No. 340, Nov 5(1)

Highlights from the Economic Observer, issue 340, Nov 5th 2007

Monopoly in Fertilizer Sector Affects 900 mil Farmers
Cover Story
The monopoly of two state bodies over potassium fertilizer imports has led to rising costs for 900 million farmers in China. Sinochem Corporation and one other group is accused of blocking private firms' entry into the lucrative potassium fertilizer import trade, and allying with international cartels to buoy prices, which have increased by more than 135% over the past three years.
Original article: [Chinese]

Credit Control to Prevent Flows into Stock Market
Cover
The government is to plug up loose credit regulations to prevent illegal use of loans for investing in the stock market. The China Banking Regulatory Commission is said to be in the midst of drafting a guideline to minimize credit risks and strengthen the management of loan processing in commercial banks. This comes after news broke earlier this year of two companies channeling loans totaling 2.5 billion yuan from eight banks into the stock market.
Original article: [Chinese]

Controversy Over Universities' Land Sales
News, page 3
The Ministry of Land and Resources is studying the legitimacy of higher learning institutions selling land as a means to settle debts. These institutions are said to have collective debts of some 200 billion yuan, and some of them have recently, with the support of Education Ministry and local governments, sold land to developers to recover from their deficits.
Original article: [Chinese]