ICB to issue more housing loans
The Industrial and Commercial Bank of China plans to grant RMB 155 billion in housing loans this year, with RMB 80 billion for individual house purchasers. By 2005, the bank expects to have helped more than five million families move into new houses using RMB 500 billion of housing loans. (South China Morning Post, 20 March)

Toshiba switches to China plants
Consumer electronics-giant Toshiba Corp is moving its entire television-production operation in Japan to China, underpinning the mainland's increasingly important role as a global supply and production centre. The move was driven by increasing production switches by other Japanese manufacturers to Southeast Asia, a trend that has resulted in increasingly fierce price competition. (SCMP, 20 March)

World Bank publishes report on bankruptcy of China's SOEs
The World Bank published its Chinese version of "Bankruptcy of State-Owned Enterprises in China -- A Case and Agenda for Reforming the Insolvency System". The study, which was based on thorough investigations in 5 Chinese cities and 15 bankruptcy cases in 1999, notes that several aspects of China's current bankruptcy system should be improved through reform, and it provides 29 specific policy recommendations in this regard. (Xinhua, 20 March)

China gears for bank battle
Cut-throat competition from foreign banks expected after China joins the WTO is forcing the country's traditional banking industry to plan further innovation in the next five years, including a public listing to increase strength. The central bank is considering ways to restructure and to list the Big Four (Industrial and Commercial Bank of China, China Construction Bank, Bank of China and Agricultural Bank of China). The four wholly State-owned banks dominate about 60% of total bank assets in China, but their asset quality and liquidity of funds still need to be improved. The banks need to increase lending volume by at least RMB 700 billion and expanded their capital by RMB 50 billion each year for the next five years to ensure adequate capital. The central bank has targeted an 8% ratio of capital to total assets for each of the four banks, which is generally applied in international standards. (Business Weekly, 20 March)

New regulations issued for firms applying for import-export operating rights
Enterprises will be able to acquire import-export operating rights more quickly, according to a recently issued notice from the State Economic and Trade Commission and the Ministry of Foreign Trade and Economic Cooperation. The notice clarifies matters relating to adjusting standards for application, simplifying application formalities and expanding the range of enterprises qualified to apply for import-export operation rights, as well as application content and procedures. (ChinaOnline, 21 March)

China's top-3 steel makers form alliance
The Shanghai Baosteel Group Corp. signed a letter of intent for partnerships with Shougang Corp. (also known as Capital Iron and Steel) and Wuhan Iron and Steel Corp. The pacts provide for joint purchases of raw materials such as iron ore and for other cost-saving initiatives in the future, such as co-ordination of transportation and marketing and joint research and development. (ChinaOnline 21 March)

TV loses out in advertising war
Television advertising revenue dropped by 10.5% last year as more Chinese advertisers deserted television in favour of newspapers, magazines and radio stations to accurately target consumers and cut costs. Mainland advertisers spent RMB 28.2 billion on media adverts in the first half of last year, up 12.3% year-on-year, but most of the growth went into print and radio advertisements. Chinese magazines were the biggest winners, posting a 41% increase in advertising revenue in the first half of last year. (SCMP, 21 March)

Large rail network planned
To energize the development of the western regions and maintain the prosperity of the coastal areas, the Shanghai Railway Administration wants to perfect the inland and coastal railway networks. The administration's present plan is to build four latitudinal and four longitudinal major lines by 2005. This year, the administration will complete the electrification of some sections of existing railways and the construction of the Wuhu Yangtze Bridge, at a total investment cost of about RMB 1.5 billion. (China Daily, 22 March)

2001 CPI forecast to rise 1.36%
China's benchmark consumer price index is forecast to rise 1.36 % in 2001 and 2.06 % in 2002, a Reuters poll of 10 research houses shows. Most economists believe China has largely shaken off three years of nagging price deflation. (SCMP, 22 March)

Guangdong to help retrieve property investment losses
Guangdong province has promised to help Hong Kong investors retrieve part of their RMB 2 billion in property investment losses. The investors paid Guangdong developers in advance for more than 130 projects that will not be finished. (China News Service, 23 March) In this country whose cities are littered with unfinished property projects, the amount of property investment losses must be rather staggering.