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Swiss-Sino JV starts construction in Beijing
The China Banknote SICPA Security Ink Corporation (CBSSIC) started construction of its new factory in the Beijing Development and Technology Area on 13 June. CBSSIC is a JV between SICPA Security Holding S.A. in Lausanne, Switzerland, and the China Banknote Printing and Minting Corporation. The JV will produce Optical Variable Ink and other security ink products for the Chinese legal currency and other value documents.
Huge investments in the West
The State Development Planning Commission has announced its decision to invest RMB 5 billion into China's western regions for the purpose of constructing and reconstructing or expanding some 20 airports. In addition, within ten years some eight major highways will be constructed in the western regions linking key cities. Within five years 3,000 kilometers of railroad will also be constructed in the west. Foreign investment participation in these infrastructure projects will be sought. (China Watcher, 11 June)
Overseas insurance offices cancelled for violating law
Representative offices of three overseas insurance companies have been cancelled by the China Insurance Regulatory Commission (CIRC), for violation of the country's insurance laws and regulations. The offices presumptuously altered their addresses or did not submit annual work reports and their respective company's annual reports to the relevant administrative departments of the Chinese Government. (China Daily, 13 June)
China bans selected building materials
The use of four types of building materials in new housing construction in urban areas has been restricted or banned or has begun to be phased out. The materials concerned are doors, windows and floors with wood from natural forests and rare tree varieties, solid clay bricks, cast iron drainpipes and zinc-plated steel pipes. (ChinaOnline, 14 June)
Slow approach to bad loan recovery
The Far Eastern Economic Review (15 June) explains the importance of the bad loan recovery plan for China's economy and describes how the current soft approach taken by the Asset Management Companies (actual recovery rate well below the targeted 30%) risks to lead to a fiscal crisis by the year 2008.
9.37 million Chinese workers laid off in '99
According to an official report released by the government, a total of 9.37 million workers lost their jobs in China last year, 600,000 more than in 1998. 6.52 million employees were laid off from state-owned enterprises in 1999, an increase of 420,000 over the year before. (ChinaOnline, 15 June)
Investment funds required to divulge all stocks in portfolio
A new regulation issued by the China Securities Regulatory Commission
(CSRC) requires domestic securities investment funds to disclose more details on investment portfolios in their mid-term and annual reports. The new measure means that these funds will now follow international practices. Prior to the supplementary regulation, China required that domestic funds' mid-term and annual reports disclose details about only their top 10 stocks, while overseas funds are required to disclose details about all their stocks. (ChinaOnline, 15 June)
Cross-Straits trade lifeline to Taiwan economy
Cross-Straits trade has given Taiwan a surplus of 16.7 billion US dollars last year; thus the mainland turns out to be the largest trade surplus source of Taiwan. (People's Daily 16 June)
Zhanjiang manager executed for graft
The manager of a trading firm in southern Guangdong province has been executed for using falsified value-added tax receipts to steal public funds. (People's Daily 16 June)
PNTR compliance plan funding denied
A US House panel refused to fund a White House initiative that would monitor Beijing's compliance with a landmark trade agreement. The initiative called for ''accelerated investigations'' of future trade complaints and for the creation of a ''rapid response team'' that would monitor the mainland's compliance efforts. US trade experts would be based at the embassy in Beijing, and Washington would provide technical assistance to help the mainland meet its WTO obligations. (South China Morning Post, 16 June)
Retail Sales up 11% in May
China's consumer goods market was active in May, fueled by the May Day festival, according to a report from the National Bureau of Statistics. Figures indicate that the country's retail sales of consumer goods reached RMB 263.7 billion (USD 31.8 billion) in May, up 11.5% from May 1999. (People's Daily, 17 June)
Foreign trade reports remarkable increase
China's total export and import volume for the first five months of the year reached US$174.1 billion, a 36.1% increase from the same period last year. Of the total, USD 92.3 billion came from exports and USD 81.8 billion from imports. The volume of exports and imports increased by 36.8% and 35.4% respectively. China witnessed a USD 10.5 billion trade surplus in the first five months.
State-owned enterprises still hold the leading position in China's export business, accounting for 49% of total exports in the first five months this year. Foreign invested enterprises account for 47% of the total. China's collectively owned and private enterprises, though their exports were only USD 4.58 billion in the first five months this year, still saw a sharp upward trend, increasing 91.6% from last year. (China Daily, 17 June)
Bank issues bonds in Hong Kong
China Construction Bank issued USD 200 million floating rate bonds in Hong Kong yesterday, paving its way back to the international bond market after the Asian financial crisis. The bonds, carrying a five-year term, was targeted at overseas financial institutions. The proceeds will be applied to fund a number of key biochemical projects in China including a polyester project in Tianjin and a ethylene project in Maoming. (China Daily, 17 June)
Housing reform fuels banking
China's ongoing housing system reform is refueling growth of the banking sector by boosting major lending businesses. Although housing loans have become more popular in China in recent years, its growth had been retarded by a host of problems such as unclear property ownership, cumbersome borrowing procedures, a lack of individual credit systems, arbitrary fees and a rigid interest rate system, insiders said. Only 4 million households in China have used housing loans. In a population of 1.2 billion, that means there is much room for growth. (Business Weekly, 17 June)
China Attracts More Overseas Investment
In the first five months of this year, over 7,700 overseas-funded enterprises were established, with and aggregate contractual investment amounting to USD 18.2 billion, up 22% and 25% respectively over the same period last year. (People's Daily, 18 June)
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