitting a proposal for its maximum size to foreign exchange
regulators, domestic newspapers reported Saturday.

“We hope the size of China Southern’s first Qualified Domestic
Institutional Investor (QDII) fund will be relatively large, ideally
above US$1 billion,” the Shanghai Securities News quoted general
manager Gao Liangyu as saying.

The announcement is expected to be the first in a series of approvals for
mainland fund management firms and brokerages to invest overseas, after
authorities revised rules in June to let them join the QDII program.

Previously, only banks and insurance companies, with the exception of
Huaan Fund Management Co., had been permitted join the program, which was
launched last year.

Regulations limit the markets QDII investors can enter in the initial
stages. Deputy general manager Xu Xiaosong was quoted as saying China
Southern’s new fund would focus on Hong Kong-listed stocks and funds
traded on foreign exchanges.

China Asset Management Co. is close to obtaining approval to launch a
QDII fund, while several major brokerages have applied, industry sources
say.

(For more biz stories, please visit Industry Updates)

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===========================================================================
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===========================================================================

Chinese language

Learn mandarin - CSRC targets share tipsters

?  ?

BIZCHINA / News

CSRC targets share tipsters

(China Daily)
Updated: 2007-07-27 09:08

The China Securities Regulatory Commission (CSRC) has confirmed 11 cases
of unlicensed securities consulting businesses operating on the Internet,
the securities watchdog said yesterday.

Six of the 11 cases are suspected securities crimes and have been handed
to the public security bureau, CSRC spokesman Liu Xinhua told China Daily
yesterday.

Liu said that Wang Xiujie, known among investors as "Big Brother Leader
777", will face charges of running an unlicensed and illegal securities
consultancy business.

"Wang's behavior broke the 122nd and 197th items of the Securities Law,
which forbids any institution or person to conduct securities business
without receiving a license from the regulator,"Liu said.

The watchdog said illegal behavior in the securities business is becoming
"very covert" on the Internet.

"These suspects are using websites, blogs and QQ (instant messaging) to
spread tips for stock investors, and charge various fees in the name of
so-called memberships, training, services or consultancy," Liu said.

Police earlier this month detained Wang, who is suspected of having
earned more than 10 million yuan by selling stock market advice to
thousands of subscribers since February, according to the Xinhua News
Agency.

Wang sold subscriptions for tips sent by instant messaging, boasting his
predictions had a 90 percent accuracy rate, and labeled himself the
"patron saint" of individual investors. His blog received more than 30
million hits as speculators rushed to cash in on the bull market.

"Alongside monitoring and striking at illegal securities businesses,
educating stock investors is also very important," Liu of the CSRC said.

The securities watchdog received 1,638 complaints about various
securities operations in the first half of 2007 and has investigated 524
of them, Liu said.

Self-styled stock gurus and informal fund managers have thrived as
China's two stock markets more than doubled last year and surged a
further 50 percent this year. The growth has attracted millions of small
investors, many of whom have little awareness of investment risks.

(For more biz stories, please visit Industry Updates)

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===========================================================================
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Learn Mandarin online - China Enterprises Index up 1.2% ? ? BIZCHINA / News China Enterprises Index up 1.2% (Xinhua) Updated: 2007-07-25 13:00 Hang Seng China Enterprises Index on Hong Kong Stock Exchange surged 160.30 points, or 1.20 percent Tuesday, to close the day's trading at 13,480.72. The H-shares index, initiated in August 1994 and readjusted on March 12, 2007, tracks the overall performance of 41 Chinese mainland State-owned enterprises listed on the Hong Kong Stock Exchange. Hang Seng China H-Financials Index rose 147.21 points, or 0.94 percent, to close at 15,788.95. The H-Financials Index, initiated on November 27, 2006, tracks the performance of eight major banks and insurers of the Chinese mainland. Hang Seng China-Affiliated Corporations Index went up 9.33 points, or 0.20 percent, to close at 4,598.48. The index tracks the performance of 31 locally listed companies with a significant equity interest held by entities in the Chinese mainland. Hang Seng Mainland Composite Index went up 17.61 points, or 0.41 percent, to close at 4,321.50. Introduced on October 3, 2001 and readjusted on September 11, 2006, Hang Seng Mainland Composite Index gauges the performance of 103 Hong Kong-listed companies with principal places of business in Hong Kong and the Chinese mainland. (For more biz stories, please visit Industry Updates) Learn Mandarin online

Monday, December 24, 2007

Chinese Mandarin - Folk customs

CHINA / About Jiangsu

Folk customs
(seu.edu.cn)
Updated: 2006-05-25 12:45

In the process of building houses, great emphasis is put on
auspiciousness. Such activities as the selection of land, building
materials and the day of construction, erection of pillars, installation
of beams, completion and congratulation are all carried

Custom of farming and solar terms

Farming and life are arranged according to the 24 divisions of the solar
year in the traditional Chinese calendar.

Custom of offering sacrifices for farming

Seeds are planted around Pure Brightness (5th solar term) at a selected
lucky time by experienced senior peasants. Words said should be
auspicious.

Custom of handicraft industry

From generation to generation, apprentices are guided by master workers
in various workshops. An apprentice is supposed to have a recommender or
guarantor and sign an agreement. During the period of apprenticeship,
there is a rigid hierarchy of position.

Custom of fishery

As there is a complex network of rivers in Jiangsu, fishermen have been
engaged in raising and catching fish. Fishermen on Lake Tai enshrine and
worship the legendary emperor of the Xia Dynasty Yu who regulated rivers
and watercourses, so they have built.

Custom of fair

A big fair is usually held in the slack season in farming, from one to
ten days. During the fair, incense smoke curls up and gongs and drums
produce a deafening sound inside the temple, whereas outside the temple,
there are pedlars of different trades, var.

Custom of child-bearing

In the period of women's pregnancy, there generally exist the traditional
experience of judging a baby's sex, the convention of pregnant woman
care, the practice of expediting child delivery, gift presentation and
congratulation, the choice of infant name.

Custom of birthday celebration

For people more than 60 years old, birthday celebration is called
"Shouchen" (birthday of elderly people). People believe that the ages of
25, 29, 33, 36, 66 are critical, so on these birthdays there must be a
celebration. It is common practice in Jiangsu Even if the elderly people
are dead, their sons and daughters commemorate their seventieth,
eightieth and ninetieth birthday.

Custom of funeral

There is a multitude of items such as bathing, coffin keeping, report of
death, keeping vigil beside the coffin, funeral arrangements, family
memorial ceremony, funeral procession, burial, and so on. Jiangsu people
believe that it is best to bury the dead.

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Chinese language - Central bank raises interest rates, cuts interest income tax

?  ?

BIZCHINA / Center

Central bank raises interest rates, cuts interest income tax

By Xin Zhiming (China Daily)
Updated: 2007-07-21 09:42

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

The benchmark one-year deposit and lending rates of commercial banks will
be raised by 0.27 percentage point, effective from Saturday, the central
bank said in a statement on its website.

Meanwhile, the State Council, reduced the withholding tax on interest
income to 5 percent from 20 percent as of August 15.

The National People's Congress authorized the government to change or
abolish the tax last month.

Related readings:
?Central bank: Inflation could lead to rate hike
?Securities become residents' top investment option
?Another interest rate hike depends on CPI
?China may raise interest rates twice this year
China raises benchmark interest rates by 0.27%, 03/2007

The interest rate hike was the third this year. It will take the one-year
benchmark deposit rate to 3.33 percent from 3.06 percent. The one-year
lending rate will rise to 6.84 percent from 6.57 percent.

The interest rate on demand deposit was also raised from 0.72 percent to
0.81 percent, which was not been seen since 2002.

The combined move was not unexpected after the country released its
macroeconomic statistics for the first half of this year, said Dong
Yuping, an economist from the Institute of Finance and Banking at the
Chinese Academy of Social Sciences (CASS).

The National Bureau of Statistics (NBS) said on Thursday that the
nation's gross domestic product grew by a sizzling 11.5 percent in the
first six months and its consumer price index (CPI) rose by 4.4 percent
in June, the highest in more than two years, and 3.2 for the January-June
period. China's fixed-asset investment increased 25.9 percent during the
same period.

The high CPI figures are especially worrisome as the prices of
foodstuffs, such as pork, egg and grain, have soared in recent months,
analysts said.

Food prices, which account for about one-third of the CPI basket, rose
11.3 percent in June, when pork prices rose 59.8 percent and egg prices
went up 37.9 percent, according to the NBS.

The NPC's Financial and Economic Affairs Committee warned before the
release of the figures that the economy has shown more signs of
overheating, seen as a strong signal that tightening measures are in the
pipeline.

Since the real interest rate has long fallen into negative territory, the
adjustment in deposit interest income tax is just normal, Dong told China
Daily.

(For more biz stories, please visit Industry Updates)

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Learn Chinese online - Rethinking the 'Made in China' label

?  ?

BIZCHINA / Weekly Roundup

Rethinking the 'Made in China' label

By Li Xing (China Daily)
Updated: 2007-07-19 14:48

According to this year's first quarter Anholt Nation Brands Index, China
was in the top 10 "Brand Finance League Table", but its brand rating was
minus BBB, against the US's AA, and Japan's and Germany's A-plus ratings.

Amidst the increasing international scrutiny of "Made in China" products,
the government as well as individual manufacturers and consumers should
really take pains to reexamine the fallout associated with "Made in
China". We should clean our houses and establish and enforce strict
regulations that are up to international standards.

If we continue to cling to the rhetoric of "discrimination" and
"prejudice", "Made in China" will never be measured on par with "Made in
Germany" or "Made in Japan" in the hearts of international consumers.

It is now a cliche to say that all nations are closely interconnected in
the era of globalization.

One Chinese media commentator has pointed out that Chinese families may
run into the same trouble that Bongiorni experienced if they tried living
for a year without things with American brand.

I wouldn't try because I do not want to return to using a pen and paper
to write my column, nor do I want to stop my daily chats with my sister
in New York or my friends in London.

And every now and then I still have to order pizza from Pizza Hut just to
change things up at dinner time.

E-mail: lixing@chinadaily.com.cn

(For more biz stories, please visit Industry Updates)

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Learn mandarin - 3 US airlines apply for new routes to China

?  ?

BIZCHINA / Center

3 US airlines apply for new routes to China

(AP)
Updated: 2007-07-18 11:33

Three US airlines, Continental, US Airways and American, have asked
federal regulators for the right to operate new non-stop flights between
the United States and China beginning in March 2009.

American, the largest US carrier, said it applied Monday for a route from
Chicago's O'Hare Airport to Beijing. A similar bid failed several months
ago, partly because American's management and pilots couldn't agree on
work rules for the flights.

Continental (CAL) applied Monday to fly between Newark, NJ, and Shanghai.
The Houston-based airline said its flights would serve the financial hub
of New York and a large Chinese-American population in the area.

US Airways (LCC) said it is seeking to offer non-stop service between its
Philadelphia hub and Beijing.

Air service between the two countries is restricted by agreements between
the two governments. US airlines eager to tap the growing Chinese market
must apply to the Department of Transportation for new routes.

US and Canadian airline are in the competition for Chinese routes. US
airlines gather support from politicians and customers to sell their
proposals to federal regulators. For example, American, a unit of Fort
Worth-based AMR (AMR), boasted support from four US senators and three
governors.

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Sunday, December 23, 2007

Learn Chinese - China Coal plans Shanghai listing

?  ?

BIZCHINA / News

China Coal plans Shanghai listing

By Wan Zhihong (China Daily)
Updated: 2007-07-17 09:13

China Coal Energy Co Ltd, the nation's second-largest coal producer by
sales, plans to make an A-share offering in Shanghai, the latest among
overseas-listed companies to return to the mainland.

The company plans to sell up to 1.5 billion yuan-denominated shares,
China Coal said in a statement to the Hong Kong stock exchange.

It will use the proceeds to fund coal, coke, chemical and power projects
in provinces including Heilongjiang, Hebei and Shanxi, said the statement.

"This month the nation's two-largest coal companies announced they will
make A-share offerings that will allow investors from the mainland to
have more opportunities in the booming energy industry," said Wang Ye, a
veteran analyst with CITIC Securities.??

Earlier this month the nation's largest coal producer China Shenhua
Energy Co said it will issue up to 1.8 billion yuan-denominated shares in
Shanghai, raising as much as 51 billion yuan.

"The nation's two leading coal companies have both eyed the capital
market for further business expansion, and China's coal industry is to
see more consolidation in the next few years," Wang added.

China Coal's share sale would raise around 22 billion yuan, based on the
company's Hong Kong share price of HK$14.98 yesterday.

Shareholders of the company will vote on the share sale at a meeting on
September 7. The offering is also subject to regulator approval, China
Coal said in the statement.

The company made an initial public offering (IPO) on the Hong Kong stock
exchange last December, raising as much as $1.7 billion. It is the
mainland's third coal producer to be listing in Hong Kong, after Shenhua
Energy and Yanzhou Coal Mining.

The stock of China Coal rose 2.74 percent to HK$14.98 yesterday on the
Hong Kong stock exchange.

China is the world's largest producer and consumer of coal. In June the
nation produced 201.3 million tons of coal, an increase of 7 percent
compared with a year before, according to the National Development and
Reform Commission (NDRC).

In the first six months of 2007, China produced 1.1 billion tons of coal,
an increase of 7.1 percent, said the NDRC.

Coal accounts for about 70 percent of the primary energy consumption in
China. Coal prices will keep climbing thanks to double-digit economic
growth, analysts say.

China, the world's second-largest energy consumer, is encouraging
mainland firms listed overseas to list in the A-share market to stabilize
mainland bourses. In June PetroChina, the country's largest oil and gas
company, said it will make a long-awaited A-share offering in Shanghai,
which could raise as much as 47 billion yuan.

(For more biz stories, please visit Industry Updates)

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Learn Chinese - Stock up 1.3%, despite capital diversion to new shares

?  ?

BIZCHINA / Market Reaction

Stock up 1.3%, despite capital diversion to new shares

Updated: 2007-07-12 16:16

Chinese stock trading went smoothly today and prices ended up 1.3
percent. The Shanghai Composite Index finished at 3,915.99, up 50.27
points.

Total turnover of stocks on the major indices was 102 billion yuan,
higher than the 99 billion yuan of yesterday, or the smallest in four
months.

Dates with monthly lowest turnover in 2007 (billion yuan)

Opening higher at 3,874.04, the benchmark index climbed to a high of
3,925.60 gradually with few deviations from an upward trend early in the
day. Then it turned around and slid to a low of 3,861.04, before rising
to its closing point.

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

Of the A shares listed in Shanghai, 483 went up, while 300 dropped and 57
ended flat. New share West Mining rose 144 percent to 19.36 yuan as the
top gainer, followed by Shanghai Port Container and Shandong Jiufa Edible
Fungus, also sealed at the maximum growth cap of 10 percent. Sanlian
Commerce, however, lost 34 percent, the day's biggest loser.

Following West Mining, China Minsheng Banking Corp ranked second both in
terms of trading volume and transaction value, and saw its share price
rise 2.5 percent to 12.22 yuan.

The Shenzhen Component Index, tracking the smaller Shenzhen Stock
Exchange, opened higher at 12,811.15 and closed at 12,850.74, up 65.07
points or 0.51 percent. Its priced remained within a range of 12,729.05
to 12,951.72.

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

Of the index's A shares, 325 were up, 212 down and 78 unchanged. East
China Engineering Science and Technology ranked on top of the surging
share prices with a 147 percent rise on its first trading day while Anhui
Gujing Distillery, suspected of price manipulating conducts, lost 10
percent to lead the fall. China Vanke, with both the largest trading
volume and transaction value, added 0.06 yuan to its share price.

Stocks in the timber, retail, wholesale and services industries performed
best today. Fujian Yongan Forestry Group surged 5.5 percent to pioneer
the forestry sector.

B shares were particularly strong today. Of the 109 listed B shares, only
four dropped and two ended flat. Chengde Dixian Textile climbed 10
percent to 2.81 yuan, as today's biggest B-share gainer.

(For more biz stories, please visit Industry Updates)

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Chinese language - Bank of Ningbo sets IPO price range

?  ?

BIZCHINA / News

Bank of Ningbo sets IPO price range

(XFN-Asia)
Updated: 2007-07-12 09:41

Bank of Ningbo, in which Singapore's Oversea-Chinese Banking Corp holds a
12.2 percent stake, said it has set the price range for its initial
public offering (IPO) in Shenzhen at 8.00-9.20 yuan (US$1.06-1.22) per
share.

That translates to a price-to-earnings ratio of between 31.65 and 36.39
times the company's diluted earnings for 2006, the company said in a
statement filed with the Shenzhen Stock Exchange.

The bank has said it plans to issue 450 million A-shares, representing 18
percent of its enlarged share capital. About 180 million A-shares, or 40
percent, will be sold to institutional investors, and the remainder to
individual investors.

Goldman Sachs Gaohua Securities Co Ltd is the main underwriter for the
IPO, the Zhejiang province-based lender said.

(For more biz stories, please visit Industry Updates)

Related Stories ?

� Bank of Ningbo applies to issue shares
===========================================================================

Chinese language

Chinese language - NDRC predicts over 3% CPI rise for 2007

?  ?

BIZCHINA / News

NDRC predicts over 3% CPI rise for 2007

By Tu Lei (chinadaily.com.cn)
Updated: 2007-07-09 15:21

The consumer price index (CPI) is expected to rise 3 percent in the first
half of this year, and to exceed 3 percent all year round, said a pricing
official with the National Development and Reform Commission, China's top
economic planning body, People Daily reported today.

The bio energies have been popular due to the price hike of crude oil,
which has led to price increases in the international grain market, and
pushed up the price of domestic grains. It contributed to price hikes in
meat, eggs and cooking oil, said the official.

The prices of most agricultural products including grain, wheat, corn and
pig are lower than that of 10 years ago, while the feeding costs
including the labor price keep increasing, which causes the price hike of
agricultural products, he added.

Meanwhile, the short supply of live pigs has increased pork prices,
leading to a higher CPI, said the official.

In the first half of last year, the pork prices dropped rapidly, and the
rising feedstuff prices and the blue ear disease which killed a large
number of pigs nationwide dampened enthusiasm for raising pigs.

The latest round of price increases began late last year, and eight to
nine months would be enough for new supply to meet market demand, added
the official.

For the January-May period, China's CPI increased 2.9 percent. In May
alone, the CPI reached a two-year high of 3.4 percent after rising 3.1
percent in March and 3.0 percent in April.

(For more biz stories, please visit Industry Updates)

Chinese language

Saturday, December 22, 2007

Chinese School - Chinese travel is taking off

CHINA / Foreign Media on China

Chinese travel is taking off
By Howard W. French (The New York Times)
Updated: 2006-05-17 10:58

BANGKOK The way it began, as passengers piled onto the boat while a
buffet was laid out on the deck, with easy- listening tunes like "Moon
River" oozing from the loudspeakers, it could have been just about any
Bangkok sundown cruise.

But this one was unmistakably different. Before the boat even left the
dock the food disappeared, right down to the last slice of watermelon - a
Chinese favorite. Then the Western standards were quickly replaced with
recent Chinese hits. And within minutes, the passengers, all of whom were
Chinese, were singing along.

Any doubts that this is a new day in Bangkok tourism were put aside as
the ship set off under an exploding sunset down the Chao Phraya River,
which runs through the city.

Every few minutes when the boat encountered another laden with Chinese
tourists - and there were many - the passengers hailed each other
cheerfully.

For the first time, large numbers of Chinese are leaving their country as
tourists, resulting in an unprecedented explosion in Chinese travel. And
if current projections are met, the global tourism industry will be
undergoing a crash course in everything Chinese to meet the needs of what
promises to be the greatest wave of international travelers ever.

As usual when something goes over big in China, the numbers are
staggering. In 1995, only 4.5 million Chinese traveled overseas. By 2005,
that figure had increased to 31 million, and if expectations for future
growth are met or approached, even this gargantuan growth will be quickly
dwarfed. Both Chinese and international travel industry experts forecast
that at least 50 million Chinese tourists will travel overseas annually
by 2010 and 100 million by 2020.

In 2004, the last year for which there is complete information, 61.7
million Americans traveled abroad.

"They are latecomers on the tourism scene but they have come on in a big
way," said Xu Jing, the Madrid-based director of Asia and Pacific affairs
at the World Tourism Organization, an agency of the United Nations. "The
growth in Chinese outbound travel in the last five years has been the
highest in the world - in the range of 37 or 38 percent a year."

The last nation to burst on the world travel scene with similar speed and
force was Japan, which was enjoying an explosion of prosperity in the
1980s. Suddenly, Japanese could be seen everywhere, especially groups of
middle-aged tourists wearing caps and brandishing the latest camera gear,
and led, inevitably, by a Japanese tour guide hoisting a flag so that
people would not get lost.

The industry responded by placing Japanese-style slippers and bathrobes
in hotel rooms, along with Japanese language television channels in their
rooms. Japanese-speaking staff members also became obligatory at certain
hotels and upscale shops. All that for roughly 17 million overseas visits.

As recently as the late 1980s, all but the Chinese elite were expressly
forbidden from traveling overseas. But by 2003, China's overseas
travelers had already surpassed Japan's, placing it squarely among the
world's leading travel nations. Ultimately, travel experts say, the
Chinese impact on world tourism stands to be even bigger.

The six most popular destinations for the Chinese are Japan, Vietnam,
South Korea, Russia, Thailand and the United States. Patterns that took
years to develop during the Japanese wave are already falling into place
in many of these countries, with hotels, restaurants, airports and shops
beginning to cater to their needs with special Chinese language services,
bank ATMs and menus oriented toward Chinese tastes.

As fast as this growth is, some in the Chinese travel industry warn that
the world is not adapting fast enough.

"China is the latest and greatest market, but if other countries don't
take cultural differences into account it will hinder our joint efforts
to develop it," said Wang Ping, president of the Chinese Chamber of
Tourism Commerce.

Wang said that while Europe was adjusting rapidly to Chinese needs, North
America was not, and hotels and other places frequented by tourists
failed to provide Chinese food or language aids.

By no means is all of the adjustment on the side of the receiving
nations. Chinese tourists have been fined heavily in France recently for
arriving with counterfeit luxury goods, like fake Louis Vuitton handbags.
In Shanghai and other cities, travel agencies post people at airports
warning Chinese travelers about penalties for importing fakes and
imparting advice on etiquette in the West.

"Don't pick teeth, touch your belt, pull at your pants or take off your
shoes in public," reads one common brochure.

BANGKOK The way it began, as passengers piled onto the boat while a
buffet was laid out on the deck, with easy- listening tunes like "Moon
River" oozing from the loudspeakers, it could have been just about any
Bangkok sundown cruise.

But this one was unmistakably different. Before the boat even left the
dock the food disappeared, right down to the last slice of watermelon - a
Chinese favorite. Then the Western standards were quickly replaced with
recent Chinese hits. And within minutes, the passengers, all of whom were
Chinese, were singing along.

Any doubts that this is a new day in Bangkok tourism were put aside as
the ship set off under an exploding sunset down the Chao Phraya River,
which runs through the city.

Every few minutes when the boat encountered another laden with Chinese
tourists - and there were many - the passengers hailed each other
cheerfully.

For the first time, large numbers of Chinese are leaving their country as
tourists, resulting in an unprecedented explosion in Chinese travel. And
if current projections are met, the global tourism industry will be
undergoing a crash course in everything Chinese to meet the needs of what
promises to be the greatest wave of international travelers ever.

As usual when something goes over big in China, the numbers are
staggering. In 1995, only 4.5 million Chinese traveled overseas. By 2005,
that figure had increased to 31 million, and if expectations for future
growth are met or approached, even this gargantuan growth will be quickly
dwarfed. Both Chinese and international travel industry experts forecast
that at least 50 million Chinese tourists will travel overseas annually
by 2010 and 100 million by 2020.

In 2004, the last year for which there is complete information, 61.7
million Americans traveled abroad.

"They are latecomers on the tourism scene but they have come on in a big
way," said Xu Jing, the Madrid-based director of Asia and Pacific affairs
at the World Tourism Organization, an agency of the United Nations. "The
growth in Chinese outbound travel in the last five years has been the
highest in the world - in the range of 37 or 38 percent a year."

The last nation to burst on the world travel scene with similar speed and
force was Japan, which was enjoying an explosion of prosperity in the
1980s. Suddenly, Japanese could be seen everywhere, especially groups of
middle-aged tourists wearing caps and brandishing the latest camera gear,
and led, inevitably, by a Japanese tour guide hoisting a flag so that
people would not get lost.

The industry responded by placing Japanese-style slippers and bathrobes
in hotel rooms, along with Japanese language television channels in their
rooms. Japanese-speaking staff members also became obligatory at certain
hotels and upscale shops. All that for roughly 17 million overseas visits.

As recently as the late 1980s, all but the Chinese elite were expressly
forbidden from traveling overseas. But by 2003, China's overseas
travelers had already surpassed Japan's, placing it squarely among the
world's leading travel nations. Ultimately, travel experts say, the
Chinese impact on world tourism stands to be even bigger.

The six most popular destinations for the Chinese are Japan, Vietnam,
South Korea, Russia, Thailand and the United States. Patterns that took
years to develop during the Japanese wave are already falling into place
in many of these countries, with hotels, restaurants, airports and shops
beginning to cater to their needs with special Chinese language services,
bank ATMs and menus oriented toward Chinese tastes.

As fast as this growth is, some in the Chinese travel industry warn that
the world is not adapting fast enough.

"China is the latest and greatest market, but if other countries don't
take cultural differences into account it will hinder our joint efforts
to develop it," said Wang Ping, president of the Chinese Chamber of
Tourism Commerce.

Wang said that while Europe was adjusting rapidly to Chinese needs, North
America was not, and hotels and other places frequented by tourists
failed to provide Chinese food or language aids.

By no means is all of the adjustment on the side of the receiving
nations. Chinese tourists have been fined heavily in France recently for
arriving with counterfeit luxury goods, like fake Louis Vuitton handbags.
In Shanghai and other cities, travel agencies post people at airports
warning Chinese travelers about penalties for importing fakes and
imparting advice on etiquette in the West.

"Don't pick teeth, touch your belt, pull at your pants or take off your
shoes in public," reads one common brochure.

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