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NEWS LETTER
Economy:
Waste and Corruption Worries Raised by China's Stimulus Package
It is reported that Beijing hotels near the NDRC are overflowing with officials from local governments, each complete with a briefcase full of heavy files detailing spending plans.
November 20th,2008
China's Accounting Standard Recognized in the European Union
Market
November 20th,2008
The Ministry of Finance said the decision of the European Union demonstrates the equivalence between the Chinese standard and the International Financial Reporting Standards (IFRS). This will cut Chinese companies’ costs when going public in the EU. On the other hand, this will also improve the export environment for Chinese companies and relieve anti-dumping pressure.
China Buys More US Debt, Supports the Dollar as the Biggest Creditor
Currency
November 19th,2008
China has finally succeeded in becoming America’s No. 1 creditor. Figures released yesterday by the US Treasury show China holding $585 billion US national debt by the end of September, and overtaking Japan, which had been the largest US creditor for eight years.
InBev's AB Acquisition Passes China's Anti-Monopoly Hurdle
M&A
November 19th,2008
While Coke's acquisition of Huiyuan is plodding through anti-monopoly investigation, the Ministry of Commerce (MoC) has conditionally approved another important case. InBev’s acquisition of Anheuser-Busch (AB) has become the first big deal to be approved since China issued its anti-monopoly law.
Foreign Insurers Up Capital to Fuel China Expansion
Market
November 19th,2008
Foreign life insurance companies are increasing their China investments to support expansion in the market. Recently, the China Insurance Regulatory Commission approved the investment increase applications of three companies including Citic-Prudential, whose capital fund is the largest among foreign insurance companies in China.
The IMF Needs Fixing, and China Wants a Say
In-depth
November 18th,2008
What to do about the IMF? This, of course, was a question bandied about at the recent G20 Summit hosted by George Bush in New York last weekend, though no decisions were taken. Japan promised to throw a bunch of money at the Fund, which is sorely in need of it amidst the present world economic turmoil, and it was gently suggested that China might also like to contribute a portion of its oceanic foreign reserves.
Government to Control Labor Costs to Maintain Employment and Competitiveness
Economy
November 18th,2008
Beijing is taking action during the economic downturn to prop up employment, control labor costs, and maintain companies’ competitiveness. The government will suspend raising the minimum wage, while reducing the contribution rate for basic medical and employment injury insurance in some areas.
BoA Again Raises Its Stake in China Construction Bank, Amid Selling Concerns
Banking
November 18th,2008
A new investment from Bank of America (BoA) totaling 48 billion yuan (about US$7 billion) will increase its share holding in China Construction Bank (CCB) to 19%. With this investment, BoA’s book gain in CCB will rise to US$11.7 billion. But the share holding increase has triggered analysts’ concern that BoA may sell CCB shares to relieve its domestic financial pressure.
China and Japan to Compete/Cooperate for International Financial Clout
World
November 17th,2008
As the two countries with the largest foreign exchange reserves, China and Japan attracted great attention on the issue of funding the IMF (International Monetary Fund) at the G20 Financial Summit held in Washington, D.C., this past weekend.
China Grid Investments Multiply as Power Consumption Slumps
Energy
November 17th,2008
The central government’s recently announced economic stimulus package will start in the energy field. The State Grid, the China’s biggest company by assets, will expand its investment in the next two years by 100%, to 1.16 trillion yuan.
Nortel's Situation Dire, Faced with Huawei, ZTE and Global Giants
Industries
November 17th,2008
Huawei's and ZTE's low cost global expansion plans are putting heavy pressure on the world’s more mature telecoms companies, and Motorola and other big-time equipment makers are facing the heat. Among them, Nortel's situation is undoubtedly the worst.
Blog: China Financial Markets
Can Smoot-Hawley return in a wholly different guise?
--
Michael Pettis
Blog: Acesaint's Market Review
HK for a week, update later.
--
Julian X. Chen
by
Pieter Bottelier
G20 Summit: the Start of a Long Process
China will have a much larger voice in the G-20 meeting later this week. It, along with other major...
by
Thomas Wilkins
At the G20 Summit, What Will China Gain and Contribute?
China's economic strategy is in the middle of the philosophies of free markets and central planning....
by
Ma Wenluo
Beijing Considers Municipal Bonds as Economy Booster
A program on strengthening debt management of local governments drafted by the Ministry of Finance (...
by
Shen Dingli
A Historic Visit
The top envoy's visit to Taiwan is historic. Though the Beijing authority claims that his visit will...
by
Kong Bo
Can China Have the Iranian Energy Cake and Eat It Too?
The underlying issue is China's need for energy. Blocking Chinese energy investment in one location ...
Conspiracy Theory Stalks China-US Financial Relations
Chinese SWF: We Behave Better Than Hedge Funds
China Earthquakes More Peril: Dam and Reservoir Collapse
Use China's Forex Reserve to Contain Vietnam's Financial Crisis
China-Japan-South Korea FTA Saga: More Thunder, Little Rain
Aftershocks Keep Sichuan, Gansu and Shaanxi Shaking
Why China and India Responded Differently to Oil Price Rise?
Chinese Companies Preferring London to New York City
CIC and SAFE: Coordination or Bureaucratic Conflict?
China's Strategy of Overseas Sovereign Investment Taking Shape
Before Saving the US
Conspiracy Theory Stalks China-US Financial Relations
Projected Google-Kingsoft Pact a Threat to Baidu's China Dominance
Iron Ore Price Hikes Will Force China's “Going Out”
China Overseas Investments Shifting to Real Assets
Lehman Brothers’ Minibonds Teach Hong Kong Investors a Big Lesson
Chinese Companies “Go Global” : 3 Dos and 3 Don'ts for Chinese CEOs
China's Gold Futures Sparking
China's Sovereign Wealth Fund in Interest Troubles
Sohu to Beat Sina, and Zhang Eying Tencent and Alibaba