Highlights from the EO Print, issue no.400, December 29, 2008
Sina to Buy Focus Media
Cover
Sina Corporation, China's leading on-line news portal, has entered a deal to buy core assets of Focus Media, China's largest digital media group. The deal, through issuance of 47 million common shares, took place after stock prices of Focus Media tumbled from over 16 US dollars per share by nearly 50% since November 10. Under the deal, Sina would acquire Focus Media's network of outdoor advertising billboards and LCD screens in hotels, offices and residential buildings.
Original article:[Chinese]
China strives to protect domestic soybean production
News, page 3
Cheaper soybean prices, at about 3,000 yuan per ton, in the global market has been hurting Chinese farmers as companies opted for imported produce. The Chinese government had stepped in to help farmers in the northeastern region to off load their harvest, offering 3,700 yuan per ton to buy their produce. According to Chinese Customs data, imported soybean in November reached 3.32 million tons, 57% higher than that in October. Furthermore, soybean imports in the first 11 months registered a year-on-year increase of 22.4% to over 3.4 million tons. Grain trades and edible oil makers to the EO that with the prices low, this would be the best time to buy substantial soybeans for reserve.
Original article:[Chinese]
Training Program for Fresh Graduates Proposed
News, page 4
Southwest University of Finance and Economics recently submitted a proposal to China's Education Ministry, calling for the government to launch an on-the-job training program for millions of college students graduating in 2009 to alleviate the severe unemployment pressure. Under the proposed program, fresh graduates could improve their practical skills and find a suitable job once the economy turned better. It was estimated that the program could provide training posts for some two million graduates, and the state would need to invest about 160 million yuan. According to Human Resource and Social Security Ministry's statistics, the number of fresh graduates would reach nearly six million in 2009.
Original article:[Chinese]
Power Struggle Between Generators and Coal producers
News, page 6
Major Chinese power companies failed to close a collective deal with coal producers and traders for next year's supplies due to disagreement over prices. The collective contract was usually sealed during the annual national coal-order, which last year saw orders worth 986 million tons of coals being signed. This year's fair, however, came to a negotiation deadlock as power generating companies ganged up to oppose prices offered by producers and traders, who demanded at least 520 yuan for each 5,000 kilocalories of coals while the buyers were looking at a price range around 380 yuan.
Original article:[Chinese]
The Vacuum Left Behind by China Development Bank
Market, page 13
China Development Bank has officially shed its policy bank status and become a fully commercial one on December 16. The move had caused concern among Chinese scholars, who believed the bank's former role in supporting long-term infrastructure building, modernization, industrialization and urbanization projects had been left vacuum. Observers believed a strong policy bank catering for those fields were still needed, especially when the country was weathering a gloomy global economy outlook.
Original article:[Chinese]
The Two Sides of Funds
Market, page 15
As China entered a bear market in 2008, assets under management of the fund industry tumbled for the first time since its inception in early 1990s. As of the end of the third quarter this year, these assets totaled 1.86 trillion yuan, 42% lower than the amount for 2007. Despite this, fund management fees were certain to climb as the number of investment continued to grow.
Original article: [Chinese]
Sanlu Group Enters Bankruptcy Proceedings
Corporation, page 19
The Intermediate People's Court Of Shijiangzhuang last week accepted a bank's bankruptcy petition for Sanlu Group, the dairy company at the center of the melamine-tainted milk scandal. The bankruptcy proceedings would hit distributors and suppliers badly, who had paid in advance for recalled products on behalf of Sanlu but now had the lowest priority among all creditors according to law. Beijing-based milk producer Sanyuan, which was mandated to manage some of Sanlu's major factories since late November, was still studying its plan to merge the latter.
Original article: [Chinese]
Consolidation of China Post's Subsidiaries
Corporation, page 20
Administrative orders from top leaders to improve the competitiveness of China's postal and logistics services in the international market have driven two subsidiaries of China Post, Express Mail Service (EMS) and China Post Logistics (CNPL), to merge soon. Headquarters of the two companies would merge around late January in the new year, but a detailed scheme for business integration wouldn't come out until March.
Original article: [Chinese]
What Responsible Modernization Is
Year-end special edition, page 33-64
As the curtain comes down on China's 30th anniversary of reform and opening-up, all Chinese need take more responsibility before continuing their journey to modernization. Instead of focusing solely on economic growth, they should stick to the core values of a modernized society - sense, liberty and morality. Based on this, the Economic Observe has compiled a 32-page year-end special, featuring responsible Chinese citizens who have strong positive influence on the society in the past year.
Original article: [Chinese]
