┣━Finance━┫

The World Bank raised its forecast for China's 2009 economic growth to 7.2 percent, up from a 6.5 percent forecast in March. The Washington-based international financial institution based its revision on China's record amount of loans and surging investment after the massive 4 trillion yuan stimulus package announced last November. China, the world's fastest-expanding economy, has witnessed strong retail sales alongside a recovery in real estate and imports in the past quarter.

Major shareholders of listed state-owned firms have initiated the process of transferring company stakes to the National Council for Social Security Fund (SSF), a person familiar with the situation told Caijing. The State Council, China's cabinet, said that all state-owned companies that listed after China's reforms of state share holdings in 2005, as well as companies that will list in future, must transfer shares worth 10 percent of their IPO to the state pension fund. State media reported that the new measures are aimed at fortifying China's social security system as part of an effort to deal with the country's aging population.

┣━Industry━┫

China's auto industry is likely to see an end in June to the robust growth experienced over the last three months, due to the fading impact of government stimulus measures on the sector. According to the China Passenger Vehicle Association, China's auto sales declined 16 percent month-on-month in the first week of June, signaling a possible steeper-than-expected decrease for the month. But the association is still confident that China's auto sales in 2009 will grow about 12 percent to 11.4 million units, much higher than the 6.7 percent growth in 2008.

The United States government expressed concern Monday about China's plan to require an Internet filtering software -- Green Dam-Youth Escort-- to ship with every new computer after July 1. In a statement, the U.S. Embassy in Beijing said the government "is concerned about Green Dam both in terms of its potential impact on trade and the serious technical issues raised by use of the software." The U.S. government hopes to "engage in a dialogue" with the Chinese side.

Gome Electrical Appliances Holding said June 22 that it expects to raise about HK$3.2 billion from a convertible bond issue to U.S. private equity firm Bain Capital, as well as a new share issue to existing shareholders. Gome has signed an agreement to sell HK$ 1.8 billion worth of seven-year convertible bonds with a 5 percent coupon to Bain Capital. The bonds will be priced at HK$1.18. The retailer also proposes to launch an offer of up to 2.48 billion new shares at HK$0.672 per share on the basis of 18 new shares for every 100 shares held. Company chairman Zhao Xiao said that the fund-raising exercise will help the company improve its relations with lenders and suppliers, and further secure its financial position.

China's largest oil refiner Sinopec has agreed to buy Swiss oil and gas exploration company Addax Petroleum Corp. for around US$7.24 billion. Sinopec International Petroleum Exploration and Production Corp (SIPC), a wholly owned subsidiary of Sinopec Group, offered C$52.8 per common share in cash. Addax's board recommended shareholders accept the offer and senior executives have entered a lock-up agreement to sell their 38 percent holding to the Chinese firm.

┣━Politics & Law━┫

Protests triggered by the death of Tu Yuangao, a 24-year-old cook in Shishou, Hubei Province, have been pacified after an autopsy was performed in the presence of the cook's relatives. Tu's relatives had strongly protested the police department's conclusion of Tu's death by suicide.  Then, on the morning of June 25, Tu's body was cremated. A governmental website later announced that the autopsy carried out by the Ministry of Public Security and a local medical institution showed that Tu had committed suicide by jumping off a building. So far, though, police have not released an autopsy report, and the local government has not held any press conferences on developments in the story.

Nearly 10 percent of China's counties will launch pilot rural social pension programs this year in preparation for a larger system that will eventually cover 900 million people living in rural areas in China, the June 24 executive meeting of the State Council decided. The social pension will have three revenue sources: money the rural residents pay themselves, money from the local community and subsidies from the government. As much as 3 billion yuan from central budget revenues will go to finance the government's portion. Any non-student over 16 who lives in a rural area and does not receive a pension from an urban employer can participate in the program.

The Supreme People's Court of China has ruled that compensation for the requisition of collectively owned land should be distributed evenly among members of rural economic organizations. Previously, the distribution plan was determined by the provincial government, which resulted in a variety of rules across the country, leading to disputes and conflicts. A judge on the court explained that being a member of a rural community entitles one to receive compensation for collectively owned land.