Chinese Companies Hoarding Dollars
News, Cover
~ Chinese companies have begun to hoard dollars after the recent rate cuts by the People’s Bank of China and the European Central Bank.
~ The yuan depreciated by 0.48 percent against dollar in the second quarter of 2012.
~ But the deeper reason for dollar’s popularity with Chinese companies may be that the growth of Chinese economy is slower than the government had expectated, said the chief economist for China at Mizuho Securities.
~ Companies’ preference for the dollar has encouraged the central government in its decisions to cut reserve requirements three times this year.
Original article: [Chinese]

 
Finance Ministry Cracks Down on Public Institutions’ Off-the-books Revenue
News, page 2
~ The Ministry of Finance is tightening regulations for off-the-books revenue in public institutions, making it mandatory for these funds to be included in their budgets.
~ By the end of 2010, the total assets of 787,000 public institutions nationwide reached 11.97 trillion yuan. Total revenue for that year was 9.55 trillion yuan, of which 500 billion yuan of which wasn’t recorded in their budgets.
~ A government study shows that the Ministry of Science of Technology, the National Development and Reform Commission and other ministries have failed to report reported certain revenues generated by renting properties out and selling state-owned assets.
Original article: [Chinese]

 
HK University Teams Up With Hospital in Shenzhen, Promising Better Service
Nation, page 14
~ The University of Hong Kong-Shenzhen Hospital opened on July 1, promising to provide Shenzhen citizens with international-standard medical service, a move which will help take forward Beijing’s long-term initiative to improve medical care on the mainland.
~ Chief consultant to Dr. Leong Che Hung, says the hospital is advancing a new concept of “promoting family medicine to mainland citizens.”
~ The hospital has 80 nurses and 31 doctors, 10 of whom are from Hong Kong.
~ There will be two doctors at each consultation and at least one of them will be bilingual in Cantonese and Mandarin.
~ A standard treatment will cost $130 including the registration fee, consultation fee, and 7 days of medication. That is more costly than most mainland alternatives.
Original article: [Chinese]

 
China Construction Bank’s Explanation for Brazilian Deal’s Failure
Market, page 19
~ The Brazilian central bank wanted China Construction Bank’s (CCB) to buy other banking assets in the country in addition to WestLB’s local unit, and rejected the $400 million Chinese WestLB deal for that reason, the EO learned from an unnamed source.
~ According to the source, CCB Chairman Wang Hongzhang (王洪章) relayed this information at a June 11 meeting with Cole Wang, the president of CCB shareholder Temasek.
~ CCB lost out to Japan’s Mizuho Financial Group in the WestLB bid.
~Meanwhile, Mizuho Financial Group announced on June 20 that it would acquire 100 percent of shares of WestLB (Brazil).
~A source close to Mizuho Financial Group predicted that the acquisition price of Mizuho Financial Group would be about 30 billion yen, or about $ 400 million - similar to CCB’s offer.
~ The EO contacted CCB for comment, but hadn’t had an answer at the time of publication.
Original article: [Chinese]