Fund Industry Doubles Efforts to Prevent Security Breaches
Cover story
Site-wide blackouts, network intrusions, viruses, and other security breaches have been faced off by fund companies in recent weeks, all of which can be traced back to one source: the China Security Regulatory Commission. After a round of security exercises and inspections to test the defenses of the industry, the Commission has identified at least ten firms that have sub-par defenses.
Original article: [Chinese]
A Rising Yuan Will Ease Inflation
Cover editorial
The slew of Chinese exporters declaring bankruptcy has not just been spurred by an appreciating yuan - a weakening US economy along with Chinese monetary and debt policies have also led to their demise. Those arguing that now is the time to cap appreciation, or even let the yuan devalue, are ignoring the linkage between the currency's appreciation and it's affect on domestic inflation. As we have several times, in light of this we argue for continued appreciation of the yuan.
Original article: [Chinese]
Fuel Prices will Keep Steady
From News, page 3
China's National Development and Reform Commission (NDRF) claimed fuel prices would remain stable for the purpose of cubing inflation, despite oil shortages that have spread across the nation. Meanwhile, the central government will continue subsidizing PetroChina and Sinopec for their losses.
Original article: [Chinese]
Twenty Anniversary of Hainan Province
Nation, pages 9 to 15
In the earlier 1990s, Hainan's newly established special economic zone became a hotspot of investment. However, because of weak infrastructure facilities and a lack of the support by substantial industries, investment shifted to real estate, which subsequently fueld an economic bubble that ultimately deeply scarred Hainan. Since 2004, Hainan provincial government has successively introduced large companies and projects to jolt up its development. Besides this, in the recent years, local government has put forward another ambitious blueprint, which is to build Hainan to be an international tourism island and a free trade zone. A special series this week examines the area's troubled past and promising if uncertain future.
Original article: [Chinese]
A Fallen Trust, Reborn
From Markets, page 17
Kinghing Trust, a Zhejiang-based trust company which was once famous for its aggressiveness in the secondary market but ultimately declared bankrupt in December 2005, is likely to be revived by efforts of the local government. Financial watchdogs had agreed in principle with the restructuring scheme drawn by the Zhejiang provincial government and its proposal to leverage the company's brand name. New shareholders taking over the company were purportedly state-owned firms within Zhejiang.
Original article: [Chinese]
Petrol-China Canceling Billions of Investment
Corporation, page 27
On June 3, PetrolChina has decided to pull out of 49 investment projects totaling 20.72 billion yuan. This has left the small companies whose former profits mainly relied on PetrolChina in the cold. The move is possibly tied to declining profits from the first quarter of 2008.
Original article: [Chinese]
Earthquake Affects on Real Estate and Construction Trends
Property, page 33
Transactions in Chengdu's real estate market tumbled after the 8.0-magnitude earthquake hit most of Sichuan province on May 12. Trading volume in main districts of Chengdu fell by 64.6% in the following week, and monthly volume in May dropped by approximately 22%. However, some believed that residents in severely-hit cities near Chengdu, such as Dujiangyan, Mianyang, and Deyang, might swarm to buy properties there and thus bring new opportunities to the housing market. Looser credit policies were also considered a favorable factor.
Meanwhile, public consciousness of better quake-proof buildings had catalyzed new standards in architecture. Wang Ling, analyst at Anbound Consulting, called for steel structures for residences instead of the prevailing frame structure, and wider application of the joint-net technology. Ma Yuecheng, senior engineer at the State Council's Taiwan Affairs Office, argued that both solidness and pliability should be considered in construction.
Original article: [Chinese]