Highlights from the print edition, issue 410, March 16 2009
The Last Soldier of Economic Nationalism
Cover story
Heilongjiang province's 93 Grains Group, which processes soybeans, had been a posterboy of economic nationalism in the industry--long refusing offers of foreign investment. But that stance has changed as price fluctuations and government control in the industry have conspired against it, bringing it to the negotiating table with Yihai Oil and Grains. The company is backed by a Singaporean investment firm.
Original article: [Chinese]
Centeral Bank To Expand Debt Market, Ease Corporate Fundraising
News, page 3
China's central bank confirmed at an industry conference that 2009 would see an expansion of corporate bond products in China. The development would make it easier for companies to raise funds at a time when liquidity is proving crucial for their survival, and as mergers and acquisitions will see a slight boom thanks to low prices and state-owned enterprise restructuring.
Original article: [Chinese]
China's Real Estate Market Warms Up
News, page 4
China's real estate market is getting warm, according to a largely undercover investigation of 30 large cities launched by the Ministry of Housing and Urban-Rural Development. The investigation showed that housing transactions in the first two months registered a year-on-year increase of 6.1%. As a result, the market no longer expects that government will introduce new measures after March.
Original article: [Chinese]
Local Governments Scramble for Tax Revenues
News, page 6
With the Three-Gorges Dam project scheduled for completion in 2009, Chongqing and Hubei provincial governments were lobbying the State Council to increase their claims to tax revenues from the dam and reservoir, both of which are located in different administrative regions. The EO learned that tax revenues originating from the dam would exceed 5 billion yuan every year.
Original article: [Chinese]
Wu Hao: New Breed of "Propaganda Officer"
From National, page 9
Wu Hao, deputy head of the Yunnan Province Propaganda Bureau, has been crowned by many as a poster-boy of the new generation of China's "propaganda officers". Wu tells the EO that propaganda agencies shouldn't just be passive damage control teams but should proactively engage with the public online. Wu says he has built a real-name online communication zone to collect opinion and suggestions from local journalists, and has invited local media to supervise and even criticize his work. Wu came under the spotlight after his recent invitation of eight representatives of the public to investigate a case of how a man died in jail.
Original article: [Chinese]
Hangzhou Brews Financing Center for Private Business
National, page 12
Cai Qi, mayor of Hangzhou, discusses with the EO how the Chinese private business capital would strive to expand funding channels for cash-starved small-and-medium enterprises there. The government would set up an investment, debt, and collateral funds, and to provide the credit insurance with Alibaba.
Original article: [Chinese]
Antique Deal in China
National, page 14
The recent auction of two looted bronze sculptures from China has put the country's antique trade under the spotlight. An antique dealer who had once been been a tomb raider deciphered for the EO where antiques in the domestic market sourced from and were traded before the trade was legalized. He said the 1990s was the peak of unscrupulous digging and selling, but now the market was flooded with copycats.
Original article: [Chinese]
Shenzhen State-assets Agency Retaliates After Losses in Court
Markets, page 17
A batch of state-owned firms are withdrawing their deposits from the Shenzhen branch of Industrial Bank in retaliation for the latter's victory against one of their own in court. The bank sued Shenzhen Airport after it failed to repay 225 million yuan in loans, saying those loans were taken out illegally by their corrupt ex-president who went on to lose the funds in the stock market. Since the money never made it into Shenzhen Airport accounts, the firm claimed it should be a criminal case against the ex-president and not have consequences for the firm. But lower courts have ruled in favor of the bank, and the supreme court has upheld their decision. Now, not only is Shenzhen Airport refusing to repay the loans, but other state-owned firms are cancelling accounts with the bank at the apparent behest of the Shenzhen state-owned assets agency.
Original article: [Chinese]
State-owned Aluminum Benefit from the Direct-purchase Electricity Policies
Corporation page 27
On March 6, 2009, 15 big state-owned electrolytic aluminum giants became the beneficiaries of a new direct-purchase electricity policy, reducing the cost of their electrolytic aluminum production by 600 yuan per ton. These big consumers occupied big market shares, but recently suffered in the financial crisis due to high costs. In the meantime, the smaller firms in the industry would not have the same cost advantages they had while relying on their own electricy generation before. Industry experts thought the policy would probably prompt a new wave of industrial consolidation.
Original article: [Chinese]
Starbucks' Tofu Rolls
Corporation page 31
Trapped in the deepening financial crisis, many international chain stores have started used innovative marketing strategies to promote their businesses while cutting costs. Starbucks has introduced many Chinese-style fast foods in its Chinese branches, including tofu rolls, which fits local tastes while reducing costs.
Original article: [Chinese]
