| Opportunities and Legal Environment in China |
| ¡îAnti-terrorism law guards stable economic development |
In order to cool the overheated mainland stock market, Chinese securities and fund-management firms will be allowed to invest overseas.
On July 5, eligible financial firms will get licenses as qualified domestic institutional investors, according to China Securities Regulatory Commission (CSRC). The scheme has so far been limited to banks and insurers.
To be eligible, fund-management firms must have net assets of not less than 200 million yuan ($26 million) and at least two years¡¯ experience in stock investment. Securities companies must have a net registered capital of no less than 800 million yuan ($105 million) and at least one year¡¯s experience in collective asset management, according to the relevant rules in China.
Now, CSRC is working with the State Administration of Foreign Exchange (SAFE) to decide the financial firms¡¯ foreign currency quotas.
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| ¡îGlobal Forum on Software and Information Service to open |
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On June 20, the 5th China International Software&Information Service Fair (CISIS) kickes off in Dalian, Liaoning province. This fair lasts for 4 days.
More widespread coverage is a highlight of the four-day Fair. Enterprises from Tianjin, Sichuan, Hunan, Shanxi, Guangxi and Xinjiang will join it for the first time.
In addition, Infosys Group, the largest software company in India, also will enter into the Fair, which indicates that the Fair has drawn the attention of Indian enterprises.
As the only state-level software trade fair, CISIS has exerted great influence on domestic and foreign markets since it was open in 2003
Relying on the support of the related departments, CISIS is playing an increasingly active role in the development of software and information service industry.
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| ¡îChina to be the top synthetic rubber consumer in the world |
According to customs sources, China has imported 484,000 tons of synthetic rubber in the first four months of this year, a growth of 14.7 percent over the same period of last year.
Meanwhile, the imports are valued at $930 million, up 26.3 percent.
Following the fast growth in auto industry, major foreign tyre maker have launched manufacturing bases one by one in China. And domestic footwear, rubber tube and other rubber products suppliers are expanding production, demanding for more synthetic rubbers as raw material.
Therefore, the great demand amid low-technique-based production at home has boosted the imports of synthetic rubber in China.
Now, China has surpassed the United States to become the world¡¯s largest synthetic rubber consumer.
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| ¡îChina to eliminate tax rebates from July 1 |
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On June 19, China will eliminate or cut rebates for more than 2,800 export items, accounting for 37 percent of all export products, according to the Ministry of Finance announcement.
This move is regarded as the boldest move to prevent increasing exports since the entry into WTO in 2001.
Export tax rebates for 553 ¡°high energy-consuming and resource-intensive¡± products, such as cement, fertilizer and non-ferrous metals, will be eliminated.
Tax rebates for another 2,268 products, described as ¡° easy to trigger trade frictions¡±, will be slashed from 8-17 percent to 5-11 percent. They include garments, toys, steel products and motorcycles.
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| ¡îChina to encourage private firms to list on domestic stock exchanges |
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Since April, China Securities Regulatory Commission (CSRC) has suspended approvals for private-owned enterprises to list on overseas stock markets in a move to promote the Shanghai and Shenzhen Exchanges.
There is only a internal guideline, not an official policy, to order this suspension until now.
In order to encourage more enterprises domestic listings, CSRC has drafted new rules for Chinese private enterprises both at home and abroad to list in Shanghai and Shenzhen exchanges.
This new drafted rules will relax the restrictions of listing on mainland and establish a relatively simple government approval process.
Now, relevant drafted rules have reportedly been circulated among market player for their feedback, may come into effect on July 1.
After this drafted rules become effective, the world leading bourses including NYSE Euronext, Nasdaq, London Stock Exchange and Deutsche Bore will be allowed to set up representative offices in the Chinese mainland.
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| ¡îChina needs to upgrade ships for transportation of coal and iron ore |
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The hot season in May witnesses a steep rise in bulk solid transportation volumes, focusing on coal import transportation and iron ore import transportation.
North China is rich in coal, and the domestic coal shipping capability is not able to meet the increasing demand from south China, so ¡®North Coal to the South¡¯ used to be a long-adopted pattern in China.
But now, due to the growing coal and iron ore shipping capability and China¡¯s ¡°Easy Import and Hard Export¡± policy of past year, China gradually moves in its role from a former coal exporter to a current importer. Vietnam, Australia, Indonesia are main coal exporters to China and Australia is believed to be the main iron ore provider to China.
The existing problems are that China lacks adequate cargo worthy ship scale and transportation capacity for coal and iron ore.
So, the ship owners should give full value to upgrading their current ships.
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| ¡îChina Construction Bank to sell 9 billion A shares |
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On June 15, 2007, China Construction Bank announces that it will sell 9 billion A shares, or 3.85 percent of its enlarged share capital on Shanghai Stock Exchange.
According to this announcement, this plan has been approved by its board meeting but is still subject to approval by the general meeting of shareholders and the State securities and banking regulatory commissions.
The bank will hold a temporary meeting of shareholders on August 23 to discuss the plan.
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