Prof. Wu Xiaoqiu： China Is Striving for the World＇s Most Developed Capital Market

China＇s capital market is a hot issue in the new year. The best strategy to develop the Chinese capital market in the coming 15 to 20 years was discussed in the China Capital Market Forum, which was held in China at Renmin University on January 13. Government officials, scholars, and entrepreneurs commented that by 2020, the Chinese capital market will develop into one of the best capital markets in the world, not only in terms of size, but also asset quality, liquidity and dynamic trade. Is this a realistic goal？ What steps should we take to pursue this target？ With these questions in mind, after the forum, China＇s Foreign Trade interviewed Prof. Wu Xiaoqiu, Vice President of Renmin University of China, and the Director of the Finance ＆ Securities Institute of Renmin University.     

Further Lifting of Control over Capital Account

Wei Benhua, Vice-Administrator of State Administration of For eign Exchange stated that capital account management policy being studied recently and to be issued focuses on capital outflow and with new measures coming on, capital account in China will be further liberalized, thus creating environment for capital flow cross countries and development of capital market in China.     

After the Termination of Foreign Capital's Super National Treatment

The ＂super national treat-ment＂ enjoyed by foreign capital has finally been put to an end, a factor which has undoubtedly been closely related to the development of China＇s macroeconomy since the reform and openup began 30 years ago. Just like other countries in the past, including South Korea and Japan, which shared the same experience, China＇s attitude towards foreign capital has shifted frominitial preferential policies,     

China＇s Reaulation on the Amount of Registered Capital and the Period of. Investment for the Foreign Investors

China has specific regulations on the minimum registered capital and period of investment for the foreign investors to set up enterprises within the territory of the People＇s Republic of China.     

Harmonious Stock Prices

Stock price movements in China still remain highly harmonious, in spite of the many significant regulatory and structural changes over the recent years. A survey of the literature reveals that harmony in the stock price movements is related to a few salient features in China＇s capital market： high ownership concentration, high incidence of the use of pyramidal ownership structure, significant state ownership, and a lack of active institutional investors. In addition, we also point out that harmonious stock prices may generally result from low intensity of private information acquisitions by risk arbitrageurs.     

China Southern Airlines likely to receive 1,5 bin yuan capital injection

China Southern Airlines, the country＇s largest carrier, said late on Feb.22 that it was likely to receive 1.5 billion yuan （about 219 million U.S. dollars） as capital injection from its parent company.     

NANNING China＇s Green Capital

Nanning, the capital city of Guangxi province, is not only the political, economic and cultural center of the province, but also plays an important role in the economic development of southwest China. Nanning＇s advantageous location makes the city a commercial and communication center, opening China to Southeast Asia.     

Overseas Investment,Encouraging Long Journey

In the context of the financial crisis, international capital flows, cross-border investment, as well as the mergers and acquisitions generally continues shrinking at a large range in 2009, while China＇s foreign investment and overseas cooperation still maintains a good momentum of development.     

China eves closing coal-fired power plants in capital

China is considering moving the last four coal-fired power and heating plants out of Beijing＇s municipal area, replacing them with gas-fired stations, state media reported on Monday, in an effort to improve air quality in the capital.     

China＇s Capital Market： Could it be the Best in the World？

＂The share-list of China＇s stock market this year is bound to reach 3000 points.＂ ＂Before or after the Beijing Olympic Games, another upward fluctuation of the stock market is sure to emerge in China.＂ ＂The latest statistics show that the total market value of the Shanghai and Shenzhen stock market have surpassed the mark of 10 trillion RMB, surpassing 50% of GDP.＂ ＂Having successfully completed the reform of China＇s stock market, China has achieved a full revolution.＂     

China＇s largest land port exports wood productions to US

Kazakh airline Air Astana would begin new services between the central Asian country＇s capital and northwest China＇s Urumqi City early next month, the company said on June 23.     

Three Investment of Big Buyer,CIC

On September 29, 2007, China Investment Corporation （CIC）, the country＇s long-awaited state foreign exchange （forex） investment company, was inaugurated with a large amount of registered capital US$ 200 billion, and charged with the task of making better use of the nation＇s huge foreign exchange reserves. Lou Jiwei, the current Deputy Secretary General from the State Council will serve as Chairman, and has said that CIC will explore multiple channels for foreign exchange, and maximize its proceeds via long-term investments, managed within a range of acceptable risk. The establishment of CIC was regarded as a landmark event in the reform of China＇s forex management system.     

Int＇l mining trade center built in Yunnan

An international mining industry trade center was established in Kunming, capital of southwest China＇s Yunnan province, industry insiders confirmed on September 7.     

New Shanghai logistics base gets off to good start

China on September 25 began construction on an extension to the world＇s highest rail link, the Qinghai- Tibet Railway. The construction will connect the Tibetan capital of Lhasa to Xigaze, Tibet＇s second largest city.     

Shaanxi Impressions

Ancient, but longing to be modern
In most people＇s eyes, Xi＇an, the capital of Shaanxi, a province in western China, is an alias for ＂Ancient China＂, which is also what Patricia from Arizona, U.S., who was sitting next to me on my Xi＇an flight thought as well. ＂My husband and I managed to spend one precious day there in our busy China trip schedule, just to have a look at the great Terra Cotta Warriors,＂ Patricia＇s eyes were glimmering as we set off flying towards history. The Terra Cotta Warriors are the masterpiece of the First Qin Emperor, whose dynasty dates back to BC 221 - BC 207. Actually, I would prefer to refer to the city as ＂Chang＇an＂, which used to be the city＇s name in the Tang dynasty （AD 618 - 907） when it served as China＇s capital during the most prosperous period in ancient Chinese history.     

Southern Airline to start flights to New Zeatand

Ford Motor said on December 13 it will begin construction on a new plant in Nanchang City, capital of east China＇s Jiangxi Province, next year.     

GLOBAI CURRENCY WAB？

Economic theory has it that, in a fragile economy, every country wants to expand its exports,and low currency values can help make products cheaper to international buyers. A country＇s trade balance is simply an accounting identity that by definition matches the flow of goods and capital. As the world leading economies trying to recover from the financial crisis, some signs of conflict began to surface.     

Chengdu to Host Sino-EU Trade Fair in 2006

China will host a large Sino-European Union investment and trade fair in Chengdu, capital of southwest China＇s Sichuan Province in the year 2006, a senior official with the China Council for the Promotion of International Trade （CCPIT） said on December 10.     

Mazda increases stake in China sales ture

China First Automobile Works（FAW）and Europe＇s auto giant Volkswagen said May 8 they would jointly invest RMB 5 billion（USS735.3million）to build an auto plant in Chengdu,capital of south-west Chin＇s Sichuan Province.     

China＇s factory, construction spending up 27.3%

The ground was broken on August 28 in Guinea-Bissau＇s capital Bissau to start the construction of the country＇s government office building. The project, sponsored by China, will be completed in 20 months with an investment of US$22 million.