No. 341, Nov 12(1)

Highlights from the Economic Observer, no. 341, Nov 12, 2007

Number One in the World... So What?
Cover Editorial
The stock market rally has made PetroChina the world's most valuable company-- priced at over one trillion dollar on November 5, the first day it was listed on the Shanghai Stock Exchange. However, that is only face value. Although the company's market value is now twice the size of Exxon Mobil, the latter's net profit is double PetroChina's. Moreover, PetroChina holds its throne by compromising consumer interests and public welfare through monopoly behavior. If these are the ways the world's “firsts” are created, how does it benefit the country's overall economic development and its global competitiveness?
Original article: [Chinese]

Fever of Excess Liquidity Subsiding
Cover Story
A lower transaction rate for second-hand properties, stunted upward climbs of stock prices, and reduced investment returns all point towards a contraction of liquidity. The Chinese government has puzzled over how to deal with the liquidity surplus for the past two years and introduced various control measures in response; now it seems that the prolonged market fever is subsiding.
Original article: [Chinese]

Farewell Monthly Passes
Cover
Beijing subway monthly passes will cease to exist this month after nearly 30 years in use. Besides offering some 170,000 commuters a reduced fare, the monthly passes used to represent the status of being native Beijing folks, since only commuters with a local hukou (registered residence) could apply. The privilege had in the past encouraged a black market in the passes, and the abolishment of it is seen as a step forward in dismantling institutionalized discrimination that targets one's place of origin.
Original article: [Chinese]

Subsidies to Improve Energy Conservation in Steel Productions
News, page 4
The Chinese government is stepping up efforts to get rid of backward and high-energy usage productions method in the steel industry. The efforts include possible subsidies to help the industry replace equipment that demand excessive electrical and water resources.
Original article: [Chinese]