MARKET WATCH

China widens the tax rebate program for Hainan Provinceto stimulate the island’s tourism industry.The banking sector fares well with profits surging last year.By imposing a higher resource tax on rare earth exploration,China tries to streamline the fragmented industry.The shipping giantCOSCO jumps back into the black thanks to buoyant market demands.The international consulting firm McKinsey&Co.expects China to replace Japan as the world’s top luxury goods market by 2015.     

MARKET WATCH

China slashes import duties on 33 items,a move expected to stimulate imports and benefit a series of relevant sectors.Growth of industrial profits is slowing down due to costs inflation and tightening monetary policies.Foreign banks operating in China see a rosy future for their businesses.Mounting debt poses risks to local governments.By closing 56 unlicensed express delivery firms,China aims to streamline the crowded and chaotic industry.Suning takes majority control of the Japanese company Laox as the Chinese appliance retailer expands abroad.     

MARKET WATCH

The manufacturing industry shows signs of recovery as reflected by a rebounding PMI. The initial public offerings market withers due to less than favorable stock markets. Chinese shipbuilders reel from decreasing orders as external demands falter. The mobile payment industry bursts with vitality, though the security issue remains an acute concern. Foreign banks in China lag behind their local competitors in terms of profitability owing to limited ability to attract deposits.     

Away to Anhui

<正>Central China’s Anhui Province becomes a major destination for industry as companies move their production lines inland Wage growth and land costs inflation are prompting relocation of China’s manufacturing jug-gernaut, a growth engine of the Chinese economy.     

Back on Solid Ground

<正>The Chinese economy steers a steady course of more balanced growth, but inflation and asset bubbles are posing daunting challenges     

MARKET WATCH

By ordering another hike in the reserve requirement ratio,China attempts to soak up excess liquidity.Chinese commercial banks issued higher-than-expected new loans in March,highlighting simmering inflation risks.House prices continue edging higher in most major cities,despite tough policies.State-owned enterprises are bursting with vitality,reaping juicy profits in the first quarter.China is bound to benefit from emerging global electric vehicle demand,though challenges remain.China’s telecom equipment maker Huawei cashes in on profitable overseas markets.     

Even Rarer

<正>China reduces its export quota of rare earths for the first half of 2011 Rare earth metals will soon become an even hotter commodity than     

MARKET WATCH

Manufacturing activities continue to lose steam as the purchasing managers index drops for the third consecutive month. The U.S.retail giant Best Buy trims its China presence after struggling to survive amidcut-throat competition. But an increasing number of U.S. companies are still expanding into China to cash in on the vibrant market. The aluminum behemoth Chalco jumps back into the black due to growing prices of thelight metal. China’s leading portal website Sina makes a push into the online shopping market by acquiring a stake in an online apparel retailer.     

MARKET WATCH

The manufacturing industry shows signs of a turnaround,with the purchasing managers index staging a comeback in August. China’sbig four state-owned commercial banks are generating windfall profits,though risks still loom large. Fund management companies are swimming in red ink, receiving cues from flagging stock markets. Industrial enterprises experience slowed profit growth. Chinese shipping giant COSCO falters because of tepid demands and overcapacity woes.     

MARKET WATCH

By expanding yuan settlement in cross-border trade andallowing cross-border direct investment in the yuan, China aims to pushforward the internationalization of its currency. House prices are still holding up inChina, but property developers are under increasing pressures. China’s goldmarket bursts with vitality as investors seek safety amid soaringinflation. The automaker BYD faces serious headwinds due to a plunge insales. The telecom giant China Mobile faces slower growth in its customerbase due to cutthroat market competition.