China :: Business & Economy

The number of people who have to pay personal income tax will reduce from 8.4 million to 2.4 million after China raised the monthly personal income tax threshold, The Beijing News reported Friday, citing a senior official. That means about 60 million people will be exempt from paying any personal income tax after the amendment, said Wang Jianfan, deputy director of the tax policy department at the Ministry of Finance, at a news conference on Thursday. The National People's Congress (NPC) said on June 30 that it would raise the monthly personal income tax threshold to 3,500 yuan ($542) from the current 2,000 yuan and the adjustment will take effect on Sept 1. The previously proposed threshold was 3,000 yuan, but after public opinion was solicited by the NPC, it was lifted to 3,500 yuan.

China said Thursday it believes that the Euro zone will realize steady economic growth. Foreign Ministry spokesman Hong Lei made the remarks when asked to comment on Greece's approval of a key austerity bill and the country's debt crisis. "The difficulties Greece and some other countries have encountered indicated that there are still unstable and uncertain factors in the world economic recovery," Hong told a regular press briefing. The Greek parliament on Wednesday approved the economic adjustment program worth 78 billion euros (about 110 billion U.S. dollars), which will pave the way for the Eurogroup to greenlight more bailout loans. "The international community should cooperate with confidence and tackle the challenges hand-in-hand," Hong said. As part of the first Eurogroup bailout package for Greece last year, the second tranche of loans, which amounts to 12 billion euros (17 billion U.S. dollars), should be handed to Greece in June. But the loans have...

<center><img src='/mediafile/201106/30/P201106301704212387132726.jpg'><br>A Hewlett-Packard (HP) Corp booth at an expo in Beijing. The PC maker announced expansion plans in Beijing on Wednesday. (Photo / China Daily)</center> Hewlett-Packard (HP) Corp, the world's largest PC maker by shipment volume, announced its expansion plans for China on Wednesday. Although the company declined to disclose the amount of its new investment, it announced it has assigned two executives to lead the Chinese unit. Leo Apotheker, HP chief executive officer, told a news conference in Beijing that the company will place greater emphasis on cloud computing (using the Internet as a hard drive), software and wireless devices such as tablet PCs this year to boost its growth in China. To tap into the booming Chinese market, which is home to the world's largest Internet population and an "important growth region" for HP, Apotheker brought an execu...

China's minimum wage will grow by an average rate of at least 13 percent over the next five years, the Ministry of Human Resources and Social Security said on Wednesday. Minimum wages in most parts of the country will reach more than 40 percent of the average income of local urban residents by 2015, the ministry said in a statement on its website. During the first quarter this year, 13 provinces raised their minimum wages amid rising inflationary pressure and growing concern over China's widening wealth gap. The increases averaged 20.6 percent. The statutory minimum monthly wage in Shenzhen is 1,320 yuan (about 203 U.S. dollars), the highest level in China, while Beijing has the highest hourly rate of 13 yuan, the statement said. The ministry also vowed to reduce income disparity between different industries over the next five years. China aims to increase urban and rural per capita net income by more than 7 percent per year in real terms over the five years to ...

CHINA'S inflation, already at a three-year high, is "most likely chronic" and will remain a problem over the next decade, Li Daokui, an academic adviser to the People's Bank of China said yesterday. The central bank, which has raised borrowing costs four times since October, needs to increase interest rates further to combat price gains, Li, a professor at Tsinghua University, said at a conference in Beijing. Li, 47, said he was giving his view as an academic. China is wrestling with price increases driven by higher food, fuel and labor costs. Premier Wen Jiabao said last week that the government may fail to meet its inflation target of 4 percent this year even as efforts to stem gains have worked and that the overall price level will drop steadily. "High inflation pressure will be a long-term structural issue for China, mainly driven by cost-push factors such as rising wages, energy and resources prices," said Chang Jian, a Hong Kong-based economist with Ba...

The Commercial Aircraft Corp of China Ltd (COMAC), which is undertaking the construction of large domestic passenger jets, began its first joint venture on Tuesday with a foreign company in the hope of using world-class manufacturing techniques in the production of the homegrown C919 airplane. The partnership between the Shanghai Aircraft Manufacturing Co Ltd (SAMC), a subsidiary of COMAC, and the United States-based Eaton Corp, a company specializing in systems used to control and distribute energy, is among 17 strategic agreements COMAC has reached with various aviation companies. The Eaton SAMC (Shanghai) Aircraft Conveyance System Co Ltd will be situated in the Shanghai Pudong Lujiazui Software Park and will concentrate on the design, development and manufacture of the fuel and hydraulic conveyance systems needed for COMAC's production of the C919, said Lu Xiao'an, the director of the new venture. The conveyance system will transport fuel through a network o...

Central China's Henan Province on Tuesday inked 127 investment projects with enterprises from member countries of the Association of Southeast Asian Nations (ASEAN) during an economic cooperation meeting in Zhengzhou, capital of Henan. Business conglomerates, including the Charoen Pokphand Group, participated in the meeting, signing contracts with a total value of 5.2 billion U.S. dollars, said Shi Jichun, vice governor of Henan. The projects focus on the manufacturing and new energy sectors, Shi said. Business people and officials said that as labor costs and land prices have surged in the coastal regions, more foreign capitals are eyeing China's vast inland areas, which boast abundant resources and a rising market. As a beneficiary of this inward-moving trend, Henan Province received foreign investments totaling 6.25 billion U.S. dollars in 2010, a rise of 30 percent year-on-year. Its trade with ASEAN member countries reached 1.58 billion U.S. dollars in 2010,...

China and Germany are set to sign multi-billion-dollar cooperation deals on Tuesday while visiting Premier Wen Jiabao holds "government consultations" with Chancellor Angela Merkel. Up to 16 Chinese ministers and vice-ministers will join the premier at the first round of government consultations, which aim to further boost bilateral political trust, promote trade and economic relations and deeply involve Germany, the economic engine of the European Union, in promoting China-EU relations. It will be the second time in six months that the two countries will have inked deals worth significant amounts of money. In January, Vice-Premier Li Keqiang witnessed a signing ceremony involving up to $8.7 billion when he visited Germany. And this visit will be Wen's second to Germany within nine months. In October, he paid an unexpected dinner visit to Germany and met Merkel. This time, he will be there for less than 24 hours on the final leg of his five-day Europe visi...

Watch Video Play Video Indeed, newly-elected IMF chief, Christine Lagarde faces a series of challenges, such as confronting the European debt crisis and the reform of the IMF in her term. Among the challenges, she will have to prod fellow Europeans to take painful steps to prevent a default by Greece. She'll also face pressure from developing nations that want a greater voice at the IMF. And she'll be looked upon to restore the IMF's reputation, which was tarred by a scandal involving Dominique Strauss-Kahn, the man she's replacing. Most urgently, she will be expected to help stabilize Europe's debt crisis. As one of the longest-serving ministers under French President Nicolas Sarkozy, Lagarde made the country's labor market rules more flexible. Forbes magazine has listed her as one of the world's most powerful women. France's Finance Minister Christine Lagarde Related stories IMF taps French Lagarde as new Managing Director 2011-06-29 Survey: La...

CHINA signed an agreement yesterday to buy 88 Airbus aircraft in the A320 family. Airbus CEO Tom Enders signed the agreement with the China Aviation Supplies Holding Company during a visit to Berlin by Chinese Premier Wen Jiabao. As part of the general terms agreement, China's ICBC Financial Leasing Co Ltd signed a purchase agreement for 42 out of the total 88 aircraft. The single-aisle A320 family is made up of the A318, A319, A320 and A321. An Airbus spokesman said it was up to China Aviation Supplies to decide what to do with the other 46 aircraft. Also yesterday, Daimler AG signed an agreement with Chinese partner BAIC to expand their cooperation and build more vehicles in China. Daimler said that the deal would involve an investment of 2 million euros in the joint venture, Beijing Benz Automotive Co Ltd.

SHANGHAI Shipping Freight Exchange Co today started trading of the first forward freight agreement on China's mainland, with which cargo owners and shipping companies can hedge against fluctuating shipping rates. "The launch of the new derivatives is a key step to expand the shipping financing service in the city and an important driver for Shanghai to become an international shipping hub," said Zhi Guanglu, vice director of the water transportation bureau at China's Ministry of Transport. The exchange is the first of its kind on the mainland and provides forward freight contracts based on shipping rates on the Western American route and the European route. A forward contract allows a company to lock in rates for future deliveries. More derivatives that track the coastal dry-bulk transportation rates will be launched at the end of this year in Shanghai, according to the exchange.

FRENCH search engine company 1PlusV said it is suing Google for 295 million euros (US$417.7), alleging the company used its market dominance to block the development of alternative services. The French company is one of four, including Microsoft, that has accused Google of abusing its dominant position by demoting rival sites in search results and giving preference to its own services. The allegation has triggered an investigation by the European Commission. 1plusV, which runs the Ejustice.fr legal website and search engine, says that Google prevented it from developing specialized "vertical" search engines and crippled its ability to generate business and advertising and the claim is for lost profits. "Between 2007 and 2010, no less than 30 vertical search engines created by 1plusV were black-listed, some of which showed significant business potential," it said. A lawyer for 1PlusV said Google had been served notice of the damage claim yesterday. The claim will be ...

Watch Video Play Video Business sectors in Taiwan are busy preparing for the Free Independent Traveler program, which is designed to make mainlanders travel more conveniently to the island. The Free Independent Traveler, or, FIT program, is going to be set in motion at the end of this month. Whether it will FIT the expectations of many, and benefiting the economy, only time can tell. But it is also fair to say, those business sectors which are likely to gain from this new policy, have been longing to see this day coming Michael Liu, spokesperson of Taipei 101 Tower, said, "In fact, from Level B-1 all the way to the 5th Floor, major renovations are underway. Restaurants such as Ding Tai Feng, a Michelin 3 Star franchise, not to mention a 3C-shopping plaza are all coming in here. On the fourth and fifth floor, many flagship stores are set to open from the second half of this year to early next year, including the worlds biggest flagship store from one of the world-renowned lux...

Watch Video Play Video The 24-strong IMF board of member countries will meet on Tuesday to try to decide on its new managing director. They want to reach a consensus without bringing the matter to a formal vote. Earlier, an informal survey of voting countries indicated French Finance Minister Christine Lagarde would easily get the majority consensus needed over Mexico's central bank governor, Agustin Carstens, for the top job at the global lender. Though Carstens picked up endorsements from Canada and Australia late on Friday in a significant challenge to Europe's grip on the IMF top post, it is unlikely to change the outcome. On Monday, board officials were in consultations in an effort to determine whether either candidate had a clear majority. The race has been one of the most hotly-contested in IMF history. Agustin Carstens French Finance Minister Christine Lagarde Related stories Survey: Lagarde poised to become IMF chief 2011-06-27 IMF should reflect "changing...

Watch Video Play Video Recent amendments to the law on individual income tax have sparked heated online debate. Pubic opinion varies as to whether or not China's income tax threshold should be raised. Over 82 thousand citizens have submitted comments on the proposal since April, and 35 percent are opposed to raising the level of untaxable monthly income to 3000 yuan. But while 15 percent support the move, another 48 percent believe the exemption threshold should be raised even further, to above 3-thousand. Many people favor a multi-layered system, with varying thresholds for people in different provinces. In terms of the breakdown of those giving opinions, 43 percent were from Beijing, Shanghai and Guangdong Province. Nearly half the participants have a monthly income of between 3,000 and 7,500 yuan. The monthly tax exemption threshold currently stands at 2000 yuan. Related stories Individual income tax goes to 2nd review 2011-06-27 Income tax threshold kept at 3,000 yuan 2...

SHARES in Shanghai extended gains for a fifth day today, riding on a rally among most sectors after Premier Wen Jiabao said China's money and credit supplies have returned to normal levels, fueling hopes the country's tightening measures was nearing an end. The Shanghai Composite Index was up 0.44 percent to 2,758.23. Turnover climbed to 116.17 billion yuan (US$17.96 billion). Wen, who's paying an official visit to Britain, wrote in an editorial in Financial Times last Thursday that China is confident to control runaway inflation while maintain a fast growth of the world's second biggest economy. He also said in comments broadcast today by Hong Kong's Cable TV that China is able to cap full-year inflation within 5 percent. The country's previous target was 4 percent and it hit 5.5 percent in May, the fastest pace since July 2008. "I see difficulties in reaching the full-year inflation target of 4 percent," Wen said. "But it still can be kept below...

MOST Chinese real estate developers kept their distance from repeated appeals by officials to accelerate the country's affordable housing construction that aim to rein in the runaway property market, according to a report released yesterday. Only 30 out of 100 housing developers had participated in the affordable housing construction from 2007 to 2010, underlying property companies' reluctance to undertake a less profitable investment, said a report on Chinese realty firms' social responsibility, which was released by the Ministry of Housing and Urban-Rural Development. The 100 realty companies said they had fulfilled their social responsibility quite well in the past years. "Only by fulfilling their social responsibility by incorporating their business into wider interests regarding more groups can property companies have conditions for their sustained development," said Shen Jianzhong, a director of the Department of Housing Market Supervision and Regulation wit...

THE former chief economist with China's National Statistics Bureau says the country should be able to control inflation to around 4 percent this year despite difficulties. China's inflation is driven by the high price of imports and the over-supply of money domestically, Yao Jingyuan, former chief economist of the National Statistics Bureau, said during a financial forum in Shanghai. China extended a total of 17.6 trillion yuan (US$2.7 trillion) of yuan-backed loans in 2009 and 2010 to counter the global financial crisis. But the flood of liquidity has led to asset price bubbles and triggered inflation worries. However, the government's tightening monetary policies were taking effect, laying the groundwork to put inflation under control, Yao said. "The tightening measures should continue to consolidate the controls on inflation," he said. China has raised interest rates four times since October to curb inflation and the People's Bank of China has raised the re...

US President Barack Obama says he remains committed to working with Congress to find a solution to the government's debt problem. But he added, in Saturday's weekly Internet and radio address, that the focus can't only be on spending cuts. Obama said, "Of course, there's been a real debate about where to invest and where to cut, and I'm committed to working with members of both parties to cut our deficits and debt. But we can't simply cut our way to prosperity. We need to do what's necessary to grow our economy -- create good, middle class jobs -- and make it possible for all Americans to pursue their dreams ... That means giving our kids the best education in the world, so they have the knowledge and skills to succeed in this economy. It means rebuilding our crumbling roads, railways, and runways. And it means investing in the cutting-edge research and technologies that will spur growth in the years ahead -- from clean energy to advanced manufact...

More than half of all Chinese provincial-level regions have established a mechanism to offer subsidies to the needy as high inflation pushes up their daily living costs. The National Development and Reform Commission (NDRC), the country's top economic planner, said Friday that 18 provinces, autonomous regions and municipalities had set up the mechanism to give financial support to the needy in both urban and rural areas. Another six provincial-level regions will implement the mechanism before the end of August. The NDRC statement said the entire country will be covered by the end of this year. The scheme mainly covers the disabled, the low-income residents and the unemployed. In Tianjin, a monthly subsidy of 20 yuan is offered to the needy if the consumer price index (CPI), the main gauge of inflation, rises between 3-5 percent; if the CPI rises between 5-7 percent, the subsidy will rise to 30 yuan. Most regions will hand out subsidies if the price index surges above 4 percent. ...

Watch Video Play Video Premier Wen Jiabao is confident that China can keep inflation under control this year. In Friday's edition of the Financial Times, Wen wrote that "there is concern as to whether China can rein in inflation and sustain its rapid development. My answer is an emphatic yes." Premier Wen, who begins a visit to Europe this week, says rapid price rises pose a challenge to many countries and to emerging economies in particular. In combating the problem in China, Wen says the government has made inflation the priority of macro-economic regulation and introduced a host of targeted policies. He says they're already working. Earlier this week, we reported that China's top economic planner said the country's CPI in June will be even higher than May's, but will moderate in the second half of the year. Related stories China's inflation rate to accelerate in June: economic planner 2011-06-22 Editor: Zhang Pengfei | Source: CNTV.CN ...

OIL settled slightly higher yesterday as investors weighed the latest economic data and the planned release of 60 million barrels of oil onto the world market. Benchmark West Texas Intermediate crude for August delivery rose 14 cents to settle at US$91.16 per barrel on the New York Mercantile Exchange. In London, Brent crude, which is used in many international blends, fell US$2.14 to settle at US$105.12 per barrel on the ICE Futures exchange. Analysts said investors and money managers were still sorting out their positions following Thursday's surprise announcement from the International Energy Agency. The 28-nation group, which includes the US, plans to release 2 million barrels per day for a month. US economic news headed in a positive direction yesterday. The US government said that the economy grew at a rate of 1.9 percent in the first quarter, slightly higher than the 1.8 percent rate estimated a month ago. The US Commerce Department also said there were more orders from busi...

China can control inflation and sustain steady economic growth, Premier Wen Jiabao said yesterday. "There is concern as to whether China can rein in inflation and sustain its rapid development. My answer is an emphatic yes," Wen wrote in an article published in yesterday's Financial Times. Rapid price increases posed a common challenge to many countries, especially to China and other emerging economies, the premier said. "China has made capping price rises the priority of macroeconomic regulation and introduced a host of targeted policies. These have worked. "The overall price level is within a controllable range and is expected to drop steadily. The output of grain, of which there is now an abundant supply, has increased for seven years in a row. There is an oversupply of main industrial products. Imports are growing fast," Wen said. "We are confident price rises will be firmly under control this year." China was now at a new starting point in it...

THE partial meltdown at Japan's Fukushima Dai-ichi plant following the March 11 earthquake did not seem to deter China from pursuing its nuclear power ambition, only postponing it perhaps for two years. China, which has the world's most ambitious nuclear power blueprint, is likely to halt new project approvals in the next two years, according to the country's nuclear safety framework that is expected to be submitted to the State Council in August. This could be a longer freeze than previously thought. On March 16 the central government ordered a freeze on new reactor construction until all existing plants were checked, construction plans reviewed and a new national safety framework put in place. The framework, which is still under discussion at the National Nuclear Safety Administration, is likely to be published at the end of this year after being approved by the State Council, Shen Wenquan, a member of the expert panel of the State Nuclear Power Technology Corp, told Chin...

China can control inflation and sustain its steady development, Premier Wen Jiabao said in his article published in today's Financial Times on the eve of his state visit to Europe. "There is a concern over whether China can rein in inflation and sustain its rapid development. My answer is an emphatic yes," Wen said. He noted that China has made price control a priority of its macroeconomic regulation and has introduced a raft of targeted policies. "These have worked," Wen said. "The overall price level is within the range of control and is expected to drop steadily."Some economists estimated China's consumer prices may peak in June or July due to surging food costs and a low comparative base. Consumer Price Index, the main gauge of inflation, rose 5.5 percent from a year earlier in May, the fastest pace in 34 months. To curb the runaway prices, China has raised the interest rates twice this year, together with six reserve requirement ratio increase...

Watch Video Play Video China has launched a year-long national campaign targeting profiteering highway tollbooths amid rising public outcry over the management of the country's toll-way system. It was initiated by five central government departments on June 20th. But despite this, there are reportedly 20 highways still collecting such tolls. Foshan Sanshui Bridge is one of them. Its owners are hoping for a delay in revoking the tolls which can currently be collected until 2048. Foshan Sanshui bridge is an important transportation link. Construction started in 1993, with a license to collect fees until 2048. The 55-year fee period was approved by the Foshan city government which now hopes to implement an early buy-back. Its owner denied claims of profiteering. Zhang Boliang, Director of Sanshui Transport Infrastructure Group, said, "We are performing under the regulations. The contract for a 55 year period of toll charges was approved by the provincial authority long befo...

OIL tumbled yesterday after the International Energy Agency, which includes the US, said it will release some of its emergency oil supplies to stave off a possible spike in energy prices that could strain the global economic recovery. The IEA, based in Paris, will make 60 million barrels available over a 30-day period. Half of that will come from the US Strategic Petroleum Reserve, which currently holds 727 million barrels of crude. The SPR was last tapped in 2008 as oil rose to a record US$147 per barrel. With Libya's oil supplies likely unavailable for at least the remainder of this year because of unrest there, and global demand for oil expected to grow in the summer, the IEA said it was concerned that tighter supplies threatened to "undermine the fragile global economic recovery." Benchmark West Texas Intermediate crude fell US$4.39, or 4.6 percent, to settle at US$91.02 per barrel on the New York Mercantile Exchange. Brent crude, used to price many international vari...

OIL prices sank more than US$8 to a four-month low yesterday after the world's consumer nations said they would band together to aid the global economy by releasing emergency oil reserves. Oil prices fell to their lowest since the eruption of Libya's civil war in February stemmed exports from the OPEC member, putting a strain on global oil supplies. The International Energy Agency said it would help ease the strain by releasing 60 million barrels of government-held stocks, immediately increasing global supply by nearly 2.5 percent. The move shocked traders who had been expecting the IEA to give top exporter Saudi Arabia more time to make up for the supply shortfall following OPEC's failed meeting on June 8, when other members blocked Gulf efforts to hike output. "I'm surprised. Everyone's saying they've got enough stocks. This should keep WTI (US crude) under US$100, but really we want Brent there, and this should help," said Robert Montefusco, broker ...

The task to eliminate more outdated production capacity will stimulate the economic transformation, but the restructuring won't come without pain, said an official with China's industry supervisor. As much outdated capacity had already been disposed, further elimination would result in a squeeze on some sectors and impact on employment, said Zhu Hongren, chief engineer of the Ministry of Industry and Information Technology (MIIT) in an interview with Wednesday's People's Daily. Zhu made the remarks when explaining why the elimination tasks in 18 sectors this year seem more severe than previous years. Over the past two years, more outdated production capacity had been eliminated because of higher indexes on environmental protection and energy efficiency, Zhu said. Zhu said the elimination task should ideally be market orientated but the market was not yet mature enough, thus making government action necessary. The elimination standards are the same across...

FOUR overseas banks yesterday said they are poised to sell mutual funds as regulators open the business on October 1. HSBC, the biggest overseas bank in China, yesterday said it welcomes the move and will "proactively launch the business once it gets regulatory approval." Bonnie Qiu, head of personal financial services at HSBC China, said mutual funds will help overseas banks complete product lines.On Tuesday, China posted new rules to allow overseas banks to distribute mutual funds. At present, the business is only open to domestic banks. Bank of East Asia also welcomed the move, as did Citibank (China) and Standard Chartered.

Chinese shares closed moderately higher Wednesday with the benchmark Shanghai Composite Index up 0.11 percent, or 2.84 points, to close at 2,649.32. The Shenzhen Component Index rose 0.29 percent, or 33.67 points, to finish at 11,543.65. Source:Xinhua Weekly review Editor

China is turning the busy eastern seaport of Qingdao into the country's third cruise terminal in order to tap the Chinese middle class' growing appetite for luxurious ocean travel. Qingdao has already started working on a 1-billion-yuan ($153,846 million) project to build a cruise liner port and relevant facilities. Cruise companies from around the world are looking to capitalize on Qingdao's seaside location as well. In 2009, an Italian cruise liner company set up an office in Qingdao. Its American and Singaporean counterparts have docked their ships in Qingdao before, and they hope to open an office in the area as well. Last week, the Italian cruise ship Costa Classica docked at Qingdao to pick up new passengers, signaling the inauguration of Qingdao as an official cruise terminal. "We just visited two resorts in Qingdao this morning. It is amazing to travel on a cruise ship," said a tourist surnamed Li. Li and his wife boarded the Costa Classica...

CHINA Banking Regulatory Commission (CBRC) yesterday said it has no plan to suspend approving domestic lenders' establishment of new branches. Its policies on accepting and reviewing applications for new branches of commercial banks remain unchanged, it said. However, CBRC said it would be "more prudent" on city banks' inter-regional expansion without elaborating how the prudent manner would work. The banking regulator was responding to previous media reports, which suggested that the commission had unofficially suspended approving city lenders' expansions outside their own markets of origin, after Qilu Bank Co. fell victim to a commercial paper fraud that was uncovered late last year. CBRC Chairman Liu Mingkang said in April that city commercial banks should focus on their own markets of origin, prevent risks and improve services. According to official data, non-performing loans of China's city commercial banks totaled 32.56 billion yuan (US$5.01 billion) at ...

Chinese digital media company Xunlei Limited may postpone its plan for initial public offering (IPO) on Nasdaq due to a weak market. [China.org.cn] Just a couple of months ago the debate was still open as to whether there was a bubble in US-listed Chinese Internet stocks. Today, it's hard to deny that the bubble is there - unless it has already burst. In recent weeks, investor fever for the typical Chinese growth story has quickly turned into doubt and panic, with many starting to shun the sector that used to provide such high rewards. The Nasdaq China Index, which tracks major Chinese stocks trading in the US high-tech stock market, has dropped nearly 20 percent in fewer than 40 days, from $243.45 on May 2 to $196.83 on June 10. Moreover, the price of Chinese stocks, including Sino-Forest Corp and Yongye International Inc, has plunged more than 50 percent. "You never know you are in a bubble until it's over," said Duncan Clark, president of the Beijing-based research...

A former senior executive of the state-owned China Mobile was sentenced to death with a two-year reprieve for taking bribes from Siemens AG, Caixin Magazine said today. The Higher People's Court of Henan Province upheld the death verdict for Shi Wanzhong, the former human resources director of China Mobile, for taking US$5.06 million in bribes with Tian Qu, who served as a middleman between Shi and Siemens when Shi headed China Mobile's Anhui branch from 2002 to 2009. Shi also accepted 2 million yuan (US$309,600) from a private company during his tenure in Anhui Province, the court said. Tian Qu was sentenced to 15 years in prison, according to the court. However, their trial was not open to the public as the court deemed it involved state secrets, the magazine said. This was the first time that a senior company executive has been jailed in connection with a bribery scandal that has tarnished the reputation of Siemens, the German technology giant. To expand its market share in ...

China UnionPay, one of the world's leading bank card associations, said it has signed a framework agreement with Huaxia Bank to cooperate in the field of cell-phone payment. The two companies will jointly work to improve their financial services and increase cooperation in sharing payment platforms, while developing more value-added services and risk control, according to the agreement signed Tuesday in Shanghai. Clients that open cell phone payment services will be able to do online shopping, pay water and electricity bills, and make credit card payments directly on their cell phones, said a statement on the website of China UnionPay. The statement did not say when the services will be widely available. Currently, China UnionPay is also working with other commercial banks in developing more innovative ways of payment, such as internet payment and payments through advanced television sets.

Watch Video Play Video China's land market remained sluggish during the first half of this year. Many plots of land were sold at low prices, and other failed to sell at auction. But land supply in first-tier cities in China is increasing at a steady pace. Land supply in Beijing has been on the rise. In the Central Business District, 9 blocks of commercial land - over 1 million square meters - will be released for sale on July 6th. It's set to be the largest land transaction in the capital. Other major cities, including Shanghai, Shenzhen and Guangzhou , are also increasing land supply. Data shows land supply in 120 Chinese cities in June surged over 30 percent on a yearly basis. And experts believe increasing land supply will help curb land prices. Professor Dong Liming from Peking University,said, "Since land supply is sufficient, the increase of land prices will be restrained." The abundant land supply may be good news for buyers, but has caused a downturn in ...

OIL leveled off yesterday with investors still concerned about the European financial crisis. Benchmark crude for July delivery gained 25 cents to settle at US$93.26 per barrel on the New York Mercantile Exchange. The July contract expires today, and most of the trading switched to the August contract, which added 23 cents to settle at US$93.63 per barrel. All eyes remain on Greece, which is trying to implement tough new austerity measures necessary to keep international aid coming to deal with its debt crisis. Without that aid, investors worry that Greece's financial troubles could spread to other European countries. Credit ratings agency Moody's has warned that it may downgrade its debt rating on three of France's largest banks because of their exposure to Greek debt. Moody's said yesterday that it may reduce Italy's credit rating due to poor growth prospects and high public debt. "The fear is that we end up with a banking crisis like 2008," said Michael...

A General Motors' sedan at an exhibition in Nanning, the Guangxi Zhuang autonomous region. Sales of General Motors and its joint ventures in China topped 1 million units in the first five months of 2011.[ China Daily ] Although China's automobile market is facing challenges such as the first year-on-year sales drop in April since 2009, Kevin Wale of General Motors China is optimistic about the industry's future in the country. "The downtrend will continue in the short term. However, in six to 12 months, domestic vehicle sales will start to increase again," said Wale, president and managing director of China's largest foreign automaker by sales. His prediction came after months of slowdown in the vehicle market this year. Domestic auto sales continued to cool with further negative month-on-month growth in passenger vehicle sales in May, raising concerns that the previous sales target of 20 million vehicles this year may be beyond reach. Although the sales of Ge...

China's quality watchdog said Monday that it has decided to adjust import restrictions on foodstuffs and farm produce imported from Japan imposed after the nuclear crisis stemming from the March 11 earthquake and tsunami. The adjustment, which went into effect Monday, loosens import restrictions on food from Japan after the completion of a risk assessment on the radiation contamination status of foodstuff and farm produce processed in areas surrounding the crippled Fukushima plant, said the General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ). The ban has been lifted on foodstuffs, farm produce and fodder produced after May 22 in Yamanashi and Yamagata, but the ban remains for 10 Japanese prefectures over radiation contamination concerns, it said. The adjustment also lifts the requirement of submitting certificates of safety inspection for radioactive materials for foodstuffs, farm produce and fodder imported from Japan, it added. However, the lift does ...

Watch Video Play Video It's a well-known adage that when it comes to property, it's all about location, location, location. As the Beijing-Shanghai High Speed Railway is set to open to the public by the end of this month, a number of property investors and developers have turned their attention to cities along the railway line. Let's take a look how the new rail service is impacting the property sector. Bengbu, a city in eastern Anhui Province, is connected by the Beijing-Shanghai High Speed rail. And close to the railway station, two newly-built housing developments are attracting interest, thanks to its convenient location. Cai Wei, sales manager of a property company in Anhui, said, "As the railway is about to be launched, the number of customers from outside Bengbu city has increased by 40 percent. And residents of Bengbu who work outside the city are coming back to buy properties." As the Beijing-Shanghai High Speed Railway is set to open to the public...

SHANGHAI'S key stock index dropped for the fourth day, led by high tech firms and metal producers, while property producers outperformed. The benchmark Shanghai Composite Index lost 0.88 percent to 2,619.62 points. Turnover fell to 34.5 billion yuan (US$5.3 billion). Metal producers declined as metal prices on the London market dropped to the US$9,000 level. Jiangxi Copper Co lost 0.4 percent to 32.42 yuan. Yunnan Copper Co shed 1 percent to 20.22 yuan. Property developers rose after China's top statistics bureau said that home prices in 50 of the 70 major cities continued to rise in May from April. China Vanke Co rose 1.1 percent to 8.14 yuan. Gemdale Corp added 1.2 percent to 6.14 yuan. Information technology firms led the decliners. Fujian Newland Computer Co shed 3.3 percent to 13.83 yuan. Fiberhome Telecommunications Technologies Co slid 8.4 percent to 23.60 yuan.

EUROPE'S delayed and over-budget military transport plane suffered yet another embarrassing setback yesterday when manufacturer Airbus was forced to curtail its debut appearance at the Paris Air Show. The Airbus A400M military airlifter suffered a gearbox problem in one of its powerful turbo-props days before the world's largest air show and will not now be able to carry out its daring display routine in front of aviation enthusiasts. Airbus officials said the future European troop plane, which was bailed out with 3.5 billion euros (US$4.96 billion) by purchasing nations last year, was originally going to take part in a flypast today to mark the show's opening but then be placed on static display. "This is not a problem with safety, but flight test requirements are very demanding at the moment," Airbus Military Chief Executive Domingo Urena-Raso said. Airbus did not give an estimate for the cost or time involved in fixing the problem. It also did not indicate any ...

House trading has remained largely tepid in Beijing since the nation's capital promulgated a series of purchase limit policies on Feb. 16 to help cap the soaring home prices. According to the municipal bureau of statistics, 4.52 million square meters of commercial houses were sold in the first five months of this year, a decline of 26 percent from the same period of last year. Of the total, 3.12 million square meters were residential houses, down 29.8 percent year-on-year. Average price of newly-built ordinary housing stood at 14,127 yuan (2,140 U.S. dollars) per square meter, down 4.8 percent from that for the whole of last year. However, more money went to real estate sector during the five-month period. Between January and May, 91.56 billion yuan was invested in real estate development projects, up 4.1 percent year-on-year. The money accounted for 51.9 percent of the city's total fixed-assets investment over the five months. Around 54.19 billion yuan was invested in commerci...

Less cities have seen month-on-month decline in prices of both new homes and second-hand homes, according to the National Bureau of Statistics (NBS) on Saturday. The NBS said in a statement on its website that month-on-month price growth for new commercial homes were reported in 50 of out of the NBS's statistical pool of 70 major cities, compared to 56 cities reporting month-on-month growth in April. New home prices declined from a month ago in nine cities and stood unchanged in 11 cities, while 27 cities posted smaller monthly price gains, said the NBS. As for resold housing units, 23 cities reported second-hand home price declines month-on-month in May, up from 16 in April. Second-hand home prices stayed unchanged in 11 major cities in May from April, according to the NBS. Source:Xinhua ...

Foxconn, one of the world's largest electronics manufacturers, plans to increase its investment in central China's Henan Province after moving factories to Henan and southwest China's Sichuan Province last year. Foxconn plans to invest in 19 new projects in Henan, including factories that will produce camera lenses and LED lighting rigs, as well as more branches of Foxconn's retail chain Cybermart, Terry Guo, chairman of the Foxconn Technology Group, said during an economic forum held in Taipei on Friday. "We are going to fully expand our investment in Henan, using Zhengzhou (the provincial capital) as the base," Guo said. Guo did not reveal the total amount of investments for these projects. Foxconn produces iPhones and iPads for Apple, computers for Dell and devices for other well-known tech companies around the world. Based in Taiwan, Foxconn has operated factories in the Chinese mainland for years. One of its largest factories is in the cit...