Insurers Scramble to Maintain Sufficient Solvency
Twelve Chinese insurers are struggling to maintain sufficient solvency. Based on their semi-annual reports, several large insurers are lagging behind on payment of premiums, an indicator of adequacy in capital against risk. For years, Chinese insurers have followed the fast track in growing their business. Control over risks, however, has not kept pace. China Insurance Regulatory Commission (CIRC) is reluctant to disclose details to individual insurers, but regulators will have to shake up the oversight system with no delay.

In an exclusive interview with Caijing, CIRC's chairman Wu Dingfu stressed that supervision should be strengthened over insurers’ corporate governance and how they manage solvency.
 
Liu Xiang's Exit Brings Tears to Fans and Advertisers
The day Liu Xiang, the defending Olympic hurdles champion, dropped out of the Beijing Games not only stunned the 1.3 billion Chinese people whose hopes were pinned to him winning a gold medal, but also, and perhaps more poignantly, shocked his global advertisers. As one of the most famous athletes in China, Liu Xiang's fee for endorsement has ballooned to over 15 million yuan. But it didn't stop sponsors from pouring more than 100 million yuan into the 25-year-old hurdler to build their brand image. Upon Liu's unforeseen exit, advertisers hastily revised their marketing strategies, but denied possibilities that they would cancel contracts with Liu, as a full-scale pullout might have a negative impact on their image among Chinese people. Carrying weights of expectation from both sport and commercial aspects, the young hurdler has to navigate his way between training and commercial activities as he returns to the track.   
 
Panzhihua Steel Reshuffle
The highly anticipated reorganization plan of Panzhihua Steel Group (Pangang), one of western China's top steel makers, remains uncertain. Pangang, which has three listed subsidiaries, is currently preparing for an overall listing of the group. Meanwhile, market speculation has risen on the possible merger of Pangang and other steel makers in China as the industry restructures itself. The government has signaled support for Pangang's merger with Baosteel Group, China's largest steel maker. However, another major state-owned steel maker, Anshan Steel, has also started acquiring shares of Pangang's listings in secondary markets, inciting speculation that Anshan Steel will compete with Baosteel to take over Pangang. The merger with Pangang will be a good opportunity for both Baosteel and Anshan to expand their capacity. And no matter who wins, it may be seen as a prelude for a steel industry overhaul.
 
Crinimal Law Amendments Address Key Issues
In late August, China's legislators heard arguments for amendments to the nation's criminal law. Tightening punishment on insider trading, enlarging the scope of bribery and protecting private information were among major topics.

The drafted amendments make insider trading a criminal offence and expand its definition to cover new areas such as "suggesting others to make insider trading." The possible amendments also raise the maximum jail term for possessing large assets from an "unclear source" from five years to ten, and add to the principals of bribery relatives of current government officials, retired government officials and their relatives. The new laws prohibit government institutions, and staff working for finance, telecom, transportation, education and medical services to release or sell private information. Penalties were increased to three years in jail plus a fine.    
 
Ocean Dead Zones Expand in China's Coastline
Ocean dead zones, sea areas that are oxygen-starved and devoid of fish, are encroaching on China's coastline. Currently the East Sea, Yangtze River estuary and Pearl River estuary are designated by United Nation's Environment Development as dead zones.

The main cause is excessive nitrogen from fertilizers and industrial sewage, which triggers a bloom of algae that consumes oxygen under water and suffocates sea life. China has suffered more than 300 such blooms since the 70s, and the frequency of algae bloom has tripled every ten years. China's former Environmental Bureau drafted a report to reduce pollution and clean sea water in 2006, but actionable details are still under discussion. The daunting task is to both tackle pollution sources along China's coastline, and to clean rivers that carry waste and pollutants to the sea.