Kailuan Group's Board Chair Suddenly Dethroned
Cover
On May 21, Yang Zhong, board chair and head of the party committee for Kailuan Group, was recalled from a business trip in Austrailia to face the State-owned Assets Administration and Supervision Commission (SASAC) of Hebei province. In a meeting held that night before his arrival, local government and SASAC had announced his immediate removal from his post. Though it has yet to be officially announced, there is speculation that it may be linked to either a bribery case involving construction materials purchasing by a subsidiary, or his sale of state-owned assets at inappropriately low prices after his firm declared bankruptcy. The firm had been enjoying special treatment due to a bankruptcy law tailored for troubled state-owned enterprises. Adding to the intrigue, his removal came in the midst of a coal industry shuffle that merged two other coal giants.
Original article:[Chinese] 

Try to Remain... Confident
Cover editorial
With Vietnam working through an economic crisis, many in China are again sounding doubt over the sustainability of China's economic growth. But despite rising fuel prices, a weakening dollar, overheating investment and excess liquidity, and other would-be harbingers of a an economic dip, there is actually much to look forward to.
Original article: [Chinese]
Translation: [English]

Calls to Save the Market Resurface, Likely to Fall on Deaf Ears
News, page 3
On June 12, market regulators held an emergency meeting to discuss the necessity of market-rescuing measures in light of recent slips in mainland stock markets. Some scholars have called for the establishment of an equalization fund, a suggestion that has gained ground with some officials. But others remain skeptical that any rescue attempt will emerge, claiming that stemming any major shift in hot money is the first priority for stabilizing the Chinese economy and that any such rescue measure would lead to a massive flow of hot money out of the A-share market.
Original article:[Chinese]

CPI Keeps Rising
Cover story
On June 12, the National Bureau of Statistics announced that the Consumer Price Index had grown 7.7 percent in May, slower than in previous months but still of worry to economic policymakers trying to reign in inflation. Just one day before, the National Development and Reform Commission told the EO that coal and steel prices would not increase over the next period, implying that price controls would be at work. Indeed, a note had already been sent to local governments forcing them to take steps to control prices. Many still worry that with international and domestic prices still so distant, upward pressure on prices will only continue.
Original article:[Chinese]

Special Report: Turbulence in Vietnam
Special, page 9
The EO's Lin Li reports from Vietnam on the fallout of an economic crisis and stock market woes.
To stem the turbulence, the government has adopted of a series of measures including raising interest rates, lowering the exchange rate, and clamping down on illegal foreign exchange markets.This illegal black market has effectively become the de-facto reference point for foreign-funded financial institutions.

Meanwhile, ordinary residents pressed by high inflation are trying their best to reduce spending.

The EO also looks at the hard lives of Chinese businesses in Vietnam now squeezed between the local currency's depreciation, the yuan's appreciation, and rising overall costs.
Original articles (in Chinese): [1] [2] [3] [4]

Democratic Roadmap in Shenzhen
Nation, page 17
Two documents published by Shenzhen government have set a 3-year timeline for the further democratization of local politics. One of the most attention-grabbing aspects reforms would have district heads be up for democratic election and would increase the numbers of candidates running to be their deputies. This, the reform says, would pave the way for a mayoral election in the near future.
Original article:[Chinese]

Bank Fraud Reaches Fatal Conclusion
Page 21, Money & Investment
After a two-year investigation, a court has issued a judgment in the bond fraud case involving Bank of Communication's Shenyang Branch. According to the judgment, Li Jinghua, Yang Weiguang, Zhang Jinming, Wang Fei, Wang Chunhui, and Wei Jianliang faked bonds and drew a total of 2.498 billion yuan from the accounts of 60 depositors of BOC Shengyang Branch. The funds were used for running the bank, covering up past frauds, and personal use. Yang and Zhang were sentenced to death. Li, Wang Fei, Wang Chunhui were sentenced to death with a suspension of execution, and Wei 15-year imprisonment and a 200,000-yuan penalty.

TISCO Integrated Han Steel Group
From Corporation, page 29
Tangshan Iron & Steel Group (TISCO) would integrate Han Steel Group to form China's biggest iron and steel company -- Heibei Iron & Steel Group. The newly-founded company would list on the market a month later. Insider sources pointed out that TISCO would dominate the integration process.

Sasol Held Board Meeting in Beijing
From Corporation, page 29
The world's only commercial producer with experience in coal-to-liquids and gas-to-liquids technology -- Sasol held its board meeting in Beijing on June 15 for the purpose of seeking opportunities with Chinese partners. As oil prices have soared and oil-shortages have cropped up in parts of China, the South African company hoped it could compete for more projects with China.