New scheme for SOES to foster growth

The government will soon introduce a stock option scheme for managers at China's overseas-listed State-owned enterprises (SOEs), which analysts say is an important step in promoting the healthy growth of the companies in the long run.

This scheme is drafted by State-owned Assets Supervision and Administration Commission (SASAC), and it will take effect from March the 1st. The decision is at the heels of a relaxation of a nine-month-old ban on management buyouts in large-scale SOEs. Under the stock option plan, management will be motivated not to indulge in shortsighted business moves, as their compensation is related to their companies' performance in the longer term. According to the SASAC's new rules, employees at China's overseas listed SOEs that are entitled to participate in the stock option plan primarily include directors, senior managers and core technology professionals.

[此贴子已经被作者于2006-2-25 10:43:07编辑过]

Time is ripe for takeover of smaller banks

Standard and Poor's released a report on Wednesday in Beijing, saying that China's banking sector is ripe for consolidation.

The rating agency said the consolidations are especially thirsted among second-tier joint-stock commercial banks and city commercial banks. The report also said that smaller banks with satisfactory market positions in major cities may attract the attention of overseas investors, which could provide capital and tools to enable them to compete against their strong peers. And the pace of consolidation is likely to speed up in the coming years. It noted that China's top 50 banks have rapidly improved their financial profiles during past years.

[此贴子已经被作者于2006-2-25 10:46:36编辑过]

Foreign investment ceiling raised

China will allow overseas investors to own equity stakes of up to 25 percent in rural financial institutions, as a governmental support for the ongoing restructuring. China Banking Regulatory Commission announced on Wednesday, the United Rural Co-operative Bank of Hangzhou and the Tianjin Rural Co-operative Bank have been selected as pilot banks, while two other rural commercial banks will be chosen later this year. But since the rural credit cooperatives are smaller in terms of capital, the ceiling of single foreign ownership will likely to be set at 15 percent for the pilot banks.

[此贴子已经被作者于2006-2-25 10:47:58编辑过]

HK budget pursues more development

The Hong Kong Special Administrative Region government has unveiled its annual budget, which calls for further development. Financial Secretary Henry Tang outlined measures aimed at consolidating the current economic recovery.

Tang unveiled his third budget to the Legislative Council, and says Hong Kong's economy rose by 7.3 percent in 2005 and unemployment dropped to a four-year low of 5.2 percent.

He says capitalizing on this opportunity and further developing the economy is the general consensus of people in Hong Kong.

He forecast real GDP growth of four to five percent in 2006, slightly higher than the trend growth rate over the past 10 years.

He notes the SAR government will restore fiscal balance in the current fiscal year in both the operating and consolidated accounts for the first time in eight years -- three years ahead of schedule.

To promote its strength as an international financial center, Tang says Hong Kong will expand the scope of the Chinese currency business and upgrade the quality of its financial markets.

He also stressed the importance of promoting Hong Kong in financial services. He says the city must provide better service for Chinese mainland companies to reach out to the international market.

The government will earmark 29 billion HK dollars a year, on average, for infrastructure projects in the next five years.

And to maintain its competitive edge as the world trade and financial center, the government plans to introduce a migrant scheme to welcome one thousand people to the city each year.

Bo’a searching for win-win

In two months time, the fifth annual session of the Boao Forum for Asia will be held in Boao, a small scenic town in south China's island province of Hainan. Secretary general of the forum, Long Yongtu says the preparatory work for the annual conference is well underway.

This year's theme will be "New Opportunities of Asia: Driving Growth to the Next Level". Since its inception, the annual conference has adopted "Win-Win Cooperation" as its mission, and the theme each year supports this mission. The forum has served as an important platform for government and business leaders from both Asia and around the world, to get together and discuss issues of common concern. During Wednesday's press conference, long also signed agreements with major sponsors, including Microsoft, and Merrill Lynch.

[此贴子已经被作者于2006-2-25 10:49:43编辑过]

4th round of China-Janpan consultations

China and Japan will hold their fourth round of consultations on the East China Sea dispute in early march.

Foreign Ministry Spokesman Liu Jianchao says the two sides agreed to the meeting during a visit by Japan's Economy, Trade and Industry Minister Toshihiro Nikai. They also reached consensus on improving economic and trade cooperation, especially in environmental protection, energy conservation and two-way investment. Liu says China also urged Japan to deal with historical issues.

[此贴子已经被作者于2006-2-25 10:56:07编辑过]