Foreign-firm employees pay half of Beijing's personal income tax
For the first time, information on personal income tax paid by employees of 312'000 enterprises in Beijing has been collected and analyzed. The amount of personal income tax paid by businesses with foreign investment and foreign companies' Beijing representative offices for their employees last year accounted for one-half of the total amount of personal income tax collected in Beijing. (ChinaOnline, 5 August)

Fiscal outlook worrying
Government coffers have not benefited enough from the economic growth in the first half of this year. Revenue rose 9.2% from the same period last year, while expenditures grew 17.8%. Because the numbers for the full year are likely to be less balanced than predicted, China's fiscal deficit could reach a record RMB 309.8 billion. But the grim fiscal situation does not necessarily mean the budget deficit will widen. The government has already taken measures to increase revenues. (China Daily, 5 August)

Survey shows spending habits are changing in Shanghai
China's long-held tradition of families living within their means is being challenged in Shanghai. According to a recent survey, urban per capita expenditures during the first six months of this year reached RMB 7'591, up 29.3% from the same period last year. At the same time, the urban per capita disposable income was 6'870, up only 19.6% compared with the same period last year. This shows that a RMB 721 "family deficit" emerged as expenditures exceeded incomes in some Shanghai families. (China Daily, 6 August)

Matsushita signs up as first sponsor of Beijing 2008
Japan's Matsushita Electrical Industrial became the first official sponsor of the Beijing 2008 Olympic Games, signing a contract with Mayor Liu Qi and members of the International Olympic Committee. Matsushita agreed to provide audio-visual recording and broadcasting equipment, including large-screen televisions, audio-visual Games security and a vehicle navigation system. The contract also applies to the 2006 Winter Games in Turin, Italy. (SCMP, 7 August)

Draft law on stock funds expected
The national legislature is working on a draft law on stock funds that authorities hope will become a stabilizing force in the nation's sluggish stock market. Stock funds are mainly mutual funds that invest primarily in stocks and are operated by investment companies. While there are about 50 stock funds in China, they are currently governed by only a temporary regulation. (China Daily, 7 August)

Export prices of Chinese DVDs up USD 10 due to patent fees
The export prices of Chinese DVDs have gone up by about USD 10 per unit. Due to the conclusion of negotiations on the collection of patent fees by six of the world's leading developers of DVDs, the Chinese businesses have all begun to pay patent fees. (ChinaOnline, 8 August)

Transrapid on track as first train delivered
Shanghai took delivery of its first magnetic-levitation high-speed train. It will be the first commercial use of the German technology, which uses powerful magnets to pull the train along at up to 420km/h. It will be used to connect the 31km route between Pudong International Airport with the city's No 2 subway line. Actual use is not planned until the middle of next year. (SCMP, 9 August)

Moody's outlook pragmatic
Moody's Investors Service expects China to continue pragmatic economic reform policies despite the upcoming leadership changes. Skilful policy management will be required to maintain social stability as China restructures its state sector and advances its modernization drive, says Moody's. (SCMP, 9 August)

China might tighten rules on foreign banks' lending
In a move apparently aimed at helping domestic banks increase their lending to foreign firms operating in China, the People's Bank of China is poised to introduce a regulation requiring foreign banks to raise 60% of the funds needed to extend loans. The new regulations, however, appear to be in violation of the financial services rules of the WTO, which China joined last year and could therefore set off an international dispute. (Nikkei, 9 August)

China's output expands
Powered by the telecommunications and motor vehicle sectors, China's industrial output rose more than 12% for the fourth consecutive month last month, keeping the economy on track to grow at least 7.5% this year. China's industrial output for the first seven months of this year rose 11.8% year on year. (SCMP, 10 August)