Highlights from the EO print edition, issue no. 440, October 19, 2009

Agricultural Bank Returns to its Roots
News, cover
~ Agricultural Bank of China (ABC), the only one of China's state-owned banks that has yet to be listed, will launch a nation-wide program dedicated to providing services to the country's rural areas.
~ The success of this program is considered a key factor in ensuring the success of any future moves to list that the bank might take.
Original article: [Chinese]

Ministries Team Up to Tighten Financing of Certain Industries
Nation, page 3
~ Beijing has moved to restrict the ability of enterprises involved in a handful of sectors that have been flagged for problems with overcapacity from raising capital.
~ Last month, the China Securities Regulatory Committee (CSRC) passed on certain inspection rights to the country's main planning body, the National Development and Reform Commission (NDRC), which means enterprises who wish to raise capital will now have to gain approval from both government agencies.
~ The new regulations are aimed at enterprises doing business in various sectors that have been identified by the State Council as experiencing overcapacity. They include the steel, nonferrous metal, cement and solar energy industries.
~ Enterprises working in these sectors will now be required to submit applications to the NDRC if they want to list, issue bonds, issue private placements, issue convertible bonds or issue corporate bonds.
Original article: [Chinese]

Regulator to Provide Exit Mechanisms for Struggling COEs
News, page 4
~ State-owned Assets Supervision and Administration Commission (SASAC), the regulator of China's non-financial state-owned assets, revealed that it would create exit mechanisms for struggling centrally-owned enterprises (COE) that were currently doing business in competitive market environments, the EO learned.
~ Although the nature of the exit mechanisms remains unclear, SASAC indicated that they would focus on improving the competitiveness of the COE.
~ Zhu Boshan, president of Tacter Consulting Company, responded to the plan by saying "I hope it's a short-term approach; otherwise it will be a setback to the adjustment of the country's national economic design and structure"
Original Article: [Chinese]

Despite Positive September Numbers, No Early Exit from Stimulus
Nation, page 6
~ Though China registered positive economic numbers in September, experts argue that it's still too early to seek an exit from the economic stimulus.
~ The Purchasing Managers Indexes PMI as measured by the China Federation of Logistics and Purchasing and HSBC registered 54.3% and 55.0% respectively in September.
~ In addition, Industrial Value-Added Value, exports and import all increased in September.
~ The positive data has encouraged a more optimistic view among economists about the prospects for the Chinese economy in the fourth quarter and for next year. Despite the rosy outlook, the global economy remains depressed, and with out any definite sign of inflation, policy-makers remain reluctant to remove stimulus measures.
Original Article: [Chinese]

Expectation that RMB will Appreciate Weakens
Nation, page 6
~ By the end of June this year, China's short-term foreign debts decreased 16.4 billion US dollars  to 194 billion US dollars from the end of last year.
~ An official from the State Administration of Foreign Exchange (SAFE) held the decrease indicated that the inflow of short-term speculative funds was declining.
Original Article: [Chinese]

Shanghai Accelerates Reform of State-owned Financial Corporations
Market, page 19
~  A series of high-level personnel changes that have recently shaken up Shanghai's state-owned financial enterprises is a further indication of the Shanghai government's intention to speed up the pace of moves to see the city become an international financial hub.
~  A Shanghai Finance Office will be entrusted by the local branch of the SASAC to finance city-owned financial institutions.
Original Article: [Chinese]

Beijing's Expanding CBD
Nation, page 15
~ Wu Guiying, director of Central Business District Management Committee in Beijing and first deputy chief of Chaoyang District, talks to the Economic Observer to talk about the development of CBD in Beijing.
~ The district recently decided on an ambitious and low-carbon plan to expand the size of the Beijing's CBD.
Original Article: [Chinese]

Sina Expands
Corporation, page 27
~ On October 16th, CRIC, a property information provider co-founded by Sina Leju and EJ China was listed on the NASDAQ market, raised 216 million US dollars.
~ This newly founded company will integrate the advertising business of Sina and property consulting and data services of EJ. According to the statistics released by the U.S Securities and Exchange Commission, it's already the biggest property consulting service provider in China.
~ Sina just completed a management buyout (MBO) program which saw the company's management purchase about 5.6 million shares of common stocks in the company, valued at around 180 million US dollars, to become the largest shareholder.
~ CRIC is another example of Sina's effort to shift away from its advertising-reliant profit model.
Original Article: [Chinese]