No. 333, Sept 17(1)

Private and Public Equity Crossing Swords
Cover
This week cover story assesses the performance of private and public equity funds in China in the first half of the year. Public equity funds appeared to have gained an upper hand in rates of return as the private equity funds acted more conservatively against the bullish market. However, PE in China got a shot in the arm this year with many reputed fund managers entering the industry.
Chinese article online: http://www.eeo.com.cn/eobserve/eeo/jjgcb/2007/09/14/83170.html

Editorial: Concerns over Inflation
Cover
As the Consumer Price Index (CPI) reaches a new height of 6.5 percent, macro-policy officials remain adamant that full-scale inflation has yet to emerge as a threat to China's economy. But some scholars are less optimistic.
Chinese article online: http://www.eeo.com.cn/eobserve/eeo/jjgcb/2007/09/14/83174.html

Anti-trust Law: Officials Clear the Air
News, Page 3
Officials explain that the Anti-Trust Law is not against mergers, conglomerates or monopoly enterprises, but rather, is meant to guard against monopoly market behavior. They also rebuff the opinion that the law is a paper tiger without real administrative and punitive function.
Chinese article online: http://www.eeo.com.cn/eobserve/eeo/jjgcb/2007/09/14/83177.html

China's Direct Investment Overseas Ranked 13^th in the World
News, page 5
China's direct investment overseas reached over 20 billion dollars last year, putting it at number 13^th in the world according statistics released by the government on September 14. China FDI overseas mainly occurred through mergers and acquisitions-- up to 40 percent. Main investment destinations were Latin America and Asia, especially Hong Kong. Last year, FDI flow from China made up 2.72 percent of the world's total.
Chinese article online: http://www.eeo.com.cn/eobserve/eeo/jjgcb/2007/09/14/83182.html

Inflation Not the Answer to Yuan Appreciation
News, Page 6
Inflation, excess liquidity, and the yuan's appreciation are the foremost concerns of China's economy at present. Song Hongbing, author of the best-selling "Currency Warfare" shares his opinions on the subject.
Chinese article online: http://www.eeo.com.cn/eobserve/eeo/jjgcb/2007/09/14/83186.html