China to further open bank sector
China will gradually eliminate the preferential treatment given to foreign-funded banks. Currently, foreign banks operating in China enjoy preferential treatment compared to domestic banks in income tax rates, foreign exchange deposits and loan rates, financing of foreign currency and inter-bank lending terms. Foreign-funded banks would be able to provide foreign currency services to Chinese enterprises and citizens when China enters the WTO. They will be able to provide renminbi services to enterprise customers two years after China's WTO entry and renminbi businesses to individual customers after another three years. Five years after China's WTO entry, foreign banks will not be limited in geographical region when conducting renminbi businesses. (Business Weekly, 8 May)

Huawei enters German telecom market via Stadtnetz Bamberg
German telecom Stadtnetz Bamberg has agreed to use Huawei Technologies Co.'s fiber-optic technologies for its urban area network projects. Through this initial contract between the two companies, Huawei becomes the first Chinese company to enter the German telecom market. (Renmin Youdian People's Post & Telecommunications, 8 May)

Golden week for tourism
China's tourism market reached a new peak during the May Day holiday. About 73.67 million people travelled on the mainland during the weeklong holiday that began on May 1. Tourism revenues were RMB 28.8 billion. Shenzhen's "Window on the World" and Beijing's Forbidden City were the nation's two most popular attractions. (China Daily, 8 May/CCTV, 9 May)

Central Bank predicts stable currency
China's central bank chief yesterday predicted the nation's currency will remain stable this year on the back of sound economic growth. He said that the renminbi will benefit from China's consistent GDP growth and declining US interest rates, which have boosted the renminbi's exchange rate. Bank calculations say the economy is expected to grow by 7%, fixed assets investment by 10% and trade volume by 8%. (China Daily, 9 May) Which could also be read as: the stability of the renminbi might be at risk, if growth should slow down.

China to issue RMB 50 billion bonds
China will issue RMB 50 billion worth of treasury bonds from May 15 to July 14. This will be the second batch of treasury bonds that China has issued to individual investors this year. (Xinhua, 9 May)

Chinese consumers prefer foreign-brand computers, cars, cell-phones
Although Chinese consumers are emotionally close to domestically made goods, imported goods still hold superior positions, according to a survey conducted among consumers in Beijing, Shanghai and Guangzhou. Popular foreign products were cars, computers, TV sets and cellphones. Consumers said U.S. goods are high-tech, technologically advanced and luxurious, and that they have appealing advertisements. Japanese goods were cited for being trustworthy, high-quality, innovative, fashionable and attractive in external design. They are especially known for their superior quality and innovation. European goods have no particularly prevailing features in the minds of Chinese consumers, as nearly all scores came in at midlevel. However, European goods did stand out in their emphasis on environmental protection. (ChinaOnline, 9 May)

Guidelines to rectify market order
The Chinese government has issued a document intended to rectify the domestic market order. According to the document, China will take a tough stance in the coming five years to crack down on the sales of counterfeit goods, smuggling and other illegal activities; to rectify the real estate, financial and tourism markets; and to standardize the operation of intermediaries. The ailing sectors that have caused widespread public concern, such as food and medicine, are highlighted in the document. Tax evasion and tax fraud should be wiped out, the document says, while stressing the necessity of fighting local protectionism. Within one year, the offenses that seriously harm the market order should be firmly curbed and the criminals brought to justice. (Xinhua, 9 May)

Business as usual in U.S.-China relations
As the crew of a U.S. spy plane awaited release from Chinese detention and leaders fretted over escalating conflict, it was business as usual for dealmakers. In U.S.-China relations, commerce is king. [.] That's not to say politics will have no impact. If the disruptions get out of hand, even the most durable business ties can be damaged. (Far Eastern Economic Review, 10 May) These are two quotes from a longer article looking at recent developments in U.S.-China relations.

Mainland firms cash in on improved mood
Mainland-related companies have resumed large-scale fund-raising activities in Hong Kong, capitalising on investors' improved sentiment towards Chinese-backed firms. China's economic recovery and the overall improved performance of red chips and H shares last year could help the resumption of sizeable fund-raising activities. The possibility of Beijing allowing the red chips and H shares to issue China depository receipts and the opening of B-share market to domestic investors will also help boost their share prices. (SCMP, 11 May)

Insurers get first bite in test run of open-ended product
China will launch its first open-ended mutual fund in the near future but will only issue shares to insurance companies in a private placement. The RMB 6 billion fund could be set up as early as July. Most of the shares would be issued to life insurers with China Life Insurance buying about four billion shares while one or two other insurance companies would pick up the rest. (AFP, 11 May)

Rolls-Royce and Bentley target China market
Newly founded Bentley China will be opening regional offices in Beijing, eastern Shanghai and southern Guangzhou with show rooms, after-sales service and repair centres. Only (!) 120 Rolls-Royce and Bentleys currently ply the roads of the world's most populous nation. (China Daily, 11 May)

Anti-dumping rules now online
The State Economic and Trade Commission on Thursday launched a Web site, www.cacs.gov.cn , to publicise anti-dumping rules and information about the World Trade Organisation. Chinese businesses can also check the site to stay on top of case-specific anti-dumping news. (China Central TV, 11 May)