China :: Business & Economy

China said Friday it has halted the import of raw oysters from the U.S. State of Washington after reports of an illness outbreak. The General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ) said it has also recalled raw oysters already imported from the state by Chinese companies. The U.S. Food and Drug Administration earlier this week warned consumers not to eat raw oysters harvested from the Hood Canal area of Washington following an outbreak of illness in the state caused by Vibrio parahaemolyticus bacteria. China has conducted tests for the bacteria in raw oysters imported from other U.S. states as well as seafood imported from other countries, the AQSIQ said in a statement on its website. There have not been any reports of illness caused by eating raw oysters imported from Washington yet in China, according to the AQSIQ, which noted that most raw oysters in the Chinese market are produced domestically. The administration advised consumers to cook seafood t...

JAPAN'S factory production rose for the fifth straight month in August, almost restoring it to levels recorded before the March earthquake and tsunami, the government said yesterday. The improvement, however, is clouded by uncertainty as Japanese manufacturers contend with a persistently strong yen and a fragile global economy. Industrial output climbed 0.8 percent from the previous month, according to a Ministry of Economy, Trade and Industry report. Sectors driving gains included transport equipment, electronic parts, and iron and steel. The ministry said industrial production has almost fully recovered from the March disasters. But August's result undershot the government's earlier estimates, reflecting the new pressures on exports. "It would be necessary to keep watch on future developments," the ministry said. Exports are a key growth driver for the world's No. 3 economy, and any slowdown in overseas demand could thwart progress made since the disaster. T...

The National Development and Reform Commission (NDRC), the country's top economic planner, announced Friday that it has ordered two sugar-making companies from the southern autonomous region of Guangxi to stop hoarding, a practice blamed for pushing up prices. The two sugar makers are Guangxi Nanhua and Guangxi Fengtang, both of which were found to have substantially large inventories of sugar during inspections by the NDRC to more than 10 sugar companies in the nation's major sugar-producing regions. The hoarding by the two companies amounted to 170,000 tonnes, according to an NDRC statement on its website. "Their massive hoarding has led to the sharp rises of sugar prices and caused tight supplies in the market. The practice has violated price laws and regulations," the statement said. Since 2009, sugar prices have been increasing rapidly in the country due to reduced output and rising production costs. However, illegal hoarding and price-fixing also led to price ri...

China's foreign exchange regulator on Friday revised down the country's current account surplus in the first half of 2011 to 87.8 billion U.S. dollars from the previously reported 98.4 billion U.S. dollars. The surplus under the current account, which measures China's foreign trade, accounted for 2.8 percent of the nation's gross domestic product (GDP), according to the revised balance sheet released by the State Administration of Foreign Exchange (SAFE). The SAFE revised up the capital and financial account surplus during the same period to 183.9 billion U.S. dollars from 179.3 billion U.S. dollars. The country's international reserve assets, which was raised by the surpluses of the current as well as the capital and financial accounts, were revised up to 283.7 billion U.S. dollars in the first half of 2011. For the second quarter, the SAFE revised the current account surplus down to 59 billion U.S. dollars from 69.6 billion U.S. dollars. The capital and financial ...

Police in Shanghai are fighting to keep counterfeit iPhones off the streets just days before the upcoming release of the iPhone 5, according to local authorities. Five suspects have been apprehended for using recycled accessories to manufacture fake iPhones, police said Wednesday. The suspects sorted through e-waste transported from south China's Guangdong Province, scavenged genuine components from discarded iPhones and combined them with the fake components before selling them. Over 200 fake iPhones and 5,000 accessories at a value of five million yuan (781,630 U.S. dollars) were confiscated from a rented apartment in downtown Shanghai during the July busts, police said. Police said the counterfeit iPhones had nearly the same appearance and featured the same functions as genuine iPhones. The crackdown follows a citywide campaign to eliminate counterfeit products amid a string of scandals involving fake iPhones and copycat Apple stores in other cities.

SHANGHAI'S key stock index fell in the morning session after data showed China's manufacturing activities shrank for a third month.The benchmark Shanghai Composite Index was down 0.37 percent to 2,356.48 points. Turnover fell to 25.5 billion yuan (US$4 billion).HSBC Holodings Plc and Markit Economics today said that September's purchasing managers' index was 49.9, unchanged from August. The reading was higher than a pre-reading of 49.4 released last week. A reading below 50 indicates contraction."Although the lagged effects of credit tightening will continue to cool industrial activity in the months ahead, there is little need to worry about a sharp slowdown," Qu Hongbin, an economist at HSBC in Hong Kong, said in the statement. "Despite the global slowdown, we expect China's economic growth to hold up at around 8.5 percent to 9 percent in the coming years."The official PMI, which is weighted towards larger enterprises, will be released by the Ch...

A global recession could be the biggest risk facing China, but a full-blown economic crisis is unlikely, given the nation's relatively healthy balance sheets, said Huang Yiping, chief economist of emerging Asia at Barclays Capital, the investment banking arm of Barclays PLC, on Thursday. "A global economic recession could cause a hard landing for the Chinese economy because of its high dependency on trade and limited policy flexibility," Huang said. According to a recent survey by the British investment bank, a hard landing in China is viewed by investors as the third-biggest downside risk to emerging markets assets in the coming three months. Although China has a number of homegrown problems, such as extraordinary credit expansion, an overheated property market and difficulties in local government financing, Huang said growth is likely to remain robust despite the external uncertainty. Barclays Capital forecast that Chinese economic growth will be 9.1 percent in 2011 and...

Youku.com Inc's website, displayed on a computer screen. Stocks ofthe companyplummeted more than 20 percent after a securities regulator said that U.S. Department of Justice is engaged in probing financial fraud and misconduct of U.S. listed Chinese companies. [Photo/China Daily] A securities regulator said Thursday that U.S. Department of Justice (DOJ) is engaged in probing financial fraud and misconduct of U.S. listed Chinese companies. Robert Khuzami, director of enforcement at the U.S. Securities and Exchange Commission (SEC), said DOJ is "actively engaged" in the investigation of the accounting issues of some U.S. listed Chinese companies, and the probe by the SEC and the Federal Bureau of Investigation (FBI) started one year ago. Khuzami noted that DOJ's involvement will be "greater" as time goes on. However, he declined to reveal any specific Chinese companies or auditors that the DOJ may be targeting. No charges have been brought forward and the SEC ...

CHINA will continue to see high inflation in September but analysts are divided over how high the figure will be. Lian Ping, chief economist at the Bank of Communications, said September's Consumer Price Index, the main gauge of inflation, may rise 6 percent, but it will be the second straight month that the pace of gain has eased. The inflation hit 6.2 percent in August and a 37-month high of 6.5 percent in July. Guohai Securities also predicted the CPI may be between 6 percent and 6.2 percent because of the effect of the government's tightening policies. However, Lu Zhengwei, an economist at the Industrial Bank, projected September's inflation to rebound to above 6.3 percent on higher food costs due to the Mid-Autumn Festival. But all analysts agreed the government won't impose any more interest rate increases to tame inflation. "Policymakers used to stress only the fight against inflation, but now they also look at the economy's moderation and the tighter ma...

Online shopping giant Amazon.com opened an online Chinese-language bookstore on Thursday in cooperation with a Chinese state-owned publishing group, according to a news release from Amazon. The store is being jointly operated by Amazon and the China International Publishing Group (CIPG) as part of a global promotional program for Chinese books initiated by the General Administration of Press and Publication (GAPP) in 2010. Amazon's China on-line bookstore launching ceremony was held in Beijing on September 29, 2011. The project was initiated by the General Administration of Press and Publication (GAPP). Director Liu Binjie (center) and Deputy Director Wu Shulin (2nd left) of the GAPP, President Zhou Mingwei (2nd right) of the China International Publishing Group and Amazon's vice president attended the ceremony.[China.org.cn] The store is intended to allow readers from all over the world to have the opportunity to enjoy Chinese books, as well as improve cultural exchanges betwe...

China's textile hub, Shaoxing County in Zhejiang Province is planning to build an online sales platform to market the industry worldwide. According to the Shaoxing Entry-Exit Inspection and Quarantine Bureau, China produces more than 70 percent of the world's clothes. About 60 percent of that production comes from Zhejiang and Jiangsu provinces. Sun Chengrong, vice director at a Shaoxing textile industry group, said the area has established itself as a one-stop shop for the world's textile manufacturers and clothing designers. "If you cannot buy a material for clothes here, you won't be able to find it anywhere else around the world," Sun said. Shaoxing County produced 16 billion meters of dyed fabric last year, 27.7 percent of the national total. According to a China Daily report, Shaoxing's textile industry accounted for more than 60 percent of the county's economic output, with exports of US$6 billion in 2009. China's textile hub, Shaoxing Cou...

China will see a bumper harvest of grain this year, with grain output expected to jump to a record high of more than 550 million metric tons, Vice Minister of Agriculture Chen Xiaohua said Thursday. The strong harvest will mark eight consecutive years of growth for China's grain output. The sound development of the agricultural industry has supported China's efforts to manage inflationary expectations, improve livelihoods and maintain steady economic growth, Chen said at a press conference. Last year, China's grain output rose 2.9 percent year-on-year to reach 546.61 million metric tons, according to the National Bureau of Statistics.

A debt crisis in eastern China's Wenzhou City is casting light on an illegal business run by government officials lending hundreds of millions of yuan to the owners of small businesses. Money from government officials has been found to be involved in many cases of illegal loans to business owners who are now fleeing the area after finding they are unable to pay back the money, Xinhua news agency reported yesterday. Private lending in Wenzhou, the cradle of China's private sector, has been booming since the country tightened monetary controls late last year to fight inflation. State-owned banks, under orders to maintain a stable loan-to-deposit ratio, are reluctant to offer loans to small firms such as those in Wenzhou. That has forced some people to turn to private lenders, mostly illegal, despite the high cost of interest. However, when business doesn't go as well as expected, owners can find themselves in trouble. Xinhua cited the case of Shi Xiaojie, 80 percent of whose ...

OIL gave up almost all of its gains for the week as the US and Europe appeared to have little appetite for more fuel. Western countries already were expected to see declining demand as their economies struggle to grow. Those concerns grew Wednesday when the US reported unexpectedly large crude supplies and weak gasoline demand. In Europe, German Chancellor Angela Merkel suggested that a bailout package for Greece might have to be renegotiated. "Any resolution in Europe is likely going to result in lower spending," independent oil analyst Andrew Lipow said. "That means lower growth rates and poorer demand for oil." Benchmark crude fell US$3.24, nearly 4 percent, to end the day at US$81.21 per barrel in New York. That wiped out big increases on Monday and Tuesday. Benchmark crude rose more than 5 percent on Tuesday alone. Brent crude, which is used to price most international oil varieties, lost US$3.33, or 3.1 percent, to finish at US$103.81 in London. For more than ...

AS domestic consumers, especially young online shoppers, increasingly spend their money on fashion apparel, handbags and accessories, online retailers are starting to include more high-end goods in their product mix. In my view, it's a risky realm for purveyors of luxury items. Domestic online retailers may have a hard time cashing in on the zeal for expensive brand names in a market notorious for picky consumers who don't part with their money without careful scrutiny of what they are buying. Web pages may be fine for general shopping, but buying Gucci isn't the same as buying laundry detergent. That's the lesson George Ji, founder and chief executive officer of Xiu.com, learned when he launched his website specializing in luxury bags in 2008. Ji discovered it wasn't enough to concentrate on the top end, so he shifted his focus to include more mid-priced clothing and accessories. Last month the company received US$100 million in investment funds from two institu...

China's foreign exchange watchdog said Wednesday that Chinese banks' foreign exchange surplus from bank-to-client transactions reached 37.8 billion U.S. dollars in August. In August, institutional and individual clients sold 144.4 billion U.S. dollars in foreign currencies to banks while purchasing 106.5 billion U.S. dollars, the State Administration of Foreign Exchange (SAFE) said in an online statement. From January to August, more foreign currencies were sold than purchased through Chinese banks, resulting in 354.8 billion U.S. dollars of foreign exchange surplus during the period, the statement said. Foreign exchange surpluses, which make up part of China's foreign exchange reserves along with current account surpluses and foreign direct investment inflow, do not include banks' own foreign exchange transactions or interbank transactions, according to SAFE. Last year, foreign exchange surpluses created through Chinese banks' transactions with domestic clients inc...

Inventories of iron ore at 25 of China's major sea ports dropped to 94.17 million metric tons in the week ending on Sept 26, according to the Xinhua-China Iron Ore Price Index, which was released on Sept 27. Last week's supplies of imported iron ore were 320,000 metric tons lower than that of the previous week, down 0.34 percent week-on-week, according to the index. The price index for 63.5-percent-purity and 58-percent-purity iron ore imports both dropped by one point to 186 points and 155 points, respectively. Xinhua analysts said sharp declines of billet price and weakening demand for iron ore have led to declines in imported iron ore prices. Steel companies have also cut their bid prices for iron ore due to weak demand for steel in the coming winter and the relatively large amount of remaining stock, according to Xinhua analysts. However, price corrections for imported iron ore will be limited as a result of rising shipping costs, the analysts said.

City officials say owners of plush residential properties must pay their property taxes in October or face harsh punishments. On Jan 28, Chongqing and Shanghai adopted the first property tax ever imposed in China, placing it on expensive residential properties in the hope of curbing soaring prices and real estate speculation. In Chongqing, the tax applies to existing residential properties, while in Shanghai it only falls on properties that were purchased after its adoption date. According to statistics, more than 3,400 taxable properties existed in Chongqing's nine major districts before Jan 28. In charging the tax, the municipality uses rates that vary with the sales prices of new and existing houses. The lowest price at which taxes are charged is 9,941 yuan ($1,554) a square meter. Houses that sell for that much will be taxed at a rate of 0.5 percent, while those that are more expensive can be subject to rates as high as 1.2 percent. People who don't own hukou (residency per...

China and India are slated to boost economic cooperation and mutual trust through dialogue as bilateral trade surges, officials said Monday at the one-day first meeting of China-India Strategic Economic Dialogue (SED) in Beijing. Full story >> Q1: This is the first dialogue at such high level between two Asian giants. How do Indians look at this dialogue with China? Q2: Considering the size of the two major economies: China and India. The economic cooperation is not big enough, not extensive enough. What is in the way? Related stories Tele interview: How to handle sensitive issues between China and India? 2011-09-28 Sub-anchor: Benefits from China-India economic ties 2011-09-28 Wen urges youth to help China-India ties 2011-09-23 Editor: James | Source: CNTV ...

STOCKS rose broadly yesterday on hopes that Europe was moving closer to resolving its debt crisis. The Dow Jones industrial average closed up 146 points as industrial and materials companies led the market higher. Germany's chancellor Angela Merkel said her country would do whatever it could to help Greece regain investors' confidence. Greece's finance minister also said that country would receive the next round of bailout loans in time to avoid a default. Greece was at risk of running out of money by mid-October if it did not receive the funds. "Europeans are finally starting to understand that they need to act with some force to get ahead of the European debt crisis," said John Briggs, a fixed-income strategist at RBS. The Dow rose 146.83 points, or 1.3 percent, to close at 11,190.69. It had been up as many as 325 points earlier. The Dow has added 419 points over the last two days, making up more than half of its 737-point plunge last week. The Standard & Po...

SHANGHAI'S key stock index rose for the first time in four days as worries over the European debt crisis ease, but the gains in the market were limited by concerns over China's tight liquidity measures and weakening industrial performance. The Shanghai Composite Index added 0.9 percent to 2,415.05 points, halting a three-day, 4.8 percent decline. The gain followed those in neighboring markets after investors were buoyed by two days of improvement in United States equities amid optimism that European leaders may agree on ways to resolve the eurozone's credit crisis. Japan's Nikkei 225 Stock Average rose 2.8 percent in Tokyo. South Korea's Kospi Index surged 5 percent, and Hong Kong's Hang Seng Index added 4.2 percent. "The gains may not last as market liquidity is tight and the economic situation in Europe and the US may still worsen," said Zhao Youqi, an analyst at Changjiang Securities. "Investors are cautious." Concerns over liquidity in Ch...

Related reading: China, India hold strategic dialogue to boost economic ties BEIJING, Sept. 26 (Xinhua) -- China and India are slated to boost economic cooperation and mutual trust through dialogue as bilateral trade surges, officials said Monday at the one-day first meeting of China-India Strategic Economic Dialogue (SED) in Beijing. China and India face similar problems as both countries undergo rapid industrialization and urbanization, said Zhang Ping, head of the National Development and Reform Commission, the country's top economic planner. The SED, which is partly aimed at boosting mutual trust, will enhance cooperation between China and India in various fields and help the two countries find solutions to common problems, Zhang said. This will help promote the long-...

SHANGHAI'S key stock index rose for the first time in four days as worries over the European debt crisis dissipated, but gains were moderated by concerns over China's tight liquidity and weakening industrial performance. The benchmark Shanghai Composite Index closed 0.91 percent higher to 2,415.05 points. Turnover was to 56.3 billion yuan (US$8.8 billion). The gain followed a strong performance in neighboring markets after two days of gains in US equities amid optimism that European leaders are closer to agreeing on ways to tame the region's credit crisis. Japan's Nikkei 225 Stock Average rose 2.8 percent in Tokyo. South Korea's Kospi Index surged 5 percent and Hong Kong's Hang Seng Index increased 3.2 percent. But in China, liquidity was at its tightest since September 1. The benchmark money rate jumped 0.8567 percentage point to 4.6667 percent today. Meanwhile, profit growth in China's industrial companies continued to weaken during the first eight months ...

Mergers and acquisitions by Chinese companies rose to their second highest volume on record in the first nine months of this year, data from Thompson Reuters shows. M&A activity by Chinese companies reached US$136.3 billion in value in the first three quarters of 2011. The volume was the second highest level on record, second only to the US$150.44 billion in deals achieved in the first nine months of 2008. Chinese firms closed a record high of 2,844 deals in the first three quarters of this year. Inbound M&A activity rose to US$72.97 billion, accounting for 53.5 percent of the total volume. Outbound M&A deals accounted for 23.5 percent, while acquisitions by foreign firms represented 21.7 percent. The number of M&A deals made by foreign firms rose 49 percent to 575 by Sept. 19, involving US$29.52 billion in volume, another record high.

Related reading: Japan may buy more European bonds: minister Japan may purchase more European rescue bonds if a proper system is put in place to bail out the continent's debt-riddled economies, according to the finance minister. Japan may purchase more European rescue bonds if a proper system is put in place to bail out the continent's debt-riddled economies, according to the finance minister, Jun Azumi (pictured on September 10) "If there is any scheme that could help ease tensions worldwide, including financial markets, over the rescue of Greece, I will not reject the possibility that Japan will share some of the burden," Jun Azumi told reporters on Tuesday. Japan is being "briefed" by European officials on the possible scheme, Kyodo news agency ...

SHANGHAI'S key stock index rose taking its cue from a strong performance in overseas markets, but the gains were moderated by concerns over tight liquidity. The benchmark Shanghai Composite Index closed 0.3 percent higher to 2,400.41 points, after gaining as much as 1 percent in the morning session. Turnover rose to 28.3 billion yuan (US$4.4 billion) from yesterday morning's 26 billion yuan. The Dow Jones industrial average jumped 2.53 percent overnight, the largest gain in more than two weeks, after European officials vowed to take action to resolve the region's debt problems. In China, liquidity was at its tightest since September 1. The benchmark money rate jumped 0.8567 percentage point to 4.6667 percent today. Property developers dropped after Standard & Poor's said in a report today that Chinese developers faced an "increasing severe" credit outlook. Gemdale Corp fell 1 percent to 5.05 yuan. Jiangxi Copper Co, the nation's biggest producers of th...

Chinese cities whose economies rely largely on the exploitation of natural resources must seek a new source of development to boost the nation's growth, government officials and scholars said at an Expo Central China 2011 forum on Sept 26 in Taiyuan, Shanxi province. Around 120 cities across China have a resource-based economy, accounting for around 18 percent of the total number of Chinese cities, according to Peng Sen, deputy director of the National Development and Reform Commission (NDRC). A pilot economic zone was set up in coal-rich Shanxi at the end of last year to change the province's resource-based economic model. This move "helps build a more balanced economy and diversified industries, increase production efficiency, and promote harmony between economic development and eco-friendliness", Peng said. The province, with 94 coal-producing counties, can "set an example for other resource-dependent regions", Peng said. Kong Jingyuan, director-general o...

Related Reading: SEATTLE - Boeing's long-awaited dream machine became a commercial reality on Sunday when the lightweight plastic-composites 787 Dreamliner was formally delivered to its first Japanese customer. Boeing says the revolutionary carbon fiber design will hand 20 percent fuel savings to airlines struggling to avoid a new recession, and give passengers a more comfortable ride with better cabin air and large electronically dimmable windows. The first $200 million aircraft was handed over to Japanese carrier All Nippon Airways three years behind schedule after persistent delays that cost Boeing billions of dollars. "It took a lot of hard work to get to this day," said Scott Fancher, vice president and general manager of the 787 program, at the outset of t...

China said Monday it has launched an inter-provincial operation to better regulate the production of light rare earth metals in its latest effort to rein in illegal rare earth exploration. The local governments of three regions where most of China's light rare earth metals exist will jointly crack down on the illegal exploration and production of light rare earths, the Ministry of Land and Resources said in a statement on its website. The operation aims to "promote the protection and rational development of the country's rare earth resources and further regulate their production," said the ministry. The three regions include the city of Baotou in northern China's Inner Mongolia Autonomous Region, Jining in eastern China's Shandong Province and Liangzhou in southwestern China's Sichuan Province, according to the statement. The governments will also cooperate to better plan the development of rare earths and explore the establishment of strategic reserves o...

THE yuan hit a new record high yesterday after the central bank said it favored a more flexible exchange rate and would push for greater convertibility of the Chinese currency. The People's Bank of China set the central parity rate at 6.3735 against the US dollar, down from Friday's 6.384. It is the strongest since yuan was allowed to be traded in 1994. "China's currency policy will not be affected by a global economic slowdown and the yuan is highly relevant to China's international balance of payments," said Zhou Xiaochuan, governor of the central bank, at meetings of the IMF's International Monetary and Financial Committee in Washington at the weekend. Li Daokui, an adviser to the central bank, reiterated that the yuan may be fully convertible in five years at a forum during the meetings. The appreciation negated earlier speculation that China would resume the yuan's peg to the dollar amid an uncertain global economic outlook, analysts said. "...

Let's cross over to Rong Ying, Vice President of China Institute of Int'l Studies for more on China-India economic dialogue. Q1: The world is watching the dialogue between China and India, two most important emerging economies in the world, what do you think they may be discussing this time? Editor: James | Source: CNTV

SINOHYDRO Group has cut the size of its proposed Shanghai IPO as weak sentiment has put a squeeze on stock market liquidity. The company now plans to sell 3 billion A shares and set a price range of 4.5-4.8 yuan per stock, according to a statement issued last night. This indicates it could raise up to 14.4 billion yuan (US$2.3 billion) in the stock sale. The builder of the Three Gorges Dam initially sought to issue 3.5 billion A shares to raise up to 17.3 billion yuan. The indicated price range translates into a valuation of 15-16 times 2010 earnings. Hongyuan Securities analyst Zhou Rongzi said in a report the price range was not high and recommended clients subscribe to the IPO.

Sinohydro Group, China's largest builder of dams, aims to raise as much as 14.4 billion yuan ($2.3 billion) in Chinese mainland, lowering its initial fundraising target amid weak market sentiment. It will be the largest mainland IPO so far this year, which has been dominated by much smaller deals. The state builder said on Sept 25 it will sell 3 billion yuan-denominated shares, compared with up to 3.5 billion shares planned initially. The builder of the Three Gorges Dam, the world's largest hydropower project, has set a price range of 4.50-4.80 yuan a share for the issue, Sinohydro said in the statement to the Shanghai Stock Exchange. The price range, which translates to 15-16 times 2010 earnings, was in line with expectations. CICC pegged the fair value of Sinohydro, which will trade on the Shanghai exchange as, at 4.3-5.8 yuan a share. Hong Yuan Securities pegged the fair value of the company at 5.0-6.3 yuan a share and recommended clients subscribe to the shares at 4.25-5.36...

If a new draft regulation is adopted, private car buyers in China will be eligible for free repairs, replacement and even return of faulty cars in the first two years or 40,000 kilometers of ownership. Now in the process of soliciting public opinion, the regulation from the General Administration of Quality Supervision was released last week. A public hearing is scheduled in late October. The draft proposes that carmakers be required to provide warranties of at least two years or 40,000 km for the vehicle and three years or 60,000 km on the powertrain and steering system. If quality problems are discovered within the warranty period, consumers could require free repair work, and if the maintenance takes more than five days, they would be offered a replacement vehicle or compensation to cover travel expenses, the draft said. It also states that consumers have the right to return the vehicle within 30 days if there are serious quality problems such as severe cracking in the car body, non...

A table measuring the harshness of a country's tax regime in 2009, which ranked the Chinese mainland high at second place, has again aroused much debate, with experts urging faster reform of the system. According to the 2009 Tax Misery and Reform Index released by Forbes Magazine, the Chinese mainland scored 159, following France which scored 167.9. The list put Chinese citizens under the category with the heaviest tax burden in the Asia-Pacific region. By comparison, Hong Kong was considered the kindest in taxation in the region with a score of just 41.5. The rank was raised again two years later when fiscal revenue and inflation continued to rise and little was done to help people save more money. China's fiscal revenue in September was up 30.9 percent compared with the same period last year, according to data from the Ministry of Finance. Statistics also show that about 80 percent of revenue came from taxes in the first eight months of 2011. Although a new law to raise the t...

The Chinese government will invest 2 trillion yuan ($313 billion) in the area of green economy and low-carbon development in the next five years, cutting 16 percent of per-unit GDP energy consumption compared to 2010, a senior official from China's top economic planner said on Saturday. "During the Twelfth Five-Year Plan period (2011-15), the Chinese government will boost low-carbon development from 10 perspectives," Xie Zhenhua, vice minister of National Development and Reform Commission, said at the Second China (Binhai Tianjin) International Eco-City Forum. Promoting circular economy projects, establishing 100 demonstration bases for resource comprehensive utilization and launching low-carbon pilot programs in five provinces and eight cities are all methods China will use, Xie said. In recent years, the Chinese government has issued and put in place a series of policies encouraging low-carbon development. During the Eleventh Five-Year Plan period (2006-10), energy cons...

A senior legislator on Saturday called on Northeast Asian nations to enhance dialogue and consultation to maintain peace and stability and promote common development in the region. Han Qide, vice chairman of the Standing Committee of the National People's Congress (NPC), China's top legislature, made the remarks at the opening ceremony of the Development Forum for Northeast Asia in China's northeastern city of Dalian. Han said the Northeast Asia region is facing various opportunities and challenges as the recovery of world economy is still fragile and the imbalance of the world economy is aggravated, and non-traditional security issues are looming large. Noting people-to-people exchanges and friendly cooperation is the foundation for peace and stability of Northeast Asia, he called on citizens of Northeast Asian countries to enhance dialogue and consultation, and deepen exchanges and cooperation. He also said he hoped attendees of the forum will give their own perspectives ...

Related reading: New York - Major US stock indices inched upward Friday a day after plunging more than 3 per cent, rebounding on hope that governments will act to prevent another financial crisis. US markets followed Europe's increases earlier in the day buoyed by expectations the European Central Bank would increase efforts to ease financial market tensions in the eurozone over the debt crisis in Greece. German Finance Minister Wolfgang Schaeuble said that the now-slated changes to the European Financial Stability Facility - which the German parliament is to vote on next week - would give the bailout mechanism 'the necessary instruments to react appropriately to all developments.' The blue-chip Dow Jones Industrial Average gained 37.65 points, or 0.35 per cent, ...

Wenzhou in eastern Zhejiang Province is battling its own subprime lending crisis after seven company bosses fled the city in the past 10 days, leaving thousands of employees in a state of shock and up to hundreds of millions of yuan in loans unpaid. Most of the bosses who have disappeared were in the manufacturing industry, according to yesterday's National Business Daily. Each had borrowed hundreds of millions of yuan from banks as well as private creditors, the newspaper said. Private lending in Wenzhou, the cradle of China's private sector, has been booming since the country started monetary tightening late last year to fight inflation. State-owned banks, under orders to maintain a stable loan-to-deposit ratio, are reluctant to offer loans to small firms like those in Wenzhou over default concerns. The difficulty of borrowing money from banks has forced some small business owners to turn to private lending, mostly illegal, for help despite the high cost. However, when busine...

SHANGHAI stock market extended yesterday's losses and fell to the lowest in more than 14 months following a brutal sell-off in overseas markets amid concerns over global economic prospects. The Shanghai Composite Index lost 0.41 percent to 2,433.16, the lowest since July 16 last year. Turnover was around 68 billion yuan (US$10.66 billion) today, compared with 75 billion yesterday. The benchmark index lost 1.98 percent this week. The Shanghai index opened at 2,412, the lowest since July 8 after US financial markets took a big hit yesterday, with both equities and commodities suffering massive sell-offs as the Federal Reserve's bleak outlook on the economy and poor economic data added to fears of a double-dip recession. Jiangxi Copper suffered a loss of 3.27 percent to 2.12 yuan. Xinjiang Bayi Iron & Steel Co tumbled 3.81 percent to 10.87 yuan. Copper futures for December delivery dropped 7.3 percent to close at US$3.4885 a pound in New York yesterday, the biggest drop for a ...

Related reading: Apple Inc. (AAPL) is opening stores in the China region at a quarter the pace it forecast 19 months ago, giving rival makers of smartphones and tablet computers time to gain users in the worlds biggest mobile-phone market. Apple opened its third store in Shanghai today and will open its first one in Hong Kong tomorrow, bringing the total to six in a region with the companys highest-grossing outlets. That compares with the 25 stores that Ron Johnson, then Apples head of retail, said last year it targeted by February 2012. Apple employees stand outside the company's new store in Nanjing Road during its opening in Shanghai September 23, 2011. [Photo/Agencies] The iPhone maker is only scratching the surface of Chinese demand after sales in the region surged s...

Source: hurun.net The real estate industry is the biggest source of wealth for the richest people in China, the country with the largest number of US dollar billionaires, said Rupert Hoogewerf, chairman and chief researcher of Hurun Research Institute. About 23.5 percent of the 1,000 richest Chinese individuals' fortunes comes from the property industry, up from last year's 20.1 percent, according to the Hurun Rich List 2011, which focuses on people in the real estate industry, released on Sept 22. Despite the property market weakening in the past months, because of government measures to tame soaring real estate prices, Hoogewerf said he still believes that China's real estate business is a solid investment. "The real estate industry in China will be the world's safest field to invest in the coming 15 years," he said. Xu Jiayin, chairman of Guangdong-based Evergrande Real Estate Group, was the richest developer, according to Hurun, with 43 billion yuan ($6.7...

THE Shanghai stock market extended yesterday's losses but managed to recover from sharply lower opening amid concerns over global economic prospects. The Shanghai Composite Index lost 0.91 percent to 2,420.94. The benchmark index opened at 2,412, the lowest in more than 14 months after the US financial markets took a big hit yesterday, with both stocks and commodities suffering massive sell-offs as the Federal Reserve's bleak outlook on the economy and poor economic data added to fears of a double-dip recession. Jiangxi Copper suffered a loss of 3.68 percent to 28 yuan. PetroChina was down 0.73 percent to 9.53 yuan. Xinjiang Bayi Iron & Steel Co tumbled 5.94 percent to 10.68 yuan. Losses among developers and banks reinforced the falling trend. China Vanke Co skipped 1.07 percent to 7.38 yuan. The Bank of Communications shed 1.32 percent to 4.50 yuan. Shanghai Securities News said today some trust fund firms had halted their real estate trust business. China's central b...

Giant Interactive Group Inc said it will invest $50 million in China's e-commerce company Alibaba Group through an investment in Yunfeng e-Commerce Funds. Yunfeng e-Commerce Funds was established by Yunfeng Capital, a China-based private equity firm co-founded by Alibaba CEO Jack Ma. The share purchase is expected to close before the end of the year, Giant Interactive said in a statement. Separately, tech blog AllThingsD reported that private equity firm Silver Lake and Russian technology investment firm DST Global, along with Yunfeng, are leading a $1.6 billion tender offer for privately held employee and shareholder stock of Alibaba Group. Singapore-based investment firm Temasek is also participating in a smaller way, the blog said. DST and Silver Lake are ceding voting control of their stakes to Alibaba management to sidestep foreign ownership issues in China, AllThingsD said quoting unnamed sources. If the tender is fully subscribed that would mean a stake of just under 5 perce...

Former eBay Chief Executive Officer and California governor candidate Meg Whitman on Thursday was named Hewlett-Packard's new CEO, replacing Leo Apotheker who served 11 months on the job. "We are fortunate to have someone of Meg Whitman's caliber and experience step up to lead HP," said the California-based company in a statement. "We are at a critical moment and we need renewed leadership to successfully implement our strategy and take advantage of the market opportunities ahead," said the troubled tech giant. It noted that the job of the HP CEO now requires additional attributes to successfully execute on the company's strategy, adding Whitman "has the right operational and communication skills and leadership abilities to deliver improved execution and financial performance." "I am honored and excited to lead HP. I believe HP matters -- it matters to Silicon Valley, California, the country and the world," said Whitman in a statemen...