INFRASTRUCTURE
Shanghai, which will inaugurate its second subway line by the end of the
year, won't stop there. By 2005, officials say, the city's subways will be
total 130 kilometers of track with an average of 10 kilometers added every
year from then on. The plan is to make the subway at last as important to
Shanghai as the Tube is to London. Which will mean more carping and
complaining from our taxi drivers. But should solve the traffic problem once
and for all.
ECONOMY
Shanghai's gross domestic product (GDP) grew by 9.6 percent in the first
half of the year, faster than expected and a full two percentage points over
the national average. Industrial output value was up 11.4 percent and
foreign-funded ventures grew by 13.7 percent in output value. Even
state-owned enterprises did okay, registering an 11.4 percent growth rate.
But investment in fixed asset projects fell sharply, largely due to a
reduction in the number of real estate projects. Retail sales were up 6.9
percent.
China's total tax revenues jumped again in the first six months of the
year -- this time up 19.6 percent. Enterprise income tax from
State-owned enterprises (SOEs) was up 49 percent while import taxes were
also up 49 percent due to the on-going crackdown on smuggling. But growth of
business tax revenues slowed to 8 percent and tax revenue from the service
industry actually fell.
China Unicom has been approved for an overseas stock listing. But it
still has to sort out the compensation to foreign companies which poured
money into the company only to be told their investment was illegal.
The Shanghai authorities detected a total of 259 trademark infringement
cases in the first half of the year, more than double the number of a year
ago.
BUSINESS
Two more Chinese firms have been added to the Fortune 500 list of top
global companies, just in time for the Fortune conference here at the
end of September. They are the Industrial and Commercial Bank of China
(ICBC) and China Petrochemical Corporation (Sinopec). The other China
companies on the list are the Bank of China (BOC), China National
Chemical Import and Export Corporation (Sinochem) and China National
Cereals, Oils and Foodstuff Import and Export Corporation (COFCO). ICBC is
ranked Number 160 on the list and Sinopec 73rd. ICBC has 420 million
personal savings accounts and 30,000 bank branches.
AVIATION
Shanghai's Hongqiao airport handled two percent more passengers in the
first of the year than in the same period last year, while air freight
grew by 31.8 percent. Eight new air routes have been opened this year.
The Pudong International Airport is scheduled to open for business in
September.
TRADE
Pudong had a deficit of about $993 million in international trade in the
first half of the year, double the deficit for the same period last year.
Statistics released by Pudong Customs showed January-June trade at $6.7
billion, 36.7 percent more than the same period last year. Exports were up
31 per cent as trade recovered from the Asian financial crisis but imports
increased 41.4 per cent. A large portion of the import value involved the
purchase of new manufacturing machinery.
U.S. companies are now the top ranking investors in Pudong, taking over from
Hong Kong. Australian firms have jumped from eighth to third
position in terms of overall Pudong investment.
BANKING
China's largest bank, the ICBC, is pushing out significantly greater
numbers of housing loans, feeding what everyone hopes will eventually
become a large and liquid market for private housing. The ICBC made
loans of 15.2 billion yuan to people buying homes in the first half of
the year, pushing total outstanding loans to 98 billion.
The total number of foreign banks operating in Pudong has risen to 37 of
which 18 have the right to conduct Renminbi business. By the end of May,
foreign exchange deposits and loans with the banks totaled US$1.634 billion
and US$9.714 billion respectively. Four of the banks are from North America,
18 from Europe and 15 from Asia. Their assets total US$12.9 billion.
The Shanghai Pudong Development Bank (SPDB) is expanding its loan
services. People who wish to travel but don't have enough money for the
moment can apply for loans of up to 50,000 yuan. The loan term is a maximum
of one year.
Turnover on China's inter-bank money market reached 208 billion yuan in the
first half of this year, more than four times that of the same
period last year. The sharp increase is attributed to the expansion of
membership. A wide range of lower-tier financial institutions, including
rural credit cooperatives, have received approval to enter the market this
year.
ENVIRONMENT
The results of the 1998 China city environmental tally are in and
Shanghai has leapt up from being the 19th cleanest city in the country
in 1997 to 14th last year. The top 10 cities are Guilin, Haikou,
Shantou, Suzhou, Ningbo, Chengdu, Wenzhou, Qingdao, Tianjin and
Hangzhou.
China is requiring all air-conditioned motor vehicles to be freon-free
starting from January 1, 2002. Freon is one of the CFC chemicals which
destroy the ozone layer.
INTERNET
You can now order rice in Shanghai over the Internet. Shanghai Grain
Distribution Co. and Shanghai Meilin Zhengguanhe Group have created an
"online grain shop" through which residents can place an order and have
high-quality rice delivered to their homes the same day.
INDUSTRY
Sony, one of the few multi-national multi-media gorillas, has launched a
US$410 million joint venture in Shanghai to manufacture TV sets. Which,
given the state of the TV set market right now, reflects Sony long-term
vision. The new unit, Shanghai Suoguang Visual Products Co. Ltd., is owned
by Sony along with the Shanghai Radio and Television Holding Company, and
the Shanghai Vacuum Electronics Company. The venture will develop and
manufacture large-screen color TVs -- up to 500,000 sets a year.
Shanghai General Motors has received more than 1,000 orders for its new
Buick automobile from Beijing. Car aficionados in Shanghai (Hi, Mr
Chen!) say the Buick is definitely the best car ever built in China,
also still behind imported models.
