Highlights from the Economic Observer, issue no. 375 July 7 2008

Real Estate Industry in Crisis
Cover story
A month-long investigation into the real estate industry by regulators has revealed that even developers are worried about the mounting risk of a bubbles in the market. Real estate developer associations have been holding meetings to discuss the issue and submitting suggestions to regulators. Meanwhile, though many government agencies have already launched their own assessments, no single one has set an overarching policy course.
Original article: [Chinese]

Antitrust Law Loses Some Teeth
Cover story
A draft of an important anti-trust law slated to come out in August has been neutered with the recent removal of a clause. Before the change, the law would have forced businesses to apply for approval of mergers that would have left them with over 25% of market share. The clause was removed apparently because different implementations of the rule would have yielded different results. As it stands now, the draft law does not specifically name an organ to administer anti-trust work, though it does place such an enforcer below the State Council.
Original article: [Chinese]

Salary Law Would Stress Communal Agreements
News, page 3
Businesses that set salaries outside of communal agreements would be a huge tax liability according to a new clause added to the latest draft of Corporate Salary Regulations. The clause would prevent such salaries from being counted as costs for tax purposes, and instead, have them count as profit. Though the clause has received the nod of approval from with its own ranks, counterparts at the Ministry of Finance and tax bureaus have yet to weigh in. The law is slated for to be promulgated after the Olympics or by the end of 2008.
Original article: [Chinese]

Chengdu on the Road to Revitalization
Nation page 9
The Chengdu government has set up a public relations department to reassure investors and local workers' confidence after the deadly earthquakes that began on May 12. Together with the new commercial opportunities in construction materials and other industries, Chengdu is stepping forth on the road to revitalization
Original article: [Chinese]

New Keeper for Public Hospital
Nation pge 12
Yi county hospital, the only secondary hospital in Yi county, Anhui province, clinged to survival through government financial support despite few visitors. Since the local government introduced Shanghai Renji medical management company to run it last February, it has turned a new leaf.
Original article: [Chinese]

China's A-share possibly Rebound 
Money & Investment, page 17 
After China's A-share market tumbled through May and June, valuations have become more reasonable. Meanwhile, the market was also supported by the government policies. Some market sources believed A-shares could rebound before Beijing Olympic Games.
Original article: [Chinese]

"Cold War" in China's Milk Industry
Corporation, page 25
The "big cannon" of China's dairy industry, dairy activist and industry leader Wang Dingmian was launching research on the loss of nutriments in warm storage milk as its shelf life progressed. An advocate for pasteurized milk, Wang said it would be a deadly hit to warm storage milk producers once statistics came out. China's dairy industry has long since witnessed battles between two camps—warm storage milk led by Yili and Mengniu and pasteurized milk led by Bright Dairy and Sanyuan.
Original article: [Chinese]

Mop.com Ushering in Grassroots Search 
Corporation, page 32 
Chinese entertainment portal website mop.com has recruited volunteer "hunters" for its grassroots search service. Specializing in different areas and having good connections, these "hunters" help vigilantes find personal information on individuals who triggered public anger. Now a "star service" at mop.com, grassroots search has driven up the UV (unique visitors) volume of its dazahui section by 15% to 20%.
Original article: [Chinese]