No. 339, Oct 29(2)

New Corporate Income Tax Enters Critical Drafting Phase
From News, page 3
The new corporate income tax law was recently reviewed at a meeting by the State Council's legislative arm, other top government agencies, financial experts, and an international auditing agency. Participants pointed out that the law still leaves much room for tax evasion, and may even require a thorough overhaul. As a result, it is not likely to be passed until late November or early December.
Original article: [Chinese]

Emergency Meeting of Bankers
From News, page 3 
On October 24, the central bank summoned top brass from the five state-owned banks and large stock-holding banks to discuss the proliferation of loans being used to purchase extra commercial properties. 
Original article: [Chinese]
 
Banking Watchdog Limits on Guarantors on Agency Debt
From News, page 4
Domestic commercial banks are forbidden from being guarantors for agency debt, according to a document released by the Chinese government. Without the banking system's major support for their credit, agency debt issuers are having a difficult time maintaining their regular customer.
Original article: [Chinese]

Oil Pricing Reform Dilemma
From News, page 5
With both international crude oil and domestic goods become more and more expensive, the 2007 oil product price system will be put in an awkward position. In China, because of government intervention, oil prices have traditionally been kept lower than those in the international markets. But according to the new reform, the prices will have to rise.
Original article: [Chinese]

Drug Distribution Policy Faces Difficulty
From News, page 6
A once active medicine distribution clinic in Shangdi district of Beijing is now stricken by shortages of popular medicine, especially those for the elderly. As prices have dropped with the now year-old policy, demand has soared, leaving many unable to find the medicine that they need at many such clinics.
Original article: [Chinese]