International
risk investors optimistic about Chinese professional web sites
According to the China News Agency, a Chinese online bookstore named
Dianjingqi received six million US dollars in investment from a Singapore
company recently. Chairman of the Department of Directors Xu Hui thinks
international investors are still optimistic about the development
of the Chinese network economy.
 A
group of international risk investors stated recently, that they are
no longer optimistic about portal web sites, whereas they are very
interested in network technology companies, infrastructure companies,
e-commerce companies between enterprises, and online companies in
traditional industries. Specialists point out, that although there
have been shockwaves on the US Nasdeq Stock Market in April of this
year, international investment funds are still confident of the Chinese
network's development. This is because of the Chinese network's rapid
development currently, and its broad development space in the future
as well.
According to the latest statistics from the China National Network
Information Center (CNNIC), at the end of June 2000, there were 6.5
million online computers in the mainland of China, 16.9 million www
users, both nearly double the figure at the end of last year.
Specialists believed that as long as network companies insist on the
strategy that depth surpasses width, they will survive. Recently,
some popular web sites in China make more efforts to search for their
own professional positions, thus forming specialized businesses. Experts
believe that professional network companies dealing with such areas
as finance, e-information, tourism and books, have promising futures,
welcomed by risk investors.
Tsingtao Beer merges with Shanghai Carlsberg
According to the Xinhua News Agency, Tsingtao Beer Co., Ltd. and Carlsberg
(Denmark) Headquarters signed an agreement recently. Tsingtao Beer
invested 150 million yuan in buying a 75% share in Carlsburg Jianiang
(Shanghai) Beer Co., Ltd.
Jianiang (Shanghai) Beer Co., Ltd. is a joint venture established
in 1996 by Carlsberg Hong Kong Co., Ltd. and Shanghai Songjiang Economic
and technical Development and Construction Corporation. Stock ownership
shared by the former and the latter is 95:5. The output volume is
100,000 tons annually.
Jianiang (Shanghai) Beer Co., Ltd. is a joint venture established
in 1996 by Carlsberg Hong Kong Co., Ltd. and Shanghai Songjiang Economic
and technical Development and Construction Corporation. Stock ownership
shared by the former and the latter is 95:5. The output volume is
100,000 tons annually.
China to adopt anti-dumping measures
According to a report in Hebei Daily, Minister of Foreign Trade and
Economic Cooperation Shi Guangsheng said when interviewed by journalists
in Tokyo, Japan recently that, after more than 20 years of reform
and opening, China's import and export structures have improved, the
import and export markets are tending to multi-variation, and China's
foreign trade is expected to reach 400 billion US dollars this year.
Shi Guangsheng said, that China's foreign trade will still grow rapidly
in the short term and will develop steadily in the long term. Currently
the global economy looks promising, demands on the international market
are turning up, trade opportunities are increasing; the Chinese economy
is also in good shape, especially with the implementation of strategies
for the West's development, which will stimulate import demand. The
process of China's entry to the WTO is accelerating, and that will
also push the Chinese foreign trade.
He stated that, for a long time, Chinese products have encountered
anti-dumping frequently in foreign countries. With the establishment
of the Chinese market economy, when China is about to enter the WTO,
China will introduce anti-dumping measures against foreign products
that constitute damage to Chinese products, according to the laws
of the economy and Chinese laws.
Shi Guangsheng pointed out that, Chinese anti-dumping is a normal
measure in the market economy, its procedure and evidence can be found
in the Chinese anti-dumping and anti-subsidy laws, which also consult
the WTO's relevant rules and regulations, although China is not yet
a member of the WTO.
China accelerates the reorganizing of trust and investment companies
The People's Bank of China released an announcement recently, that
in accordance with the relevant regulations and decisions on reorganizing
trust and investment companies, it is decided to close China Educational
Science and Technology Trust and Investment Co., Ltd., suspend its
legal person license and business license as a financial setup, and
terminate all of its businesses.
 China
has more than 200 trust and investment companies now. Due to problems
in the previous operation, the Department of Administration is taking
action against these companies, including closure, merger and reorganization.
The closure of China Educational Science and Technology Trust and
Investment Co., Ltd. is a sign that the reorganization is speeding
up. An official involved revealed, that the reorganization of trust
and investment companies is processing as scheduled step by step,
and is predicted to be finished within the year. In addition, the
Trust Law that has been discussed twice will authorize the State Council's
department-in-charge to work out a management proposal for trust and
investment companies and the trust industry. According to the news,
the relevant department is busy working on it. The primary draft of
the proposal has been completed.
China Telecom will become a competitive rival for China Mobile
According to a report in Chengdu Business, China Telecom is very likely
to obtain the third mobile telephone business license. Although this
has not been confirmed, various signs indicate that, China Telecom,
currently engaged in the fixed telephone business, together with China
Mobile and China Unicom will form a new mobile telephone network competition
status in China sooner or later.
A journalist interviewed Mr. Li, who is responsible for publicity
affairs in China Telecom recently. Regarding whether China Telecom
will get permission to operate a mobile network within the year, Mr.
Li neither admitted nor denied it, and refused to confirm that China
Telecom intended to apply to operate a mobile network. Mr. Li said,
each telecommunications company hopes to do "all businesses". As a
China Telecom staff member, he or she absolutely hopes to do mobile
telephone business. However, it is not clear what the decision of
the high-level management will be.
In fact, as early as in March and April of this year, rumors that
China Telecom planned to apply for the right to run a mobile network
spread in the industry. An industry analyst said that, since China
Mobile is independent and the highly-profitable long distance call
business is threatened by the growing impact of IP telephones, China
Telecom is in a desperate need of a new growth point for profits.
And the promising mobile telephone market is of course the first option.
However, industry insiders point out, that the saying that the third
mobile network business license in China will be issued to China Telecom
within the year is probably too optimistic.
Vice Minister of the Information Industry Zhang Chunjiang explained
his position at a press conference in the middle of June 2000, that
it is not so realistic for China to have only two mobile network business
licenses for a long period of time, but it is also impossible to issue
the third license soon.
Bank of China strives to be listed within two years
According to a report in South Metropolis, Chairman and President
of the Bank of China Liu Mingkang said when interviewed by journalists
in Shenzhen, that through a series of reforms, the Bank of China is
making efforts to qualify as an international listed bank.
Liu Mingkang said on a non-public occasion that the Bank of China
will do its best to be listed within two years, becoming the first
listed bank among the four major state-owned commercial banks. When
journalists mentioned the saying to Liu Mingkang, he did not answer
directly, and said, whether the bank can be listed within two years
is influenced by many factors. When asked whether the Bank of China
would be listed as a whole or separately, and whether in China or
in Hong Kong, Mr. Liu said that everything is under contemplation.
An industry insider said he believes that the Bank of China surpasses
the other three state-owned banks in its reforms, and its huge networks
in Hong Kong and abroad also surpass other Chinese invested banks.
Consequently, the Bank of China is very likely to be listed prior
to the Banks of Industry, Agriculture and Construction.
China's gas transport project opens fully
According to International Business, Vice Chairman of the State Planning
Commission Zhang Guobao revealed in Beijing recently that the gas
transport project from west to east China would make use of foreign
investment. Policies on cooperation with foreign investors include:
the gas pipeline construction and operation, and the downstream cities'
pipe-network construction and modification are permitted to open to
the outside; foreign investors are allowed to hold the project stock
without limitations on the amount; cooperation patterns are optional,
joint venture, cooperation or others.
Zhang Guobao said that the gas transport project enjoyed the dual
favorable policies for the infrastructure construction and western
development issued by the state and the relevant authorities. He added
that according to China's favorable tax policy for energy and traffic
projects, joint ventures with foreign investment could enjoy more
favorable tax cuts or even tax exemption. Zhang Guobao stressed that
the gas project would enjoy two special polices: pipeline work stock
can be owned by foreigners, and the construction of city gas networks
is listed as cooperation with foreign countries. Zhang Guobao said
that the project is now in the process of gaining state approval for
the construction of infrastructure, and that the preparations are
proceeding as scheduled.
Chinese companies retreat out of the advertising industry
According to China's Economic Times, the State Administration of Industry
and Commerce has revealed that Chinese companies are retreating out
of the advertising industry.
According to data provided by the State Administration of Industry
and Commerce, by the end of June 2000, the number of advertising companies
in China had reached 36,286, but the operation of companies in different
economic patterns had changed greatly.
Among advertising companies, state-owned number 7,389, 4.8% less than
last year, their advertising turnover is 4.085 billion yuan, 21.84%
more than last year; publicly-owned number 7,958, 16.57% less than
last year, and turnover is 1.903 billion yuan, 5.4% less than last
year; foreign-invested number 367, 5.41% less than last year, and
turnover is 2.156 billion yuan, 35.78% more than last year; joint
ventures number 617, 2.68% less than last year, and turnover is 0.215
billion yuan, 47.50% more than last year; whereas privately-owned
number 26,341, 38% more than last year, with turnover of 4.185 billion
yuan, 45.93% more than last year.
Statistics for the first half of the year reveal there have been structural
changes in the industry. State-owned companies account for 26.96%
of the total number of advertising companies, 2.73% less than last
year; publicly-owned account for 14.01%, 4.30% less than last year;
privately-owned account for 40.86%, 8.53% more than last year; foreign-invested
account for 0.57%, 0.09% less than last year; and joint ventures account
for 0.96%, 0.12% less than last year.
58 foreign investment companies settle in Shanghai
According to Liberation Daily, the latest news from the Shanghai Foreign
Investment Commission show that from January to July of this year,
three major foreign companies - Delf Motors, Asahi Beer and Rodia
- established companies in Shanghai. This takes the number of foreign
investment companies in Shanghai to 58.
The 58 foreign investment companies come from 13 countries and regions,
including the U.S., Japan, Holland, Australia, France and Chinese
Hong Kong. The U.S. takes the lead with 21.5 companies (including
a joint venture with Sweden); after the U.S. are Chinese Hong Kong,
Japan and Holland, with 11, 6 and 4 companies respectively. Among
these investment companies are such Fortune 500 multinational companies
as General Motors, General Electric, McDonald's, Emerson, Pepsi, Coca-Cola,
3M, Mobil, Johnson & Johnson, Union Lever from Holland, Roche from
Switzerland and Alcatel from France. |
