Official: Indonesia not to restrict Chinese pipe import

The Indonesian government will not impose quota to restrict steel pipe import from China as it would violate the free trade agreement between China and ASEAN (The Association of Southeast Asian Nations) countries, an official has said.

"If the government imposes import quota (on Chinese steel pipe), China will take reciprocal measures," director of metal industry Putu Suryawirawan was quoted Thursday by economic daily Bisnis Indonesia as saying.

His remarks came to respond demand from the Indonesian Steel Pipe Producers Association (Gapipa) that Chinese steel pipe be restricted to protect local industry.

Putu said import restriction would be considered as non-tariff barrier that could lead to sanctions from the World Trade Organization.

Car makers' demand lifts Baosteel's net

BAOSHAN Iron & Steel Co, China's biggest steel mill, said first-half profit surged 80 percent after it increased production and prices to meet demand from auto makers such as Volkswagen AG and General Motors Corp.

Net income gained to 8.16 billion yuan (US$1.1 billion), or 0.47 yuan a share, in the six months ended June 30, from a revised 4.53 billion yuan, or 0.26 yuan, a year earlier, Shanghai-based Baoshan Steel said yesterday in a statement. A Bloomberg News survey of nine analysts had a median estimate of 8.23 billion yuan for the profit.

"Baosteel is taking advantage of its long-term auto customers and steady prices of products compared with its domestic rivals," Lu Yizhen, who helps manage about US$640 million at CITIC-Prudential Fund Management Co in Shanghai, including Baoshan shares, said before the earnings.

Baoshan Steel, Nippon Steel Corp and Posco make more steel for auto makers in China, which passed Japan last year to become the world's second-largest vehicle market. Auto sales may rise 15 percent this year, according to the China Association of Automobile Manufacturers.

Baoshan Steel has said it's a main supplier to the China units of Volkswagen and GM.

Rusal targets China for exports

RUSSIA'S United Co Rusal, the world's largest aluminum producer, expects to export aluminum to China starting 2009, a company official said yesterday.

Annual exports to China may be 200,000 tons to 300,000 tons at the start, Peter Finnimore, Rusal's aluminum sales director, told reporters in Shanghai.

The main hurdle for exports to China is the lower prices, he said. Aluminum contracts on the London Metal Exchange are trading at premiums over those on the Shanghai Futures Exchange.

Moscow-based Rusal sells 23 percent of its products to Asia, the bulk of which is to Japan and South Korea. Finnimore said they plan to raise the Asian portion to 30 percent in coming years, and China will be part of the growth.

China will account for 36 percent of global aluminum consumption by 2010, up from 25 percent, according to Rusal estimates. Aluminum can be used in beverage cans and airplanes.

China's aluminum production could reach 12 million tons this year, or a third of the world's total. Last year China produced 9.3 million tons.

In the long run, Finnimore said Rusal is "perfectly positioned to supply China" as its major smelters and other new projects are located in south and east Siberia which allows them to reach China through the Far East ports and cross-broader railroad lines.

Symbian Establishes Chinese Smartphone R&D Center

Symbian has announced the establishment of a global R&D center in Beijing.

The center is Symbian's fourth R&D center with the others located in the United Kingdom and India. The new facility will play a key role in the company's continuing development of Symbian OS. Symbian OS is licensed to the world's leading handset manufacturers and to date, over 145 million Symbian smartphones have been sold worldwide to more than 250 major network operators. Symbian says it leads the market with a global market share of 72 percent of the smartphone OS market during the second quarter of 2007.

Symbian has also announced that seven Chinese companies have joined the Symbian Platinum Program, a partnership scheme which represents key technology innovators and service providers in the mobile industry. Symbian also unveiled details for a local Symbian Academy program in collaboration with several local universities. The Symbian Academy is designed to facilitate universities creating courses that teach Symbian software development and to introduce a Symbian program into existing computer science courses.

The partners joining the Symbian Platinum Program are: Aspire Holdings, Ltd., Intromobile Co., Ltd., Leadtone Wireless, Ltd., Beijing Netqin Tech Co., Ltd., Tencent Technology Ltd., Simlife Science & Technology Co., Ltd. and Shenzhen Temobi Science & Tech Development Co., Ltd.

The six Chinese universities involved with Symbian Academy are: Beijing University of Posts and Telecommunications, Beihang University, Graduate University of the Chinese Academy of Sciences, Tongji University, Nanjing University and Daqing Petroleum Institute. Approximately 800 Chinese students have been trained under this program to date with numbers expecting to double by the end of the year. Currently the global Symbian Academy Program offers coursework and developer materials to students in 32 universities in 14 countries.

Ericsson Will Provide Communications Service For Beijing Subway

Ericsson China has told local media that they would provide communications service for Beijing's No. 10 subway line.

Ericsson said that some 3G network interfaces had been preserved on the subway line and it could support the three mainstream 3G standards of TD-SCDMA, CDMA2000 and WCDMA when an outdoor network is constructed.

Chen Dexing, supervisor of Ericsson China's Urban Coverage Intellectual Center, says that the communications network of Beijing No. 10 subway line is currently being constructed, and a multi-system and multi-operator coverage solution has been applied, which includes China Mobile Beijing branch's GSM, Beijing Unicom's GSM/CDMA as well as Beijing Netcom's Little Smart PHS system.

Chinese mainland imposes anti-dumping duties on imported BPA

The Chinese mainland is to levy five-year anti-dumping duties from Aug. 30 on BPA (Bisphenol-A) imported from Japan, Singapore, Republic of Korea, and Taiwan, said the Ministry of Commerce on Wednesday.

Importers of BPA, a type of organic chemical mainly used in producing antiseptic and paint, would have to pay a 5 to 37.1-percent duty to offset damage caused by BPA producers in the above countries and regions, said the ministry.

This followed the final conclusion reached by the Ministry of Commerce that BPA from these countries and regions had constituted dumping and inflicted losses to local manufacturers.

According to the initial conclusion publicized by the ministry on March 21 this year, the foreign exporters and manufacturers accused of dumping include Mitsui Chemicals,Inc, UMHO P&B Chemicals,Inc, MITSUI PHENOLS SINGAPORE PTE,LTD, and the Na Ya Plastics Corporation.

China started the anti-dumping investigation into imported BPA on Aug. 30 last year.

Energy, mineral deals to be inked with Australia

China and Australia will sign energy and mineral deals when President Hu Jintao makes a State visit to the country next week, foreign ministry officials said Tuesday.

Assistant Foreign Minister He Yafei did not provide details of the agreements, saying negotiations are still going, but agencies reported that one of the deals could be a long-term contract for Australia to provide liquefied natural gas for a terminal under construction in eastern China.

Hu will also witness the signing of other cooperative accords in the fields of trade, justice and technology after meeting with Australian Prime Minister John Howard, He said.

When attending the two-day Asia-Pacific Economic Cooperation (APEC) Forum in Sydney, Hu will propose an initiative on sustainable management of forests in a bid to bring into full play the role of forests in tackling climate change, Assistant Foreign Minister Cui Tiankai said.

Cui said China is ready to share information and cooperate with other APEC member economies on the sustainable development of forests.

The week-long visit, starting from Monday, is divided between a State visit to Australia and attendance at the 15th economic leaders' informal meeting of APEC.

Hu will visit Perth, Canberra and Sydney.

This is Hu's second visit to Australia since 2003 and shows the importance China attaches to the healthy development of partnerships in the 21st century, He said.

Hu is also scheduled to hold talks with Australian Governor-General Michael Jeffery, President of the Senate, Speaker of the House of Representatives and Kevin Rudd, leader of the federal Australian Labor Party and leader of the Opposition in the Australian Parliament.

He will also meet with leaders from the United States, Japan and other APEC member economies on the sidelines of the APEC summit.

Speaking highly of the growing economic links between China and Australia, He said two-way trade was about US$33 billion last year and was US$16 billion in the first five months of this year.

Lanzhou-Chongqing Railway to begin construction this year

Construction will begin this year on a railroad linking Lanzhou, capital of West China's Gansu Province, and Chongqing, on the upper reaches of the Yangtze River.

Gansu governor Xu Shousheng said the provincial government had decided that a special railway investment company be set up to represent the provincial government and participate in investing, building and operating the new railway.

The Lanzhou-Chongqing double line will run 800 km from Lanzhou, pass through Longnan in Gansu, Guangyuan and Nanchong cities in Sichuan, to Chongqing. It will cost 55.5 billion yuan (US$6.94 billion) to be shared by the Ministry of Railways, Gansu, Sichuan provinces and Chongqing.

The railway is intended to increase exchanges between northwest and southwestern China and benefit economic development along its length.

Railways Minister Liu Zhijun was quoted as describing the Lanzhou-Chongqing railway as a "strategic national route".

"It will be a convenient, fast and efficient transport route for freight and goods alike between northwest and southwest China," said Liu.

China's Jan.-July crude oil output up 1.1 pct

China produced 108.69 million tons of crude oil in the first seven months of the year, up 1.1 percent from a year earlier, according to data from the country's top economic planner National Development and Reform Commission.

In the seven months, the country imported 96.37 million tons of crude oil, which was 14.8 percent higher than the previous same period.

The country's refiners processed 188.26 million tons of crude in the period, up seven percent from a year ago. Gasoline and diesel productions over the Jan.-July period were respectively 8.7 percent and 6.2 percent higher than one year ago.

Natural gas output soared 17.1 percent year on year to reach 38.6 billion cubic meters.

Among major petrochemical products, ethylene saw an output rise of 15.8 percent while the production growths for caustic soda and soda ash respectively reached 16.4 percent and 8.6 percent, all on a year-on-year basis.

Fertilizer and pesticide productions also went up 11.8 percent and 21.6 percent year on year in the seven months.

In July, the country's crude oil output was actually 1.7 percent lower than a year earlier, thought refinery throughput growth went up 6.7 percent, 3.1 percentage points lower than that in June.

July gasoline and diesel outputs were respectively 13 percent and 6.5 percent higher than a year ago. Natural gas output increased 19.8 percent, down 1.9 percentage points from June.

CNOOC defends drive for oil in Africa

CNOOC, the Chinese state-owned oil company, on Wednesday defended China’s drive to secure oil in Africa against criticism it was being too aggressive.

Fu Chengyu, chairman and chief executive, insisted his company was taking the same risks as other international oil groups.

China's CNOOC H1 oil, gas output up 4.5 pct

China's top offshore oil and gas producer, CNOOC Ltd, produced 4.5 percent more oil and gas in the first half of this year.

CNOOC said in a statement on Wednesday that its crude oil output was 68.1 million barrels in January-June, while natural gas output was 99.7 billion cubic feet.

Its average oil selling price was US$58.8 per barrel in the period, down 5.8 percent from a year earlier.

Deep-sea gear lined up by CNOOC

China's top offshore oil and gas producer is to invest 10 to 15 billion yuan to enhance deep-sea drilling capability by building relevant equipment, a senior executive confirmed yesterday.

Relevant high-end gears will make up a "complete" deep-sea exploration and production fleet, which consists of drilling rigs, exploration and pipe-installing vessels, according to Zhou Shouwei, vice-president of China National Offshore Oil Corporation, or CNOOC.

The executive added that the planned deep-sea equipment would be capable of operating at 3,000 meters under water and drilling up to 10,000 meters under the seabed.
"Deep-sea areas boast larger potential both in China and elsewhere That's why we should spare no effort tapping the segment," Zhou said.

Zhou also said a manufacturing site for deep-sea gears is under construction in Qingdao, which is supposed to build most of CNOOC's own deep-sea drilling facilities.

He also said a deep-sea exploration experimental project is under preparation, and is expected to be carried out at the end of October or early November.

In another development yesterday, Hong Kong-listed CNOOC Ltd announced it has made a major discovery in Bohai Bay.

Fu Chengyu, chairman of CNOOC Ltd, said that based on the current geological features of the Jinzhou 251 Oilfield, it is very likely for the field to have more reserves of light oil. "Our Bohai assets used to feature heavy oil reserves. The discovery this time is light oil, which is a breakthrough."

Another positive news for CNOOC Ltd is that Liuhua 11-1 Oilfield, which suspended its production after typhoon Chan Chu struck, has resumed production since June 27. All its 25 wells are on stream, rolling out 23,000 barrels of crude oil per day.

The resumption in production will boost CNOOC's output this year, analysts say. In its interim report released yesterday, CNOOC said it produced 85.4 million barrels of oil equivalent, up 4.5 percent year-on-year.

Because of the low oil price during the first five months of this year, the company witnessed its sales and net profit drop by 6.4 and 10.6 percent respectively year-on-year in the first half of the year.

But a rebound in oil prices after May will help boost CNOOC's financial performance during the second half of this year, some analysts have predicted.

NDRC suggests adjusting power coal prices

China is expected to further deepen the reform to form a standardized and operational mechanism of power-coal pegging prices, according to the National Development and Reform Commission (NDRC).

NDRC said in a report that the present mechanism of the prices for coal used to generate electricity is not perfect, and major contractual prices for power coal are obviously lower than the market prices. The process of power coal market has developed slowly in some places.

In view of China's coal import and export in the first half of this year, China has become a net coal importer, restricted by railway transport facilities.

China exported 23.12 million tons of coal in the first half of this year, down 27.9 percent from that in the same 2006 period, and imported 27.07 million tons of coal, up 47.6 percent.

According to the report, the annual coal supply and demand maintains balance on the whole.

The report noted that China published a series of policies to increase safety, technical equipment level, resources cost and environment cost of coal collieries in recent years. And some more policies are under consideration and will be unveiled later.

It said that it is necessary to implement these policies to keep sustainable development of coal industry, but the concentrative implementation of these policies will seriously affect the operation of coal enterprises.

NDRC: China's coal supply-demand balanced this year

China's coal supply and demand will continuously maintain balance in general this year, according to the National Development and Reform Commission (NDRC).

NDRC said in a report, Coal Industry Operation Analysis in H1 and Prediction in H2, that the country's coal output increased 10.1 percent to 1.26 billion tons in the first half of 2007, driven by the rapid expansion of domestic investment and railway transportation.

In comparison with 12.2 percent increase in coal consumption in the first half of the year, the country's 10.1 percent growth of railway transportation is still lower than the demand for coal, which has restricted China's coal supply to some extent.

NDRC predicted that China's coal supply is expected to exceed the demand in two years after more new coal mines going into production and the implementation of government's policy to limit high energy consumption industries,

However, weak railway transportation capacity is still a bottleneck to limit coal supply in some areas, according to NDRC.

Greek Shipping Company Helps Satisfy Chinese Appetite For Coal

China dethroned the U.S. last year as the world's largest emitter of carbon dioxide, a Dutch policy group reports.

Some blame the greenhouse gas for what they call global warming.

This is due in large part to China's heavy reliance on coal-fired power plants. The nation opens about one plant a week, according to China's State Environmental Protection Administration.

Coal makes up almost 70% of primary energy use in China vs. a world average of less than 30%, the agency says. The country consumes more coal than Europe, Japan and the U.S. combined.

China, once one of world's biggest coal exporters, is now a net importer.

Excel Maritime Carriers will be one of the many dry-bulk shippers transporting coal to quench the energy thirst of the world's most populist nation.

The key driver behind dry-bulk shipping growth over the past 10 years has been rapidly growing global iron ore and coal trades, says analyst Douglas Mavrinac of Jefferies & Co.

Coal Imports to China Will Surpass 50 Million Metric Tons in 2007

Coal demand in China continues its growth for the eighth year in a row. Latest data from the General Administration of China Customs shows that the import of coal continues to increase and exports continue to decrease in the Chinese coal market in recent years.

Total coal exports in China in the first half of this year reached 23.12 million metric tons, a drop of 27.9% year-on-year; and total coal imports reached 27.07 million metric tons, an increase of 47.6% year-on-year.

Taiwan seeks coal-fired power plants to plug shortfall

Taiwan is seeking private companies to invest in the island's power generation sector with a preference for coal-fired plants, in an attempt to boost supply amid concerns of blackouts that could affect thousands.

Delays in upgrading old power stations, the construction of new plants and additional sub-stations due to opposition from local residents could push the island's power reserve ratio margin to between 10-12 percent after 2010, officials say.

Taipower said this week the reserve margin during peak hours this summer was expected to fall to 14.5 percent, that is below a target of 16 percent, which is considered sufficient to handle peak loads and reduced supply in case of accidents or maintenance, which could lead to blackouts.

To address the problem, the island will select two-to-three companies to provide a total of 1,980 megawatts of power early next year after the period to submit bids closes on Dec. 5, said Chan Wen-hong, the official at the energy bureau overseeing the project.

"There is a priority on coal, but if bidders do not offer coal or coal-fired bidders are unsuccessful, then the next preference is for gas," said Chan.

High prices of liquefied natural gas and problems with supply have prompted the government to opt for coal, although officials admit that environmental concerns about pollution could make it hard to secure approval for coal-fired plants.

The state-run Taiwan Power Co. buys around 28 million tonnes of coal per year for power generation, out of the 62.4 million tonnes Taiwan imported last year.

FOREIGN INTEREST

Around 10 companies have expressed interest in bidding for an independent power producer licences, which will commit them to sell their power directly to Taipower for the next 25 years, industry officials said.

Last year, IPPs provided around 19 percent of the island's installed power capacity, with state-run Taipower providing the remainder.

Kuo Kuang Power Co., in which state refiner CPC, Taiwan Corp. [CHIP.UL] holds 45 percent, with privately held Meiya Power Co Ltd holding 35 percent, are bidding to build a 480 megawatt gas-fired plant.

Also interested is the Ho-Ping Power Company, which is 70 percent-owned by Taiwan Cement Corp and 30 percent by One Energy -- a joint venture between Japan's Mitsubishi Corp and Hong Kong's CLP Holdings Ltd . That venture is looking to build a 700-800 megawatt coal-fired plant, according to officials.

BLACKOUTS?

Building new power plants is not the only way to plug the deficit. New and overhauled distribution systems are also required, but they also face similar public opposition due to fears about living near high-voltage power lines and sub-stations.

The main concern is the possibility of blackouts in power-hungry northern Taiwan, where the high density of the population means it is hard to get land to build power plants and transformer stations.

"Currently there are only four high-voltage transformer stations supplying greater Taipei, all of which where built 20-to-30 years ago and are now unable to satisfy the demand growth of recent years," said Taipower in a statement this week.

Taipower said new high-voltage transformers were desperately needed to meet future demand, saying that up 150,000 homes could be without power in areas of the capital Taipei and other outlying suburbs if just one power line was to shutdown.

China's Suntech eyes plants in U.S. and Europe

Suntech Power Holdings Co Ltd (STP.N: Quote, Profile, Research) expects to build manufacturing plants in the United States and Europe to serve growing demand for solar energy panels, a top official at the China-based company said.

"We are exploring the opportunity to have strategic manufacturing outside of China," Steven Chan, chief strategy officer for Suntech, said in a telephone interview late on Wednesday.

"Europe and the U.S. essentially are two key markets. We are looking at places, but we probably shouldn't break it out at this point," Chan said, adding that Suntech expects to identify manufacturing locations within two years. Its European market includes Germany, Spain, France and Italy.

Suntech will grow from about 480 megawatts of production capacity at the end of this year to more than 1,000 megawatts by the end of 2010, he said.

The company estimates it will be the world's second or third largest producer of solar power cells by the end of 2007.

Chan reaffirmed Suntech's third-quarter production target of 94 megawatts to 96 megawatts and about 325 megawatts of total production for the year.

Suntech has contracted this year's production and also signed contracts to deliver more than 150 megawatts for 2008 "so it's a very, very bullish environment for sales," Chan said. "Demand is higher than the supply of photovoltaic modules through 2009."

The company has not set production guidance for 2008, but Chan said it can add about 150 megawatts a year on a conservative basis.

Tight supplies of polysilicon, a key component of solar systems, have stalled panel production for some small companies, but analysts say more silicon refining will begin to come on line in 2008.

Chan sees improving silicon supplies for the solar industry in 2009.

More silicon and a potential reduction in product costs will help China adopt solar power within two-to-four years to feed the nation's ravenous appetite for new power generation, he said.

"I hear they are adding a new coal or gas-fired plant each week, that's 500 megawatts of additional generating capacity a week and a lot of air pollution."

Suntech Chairman and Chief Executive Zhengrong Shi has adopted former U.S. Vice President Al Gore's climate crusade and is encouraging Chinese political leaders and others to attack global warming and climate change, Chan said.

"He is saying you guys need to start acting soon."

China Imposes Anti-dumping Duties on Imported BPA

The Chinese mainland is to levy five-year anti-dumping duties from Aug. 30 on BPA (Bisphenol-A) imported from Japan, Singapore, Republic of Korea, and Taiwan, said the Ministry of Commerce on Wednesday.

Importers of BPA, a type of organic chemical mainly used in producing antiseptic and paint, would have to pay a 5 to 37.1-percent duty to offset damage caused by BPA producers in the above countries and regions, said the ministry.

This followed the final conclusion reached by the Ministry of Commerce that BPA from these countries and regions had constituted dumping and inflicted losses to local manufacturers.

According to the initial conclusion publicized by the ministry on March 21 this year, the foreign exporters and manufacturers accused of dumping include Mitsui Chemicals,Inc, UMHO P&B Chemicals,Inc, Mitsui Phenols Singapore Pte,Ltd., and the Na Ya Plastics Corporation.

China started the anti-dumping investigation into imported BPA on Aug. 30 last year.

China's Credit Environment Improved: Official

China's central bank says the country's credit environment has been improved because a credit information database is in place.

A senior official with the People's Bank of China says the bank wants to expand the use of the database to reduce credit risks and strengthen commercial security.

Put into full operation nationwide from January 1st, 2006, China's credit information database covers 570 million individuals and 12 million businesses. It could be accessed free of charge from 200,000 terminals.

Those terminals were spread in China's financial institutions, including commercial banks, non-banking financial agencies, rural credit cooperatives and institutions managing public housing funds.

The database contained the details and addresses of individuals and their payment defaults on mortgage loans, social security funds, public housing funds and bills for mobile and land-line phones.

The vice governor of People's Bank of China, Su Ning says that the establishment of such a database has at least yielded three good results.

"First of all, it contributes to the expansion of credit loans. Before 2006, commercial banks usually provided individuals with only mortgage loans rather than credit loans. Secondly, the credit risks of commercial banks are reduced, as the database can easily track the loaning records of enterprises and individuals. Thirdly, the general public's credit awareness has been strengthened."

The official says that the central bank has been collecting more financial information through collaboration with other agencies to complete the database.

"In the last two years, the bank has been in talks with the State Environmental Protection Administration, the General Administration of Quality Supervision and Inspection and the Supreme Court of China, about increasing the range of the database through tracking tax payments and civil compensation."

Linked with the information system of the Public Security Ministry, the official says the database could also help financial institutions detect those who used fake identities to cheat on loans.

China Vanke Targets 5.9 Billion Yuan From Bond Sale

China Vanke Co., the country's largest publicly traded property developer, will seek as much as 5.9 billion yuan ($781 million) in a bond offering, after raising 10 billion yuan selling new shares last week.

The bonds will have maturities of three to seven years, the Shenzhen-based developer said in a statement to the city's stock exchange today, without giving a time frame for the offer. Money raised will be used for working capital and to improve Vanke's debt-to-equity ratio, it said. Vanke earlier this year said it was selling shares to raise funds for residential projects worth 31 billion yuan.

Vanke and rival Gemdale Corp. are among six listed Chinese companies to announce bond sales this month, seeking more than 20 billion yuan between them. China's people are turning to bond and stock markets for greater returns as the country's highest inflation rate in more than 10 years reduces the attraction of bank deposits.

Household savings fell by 22.6 billion yuan last month from a year earlier, according to the central bank.

Vanke last week raised 10 billion yuan selling new shares to fund property projects as rising wages in the world's fastest-growing major economy enable more people to buy homes. The company's shares have more than tripled this year.

Vanke and Poly Real Estate Group Co., China's second- biggest developer by market value, are tapping capital markets after the central bank raised interest rates four times this year to cool inflation, increasing borrowing costs for new developments.

China is building only about 60 percent of the estimated 1 billion square meters a year of new housing needed to keep up with demand, according to China Merchants Securities Co analyst Jia Zuguo.

Ikea Sales Soar 58 Percent in 2007

IKEA, the world's biggest furniture retailer, posted a 58 percent increase in mainland sales during the 2007 fiscal year, which ran from September last year to the end of August, the company said today.

The Swedish furniture retailer's four mainland outlets have served 14.8 million visitors this fiscal year, up 37 percent from last year.

IKEA said it will open new outlets in Nanjing, Shenzhen and Dalian next year. The company is expected to have 10 to 15 shops in China by 2010.

The company said it will continue to cut prices in 2008.

Since it first opened shop on the mainland in 1998, the furniture retailer has reduced prices by 54 percent.

China's Gold Output Grows 15.44 pct

China produced 145 tons of gold in the first seven months of the year, a rise of 15.44 percent over the same period last year and the biggest growth in the past decade, according to statistics of China Gold Association.

Chinese gold industry produced 240 tons of gold and raked in a profit of 6.1 billion yuan (about 763 million US dollars) last year, according to a report made at a forum on development of China's gold held held in Zhaoyuan, a well-known gold producing area in east China's Shandong province, on Tuesday.

China has witnessed a fast expansion in gold production capacity in recent years. The number of the country's gold producers with an annual output of more than one ton has gone up from 25 in 2001 to nearly 40.

Besides Zhaoyuan, Lingbao in Henan Province, Qianxinan in Guizhou Province and Tongguan in Shaanxi Province turned out about 40 tons of gold from January to July this year.

ICBC plans to pay HK$4.5 bln for Macao's Seng Heng Bank

Industrial and Commercial Bank of China<601398><1398>, the largest of China's Big Four commercial bank, announced yesterday that it plans to pay HK$4.5 billion for an 80% stake in Macao's Seng Heng Bank, owned by Stanley Ho, the wealthiest person in the special administrative region (SAR).

According to ICBC's plan, Ho will sell 70% shares held by him and Macao's largest business group Sociedade de Turismo e Diversoes de Macau (STDM), while Seng Heng's director Patrick Huen Wing-ming will sell 9.33% stake. HK$3.86 billion, or 85% of the consideration, will be paid in cash once the acquisition is completed, while the remainder, HK$682 million, will be held in an escrow account for six months.

The plan needs to be voted by ICBC's shareholders before it gets the official approval from China Banking Regulatory Commission (CBRC) and the Monetary Authority of Macao SAR.

The transaction will depend on official nods from both the Monetary Authority of Macao and the China Banking Regulatory Commission. ICBC shareholders also need to approve the deal. All these conditions must be satisfied by March 26 next year.

As the third largest lender in Macao, Seng Heng operates nine branches in the region and its assets reached HK$24 billion in 2006.

The possible acquisition would give the bank "a leading market position and scale in the Macao banking sector and also access to a large customer base," according to an ICBC's top executive.

ICBC shares closed yesterday at HK$4.86, down 1.22%.

Air China may merge with other mainland airlines

Air China Ltd.<601111><753>, the most largest international airlines in China, wants to merge with other China National Aviation Companies, such as its competitor - China Southern Airlines Co. Ltd<600029><1055>, Shanghai Airlines<600591>, Shenzhen Airlines, and Hainan Airlines<600221><900945>.

President of Air China Cai Jianjiang said the merger will can help the reconstruction of the airline in a time of the drastic rivalry from foreign carriers as well as new domestic airlines.

Although the company's share price decreased 4% to HK$8.34 on Wednesday, it earned 98% this year. The percentage earnings are much larger than that of Heng Sheng Chinese Enterprises Index, which is only 29%. The share price of China Southern fell 4.23% to HK$8.61, but the profits also tripled in first half of 2007.

However, Air China made an announcement on the Hong Kong Stock Exchange this morning, saying that such news was just rumors. The management only said it did not exclude the possibility of such mergers and restructuring, but did not identify any airlines that could be involved. Additionally, the company has no plans to conduct any reorganization, M&A, or asset injection with other airline companies.

ICBC dominates annuity market

Industrial and Commercial Bank of China<601398><1398> continues to dominate the annuity market with a total of 1.82 million accounts and RMB 13.9 billion under management.

The figures are provided at the end of July this year with the bank offering annuity services to 1041 enterprises. According to Ministry of Labor and Social Security, at the end of 2006, the number of annuity accounts is 3 million with a total of RMB 15.8 billion assets. More than half of these accounts are under the ICBC's management.

The bank has set up several enterprise annuity centers this year. The centers specialize in providing annuity management to enterprises and are offered in 37 branches throughout the country.

Dongfeng Motor Group posts interim results

Dongfeng Motor Group<489> posted its interim results yesterday with a net profit growth of 75.86%.

Net profit is RMB 2.091 billion for the period compared to RMB 1.189 billion for the same period last year. The net profit surge was partly due to a lower income tax expense for the period at RMB 64 million while last period's income tax expense was RMB 351 million. Also, revenue from sales increased 23.74% to RMB 28.81 billion. Earnings per share for the period were RMB 22.57 cents.

Dongfeng Motor Group Company Limited, through its subsidiaries, engages in the manufacture and sale of commercial vehicles, passenger vehicles, engines, and auto parts in China. The company manufactures heavy trucks, medium trucks, light truck, and also in the manufacturing of engines.

China Metal interim profit soars 64.93%

China Metal International Holdings<319> posted its interim results yesterday with net profit growth of 64.93%

Net profit for the six months ended Jun. 30, 2007 was US$15.465 million compared to US$9.377 million the period before. The period saw the company having stronger turnover of US$83.583 million, an increase of 50.88%. Earnings per share for the period were US$1.42 cents.

China Metal International Holdings, Inc. is a Hong Kong-based investment holding company. Its subsidiaries are principally engaged in the design, development, manufacture and sale of customized metal castings for use in various industries.

OECD: innovation shall be promoted in China

Despite remarkable growth of China's hi-tech exports, the Organization for Economic Cooperation and Development (OECD) urged China to boost innovation on August 27.

China has witnessed rapid growth in hi-tech exports in decades. From early 1990s to 2005, hi-tech products' share in China's total exports increased from 5% to over 30%.

Working together with Chinese Ministry of Science and Technology, OECD finished its first review on China's innovation system, in which the rise of China's hi-tech exports in recent years is cited as "spectacular".

However, the hi-tech exports of China mainly originate from foreign-owned enterprises. Currently, 88% of all the hi-tech exports of China are taken by products of foreign-owned companies. In particular, manufacturing industry related to information and communication is controlled by foreign players.

China ranks top in R&D in the world, with the second largest population of researchers and the sixth largest R&D spending. However, less than one third of the total expenditure on R&D is spent on basic research and applied research. "The lack of basic and applied research implies that little research is likely to lead to patentable inventions," OECD said.

To drive the country's economy into an "innovation-oriented" one by 2020, China still needs to make huge efforts to promote innovation, said OECD.

China Eastern Airlines reduces losses

China Eastern Airlines<600115><670> released its interim results yesterday which showed substantial improvements but did not managed to earn positive profits for the six months ended 30 June 2007.

The loss for the period was RMB 383.95 million, substantially lower than the RMB 1,710.62 million losses incurred for the same period last year. Higher aircraft fuel expenses have taken its toll on the airlines and it is in talks to sell a stake to Singapore Airlines. The announcement is expected to be made on Sunday with the stock to resume trading next month.

Voith Siemens Hydro wins big deal in China

Voith Siemens Hydro Power Generation in Shanghai has won a contract worth approximately EUR120 million in the Southwest China's Sichuan province.

Under the deal, Voith Siemens will provide the electro-mechanical equipment for Jinping II hydro power station on the Yalong River, which is the country's fourth-largest source for hydro power production.

Located at the lower reaches of the river, Jinping II has a total capacity of 4,800 MW and is therefore the largest of the five hydro power stations on the Yalong. It will be equipped with eight turbines, each rated at 600 MW.

Jinping II hydro station is an important part of China's strategic energy plan to transmit electricity from the west to the country's highly industrialized east, where the demand for energy has been rapidly increasing in recent years. The plant is expected to be completed in 2014.

Voith Siemens Shanghai was established in 1994, and it has already supplied equipment for more than 50 large-scale hydro power projects in China. This deal is so far the largest contract for the Shanghai-based company.

Northern Heavy Industries buys stake of France's NFM

China's Northern Heavy Industries Group Corporation (NHI), the parent of Shenyang Heavy Machinery Group Co., Ltd, has acquired a controlling 70% stake of France's NFM, a unit of Germany's Wirth Group, NHI chairman Geng Hongchen said on Tuesday.

The acquisition would bring NFM's advanced technologies and brands of tunnel boring machines to NHI, said Geng, adding that the deal was finally reached through two years of negotiation.

NFM had already been providing technologies and key machine parts for NHI before the deal. A Wirth representative was quoted by an NHI statement as saying the deal meant both sides started cooperation in the capital field.

NFM has sold 25 shield tunneling machines to China since it became a unit of Wirth Group in 1991.

The sources say that NHI and NFM would set up two research centers in Shenyang, China, and Lyon, France, in the next three years.

NHI, based in Shenyang, capital of northeast China's Liaoning Province, has so far won RMB 1.9 billion worth of contracts involving 18 shield tunneling machines in the Chinese market.

In 2005 Shenyang Heavy Machinery set up a joint venture to produce tunnel boring machines with Wirth and NFM.

Shenyang Heavy Machinery held a controlling 52% stake in the joint venture - Shenyang Wirth TBM Co., Ltd at that moment, while Wirth and NFM each held 24%.

Airbus to set up JV with its China partners

European aircraft maker Airbus has agreed to set up a US$22 million technical service centre with three Chinese firms, two of its Chinese partners said on Tuesday.

The sources say that Airbus, owned by European aerospace, will hold 70% of the venture, while Jiangxi Hongdu<600316> and Hafei<600038> will hold 7% and 18% stake respectively, and Chinese aircraft maker AVIC I will own the remaining 5%.

The joint venture will provide engineering, aircraft component design, consulting and training services to Airbus and its affiliates in China and elsewhere.

Hongdu, Hafei and AVIC I had previously teamed up with Airbus to assembly aircraft in the northern port city of Tianjin.

CNOOC restarted LH 11-1 oilfield production

CNOOC Ltd<883>, the Chinese state-owned top offshore oil and gas producer, announced yesterday that its independent oilfield "Liu Hua" (LH) 11-1 in the Eastern South China Sea has successfully restarted production. The LH 11-1 oilfield operates steadily and produces about 23 thousand barrels of crude oil per day at present.

Last May, LH 11-1 oilfield suspended production due to the strike of typhoon "Chan Chu" and some production facilities were seriously damaged. The oilfield restarted production on a temporary basis in June this year and all the 25 suspended wells successfully restarted production during the trial period.

After that, CNOOC Ltd. organized designers, manufacturers, and installation contractors to scheme for the LH 11-1 oilfield re-producing. Seven advanced techniques for refloatation were adopted in order to guarantee the scheme of restart production.

Moreover, the scheme complies with the company's HSE (health, safety, and environment) standards.

The Company Chairman and CEO Fu Chengyu said the re-producing of LH 11-1 oilfield can ensure the total production target in 2007 and increase revenue because of the high oil price.

LH 11-1 oilfield started production in April, 1996.

Tsingtao Brewery interim profits up

The largest beer maker, Tsingtao Brewery Co. Ltd<600600><168>, announced the net profits increased 69.15% to RMB 366.81 million in the first half of this year, owing to the rising beer sales in Mainland China.

The company said the beer production rose 12.4% to 2.559 million kiloliters in the first half, and the sales of Tsingtao-branded products went up 17.9% to 909,000 kiloliters, according to the interim financial results.

Company's operating revenue increased from RMB 5.822 billion to RMB 6.843 billion. And earnings per share (EPS) rose to RMB 0.28, compared with last year's RMB 0.166.

Based on Hong Kong accounting standards, Tsingtao Brewery gained net profits of RMB 347.57 million in the first half of 2007, compared with RMB 212.74 million in 2006. And the total value of assets rose 14.69% to RMB 10.965 billion at the end of June.

The company, which is 27%-owned by Anheuser-Busch, said innovation of products is their future concern due to the increasing production costs.

The Tsingtao Brewery was founded in 1903 by German settlers in Qingdao, and introduced to the United States in 1972. After that, Tsingtao soon became the top-selling Chinese beer in the U.S. market and has maintained this leadership position ever since. Now Tsingtao is the No.1 branded consumer product exported from China.

Genesis Energy to put 3b yuan into Shaanxi oil

Oil and gas company Genesis Energy Holdings (0702) plans to invest up to 3billion yuan (HK$3.1 billion) on a 25-year oil exploitation project in Shaanxi province, executive director Terence Kong Siu-tim told a press briefing yesterday following a technical report presentation.

Drilling consultant Halliburton revealed that initial test findings at the Xun Yi Oil Field in central China indicate total crude oil reserves of 60.86 million tonnes, with prospective recoverable reserves of 13.27 million tonnes.

The total gas reserve was estimated at 96.93 million tonnes, of which 56.85 million tonnes would be exploitable.

"The technical report points to higher-than-expected prospects for Xun Yi Oil Field, exploration of which is expected to begin in January 2008," said Kong. "This project will also provide headway for our investments in the oil and gas prospects of China."

The report estimated oil exploration investment of 130 million yuan, plus another 233.6 million yuan for gas exploration.

With an exploration cycle of 10 to 15 years, annual investment would range between 24.24 million yuan and 36.36 million yuan.

Under a joint-venture agreement reached earlier this month, Genesis would be entitled to 95 percent of profit generated from the oil exploration and production project, while its partner, Ningxia Changqing Shuang Long Industrial, would get 5 percent.

The site covers 560 square kilometers in Shaanxi.

"We have paid our partner 2million yuan as a deposit or a cooperation fee," said Genesis financial controller Terence Wan Tze-fan.

Genesis will hold the exclusive right to explore and produce oil from not fewer than 1,000 oil wells, at a cooperation fee of 120,000 yuan each.

Drilling cost per well will amount to between 850,000 yuan and 1million yuan, according to the technical report. Development works must be completed in three years and Genesis retains exploitation rights on the worked oil wells for 25 years after exploration.

"Commercial production is expected to commence in early 2008 and it will take 18 to 24 months to generate positive cash flow," Kong said.

Genesis is responsible for all related exploitation costs and expenses for the project, while the technical staff and engineers, equipment and technological analysis are to be the responsibility of the mainland partner.

Genesis shares closed yesterday at HK$0.49, gaining 6.5 percent.

China: Earnings Decline 11% at Oil Producer

Cnooc, a Chinese offshore oil producer, said first-half profit declined 11 percent, less than analysts had expected, as the company reined in operating costs. Net income slid to 14.6 billion yuan ($1.9 billion) from 16.3 billion yuan a year earlier, the Beijing-based company said, reflecting lower average oil prices. Oil and gas production rose to the equivalent of about 467,000 barrels of oil a day, Cnooc said. Oil and gas sales fell 6.4 percent, to 33.2 billion yuan. The average price Cnooc received for its oil fell 5.8 percent, to $58.80 a barrel. Gas prices gained 1.3 percent.

CNOOC Ltd hails Bohai Bay strike

China National Offshore Oil Corporation Ltd (CNOOC Ltd) is trumpeting a "significant" oil find in Bohai Bay that it expects to be developed into a "light oilfield of considerable scale".

Three shallow-water wells have been drilled at the Jinzhou 25-1 field, striking oil and gas pay zones ranging in thickness from 54 to 261 feet, the company said in its half-year results presentation yesterday.

The wells have flowed at up to 2897 barrels per day of oil and 11.66 million cubic feet of gas per day during testing, said CNOOC Ltd, the listed operating arm of China National Offshore Oil Corporation.

The large JZ 25-1 structure is still under appraisal, CNOOC Ltd said.

The company said: "We are pleased that the Jinzhou 25-1 discovery contains abundant reserves with light crude and is expected to be developed into a large oilfield."

The field lies in water depths of about 30 metres in the Liaoxi area, also home to the JZ 21-1 field, which is currently being developed.

CNOOC Ltd's net reserves at JZ 25-1 and JZ 21-1 as of 31 December 2006 were 90 million barrels of oil equivalent, the company said.

SK E&S JV buys 50 pct stake in China's Taizhou Gas

South Korean city gas provider SK E&S said on Thursday its Chinese joint venture has signed a deal to buy a 50 percent stake in Chinese local city gas distributor Taizhou Gas for 8.6 billion won ($9.15 million).

The stake purchase would be made by China Gas-SK Energy Holdings, a joint venture established in March between SK E&S and China Gas Holdings (0384.HK: Quote, Profile , Research), a local piped-gas supplier.

SK E&S is one of the seven subsidiaries of SK Holdings (003600.KS: Quote, Profile , Research), which includes SK Energy (096770.KS: Quote, Profile , Research) in charge of the group's refinery and petrochemical business.

China's CNOOC seeks "value" in Africa projects

China's top offshore oil and gas producer CNOOC Ltd (0883.HK: Quote, Profile , Research) has defended its search for new acreage in Africa against critics who say China is desperate to secure oil reserves at any price to fuel its roaring economy.

"Concerning our investment in Africa, there were a lot of comments in the international media saying Chinese companies pay more money and take higher risks than other international companies investing in African countries. I think that's most wrong," CNOOC President Fu Chengyu said late on Wednesday.

"In terms of political risks I think we share no more political risks than international oil companies. Secondly, all the investments we make in any African country are based on economic returns."

Chief Financial Officer Yang Hua told Reuters that there was one criterion for investments: "Value. If there's no value, no deal," he said.
CNOOC is already in Nigeria, Kenya and Equitorial Guinea.

The Nigerian presence includes a 45 percent interest in the OML 130 block operated by Total (TOTF.PA: Quote, Profile , Research), which Yang said had been appraised at 1.2 billion barrels of proved and probable reserves by energy consulting firm Wood Mackenzie.

"A recent appraisal well has been further proof of that number and we are very excited about that," he said.

Total plans to start producing 225,000 barrels per day from a first field towards the end of 2008, with a second field developed separately.

Analysts at Taifook Research said that assuming a 50 percent proved ratio, it would add 10 percent to CNOOC's proven reserves.

Another Nigerian block, OPL 229, is still in the exploration stage. Yang said a first well proved to be dry and preparations for a second were underway.

CNOOC (CEO.N: Quote, Profile , Research), which ran into political obstacles when it bid $18.5 billion for U.S. firm Unocal in 2005, has made acquisitions from Australia and Indonesia and is scouring the globe for more. China, the world's fastest-growing major economy, is already the top oil consumer after the United States.

Analysts like CNOOC despite net slip

CNOOC , the mainland's largest offshore oil and gas producer, said interim earnings tumbled 10.6 percent as global oil prices softened in the second half of last year and the first half this year.

But analysts remain upbeat on the outlook for CNOOC, based on a rebound in crude oil prices and discovery of a large oilfield in Bohai Bay.

Net profit to June 30 was 14.55 billion yuan (HK$15.02 billion), compared with 16.28 billion yuan the same time last year. Turnover fell 12.7 percent to 42.22 billion yuan from 48.34 billion yuan. The oil giant declared an interim dividend of 13 HK cents per share, up 8.3 percent from 12 HK cents.

CNOOC is the only one among the three oil giants to report weak bottom line, as it is purely an upstream business.

For the first six months, PetroChina (0857) and Sinopec (0386) reported growth of 1.42 percent and 65 percent respectively.

CNOOC's net oil and gas production jumped 4.5 percent to 85.4 million barrels of oil equivalent.

However, a 5.8 percent drop in realized oil price to US$58.80 (HK$458.64) a barrel was offset by a 1.3 percent climb in gas prices. Realized gas price was US$3.21 per thousand cubic feet.

"The Liuhua 11-1 oilfield successfully resumed production on June 27," chief financial officer and executive vice chairman Yang Hua said yesterday. "Production is back to previous levels at 23,000 barrels a day."

Operations at the oilfield were suspended in May last year after damage caused by typhoon Chanchu. Infrastructure has been repaired and production has begun, CNOOC said.

But CNOOC did not raise its annual production target of 162 million to 170 million BOE this year. "Southern China could be hit by more typhoons, and that could again impact our production," chairman and chief executive officer Fu Chengyu said.

Also, tighter supply of resources, oilfields suspended for inspections and maintenance as well as a sharp decline in capacity at old oilfields could negatively impact production. "From current operations, I am confident we can achieve the production target," Fu said.

CNOOC said it made seven oil and gas discoveries in the first half, including Jinzhou 25-1 oil field on the northern shore of Bohai Bay, which contains abundant reserves of light crude.

Three exploratory wells have been drilled, Yang said.

"Other wells in Bohai Bay have a daily production of 600 to 700 barrels of oil, and ours are over 2,000 barrels a day. "I think it is an amazing discovery," Fu said, adding that the recovery rate of the fields, which contain higher-price light crude oil, must be above 40 percent. He would not disclose estimated reserves in the field.

CNOOC Ltd. makes significant discovery in H1, Liuhua oilfield resumes production

China National Offshore Oil Corp. Ltd. (CNOOC Ltd.), the nation's leading offshore oil and gas producer, has made a significant light oil discovery at an oilfield in the Bohai Bay, and output from its key Liuhua oilfield has returned to normal after suffering typhoon damage last year, company officials said during a press conference held in Hong Kong yesterday.

CNOOC officials said that the company had made seven new oil and gas finds during the first half of this year, and that its Jinzhou 25-1 block recorded test production of 2,898 barrels a day and 11.66 million cubic feet of gas at each of the three wells that have been drilled in the block.

"The Jinzhou discovery is expected to be developed into a large, light oil field of considerable scale in Bohai Bay," Yang Hua, CNOOC's chief financial officer, said.

Though the field's volume of reserves was not disclosed, Fu Chengyu, the company's chairman, said that the recovery rate at the field would be more than 40 percent, and that a third party will be booked to make an estimation of the field's reserves sometime next year. Production at the field will not begin for another three to four years after that, he added.

Operations restarted at the company's 23,000-barrel a day Liuhua oilfield in the South China Sea in late June, after operations had been suspended for more than a year due to broken rig structures located 1500 meters underwater. The field, which accounts for 5 percent of the company's total output, had been damaged in May last year by a typhoon.

"International firms had asked for between $500 million and $600 million to repair the damage, and still could not guarantee the successful restoration of the field. Instead, we went ahead and used our own resources and expertise and managed to fix it for less than RMB 600 million ($79.47 million)," Fu said.

The Beijing-based offshore explorer recorded a 28.5 percent year-on-year increase in gas production for the first half year, while its oil output declined by 0.3 percent year-on-year to 68.1 million barrels.

The company's net profit for the first six months of the year dropped by 10.6 percent, which was less than the market expected, as the average crude oil price earned by CNOOC during the January to June period fell by 5.8 percent year-on-year to $58.8 a barrel. At the same time, the company's average gas price was up by a slight 1.3 percent year-on-year.

CNOOC's profit earnings beat market expectations though because of its improved control over operational costs, Yang added.

Fu also confirmed recent media speculation that plans by China's largest Hong Kong-listed companies, including CNOOC, to return to A-share listing have been delayed due to concerns from the Hong Kong government that such a move would significantly hurt the Hong Kong Stock Market and the overall economy of the special administrative region.

"The China Stock Regulatory Commission is currently studying whether such concerns would materialize," Fu said.

Fu also noted that appraisal work at a natural gas discovery the company made in partnership with Husky Energy Inc. in the South China Sea last year will not start until the end of next year due to a shortage of equipment. Equipment necessary for the appraisal work is currently being built in Japan.

CNOOC had forecast in January that its oil and gas output will grow by as much as 17 percent in 2007, reaching the equivalent of 190 million barrels of oil after 10 new projects come on line. All the new discoveries the company made during the first half of this year will not have an immediate effect though, and will not contribute to oil and gas production until after 2010, Fu said.

China's State Grid gains 8.15 pct stake in Huaxia Bank from subsidiary

Shandong Electric Power Corp has transferred its entire 8.15 pct stake in Huaxia Bank to parent State Grid Corp, one of China's two state-owned power transmission firms, Huaxia Bank said.

Following the stake transfer, the State Grid will replace Shandong Electric Power as the second-largest shareholder in the bank, Huaxia Bank said.

The deal is subject to approval by the China Banking Regulatory Commission, Huaxia said.

Currently, Shougang Group, the parent of Beijing Shougang Co Ltd (SZA 000959), is the largest shareholder in Huaxia Bank with a 10.19 pct stake. Deutsche Bank AG (nyse: DB - news - people ) and unit Deutsche Bank Luxembourg SA hold a combined 9.9 pct but are treated as separate shareholders by Huaxia.

Huaxia Bank recently posted a first-half net profit of 1.01 bln yuan, up 35.51 pct year-on-year.
(1 usd= 7.55 yuan)

Report on national economy

China's State Council has submitted a progress report on the national economy and social development to the Standing Committee of the

National People's Congress. The report says economic growth has been rapid, but stable.

The report affirmed stable development of agriculture, marking the fourth summer harvest production increase since 1985.

And positive changes have been reached in industrial restructuring, with almost a third increase of new product output value.

China's GDP increased by 11.5 percent in the first half of this year.

Minister of National Development & Reform Commission, Ma Kai said, "The revenue in the first seven months increased by 30.3 percent, namely 728 billion yuan, which equals to the revenue of the year 1995. The continuous revenue increase enables us to solve a number of issues which have been shelved for many years."

According to the report, measures in energy saving and emission reduction are beginning to show results.

The measures are aimed to limit the expansion of industries with high energy consumption and emissions.

10 billion yuan has been added to support saving energy and reducing emissions.

The report also addresses the problems in the current economy, namely overly rapid economic growth, slow restructuring and high cost of development.

The investment increase is still high,the environment pollution still serious and the price of consuming goods is also getting higher.

Ma said, "The primary work for the current macro adjustment is to restrict the economic growth; and the agriculture development is still the core of our work.

Energy saving and emission reduction are the major means for restructuring and the transition of the economic growth mode. We will stick to the principle

of 'putting people first', and make the economic development a benefit for the people's lives."

The report stresses the promotion of agriculture development and farmers' income, and the control of investment on fixed assets. Stabling prices is also a major task for the remaining year.

First investment agency bonds go on sale

The first batch of special treasury bonds used to raise money for China's new state investment agency went on sale Wednesday, AP reported, citing state media. It was said that US$79 billion in bonds has gone on the market, out of a total US$199 billion, with an annual interest rate of 4.3%, which matches the standard rate for long-term debt. The state investment agency, which reports directly to China's cabinet, needs to raise money so it can buy foreign exchange from the central bank. The amount could range from US$200 billion to 400 billion. The agency is tasked with investing the funds in more lucrative products than the low-yield US Treasury bills in which the bulk of China's forex is invested.

Hong Kong Jewellery & Watch Fair

Start Date

23-SEP-07

End Date

28-SEP-07

Venue City / State Country Hong Kong Convention & Exhibition Centre Hong kong China (Hong Kong S.A.R.)

Event Profile:

A Perfect Marketplace for Jewellery Sellers and Buyers, well recognised as the summer edition of the September Hong Kong Jewellery & Watch Fair, the Fair is the most important mid-year jewellery event in Asia.

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Visitor's Profile:

Trade Visitors - Fine jewellery, diamonds, jadeite, pearls, gemstone & jewelry timepieces as well as equipment, packaging and technology manufacturers, importers, exporters & General Public.

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Exhibitor's Profile:

Profile of exhibits includes fashion jewellery; fashion jewellery materials; and fashion accessories like watches, belts and buckles, scarves, shawls, handbags, beauty items and accessories, other ornaments and accessories.

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Organizer: CMP Asia Limited 17/F, China Resources Building, 26 Harbour Road, Wanchai, China (Hong Kong S.A.R.). Tel: +(852)-(2827)-6211 Fax: +(852)-(2827)-7831

Hong Kong Watch & Clock Fair

Start Date

05-SEP-07

End Date

09-SEP-07

Venue City / State Country Hong Kong Convention & Exhibition Centre Hong kong China (Hong Kong S.A.R.)

Event Profile:

The Hong Kong Watch & Clock Fair offers Asia's best event for exhibiting timepieces. But the fair offers much more.

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Highlights:

Highlights include: At Business Matching Meetings, international brand names interested in developing watch lines will be presenting their requirements to interested manufacturers. A key element of the fair is the Asian Watch Industry Conference, a popular forum at which market experts will discuss developments in the timepiece industry. Winning designs in the much-lauded Hong Kong Watch & Clock Design Competition will be on display throughout the fair period.

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Visitor's Profile:

Professionals related to Brand Name Gallery (Brand Name Watches & Clocks), Categories, Complete Watches & Clocks, Parts & Components, Equipment, Machinery, Packaging, Trade Services & Publications & General Public are the target visitors.

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Exhibitor's Profile:

Profile for exhibit include Alarm Clock Quartz Watch & Clock, Brand Name Watch & Clock Tools &amp; Machinery, Electronic & Electrical Clock Watch Band, LCD Watch Watch/Clock Case, Mechanical Watch & Clock Watch/Clock Dial, Movement Watch/Clock Hand, Packaging Wristwatch, Publication & Media.

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Organizer: Hong Kong Trade Development Council Comnet Exhibitions Private Limited 38/F, Office Tower, Convention Plaza, 1 Harbour Road, Wanchai, China (Hong Kong S.A.R.). Tel: +(852)-21830 668 Fax: +(852)-2824 0249

Aircraft Interiors Expo Asia

Start Date

03-SEP-07

End Date

06-SEP-07

Venue City / State Country Hong Kong Convention & Exhibition Centre Hong kong China (Hong Kong S.A.R.)

Event Profile:

Aircraft Interiors Expo - Asia Conference will incorporate an opening session exclusively for CEO and senior airline directors with additional sessions over the three days of the show covering first class, business class and economy class operations plus special sessions dealing with in-flight entertainment and communications and maintenance and repair.

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Visitor's Profile:

Trade Visitors only - Seating / Restraint System Manufacturers, Upholsterers, Leather, Carpet & Fabric Manufacturers, Airframe / Cabin Operators Manufacturers, Interior Designers, Amenities Suppliers.

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Exhibitor's Profile:

Major Airlines, Second-Tier Airlines, Charter Operators, Corporate / General Aviation Operators, Government / Military Operators, Refurbishing / Maintenance Facilities, Leather, Carpet & Fabric Manufacturers, Airframe/Cabin Operators, Manufacturers, Interior Designers, Amenities Suppliers, IFE System Manufacturers, Flame Retardant Materials, Lavatory Equipment and Services, Audio-Visual Equipment, will be participating in the event.

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Organizer: UK & International Press Events Abinger House, Church Street, Dorking Surrey, United Kingdom. Tel: +(44)-(1306)-743744 Fax: +(44)-(1306)-742525

Asian Aerospace International Expo

Start Date

03-SEP-07

End Date

06-SEP-07

Venue City / State Country AsiaWorld-Expo Hong kong China (Hong Kong S.A.R.)

Event Profile:

Asian Aerospace International Expo, Asia's premier aerospace event for the past 25 years, is strongly supported by the world's leading aerospace suppliers. It continues to be the premier international commercial aerospace marketplace that creates optimum business, trading, networking & educational opportunities with major Asia-Pacific aviation buyers, providing the platform to exchange knowledge on leading technology & best business practices, by offering a quality business forum.

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Highlights:

Asian Aerospace will be an aviation event like no other. Co-located with Aircraft Interiors Expo Asia, the 4 day high impact business forum will be a congregation of the world's commercial aerospace manufacturers and suppliers to meet, engage, discuss, and do business with, Asia-Pacific's buyers and influencers right across the commercial aerospace sector.

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Visitor's Profile:

Personnel from the defence ministry, armed forces, airlines, transport ministry, airport authority, maintenance and engineering companies, research and training institutes.

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Exhibitor's Profile:

Aircraft components and parts, ground equipment, engines, control and navigation equipment, airport equipment, ground and traffic control, satellites, defense equipment and technology, aircraft services and maintenance.

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Organizer: Reed Exhibitions China Head Office Unit 4-5, Level 12, Office Tower E1, The Towers, Oriental Plaza, No.1, East Chang An Ave, Dong Cheng District, Beijing, China. Tel: +(86)-(10)-851890707 Fax: +(86)-(10)-8518 9060

Composites & RP Asia

Start Date

03-SEP-07

End Date

05-SEP-07

Venue City / State Country AsiaWorld-Expo Hong kong China (Hong Kong S.A.R.)

Event Profile:

Composites & RP Asia is an integrated international business platform at the heart of Asia, offering exhibitors the opportunity to showcase their best products and technology to buyers and potential business partners from the Asia region and the rest of the world.

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Visitor's Profile:

Decision makers, Engineers, and Developer of the main application industries: Automotive, Aerospace, Marine, Railway, Industry, Energy & Electronics, Building & Construction are the target visitors.

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Exhibitor's Profile:

Profile for exhibit include Raw Materials, Acrylic acid, Chemical/corrosion resistant, Fire retardant, Polyurethanes, Silicones, Polyethylene, Polypropylene, Polyvinyl chloride, Thermoplastic polyester, Chemical/corrosion resistant, Moulding Compounds, Low pressure moulding compounds, Woven fabric, Carbon fibre fabrics, Natural fibres, Nylon, Polyester, Antioxidants, Composite moulding materials, Injection moulding machines, Corrosion/chemical resistant equipment.

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Organizer: Reed Exhibitions China Head Office Unit 4-5, Level 12, Office Tower E1, The Towers, Oriental Plaza, No.1, East Chang An Ave, Dong Cheng District, Beijing, China. Tel: +(86)-(10)-851890707 Fax: +(86)-(10)-8518 9060

RP Asia

Start Date

03-SEP-07

End Date

05-SEP-07

Venue City / State Country Hong Kong Convention & Exhibition Centre Hong kong China (Hong Kong S.A.R.)

Event Profile:

The event offers a dynamic conference programme addressing the latest technology and business issues at a local and an international level, a comprehensive trade show visited by composites professionals from all over the world, a International forum to meet suppliers and customers.

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Visitor's Profile:

Manufacturers of Composite Parts, End-users of composite parts, Materials Suppliers, Equipment Suppliers, Research and Education Centres, Distributors & other related industry professionals are the target visitors.

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Exhibitor's Profile:

Profile for exhibit include Airconditioning, Bio-technology, Chemical & Plastics Technologies, Electrical & Electronic Technologies, Engineering Supplies, Hardware & Tools, Information & Communication Technology, Instrumentation, Logistics & Supply Chain Management, Machine tools, Mechanical & Materials Handling Technologies, Power Transmissions, Process Control, Automation & Electronics, Pumps & Valves, Robotics, Safety, Health & Environmental Technologies.

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Organizer: Elsevier Advanced Technology PO Box 150, Kidlington, Oxford, United Kingdom. Tel: +(44)-(1)-865 843208 Fax: +(44)-(1)-865843973

Sweets China

Start Date

05-SEP-07

End Date

07-SEP-07

Venue City / State Country Shanghai New International Expo Centre Shanghai / Shanghai China

Event Profile:

Sweets China, International exhibition for the Sweet & Confectionery, Bakery, Snack Food & Ice Cream Industry. Sweets China has become the region's leading platform for lucrative business and valuable top-level contacts.The premiere of Sweets China in Shanghai was a resounding success. Sweets China has become the region's leading platform for lucrative business and valuable top-level contacts.

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Highlights:

There will be perfect synergy transfer between Cologne,the world capital of food, and Sweets China in Shanghai.

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Visitor's Profile:

Producer & Manufacturer of the a.m. segments, Buyers from the Wholesale &amp;amp; Retail, Confectionery Trade, Grocery & Cooperative Wholesale Outlets, Retail Chains and their Regional Branches, Cash & Carry Companies, Department Stores & Consumer Markets, Drug Store Chains, Specialist Confectionery Retailers, Confectioners, Cafes, Filling Station Chains, Convenience stores are the target visitors.

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Exhibitor's Profile:

Profile for exhibit include End products of the following segments: Cocoa, Chocolate and Chocolate Products, Biscuits, Snack Products, Sugar, Confectionery, Ice and Raw Pastes & other related products.

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Organizer: Koelnmesse GmbH Messeplatz 1 Koeln, Deutschland, Germany. Tel: +(49)-(211)-8212460 Fax: +(49)-(211)-8212460

China International Water Congress & Exhibition (CIWCE 2007)

Start Date

05-SEP-07

End Date

07-SEP-07

Venue City / State Country China International Exhibition Centre Beijing / Beijing China

Event Profile:

China International Water Congress & Exhibition (CIWCE 2007) is an extremely widespread and deep level professional activity concerning water treatment technology. This is a grand meeting than following the 5th IWA Beijing world water congress and exhibition, objective on impels cities tap water security, promoting water circulation use and impulse profession technology progress.

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Visitor's Profile:

Water supply utilities, Wastewater treatment plants, Water treatment engineering companies, science and research institute, university, design institute Industry Users: oil refining, petrol-chemical, pharmaceutical, Textile Printing, paper making, food and beverages, metallurgical and electrical industries, Suppliers and distributors of water and wastewater technology and equipment.

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Exhibitor's Profile:

Profile for exhibit include Water disposing technology and equipment, Membrane & membrane separating technology and equipment, Water supply & drainage technology and equipment, Drinking water technology and equipment.

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Organizer: Beijing Shi Bo Hong Ye Exhibition Service Co. Limited Room. 2-15-1C, Ta Yuan Diplomatic Agent Office No. 14, Liangma River South Road, Chaoyang District, Beijing, China. Tel: +(86)-(10)-65327238/85323286 Fax: +(86)-(10)-85323276

China International Pharmacy Raw Materials & Intermedia Exhibition (CPHE 2007)

Start Date

05-SEP-07

End Date

07-SEP-07

Venue City / State Country China International Exhibition Centre Beijing / Beijing China

Event Profile:

China International Pharmacy Raw Materials & Intermedia Exhibition (CPHE 2007) is appointed to be held in Beijing. With its advantageous location, careful plan and organization, high quality service and perfect organizing solution for special visitors, CPHE has been chosen by more and more raw material pharmaceutical companies choose as their primary platform for extending international market.

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Visitor's Profile:

CEOs & Top executives from Pharma Manufacturing Industry, Executives from Production, Quality Control, R&amp;amp;D & Purchase Departments, Professionals from R&D Institutions, Pharmacists from Trade & Profession, Biotechnology Specialists, Top officials from Regulatory Agencies of Central & State Governments, Pharma consultants, Academicians from Medical & Pharmacy Colleges.

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Exhibitor's Profile:

Profile for exhibit include Plant & Equipment for Pharma Production, Packaging Machinery & Materials, Lab Equipment, Analytical Instruments, Labware, Process Control & Instrumentation, Effluent Treatment and Waste Management Systems, Refrigeration, Cold Rooms, Clean Rooms, Bulk Drugs, Drug Intermediates, Excipients, Additives, Technical Books & Journals.

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Organizer: China Pharmaceutical Technology Organization B-2-804 Room No.1 Building Wudongdalou No. 9, Yard Chegongzhuang Street, Beijing, China. Tel: +(86)-(10)-88395100/88395101

East China Machine Tool & Mold Technology Exhibition

Start Date

05-SEP-07

End Date

08-SEP-07

Venue City / State Country Suzhou International Expo Center Suzhou / Anhui China

Event Profile:

East China Machine Tool & Mold Technology Exhibition, the absolute leading trade fair for the sector and venue for the highest provider and user competence, exhibitors from all over the world once again will put their efficiency and innovative power to the test before the best qualified international specialists.

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Visitor's Profile:

Professionals related to the field of Machine building, construction of equipment, Tool & mould-making, fixture design, Steel & light-metal construction, Road vehicle construction & suppliers, Automotive industry & suppliers, Shipbuilding industry, Aerospace industry, Electrical & electronic industry, Precision machines & optics, Manufacture of iron, sheet metal and metal ware..

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Exhibitor's Profile:

Profile for exhibit include Plastic injection mold, Forging mold, Die-casting mold, Rubber mold, Metal Working Equipment, Milling machine, Wire Cut Machine, Grinding machine, Engraving machine, Drilling Machine, Hydraulic press machine, Flexible machining system, Fixing and clamping system, Cutting tools, Measuring apparatus, Clamping apparatus, Pneumatic tools, Electric tools, Electric balance, Laboratory apparatus, Heat Working, Die-casting, Heat treatment, Welding.

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Organizer: Paper Communication Exhibition Service Flat 15,5/F,Wah Shing Center 11 Shing Yip Street, Kwun Tong Kln, China (Hong Kong S.A.R.). Tel: +(85)-(2)-27639011 Fax: +(85)-(2)-23410379

East China Plastics Packaging & Rubber Technology Exhibition

Start Date

05-SEP-07

End Date

08-SEP-07

Venue City / State Country Suzhou International Expo Center Suzhou / Anhui China

Event Profile:

East China Plastics, Packaging & Rubber Technology Exhibition will reinforce its position as THE ONLY ONE professional exhibition to evaluate profitable investment decisions in Plastic, Printing and Packaging equipment as well as technology industries. The exhibition is divided into 3 sections (Packaging, Plastics, Printing) and exhibitors are placed in their respective sectors.

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Visitor's Profile:

Food & Beverage Manufacturers / Distributors, Plastic, Printing, Packaging Specialists & Professionals, Chemicals Importers, Dealers & Suppliers, Electronics / Electrical Appliances, Household and General Product Manufacturers.

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Exhibitor's Profile:

Profile for exhibit include Injection molding machine, Blow molding, Extrusion molding, Heat forming, Sealing & Cutting machine, Vacuum forming machine, Auxiliary Equipment & Parts, Robot & automation system, Hydraulic & pneumatic parts, Engineering plastic &amp; rubber product, Controller & Measurement Equipment, OEM Service, Mold making, Plastic & metal product manufacturing, Die-casting product, Packaging machinery & automatic production line, Packaging material.

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Organizer: Paper Communication Exhibition Service Flat 15,5/F,Wah Shing Center 11 Shing Yip Street, Kwun Tong Kln, China (Hong Kong S.A.R.). Tel: +(85)-(2)-27639011 Fax: +(85)-(2)-23410379