|
China's top legislative and advisory bodies, the National People's Congress (NPC) and the Chinese People's Political Consultative Conference (CPPCC) currently hold their annual plenary sessions in Beijing. CBB will report on this event after the sessions' closure in its next issue.
ABB invested USD 10 million in Chongqing
ABB has invested another USD 10 million in Chongqing to enhance its leadership in power transformers as support to the government's western region development strategy. ABB Chongqing Transformers Co. Ltd. is ABB's single largest investment in China. With the additional investment, ABB is the majority owner of the company. (ABB, 1 March)
China to become largest market for computer equipment in 5 years
Intel CEO Craig Barrett said that China will become the largest market for computer and related equipment in five years. He also said that China was set to overtake Japan as its largest Asian customer within two years. (People's Daily, 3 March)
China faces record budget deficit
China forecast a record RMB 309.8 billion budget deficit, a product of Beijing's efforts to soften the impact of the global slowdown. An economic growth target of 7% also was announced. The deficit is expected to be more than 3% of GDP - dangerously close to what the IMF considers unsafe levels of debt. China will issue RMB 568 billion in government bonds this year, with RMB 258.2 billion used to repay the principal on domestic and foreign debt due in 2002, and the other RMB 309.8 billion to cover the 2002 deficit. Total expenditure in central and local budgets this year would amount to RMB 2.1 trillion, up 11.5% on last year. (SCMP, 4 March)
Top judge admits court failings
Xiao Yang, head of the Supreme People's Court, admitted there is widespread discontent over the poor record of the courts in enforcing their decisions and that some of his judges are unqualified and corrupt. (SCMP, 4 March)
Rules tighten IPR protection
China put into force a revised set of regulations governing copyright registration for computer software which was amended to keep it in line with WTO requirements. The new regulations are expected to further promote the development of China's fledgling information industry. (China Daily, 5 March)
Farmers' income reaches RMB 2'366.4
The per capita income of Chinese farmers rose a year-on-year 4.2% to RMB 2'366.4 in 2001. This means the growth in farmers' per capita income has begun to pick up after several years of decline. But the growth in rural incomes is still lower than the 8.5% growth achieved by urban residents, which stood at RMB 6'860 per capita. (China Daily, 6 March)
China vows to simplify approval procedures for foreign printing firms
Press and publications officials vowed to simplify the examination and approval procedures for foreign-funded printing companies. China allows the setting-up of equity and contractual joint ventures to print publications, packaging and decorating materials and other materials. However, wholly foreign-funded firms can only print packaging and decorating materials, according to the new rule. (China Daily, 6 March)
US steel tariffs anger Beijing
China has criticized the United States for its decision to raise tariffs on steel imports, saying it violates the rules of the WTO. The new tariffs are not expected to hurt China's steel sector significantly because the country is a net importer and consumes most of its steel output domestically. China exported about 700'000 tons of steel products worth more than USD 300 million to the US last year. (SCMP, 7 March)
Haier buys landmark building in New York
The Haier Group has bought a bank building in mid-town Manhattan as the headquarters of its North American operations. The purchase marks another step towards its goal of becoming the country's first global brand. In the US, Haier sells white goods from its plants in China, other countries and from a factory in Camden, South Carolina, which it opened in 2000 with an investment of USD 30 million. Haier also has won official approval to form a 50:50 joint venture with New York Life Insurance to sell life insurance in the mainland. (SCMP, 7 March)
EU block of China's DVD players causes dispute
Manufacturers of domestic DVD players and industrial leaders said that it's inappropriate for the European Union to block imports of these Chinese products due to an ongoing dispute over royalties and that they will come out with countermeasures soon. China exported 10.5 million DVD players last year. The global sales of DVD players reached 26 million last year. (China Daily, 7 March)
Bank of China branch may scrap U.S. listing
The Bank of China's Hong Kong arm, contending with the fallout from alleged corruption at its parent, may scrap the New York portion of its planned multibillion-dollar stock listing. "The original plan was to seek a dual listing," said an adviser, who is familiar with the IPO preparations. "But in light of the recent developments, they are contemplating a different choice, which is to list in Hong Kong only. (WSJ, 7 March)
Beijing to inject RMB 36.2 billion for 60 major construction projects in 2002
This year will see Beijing make an investment of RMB 36.2 billion for the construction of 60 key projects. They comprise 12 items for transportation, 15 for environmental treatment and 12 large and symbolic construction projects. (People's Daily, 7 March)
Beijing to open bids for 2008 Olympics projects
Construction and renovation of all 19 new Olympic venues will be open for public bidding worldwide and foreign companies are invited to compete. Vowing to hold a 'green Olympics', the mayor of Beijing said by the year 2008, all trash in the city would be disposed, 90% of waste water would be under sewage disposal, and the air quality would be up to international standards. As part of the plan to enhance local infrastructure, at least 140 kilometers of Beijing's subway system and 300 kilometers of freeway need to be built in the next seven years. (People's Daily, 8 March)
China allows in first foreign investment bank
BNP Paribas has got permission to set up a joint-venture investment bank in Beijing, being the first foreign investment bank allowed in China after the nation's WTO entry. BNP chose Changjiang Securities as its partner, and Haier, China's biggest electronic group, will become a major shareholder of the joint venture. (People's Daily, 8 March)
China to host first meeting on ASEAN-China free trade area
China will host the first meeting between Southeast Asian and Chinese senior officials on the proposed ASEAN-China free trade area next month. The meeting will open on April 1 in Kunming. (People's Daily, 8 March)
Multinationals becoming more profitable in China
Multinational corporations have become sophisticated about China and are becoming reasonably profitable as they are deepening their participation in the country's economy, providing a badly needed lift to the economy. A decade ago, most multinationals simply tried to replicate in China what they were doing in rich countries and ignored the low consumption power in China since they were naively enamored by the image of one-billion-people market. Statistics show that funds flow out of China from foreign income in China rose to USD 27.2 billion in 2000 from USD 17 billion just five years earlier. (Xinhua, 9 March)
Plan promised for share sell-off
Mainland officials say a new plan will be developed soon to sell the state's huge holdings in listed companies, reviving worries of another drop in the barely recovering stock markets. About 60% of shares in China's USD 500 billion stock markets are non-tradable, with the Government holding the bulk. The state shares need to be sold to raise money for a depleted social welfare fund. (SCMP, 9 March)
Shanghai to double rail network
Shanghai plans to double the size of its rail system. The chief of the Shanghai City Transport Bureau pledged that a journey between any two points across the city center would take no more than one hour once the overhaul of the transport system was completed in 2006. (SCMP, 9 March)
Sino-US deal on GM food ends deadlock
China and the United States have reached a compromise over Beijing's controversial rules on genetically modified food imports, ending months of deadlock that had crippled US soy trade to China and threatened USD 1 billion a year in exports. (SCMP, 9 March)
CSRC under fire at NPC, CPPCC sessions
NPC deputies and CPPCC National Committee members held China Securities Regulatory Commission responsible for the stock market fall. The composite index of Shanghai Stock Exchange rose to a historical high of 2240 points in the middle of last year, but it dived to around 1000 points toward the end of the year due to a string of scandals. (People's Daily, 9 March)
| Weekly Market update
|
08 March 2002
|
01 March 2002
|
| Shanghai A
|
|
1710.68
|
1566.84
|
| Shanghai B
|
|
154.06
|
142.00
|
| Shenzhen A
|
|
501.38
|
449.41
|
| Shenzhen B
|
|
241.18
|
216.64
|
| Hong Kong Red Chip
|
|
1272.13
|
1169.17
|
|
Hong Kong H
|
|
2049.01
|
1966.66
|
| Source: South China Morning Post
|
|
PREVIOUS ISSUES