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| China Merchant Bank.
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CMB China’s Top Commercial Bank
China Merchants Bank (CMB) came out on top of a recent evaluation
of China’s 13 national commercial banks. Gauged by six criteria,
namely, development strategy, information science and technology,
organization and business process reengineering, corporate governance,
and products and services, CMB kept ahead of its rivals, with
the Bank of Communications and Mingsheng Bank coming in second
and third respectively.
The top three banks have turned their focus towards cutting capital
employed, increasing debt/equity ratio, enhancing service capacity,
expanding retail banking business and augmenting non-interest
income. All of China’s banks are currently steering their
products and services towards customer demands including loans,
intermediate services in RMB and foreign currencies, gold and
stocks.
Buyouts Loom for China’s Iron and Steel Industry
It was predicted that China’s iron and steel manufacturers
would experience a wave of mergers and acquisitions between 2005
and 2008, and that prediction appears to be an accurate one. Following
Dutch company Mittal’s purchase of Valin Iron and Steel in
2005, the world’s second-largest steel maker Arcelor is currently
working to acquire Laiyang Iron and Steel. Allured by the huge
demand for steel, tremendous mineral reserves and low-priced assets
in China, foreign investors have been keeping a close eye on the
nation’s iron and steel industry, and are expected to step
up their efforts to get involved. China in principle prohibits
foreign investors from taking controlling stakes in its iron and
steel companies, confining their participation in the business
to buying limited amount of shares and strategic partnerships.
But it’s still likely that foreign investors will snatch
up Chinese iron and steel producers through the secondary market.
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| First woman in China to receive a private jet license. |
Private Aviation Takes Off in China
Though some restrictions still apply, China’s private companies,
particularly those in the wealthy eastern province of Zhejiang,
are itching to enter the country’s aviation industry. President
of Zhejiang Zhongjiang Group Yu Zhongjiang announced recently
that his company will open China’s first private airport
this year, and invited private jet owners in Shanghai and Wenzhou
to join its exclusive aviation club. A private jet is the latest
addition to rich Zhejiang natives’ whim list, with a local
merchant last year paying US $8 million for a business jet named
“Premier No. 1.” The trend was thus set, with 22 of
his peers from Wenzhou placing orders for 22 private jets. With
producers, buyers, clubs and airports all in place, China’s
private jet industry is truly about to take off to the skies.
China’s Ten Best-paid Jobs
A recent survey has revealed the top ten professions in China
in terms of salary. They are: 1: Salespeople (average monthly
salary RMB 10K+); 2: Real estate agents (average monthly salary
RMB 8K – 10K); 3: Finance managers (average monthly salary
RMB 7K+); 4: Logistics managers (average monthly salary RMB 7K);
5: IT managers (average monthly salary RMB 6K+); 6: Consultants
(maximum monthly salary RMB 8K); 7: Internet game designers (maximum
monthly salary RMB 8K); 8: Pharmacists (average monthly salary
4.5K); 9: web site and page desigers (average monthly salary RMB
4K – 5K); 10: University lecturers (minimum monthly salary
RMB 5K).
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| An oil reserve.
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Foreign Investors Eye China’s Commercial Oil Reserves
The China National Development and Reform Commission and Korea’s
SK Group recently held discussions on building up commercial crude
reserve in China. Previously, Saudi Arabia had also suggested
constructing a massive oil repository in southern China. Chinese
oil experts say that the country’s strategic petroleum reserve
has entered a critical period. Though they are motivated by huge
potential profits, foreign investors’ bids to construct oil
reserve facilities in China will undoubtedly bolster China’s
oil supply. But foreign-funded oil stores are not likely to come
into being until various policy obstacles are removed.
Guangdong Largest Tax Revenue Earner
Statistics released by the State Administration of Taxation show
that Guangdong Province brought in contributed the largest tax
revenue (local and state) during China’s Tenth Five-Year
Plan Period (2001-2005), while Beijing was largest contributor
to the state coffers. All China’s provinces, municipalities
and autonomous regions generated record tax returns, Guangdong
kept ahead of the rest with a whopping RMB 400 billion by the
end of the period, followed by Shanghai with RMB 300 billion.
Jiangsu, Zhejiang and Shandong provinces and Beijing Municipality
each reported RMB 200 billion worth of tax revenue, while Liaoning
Province and Tianjin Municipality for the first time notched RMB
100 billion. The top five provinces and municipalities in terms
of incremented revenues -- Beijing, Guangdong, Jiangsu, Shanghai
and Shandong -- contributed 46.1 percent of the national revenue
during the five-year period. Coal-rich Shanxi Province and Inner
Mongolia Autonomous Region meanwhile saw the sharpest increase
in tax revenue – 30.5 and 28.8 percent respectively.
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| The Chiense auto market is still hot.
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Chinese Auto Market Expects Annual Growth of 10 to 15 Percent
International auto giants steer an ever-increasing proportion
of their business towards China, indicating that the lights are
indeed changing for the industry’s global structure. Auto
sales in China are expected to see annual increases of 10 to 15
percent in the coming years. China is already the world’s
fastest growing car market, and a mere 1 percent of Chinese adults
possess cars, leaving tremendous potential for further market
expansion. There are more than 100 automakers in the country,
and more international carmakers are coming in to establish Sino-foreign
joint ventures. Though auto manufacturers in North America, Western
Europe and Japan currently produce three quarters of the world’s
cars, China has leapfrogged South Korea and France to become the
world’s fourth largest automaker.
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