SMEs Inject Enormous Vigor into China's Economy
China is taking various measures to help developing its small and medium-sized enterprises (SME), in an effort to boost its national economic development. Statistics from the State Economic and Trade Commission show that up to now, the number of SMEs has exceeded eight million and covers 99% of the total enterprises in China. During the last 10 years of China's rapid economic development period, SMEs contributed 76% of the newly-added industrial output value, and provided 75% of the total job opportunities in cities and towns of the whole country. (People's Daily, 27 August)

Over 500 Japanese firms to move into China
Half of the 1,143 firms listed on the Tokyo Stock Exchange are to move their production bases away from Japan in the next three years, about 70% of them will move to China. According to a survey, most in-coming manufacturers will settle in the following areas: Suzhou, Kunshan and Ningbo in the Yangtze River Delta, Shenzhen and Dongguan in the Pearl River Delta, and Chengdu and Xi'an. Electronical firms will take the lead in the move. (China Daily, 27 August)

Oil giant wants in on west-east gas project
China Petroleum and Chemical Corp (Sinopec) looks to boost its ability to dominate the natural gas arena with the looming acquisition of China's fourth largest domestic oil company and a potential investment in the country's major gas highway currently under construction. A spokesman for Sinopec recently revealed that the company is studying the possibility of purchasing equity in the USD 4.6 billion west-east gas pipeline that will transport natural gas from gas fields in Northwest China to metropolitan centres in the east. The Chinese Government has been pushing for the exploitation of natural gas reserves to alleviate the country's heavy reliance on oil imports and protect the environment. Its goal is to raise natural gas consumption to 10% of the energy mix from the current 2.1% over the next 10 years. (China Daily, 27 August)

Shanghai Port reports slower growth in processing trade import
Imports by processing trade through Shanghai Port totaled USD9.91 billion during the January-July period, up 5.3% over the same period of last year, or a drop of 46.6 percentage points in growth rate for the corresponding period of last year. According to statistics released by local customs, processing trade export increased by 17.6% to USD 16.52 billion, down by 1.1 percentage points over the corresponding period of last year. Imports and exports by general trade, however, have maintained a stable growth with overall foreign trade valued at USD 69 billion during January and July, up 15.85 over the same period of last year. Machinery and electronic products continue to play a leading role in China's foreign trade, totaling USD 16.6 billion in export, or 42.8% of the overall export through the port during the seven month period. (Xinhua News Agency, 27 August)

All 62 Key Projects in Tibet Start Operation
The Manla Water Control Project in Tibet Autonomous Region was put into operation recently, marking completion of all the 62 key projects built in Tibet with the help of other provinces and municipalities throughout the country. The Manla Water Control Project is the most expensive of the 62 projects, costing RMB 1.1 billion. It has a water storage capacity of 155 million cubic meters and is capable of irrigating 16,600 ha of farmland. Construction of the 62 projects was initiated by the central government in 1994 with a total investment of RMB 4.8 billion. The work covered a wide range of fields including agriculture, transport, energy and telecommunications. (People's Daily, 27 August)

Largest Non-metals Material Production Base Under Construction
A non-metals material production base with an annual output capacity of one million tons is now under construction in Dongzhi County of east China's Anhui Province. The base, designated as a key project by the central government for the 10th Five-Year Plan period (2001-2005), will involve a total investment of RMB 700 million. (People's Daily, 26 August)

Income tax rate in west China will be reduced to 15% or less
In order to encourage foreign businesses to invest in western China, the Chinese government will soon announce that the income tax rate for the entire region will be reduced from the current 33 percent to 15 percent. (China Daily, 28 August)

China Sets Up Council of Investment Funds -People's daily 28.08.01
The Council of Investment Funds under the Securities Association of China (SAC) was officially established Tuesday. Its purpose is to protect investors' legal rights and interests, serve as a bridge between the government and members of the council, and promote the healthy and stable development of the securities investment fund industry. So far 36 standardized investment funds have been listed, with an aggregate volume of 58.4 billion units and a net asset value of over RMB 70 billion (about USD 8.5 billion). (People's Daily, 28 August)

Airbus to deepen investment, cooperation in China
European aircraft manufacturer Airbus said on Monday it would boost its investment and training in China. Airbus was in talks with China for the sale of between 30 and 50 A320 airliners, worth up to USD 2.7 billion and has spent some USD80 million in setting up a training and support center in Beijing, the largest and the most advanced one ever built in China. (China Daily, 28 August)

Factory price of industrial products continued to drop
The factory price of industrial products in China continued to drop in July according to the National Statistics Bureau. Prices were down 1.3% from the same month last year. Prices were affected by a continued decline in international crude oil prices. Domestic crude oil prices also dropped for the first time after a 27-month rise. (China News Service, 28 August)

Minsheng interim up 90% as bad loans dive
The mainland's only private bank, Shanghai-listed Minsheng Bank, said its net profits for the first half of this year jumped nearly 90% as loans increased and non-performing loans dwindled. The smallest of China's three domestic listed banks, Minsheng logged the best year-on-year earnings growth - Shenzhen Development Bank's interim net rose 60% while Pudong Development Bank's climbed 6.8%. (SCMP, 29 August)

Japan row extension looms
Japan may extend its import curbs on three farm products that come mostly from the mainland, signalling that a showdown over a trade dispute might be imminent. Tokyo which triggered a trade row with the 200-day interim tariffs, is considering rolling them over for a maximum four years upon expiry in November, according to an agriculture ministry official. (SCMP, 29 August)

Imports of Farm Produce Surge, Export Down
The Ministry of Agriculture said China's import of farm produce has increased while its export dropped during the first half of this year. Farm produce import rose by 8.8% over the same period of last year while export was down by 0.09%. (Xinhua News Agency, 29 August)

China sees GDP growth of 7.9% in first half
China has achieved a gross domestic product (GDP) of RMB 4.29 trillion(USD 519 billion) in the first half of this year, an increase of 7.9% over the same period of last year. (China Daily, 30 August)

First imported LNG project to be launched in Guangdong
An imported liquefied natural gas (LNG) project will be launched next year in South China's Guangdong Province. As China's first imported LNG project and the country's largest-scale city gas project, it will cost total a investment of over RMB 30 billion (USD3.6 billion). According to the plan, the first phase project will be put into operation in 2005, covering four cities in Guangdong, including Guangzhou, Shenzhen, Foshan and Dongguan. The project is expected to cover the Hong Kong area and the whole Pearl River region when the second phase of the project is completed in 2010. (Xinhua News Agency, 30 August)

Domestic Interest Rate Lowered Again
The People's Bank of China, with approval from the State Council, has lowered the domestic interest rate for small deposits of US dollars, British pounds, Euros, Hong Kong dollars, Canadian dollars, and Swiss Francs, effective August 30. Interest paid on the US dollar for one-year deposits will be 0.1875 points lower at 2.3125%, on pounds sterling down to 3.4375%, and on the HK dollar to 2.4375%. (Xinhua News Agency, 30 August)

China Starts Comprehensive Supervision of Telecom Sector
With the founding of the Zhejiang Telecom Administration on Wednesday, the last provincial administration to be established in China, the country has set up a nationwide supervision system for its giant and profitable telecom sector. Provincial telecom administrations are under direction of both the Ministry of Information Industry and provincial governments. By the end of last year China's number of phone subscribers reached 229 million, including 144 million fixed phone users and 85 million mobile phone users. (People's Daily, 30 August)

Nortel Networks to Build ATM Backbone Networks for China Telecom
China Telecommunications Corporation (China Telecom), operator of China's largest terrestrial network, has signed agreements with Nortel Networks to update its multiservice backbone networks in a number of major cities throughout the country. (People's Daily, 30 August)

New Commission Oversees Certification System
China is to unify its two separate quality authentication systems by establishing China National Regulatory Commission for Certification and Accreditation. The newly established China National Regulatory Commission for Certification and Accreditation will be put in charge of all matters concerning certification and accreditation. (Xinhua News Agency, 30 August)

More Investment for Water Projects in Tibet
China will invest 4.8 billion yuan to build water conservancy projects in southwest China's Tibet Autonomous Region over the next five years. Of the total sum, RMB 4 billion will be provided by the central government and the rest will be raised by the local government. (Xinhua News Agency, 30 August)

Entrust, China Financial Certification Authority to Launch Online Banking Project
The China Financial Certification Authority (CFCA), a 13-member banking group under the direct leadership of the People's Bank of China, will use enhanced Internet security solutions from Entrust, Inc. to enable safe and secure online transactions for more than 100,000 corporate banking customers and stock traders. (People's Daily, 31 August)

China Issues 20-Billion-Yuan Treasury Bonds
The Chinese Ministry of Finance issued 20 billion yuan of registered treasury bonds to institutional investors through the interbank securities market Thursday. The bonds will have a 10-year maturity and a floating interest rate, with interest paid annually. (People's Daily, 31 August)

BOC Posts 6.25% Pre-tax Profit Growth for 1st Half Year
The Bank of China (BOC) group announced Thursday the pre-tax profits of its commercial banking business rose 6.2 %, or HKD 296 million (USD 38 million) in the first half of this year to HKD 5.05 billion (USD 648 million). (People's Daily, 31 August)

Hong Kong's GDP Rose 0.5% in Second Quarter
The sluggish global economic environment continued to weigh on the Hong Kong economy in the second quarter of 2001, according to the Half-yearly Economic Report 2001, released by the Hong Kong government on Friday. On a year-on-year comparison, Hong Kong's GDP rose by only 0.5% in real terms in the second quarter of 2001, further moderated from the 2.3% growth in the first quarter. On a seasonally adjusted quarter-to-quarter comparison, GSP had a 1.7% decline in real terms in the second quarter of 2001, after staying virtually flat in the first quarter. (People's Daily, 31 August)

Weekly Market update		31 August 2001	24 August 2001
Shanghai A		1916.43	1970.67
Shanghai B		158.75	166.55
Shenzhen A		578.02	595.88
Shenzhen B		273.06	291.62
Hong Kong Red Chip		941.85	962.18
Hong Kong H		419.47	429.39
Source: South China Morning Post