Tax Agency Monitor Tax Payment Related to Lock-up Stocks
» The State Administration of Taxation has requested a list of stocks coming out of lock-up to monitor the payment of taxes on the capital gains, a securities industry source told Caijing.
» Investors disposing of shares coming out of lock-up are required to pay individual income tax of 20 percent on the gain from the transaction.
» Caijing has learned that since March, as many as nine companies were found to have evaded taxes of about 200 million yuan in connection with gains on their share transactions.
Full article in Chinese: http://www.caijing.com.cn/2009-09-16/110252180.html
China Aug. New Forex Holdings Lowest in Nine Months
» Chinese banks' foreign exchange holdings rose 118.7 billion yuan in August, the lowest in nine months, according to statistics released by the People's Bank of China Sept. 17.
» The combined value of the trade surplus and foreign direct investment in August was 158.5 billion yuan, signalling there was likely a net outflow of funds in the month.
Bank of America Not to Further Dump Shares of CCB
» Bank of America CEO Kenneth D. Lewis said the bank has no plan to further cut its stake in China Construction Bank after a recent 5 percent share dump.
» The expansion of Bank of America in China will not affect its cooperation with CCB, Lewis said in an exclusive interview with Caijng.
» The relationship between the two banks will not change, he added.
Full article in Chinese: http://www.caijing.com.cn/2009-09-17/110253034.html
BOE Invests More into 6-G LCD Production
» Leading LCD panel maker BOE Technology Group Co. said it has injected 7.65 billion yuan into its sixth generation thin-film liquid-transistor LCD production line, raising its registered capital to 9 billion yuan.
» In a Sept. 16 filing to the Shenzhen Stock Exchange, BOE said the facility, in Anhui province's Hefei city, will start producing LCD panels and modules in the fourth quarter of 2010.
» The production line is expected to become profitable within two years after it begins operation, BOE vice president Liu Xiaodong told Caijing Sept. 17.
Full article in Chinese: http://www.caijing.com.cn/2009-09-17/110252900.html
Digital China to Raise Money via Placement
» Digital China Holdings Ltd., one of China's biggest information technology companies, plans to raise HK$367 million in its first share placement since it listed eight years ago.
» In a Sept. 16 statement to the Hong Kong Stock Exchange, Digital China said it will place 57.6 million new shares priced at HK$6.6 apiece, representing a discount of 6.52 percent on its closing price the same day.
» Proceeds will be used to make strategic investments in the IT services sector, fund research and development, and supplement working capital, the statement said.
Full article in Chinese: http://www.caijing.com.cn/2009-09-17/110252848.html
Merger of Sinopharm and China National Biotech Approved
» The merger of China National Biotech Group and China National Pharmaceutical Group Corp., known as Sinopharm, has been approved by China's cabinet, the State Council, according to a Sept. 16 statement on the Web site of the State-owned Assets Supervision and Administration Commission.
» The merger will help Sinopharm's biomedical segment, company spokesman Zhu Jingjin told Caijing.
» SASAC said in the statement that the merger reduces the number of companies under its administration from 136 to 135.
Full article in Chinese: http://www.caijing.com.cn/2009-09-16/110252189.html
┣━Politics and Law━┫
Health Ministry Halts Sales of Herbal Injection
» China's health ministry and drug watchdog have suspended the sales of an herbal remedy produced by a pharmaceutical company in Heilongjiang Province.
» Presently the two government agencies are carrying out an investigation into the case, but they declined to reveal where the incident broke out and whether there were any related deaths.
» A batch of the herbal injections produced by the company did not pass the evaluation carried out by authorities of Haidian District, Beijing earlier this year.
» A similar herbal remedy, used to treat colds, was reported to have caused strong adverse effects in three people from Qinghai Province in February 2009.
Full article in Chinese: http://www.caijing.com.cn/2009-09-17/110252895.html
Brick Mill Worker Granted Medical Compensation
» Zhang Haichao, a 28-year-old victim of an occupational illness, has been given 615,000 yuan of medical compensation from his former employer, a fireproof brick factory.
» Four other workers of the brick mill also received compensation.
» Zhang underwent a risky biopsy that confirmed his black lung disease in order to justify his health compensation claim. The operation was conducted two years after an initial diagnosis, which was ignored by authorities.
» Media coverage of Zhang's case led to an intervention by the Ministry of Health, before which public health authorities claimed the biopsy was not legally binding.
Full article in Chinese: http://www.caijing.com.cn/2009-09-17/110253057.html
China and U.S. to Set up Research Center on Carbon Finance
» Chicago Climate Exchange (CCX) signed an agreement with the finance institute of China's central bank and a Chinese oil company to establish a new research center on financing low carbon initiatives.
» China's central bank looks forward to working together to provide critical research in the area of low carbon economic development, and being a vital component of the educational process in China, said the bank's governor Zhou Xiaochuan last August.
» In September 2008, CCX, oil giant China National Petroleum Corp. and the city of Tianjin opened the Tianjin Climate Exchange (TCX), China's first exchange established to design and market environmental products and the platform for the new center.
» The new center will be called the China-U.S. Carbon Finance and Development Research Center.
Full article in Chinese: http://www.caijing.com.cn/2009-09-17/110252791.html