Trade
Political and International
News
Economy
Foreign Investments
Energy & Environment
Insurance & Finance
Science & Technology
Internet
Cross - Straits
General News
US Chamber China Trade & Investment News
September 08, 2008
Trade
September 08: China's trade surplus probably fell on faltering demand from the US and
Europe, making the central bank more likely to keep slowing the Yuan's gains. The gap
narrowed 6.4 percent to $23.55 billion in August from 2007.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a68aPXEz.m8o
September 08: China's passenger vehicle sales in August 2008 fell 6.24 percent from
2007 to 451,300 units. August's sales were down 7.56 percent from July. Passenger
vehicle sales in the January-August period in 2008 rose 13.15 percent from 2007 to 4.55
million units.
http://online.wsj.com/article/BT-CO-20080908-702127search.html?KEYWORDS=China&COLLECTION=autowire/6month
http://piaohaoreport.sampasite.com/china-financial-markets/blog/Is-the-PBoC-running-outof-capit.htm
September 08: Trade between China and Pacific island countries is expected to reach $2
billion by the end of 2008. The two sides aim to increase trade to $3 billion by 2010. The
economies of China and Pacific island countries are complementary, and there is great
potential for future cooperation. Trade between the two sides has developed rapidly after
an economic development and cooperation framework was set up in 2006. The year
2008's trade between China and 13 Pacific island countries reached $1.53 billion, up 24.4
percent over 2006.
http://www.chinadaily.com.cn/china/2008-09/08/content_7006163.htm
September 07: Honda Motor Company's August 2008 vehicle sales in China increased
19.4 percent to 38,726 units from 32,426 units in 2007. Sales in the January-August period
in 2008 rose 22.6 percent to 309,561 vehicles, from 252,423 in 2007. From January to
August, Guangzhou Honda Automobile Company, Honda's 50-50 joint venture with
Guangzhou Automobile Group Company, sold 197,457 units, up 12.3 percent from
175,905 in the year-earlier period.
http://online.wsj.com/article/BT-CO-20080907-704908search.html?KEYWORDS=China&COLLECTION=autowire/6month
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=amaHFrKPKUts
Political and International News
September 08: President Hu Jintao met with his German counterpart Horst Kohler, a day
after he held talks with Iranian President Mahmoud Ahmadinejad. Hu agreed with Kohler
to further promote relations between China and Germany. He said, "Sino-German ties
have developed soundly thanks to the concerted efforts of the two sides."
http://www.chinadaily.com.cn/china/2008-09/08/content_7006147.htm
September 08: People's Bank of China Governor Zhou Xiaochuan believed the US
government takeover of Fannie Mae and Freddie Mac was a "positive" development. He
added that the move should also be good news for Chinese investors.
http://online.wsj.com/article/BT-CO-20080908-701020search.html?KEYWORDS=China&COLLECTION=autowire/6month
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aT5Gmr2kttr4
http://www.washingtonpost.com/wpdyn/content/article/2008/09/08/AR2008090800230.html
September 08: Hong Kong's pro-democracy politicians lost several legislative seats
according to final election results announced, but held onto their veto power over major
legislation as they push for greater political freedoms in the Chinese territory. Democratic
parties won 23 of 60 legislative seats in voting, down from their previous 26. Ordinary
citizens directly elect 30 of the seats, while the rest are chosen by special interest groups
that tend to side with China's central government in Beijing.
http://www.washingtonpost.com/wpdyn/content/article/2008/09/08/AR2008090800426.html
September 07: President Hu Jintao of China urged other nations to negotiate a resolution
to Iran’s nuclear issue during a meeting with Iran’s president, Mahmoud Ahmadinejad,
making clear again, that China disapproves of any move by Western countries to attack
Iran with military force.
http://www.nytimes.com/2008/09/07/world/asia/07china.html?_r=1&oref=slogin
September 07: China and the Independent State of Samoa signed a tourism
memorandum, under which Samoa gained Approved Destination Status from China. The
two governments will discuss issues such as visas and travel agency services before
Chinese citizens can visit the Pacific nation. Only 535 Chinese nationals visited Samoa in
2007, while 220 citizens of Samoa visited China.
http://news.jongo.com/articles/08/0907/151256/MTUxMjU2CSZFMXtf.html
September 06: Alan Holmer, special envoy to China said close communication between
the two countries is especially important because of higher food and fuel prices. Holmer
said the two economies are intricately linked, with China being the third largest export
market for the US. He said it is important both countries "harness market forces to address
our macroeconomic challenges."
http://online.wsj.com/article/BT-CO-20080905-709492search.html?KEYWORDS=China&COLLECTION=autowire/6month
Economy
September 08: China's consumer price index rose by less than 6 percent in August 2008
from 2007, slowing from July's 6.3 percent increase, partly because of the higher base
from 2007. The fast rise in the country's producer price index has not yet been reflected in
the August CPI. China's PPI rose 10.0 percent in July, the fastest rise since 1996.
http://online.wsj.com/article/BT-CO-20080908-700043search.html?KEYWORDS=China&COLLECTION=autowire/6month
September 08: Vice Premier Wang Qishan said China's government is confident of
achieving its goals of stable and relatively fast economic growth and bringing inflation
under control. China's overall economic situation is good. Consumption, investment and
exports are growing in a more balanced manner. Challenges for the economy in 2008
have included natural disasters, slowing world growth, rising global inflation and
turbulence in international financial markets. China's inflation eased to 6.3 percent in July
from 8.7 percent, the fastest pace in 12 years, in February.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aI6xqi1qdGAo
September 08: Economists say Chinese inflation growth to slow.
http://www.chinatradeextra.com/
September 07: The China Banking Regulatory Commission urged banks to "take effective
measures to ensure loans for the country's economic growth and meanwhile prevent risks,
in a bid to maintain sound and fast economic development." The policy is "guaranteeing
money supply to some sectors while controlling money supply to some other sectors." The
commercial banks have increased lending since the end of June, especially to small firms,
energy-saving projects and those concerning agriculture, farmers and rural areas.
http://news.xinhuanet.com/english/2008-09/07/content_9826649.htm
September 05: Tax revenues are slowing especially revenues from corporate profits, land
and real estate taxes, which may put pressure on spending. Michael Pettis says surge in
tax revenues in last 4 years has been more than matched by surge in spending so that if
revenue growth diminishes/reverses it might not be easy to slow spending growth
proportionately. Contingent liabilities from non-performing loans could also reduce
available capital.
http://www.rgemonitor.com/26/China
Foreign Investments
September 08: Sanyo Electric Company has bought a 30 percent stake in China's Dalian
Bingshan Group Company for about $31.29 million. The Japanese electronics maker has
no plans to increase its holdings in its Chinese partner from the current 30 percent.
http://online.wsj.com/article/BT-CO-20080908-700912search.html?KEYWORDS=China&COLLECTION=autowire/6month
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aJTpqXIHsUZA
September 08: China Minmetals Corporation may spend as much as $700 million to buy
up to 49.99 percent of iron ore projects in Ukraine owned by Ferrexpo Plc. China
Minmetals, the country's largest metals trader, is bidding against Tata Steel Limited of
India and other overseas companies.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aQ4CvfrkKgQM
September 08: China's State Administration of Foreign Exchange held stakes of less than
1 percent in nearly 50 UK-listed companies at the end of August 2008. SAFE made the
investments in the UK mostly through its Hong Kong unit, SAFE Investment Company.
Starting 2005, SAFE was approved by the Chinese government to use 5 percent of the
country's foreign-exchange reserves to make overseas equity investments.
http://online.wsj.com/article/BT-CO-20080908-700119search.html?KEYWORDS=China&COLLECTION=autowire/6month
September 08: Samsung Electronics, the world's top supplier of liquid crystal display
(LCD) panels, announced the plan of building its second LCD module plant in Suzhou, to
meet the growing demand for flat-screen TVs in China. The new plant will have an annual
production capacity of some 2 million in the first phase. The company added that $150
million will be invested for the construction of a new plant.
http://news.xinhuanet.com/english/2008-09/08/content_9848560.htm
Energy & Environment
September 08: NDRC says Chinese industry meeting energy use reduction goals.
http://www.chinatradeextra.com/
September 06: China Oilfield Services Limited, an offshore drilling unit of China National
Offshore Oil Corporation, plans to place an order for a deepwater drilling vessel at a price
of $82.6 million from a sister firm. China Oilfield said plans to order the new vessel, to be
called "COSL 921", from Offshore Oil Engineering Company, which is also a unit of Cnooc
Group.
http://online.wsj.com/article/BT-CO-20080906-700071search.html?KEYWORDS=China&COLLECTION=autowire/6month
Insurance & Finance
September 08: Shanghai Zhenhua Port Machinery Company plans to sell about 170
million shares to its shareholder, China Communications Construction Company Limited,
the top infrastructure builder in the country, via a share placement, $441.24 million in total.
After the deal, Shanghai Zhenhua Port Machinery, which is 24.9 percent owned by China
Communications Construction, would hold 100 percent stake in China Communications
Shanghai Port Machinery Company Limited and 60 percent stake in Shanghai Jiangtian
Company Limited.
http://www.chinaknowledge.com/News/news-detail.aspx?type=1&id=17348
September 08: China's central bank plans to sell up to $13.15 billion worth of one-year
bills in its regular open market operation. The planned offering is larger than the $11.98
billion worth of one-year bills it sold at a yield of 4.0583 percent.
http://online.wsj.com/article/BT-CO-20080908-702186search.html?KEYWORDS=China&COLLECTION=autowire/6month
September 08: China National Gold Group Corporation, owner of the nation's thirdbiggest gold mining company, is selling four units for $67 million. The company is seeking
qualified bidders, which should be firms that are majority owned by the state with
registered capital of no less than $7.3 million.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=awLWeMkkB3YQ
September 08: Weiqiao Textile, China's biggest cotton textile manufacturer by production
scale, would acquire a thermo power plant from Zouping High-tech thermoelectric
Company Limited for $233.63 million. The move aims to meet the environmental
protection and energy conservation criteria required by the central and Shandong local
governments.
http://www.chinaknowledge.com/News/news-detail.aspx?type=1&id=17349
September 08: VST Holdings Limited, a Hong Kong-based provider of enterprise systems
and IT services, would sell 112 million shares, or 9.09 percent of its enlarged share
capital, to Eternal Asia Supply Chain Management Limited. VST Holdings will rake in
$14.35 million through the placement, part of which will be used to pay back the bridge
loans.
http://www.chinaknowledge.com/News/news-detail.aspx?type=1&id=17350
September 08: Jiangsu Huachang Chemical Company Limited, a China-based
manufacturer of basic chemicals and related products, is to issue 51 million A-shares
through its planned IPO in Shenzhen. Jiangsu Huachang Chemical plans to sell the 51
million new shares as early as mid-September accounting for 25.36 percent of its enlarged
equity.
http://www.chinaknowledge.com/News/news-detail.aspx?type=1&id=17351
September 08: Shanghai municipal government plans to list 30 percent or more of the
state-owned assets, worth $10.22 million in three to five years. Currently, the municipal
government owns $149 billion assets, and only 17.6 percent of which is publicly traded.
The local government plans to reduce the number of state-owned companies to 30 or 35
in five years from the current 43.
http://www.chinaknowledge.com/News/news-detail.aspx?type=1&id=17356
September 07: China Eastern Airlines Corporation is considering a merger with rival
Shanghai Airlines Company and is still leaving the door open to Singapore Airlines
Limited's bid to invest in the company. The discussion of a possible merger is being held
by the two commercial carriers' respective government shareholders. China Eastern is
controlled by State-owned Assets Supervision and Administration, while Shanghai Airlines
is controlled by State-owned Assets Supervision and Administration Commission of the
Shanghai municipal government.
http://online.wsj.com/article/BT-CO-20080907-700802search.html?KEYWORDS=China&COLLECTION=autowire/6month
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a13U0d2zOsWI
http://www.ft.com/cms/s/374919a4-7d3d-11dd-8d59-000077b07658.html
September 07: China’s central bank borrows RMB from the state banks (whether by
selling sterilization bills or by hiking the reserve requirement) and then uses to buy large
quantities of Agencies. The flow of Chinese savings into the US housing market is entirely
a government flow. From June 2007 to June 2008, the foreign assets of China’s central
bank increased by $681billion.
http://blogs.cfr.org/setser/2008/09/07/so-true/
September 06: Disclosed private equity investment in China in August 2008 was $410
million, down almost 70 percent month-on-month. There were only three private equity
investments in August, all into expanding or profit-making entities. A weak stock market
and higher consumer and producer prices cast doubt on sustained profit growth at target
companies, which made investors more prudent.
http://www.chinadaily.com.cn/bizchina/2008-09/06/content_7005086.htm
September 06: The China Securities Regulatory Commission (CSRC) will allow
shareholders of listed companies to issue exchangeable bonds, a move to ease
oversupply in the stock market that has helped to drive down share prices. The CSRC
published a draft regulation on the newly-introduced financing tool. Shareholders can
issue bonds with an embedded option to exchange the bond for the stock of a company
other than the issuer at least a year after the issuance.
http://www.china.org.cn/business/news/2008-09/06/content_16399169.htm
September 05: Despite the size of China's reserves, the capital base of China's central
bank is quite small and is being pressured by its losses on US holdings. The PBoC has
reportedly discussions with the finance ministry on ways to shore up its capital, including
the transfer of bonds but accepting such capital could perpetuate bureaucratic rivalries
and reduce its independence. A possible implication might be less pressure from the
PBoC to allow foreign exchange appreciation, which has already slowed.
http://www.rgemonitor.com/26/China
September 05: Industrial and Commercial Bank of China's first-half net profit jumped 57
percent from 2007 on strong growth in interest income and fee-based services, slightly
lower than expected. Nonperforming loan ratio was 2.41 percent, down from 2.51 percent
at the end of March. Its capital adequacy ratio rose to 12.46 percent from 11.92 percent
over the same period. ICBC also disclosed it held $465 million worth of bonds issued by
Fannie and Freddie at the end of June, and $2.251 billion worth of mortgage-backed
securities backed by the two subprime-hit housing giants.
http://www.rgemonitor.com/26/China
Science & Technology
September 07: China's manned spacecraft Shenzhou-7 will be launched at an
appropriate time between September 25 and 30 from the Jiuquan Satellite Launch Center
in northwestern Gansu Province. The information was revealed at a meeting held by the
headquarters of the mission, which will accomplish the first space walk by Chinese
astronauts.
http://www.washingtonpost.com/wpdyn/content/article/2008/09/07/AR2008090700443.html
September 06: China launched two satellites to monitor the environment and natural
disasters on September 06, 2008. The two satellites, launched from the Taiyuan Satellite
Launch Center in Shanxi Province and carried by a Long March 2C rocket, were expected
to enhance the country's capacity to forecast natural disasters. The satellites are the first
of their kind put into space by China. They are expected to have a lifespan of more than
three years.
http://news.xinhuanet.com/english/2008-09/06/content_9806611.htm
Internet
September 08: Chinese e-commerce giant Alibaba Group will consolidate its two
companies, Taobao.com and Alimama.com. The new company will be managed under the
brand of Taobao. The merger of Taobao.com with Alimama.com will take advantage of the
two companies' strengths. The traffic of Alimama.com will provide Taobao's contracted
sellers with an efficient online promotion service and bring them more business
opportunities, in addition to bringing diversified user groups to Taobao.com.
http://www.chinatechnews.com/2008/09/08/7476-taobao-will-merge-with-alimama/
Cross - Straits
September 07: Chinese mainland residents with permits to travel to Taiwan will be able to
travel to and back from Taiwan through the islands of Jinmen, Mazu and Penghu. Wang
Yi, director of State Council Taiwan Affairs Office announced this and other new measures
to facilitate exchanges across the Taiwan Strait.
http://www.chinadaily.com.cn/china/2008-09/07/content_7005998.htm
General News
September 08: Haier will launch a $14.6 million special program to open 1,500 airconditioner specialty stores across China during the 2009 air-conditioner year, which is
from September 01, 2008 to August 31, 2009. The 1,500 air-conditioner retail specialty
stores will be deployed in third and fourth-tier cities, including 102 in Henan Province and
50 in Hunan Province.
http://www.chinatechnews.com/2008/09/08/7474-haier-to-open-1500-chinese-specialtystores/
September 08: A total of 171 investment contracts worth about $15.5 billion were signed
during the 4th Northeast Asia Investment and Trade Expo. Chen Weigen, vice governor of
northeast China's Jilin Province, said investment volume was up about 37 percent from the
3rd Expo last year. The contracts mainly involved energy, urban infrastructure projects,
smelting and building materials. The contracted investment included $2.57 billion from
abroad.
http://en.ce.cn/Business/Macro-economic/200809/08/t20080908_16736571.shtml
September 08: Fiat SpA, Italian's largest automaker, said that it is seeking new partners
in China to promote sales in the world's second largest auto market, as sales sharply
slowdown due to the Olympics and sliding consumer confidence. The automaker said it is
struggling to hit the sales target in the country, which was set at 300,000 units by 2010.
http://www.chinaknowledge.com/News/news-detail.aspx?type=1&id=17352
September 07: Citic Resources Holdings Limited, a Chinese energy and base-metals
producer, has submitted an application to spin off its manganese business in Hong Kong.
Citic Resources, which is 11.47 percent-owned by Singapore state-owned investment
company Temasek Holdings Private Limited plans to spin off its Citic Dameng Holdings
Limited in an initial public offering.
http://online.wsj.com/article/BT-CO-20080907-702741search.html?KEYWORDS=China&COLLECTION=autowire/6month
=================================================================
This message and its contents are intended solely for the use of the Asia Task Force addressee. If you have received
this message in error, please notify the sender immediately.
Prepared by: PSi, Inc., 9 East 38th Street, 12th Floor, New York, NY 10016.
feedback@psi-world.com