Voices & Focus

Voices

Energy Expert: Excessive GDP Growth May Prevent Realization of Energy-Saving Goal

Coal consumption in China will have a direct impact on whether the country meets its energy-saving goal.

According to Zhou Fuqiu, deputy director of the Energy Efficiency Center of the Energy Research Institute under the National Development and Reform Commission (NDRC), if China can hold its GDP growth to 7.5 percent over the course of the 11th Five-year Plan (2006-2010), then the goal of a 20 percent cut in the amount of energy consumed per unit of GDP will be realized. However, if GDP growth hits 9 percent, the energy-saving goal will not be met. In 2005, China consumed 2.233 billion tons of coal. By 2010, the total coal-saving target will be 641 million tons if GDP grows at the rate of 7.5 percent; if growth reaches 9 percent the figure will be 678 million tons. China needs to make full use of all available economic levers to meet its targets, including finance, taxation, pricing and banking.

Xiang Huaicheng: Not a Bad Thing for the Stock Market to Contain Bubbles

Fluctuations in the Chinese stock market mean China’s numerous shareholders experience a mixture of hope and fear.

Xiang Huaicheng, president of the National Council for Social Security Funds, said that the media is focusing too much on possible “bubbles” in the stock market. Xiang claims that, like beer, “It may not be a bad thing for the stock market to contain some bubbles, as long as there aren’t too many.” Despite this, Xiang commented that recently the index had risen too quickly in too short a space of time. The average price-to-earnings ratio (or P/E ratio, a measure of the price paid for a share relative to the income earned by the company per share) in the mainland stock market has already reached 40, or possibly even 50. The average P/E ratio for a new stock market is usually around 15. A higher P/E ratio means that investors are paying more for each unit of income. In other words, stock prices on the mainland are relatively high. “The total number of stock accounts on the mainland has already reached 100 million. Even students and elderly people are now plunging in. Investors should be fully aware of the possible risks involved in the stock market and take measures to protect themselves. In addition, investors should understand that fluctuations in the market are inevitable, and should be prepared for possible big drops.”

Focus

Foreign Capital Enters China's Railway Transportation System

Foreign capital formally enters China's railway transportation system.

Seven enterprises from the Chinese mainland, Hong Kong, Germany, France and Israel have jointly founded the China Railway United International Container Co. Ltd, heralding the entry of foreign capital into China’s railway transportation system. The company was founded recently in Beijing, with foreign capital representing 56 percent of the initial investment. Before 2010, the company intends to build railway container distribution centers in 18 Chinese cities, including Beijing and Shanghai. Since China promised to open its railway industry in 2001, this is the largest foreign investment in this field. “China has fully opened its railway transportation,” said Hu Yadong, vice-minister of Railways. It is expected that there will be many more joint-venture enterprises in China’s railways in the future.

UNICEF Calls for Greater Care for Children Affected by HIV/AIDS

“Loveday with UNICEF” was recently held at the Juyongguan section of the Great Wall near Beijing. Funds raised at the event will be used to support HIV prevention programs and provide care for HIV victims in China. “Raising awareness about children affected by AIDS, as well as helping to combat the stigma and discrimination associated with AIDS, are the key points of UNICEF’s work in China,” commented the organization’s local representative Dr. Yin Yin Nwe. It is estimated there are 650,000 people living with HIV/AIDS in China, while 76,000 Chinese children have been orphaned as a result of the virus.

Hong Kong Leads the World’s Top 10 most Costly Cities

Hong Kong leads the world’s top 10 most costly cities.

According to a survey conducted by ECA International, the world’s leading knowledge and solutions provider for international HR professionals, Hong Kong is the world’s most expensive city in which to rent accommodation, while Shanghai ranks eighth. The other eight cities in the top 10 are Tokyo, New York, Moscow, Seoul, London, Mumbai, Caracas and Paris. “High rental prices in Tokyo, New York, Seoul, Moscow, London and Paris reflect generally high living costs in those locations, while Mumbai and Shanghai suffer from a shortage of modern, well-equipped properties that meet expatriate standards, pushing up prices for those properties that do” said Lee Quane, general manager of ECA International Hong Kong.

The First China Yantai International Wine Festival to Be Held in September

The first China Yantai International Wine Festival will be held from September 23 to October 7 this year. September 23 is also the opening day of the ninth International Fruit/Vegetable/Food Exposition. With 10,000 hectares of vineyards and over 150 wineries in the area, Yantai’s annul wine output exceeds 200,000 tons, making it the world’s seventh-largest wine-producing area. Merchants from nine countries and regions, including the United States, Canada, the Netherlands, the Philippines, Hong Kong and the British Virgin Islands, have invested in over 20 Yantai wineries. Famous local brands include Great Wall and the 110-year-old ChangYu.

Beijing’s Motor Vehicles Amount to 3 Million

The total number of motor vehicles in Beijing has now reached 3 million, with new vehicles being registered at the rate of 1,000 a day.

Beijing has well and truly entered the car age, with the city’s total number of motor vehicles reaching 3 million. New vehicles are being registered at the rate of 1,000 a day. Beijing has 4 million licensed drivers, and one in every five locals now has access to a car. Of these vehicles, 2.2 million are privately owned. According to the forecast of the city’s Traffic Management Bureau, the total number of cars in Beijing is expected to reach 3.3 million by the time the Olympic Games begin in August next year, placing ever-increasing pressure on the city’s traffic system.

China to Launch GPA Entry Talks by the End of 2007

China is expected to start negotiations for entry into the WTO Government Procurement Agreement (GPA) and submit a proposal on the opening of the government procurement market by the end of 2007. In 2003, the total size of China’s government procurement market was RMB 165.9 billion. By 2006 this number had doubled, and it now exceeds RMB 350 billion. It is a WTO requirement that members open up their domestic government procurement market and reform government procurement systems according to the terms of the GPA. On the basis of meeting the GPA terms on energy-saving and environmentally friendly products, China will further refine its procurement policy and methods, encouraging innovation in these areas.

Dress Rehearsal for the Olympics: the 2007 Qingdao International Regatta

The 2007 Qingdao International Regatta is due to be held from August 9 to 24 at the Qingdao Olympic Sailing Center. The event is being treated as a full dress rehearsal for next year’s Olympic Games. The competition includes eleven events and nine levels, including all levels of Olympic sailing. More than 400 players from over 40 countries and territories will compete. The Qingdao Olympic Sailing Center is equipped to handle all kinds of sailing competitions. The complex covers an area of 45 hectares and has been built at a total cost of RMB 4.9 billion.