Highlights from the EO print edition, issue no. 403, January 19, 2009

Key Subsidiaries Not for Sale
Cover
A list of key subsidiaries of Chinese state-owned firms would likely be classified as "Not for Sale" companies to protect the state's interest in strategic industries and resources, the EO has learned. Sources from the state-owned assets watchdog revealed that key subsidiaries would likely be defined if their assets and profits contributed to over 60% of their parent companies' worth. These hugely profitable subsidiaries were usually listed companies, dealing with oil and gas, petrochemical, telecommunication, mining, aviation, shipping and power generation.
Original article: [Chinese]

New Economic Housing Scheme
Cover
The Chinese government has been considering to provide economic housing for rent to medium-low income group. At present, China has three types of semi-welfare-based housing schemes catering to the poor. The existing scheme for the medium-low income group involved houses sold at fixed prices. The new scheme under study, however, would allow eligible applicants who could not yet afford buying their own property to rent subsidized houses.
Original article: [Chinese]

Monetary Policies Begin to Show Positive Impacts
Analysis, page 2
China's recent looser monetary policies have led to increased money supply and credit issuance in the market, wrote the country's central bank research center committee vice chairman Wang Zhili. Other economic indicators also showed positive signs, such as climbing corporate sales records, decreasing inventories, and a rise in power consumption. Judging from the current trend, Wang believed the Chinese government would only consider further rate cuts after the Spring Festival holiday (Jan 25 to Feb 1).
Original article: [Chinese]

Rural Consumption Campaign Bets on Electrical Appliances
News, page 4
China has set a target to generate 100 billion yuan in rural consumption this year through a campaign to bring subsidized electrical appliances to the countryside. However, market observers believed the target was a longshot, as rural spending power had plunged with tens of thousands of migrant workers losing their jobs in the cities and returning to the countryside.
Original article: [Chinese]

Striving for a Winning Formula in Iron Ore Negotiations
News, page 6
Chinese iron and steel companies - which have traditionally been disadvantaged in iron ore purchases in the past - would form an alliance to speak in unison and push for price cut in this year's negotiations with overseas iron ore suppliers. The industry association in China had recently held a meeting with members, outlining principles for negotiations and major criteria to be met by suppliers, including a price cut of at least 40%, and an agreement that they would only entertain long-term contracts.
Original article: [Chinese]

Investigating into Bird Flu Death
Nation, page 1
China's first death from bird flu in 2009 took place in the capital. The death of a 19-year-old girl in Beijing on Jan 5 sparked panic not only in Beijing, but also put other provinces on the alert. The victim, Wang Yanqing, was initially treated for normal flu and transferred from one hospital to another; the treatment she underwent before death left her parents in huge medical debt running into tens of thousands of yuan.
Original article: [Chinese]

CNOOC Will Lose Sole Right to Foreign Cooperation
Corporation, page 27
China National Offshore Oil Corporation would soon lose exclusive rights to partner with foreign firms to extract oil and gas off China's shorelines. Top regulatory agencies including the National Development and Reform Commission and the Ministry of Resources along with players in the industry have already met several times and were recently only working on implementation details. Since 1982, foreign firms seeking to extract oil and gas from China's seas have been required to sign a contract with CNOOC which put all prospecting costs on the former's shoulders and gave CNOOC rights to 51% of all resources extracted. Since CNOOC's market listing, many in the industry have argued that it shouldn't have exclusive or monopolistic right's to national resources, and that more competition should be introduced.
Original article: [Chinese]

Auto Industry Gets Stimulus
Industry, page 33
At a January 14 State Council meeting, Premier Wen Jiabao passed a cocktail of measures meant to stimulate, restructure, and refit China's auto industry. Taxes on retail purchases will be slashed from 10% to 5%; subsidies for small vehicles will be released; and innovation, including alternative fuel research, will be bolstered. But some suggested that the package was still not enough to jolt car purchases in the short term.
Original article: [Chinese]