BEIJING, July 5 -- The tourism regulator is working on details to further open the market to foreign operators by lowering capital requirements and allowing subsidiaries.
Foreign tour agencies will be treated on par with domestic counterparts when it comes to registered capital, a China National Tourism Administration (CNTA) official has said.
Currently, they are required to have a minimum of 2.5 million yuan (328,000 U.S. dollars) in registered capital, compared to 300,000 yuan for domestic tours and 1.5 million yuan (197,000 dollars) for outbound and inbound tours for Chinese counterparts.
The CNTA has also allowed foreign-funded travel agencies to set up subsidiaries in China starting July 1, four months ahead of the November 11 deadline set by the World Trade Organization (WTO ).
However, details of the two moves are yet to be released.
By May, there were 29 solely-funded or joint-venture foreign tour operators, according to CNTA figures.
But the tourism regulator has not taken any steps to allow foreign tour agencies to handle outbound business. Currently, they are allowed to operate only inbound and domestic travel.
Another CNTA official said outbound tourism - the most lucrative part of the market - will remain closed to foreign tour agencies for now, because "it is not part of China's promise to the WTO".
The World Tourism Organization estimates China will become the world's fourth-largest source of outbound tourists by 2015.
"It is the potential of the outbound market that has attracted so many foreign operators in the first place," said an industry insider, who left a large State-owned tourism company to join a Beijing-based joint-venture tour agency a few years ago.
"We are looking forward to the day when the outbound market opens," he said.
One positive signal is that the CNTA recently allowed Hong Kong and Macao-funded tour agencies to cater to mainland tourists in eight provinces and regions bound for the two special administrative regions.
Takashi Ota, president of Kinki Nippon Tourist Co Ltd, Japan's second-largest tourism company, suggested the CNTA consider allowing collaboration between foreign and Chinese tour operators in the outbound market as a start.
But some large domestic agencies said they prefer current policies that bar access to the outbound market for foreign firms.
Thursday, July 5, 2007
Xinjiang becomes world's largest production base of colored cotton
BEIJING, July 5 -- Xinjiang's output of colored cotton makes up half of the entire global production, making the autonomous region the world's largest production base of colored cotton, according to China Colored Cotton (Group) Co Ltd.
At last week's 2007 China International Cotton Conference, Zhao Xiaolin, chairman of China Colored Cotton Group, said China's growing area of colored cotton and output of the colored fiber both saw a 20-fold increase in the past decade. At present, Xinjiang has grown colored cotton in an area of more than 130 square km.
China Color Cotton Group, located in Xinjiang, is China's largest producing enterprise of colored cotton. Its output reached 8,000 tons last year, making up 95 percent of China's total production of colored cotton and half of the world's colored cotton supply.
The company has developed over 400 kinds of colored cotton products. Some experts believe the colored cotton products, which are environmentally friendly products, have become a pillar of China's textiles export.
(Source: China Daily)
At last week's 2007 China International Cotton Conference, Zhao Xiaolin, chairman of China Colored Cotton Group, said China's growing area of colored cotton and output of the colored fiber both saw a 20-fold increase in the past decade. At present, Xinjiang has grown colored cotton in an area of more than 130 square km.
China Color Cotton Group, located in Xinjiang, is China's largest producing enterprise of colored cotton. Its output reached 8,000 tons last year, making up 95 percent of China's total production of colored cotton and half of the world's colored cotton supply.
The company has developed over 400 kinds of colored cotton products. Some experts believe the colored cotton products, which are environmentally friendly products, have become a pillar of China's textiles export.
(Source: China Daily)
Report: soaring rents pinch businesses across U.S.
WASHINGTON, July 5 (Xinhua) -- Office rents are skyrocketing across the United States, driving up costs for businesses large and small, thanks to a dearth of space in some major markets and anew breed of deep-pocketed landlords who can afford to hold out for premium tenants, The Wall Street Journal reported Thursday.
Nationwide, effective rents on office properties, the amount tenants pay after concessions, jumped an average of 3.1 percent during this year's second quarter, up from gains of 2.8 percent in the first quarter and 2.1 percent in the year-earlier period, said the report, quoting a report by real-estate research firm Reis Inc..
That was the sharpest quarterly increase since the third quarter of 2000, before the combined effects of the technology-stock bust and the Sept. 11, 2001, terrorist attacks caused office vacancies to rise and rental rates to fall.
The red-hot commercial sector offers a sharp contrast with the housing market, which has been slumping for the past two years or so, the report said.
In some cities, today's higher rents reflect strong economic fundamentals. In New York and Washington, for example, fatter corporate profits are spurring companies to step up hiring, fueling demand for additional space at a time when supply is tight.
In other markets, such as Boston and San Francisco, rising rents are the by-product of a deal-making frenzy that has left large numbers of offices buildings in the hands of nontraditional landlords such as private-equity firm Blackstone Group LP and investment bank Morgan Stanley.
Meanwhile, demand for office space has been growing. Net absorption, a measure of the space taken up by commercial tenants, increased markedly during the latest quarter, a sign that the economy is producing more office jobs, Sam Chandan, chief economist for Reis, was quoted as saying.
Nationwide, the office-vacancy rate, at 12.7 percent, is the lowest since the third quarter of 2001, according to the report.
Nationwide, effective rents on office properties, the amount tenants pay after concessions, jumped an average of 3.1 percent during this year's second quarter, up from gains of 2.8 percent in the first quarter and 2.1 percent in the year-earlier period, said the report, quoting a report by real-estate research firm Reis Inc..
That was the sharpest quarterly increase since the third quarter of 2000, before the combined effects of the technology-stock bust and the Sept. 11, 2001, terrorist attacks caused office vacancies to rise and rental rates to fall.
The red-hot commercial sector offers a sharp contrast with the housing market, which has been slumping for the past two years or so, the report said.
In some cities, today's higher rents reflect strong economic fundamentals. In New York and Washington, for example, fatter corporate profits are spurring companies to step up hiring, fueling demand for additional space at a time when supply is tight.
In other markets, such as Boston and San Francisco, rising rents are the by-product of a deal-making frenzy that has left large numbers of offices buildings in the hands of nontraditional landlords such as private-equity firm Blackstone Group LP and investment bank Morgan Stanley.
Meanwhile, demand for office space has been growing. Net absorption, a measure of the space taken up by commercial tenants, increased markedly during the latest quarter, a sign that the economy is producing more office jobs, Sam Chandan, chief economist for Reis, was quoted as saying.
Nationwide, the office-vacancy rate, at 12.7 percent, is the lowest since the third quarter of 2001, according to the report.
Hong Kong shares close at third-straight record high
HONG KONG, July 5 (Xinhua) -- Strong liquidity propelled Hong Kong's benchmark index to its third-straight record close Thursday, after the market shrugged off concerns about further tightening by the Chinese government, which dragged down stocks on the Chinese mainland.
The Hang Seng Index rose 34.44 points, or 0.2 percent, to 22, 252.99 after trading between 22,126.97 and 22,328.61 during the session.
Turnover reached 85.13 billion Hong Kong dollars (10.90 billion U.S. dollars), up from 83.43 billion Hong Kong dollars (10.69 billion U.S. dollars) Wednesday.
Analysts said the index is likely to consolidate in the near term as the index has gained 1,670 points since May 31. They added potential tightening measures on the Chinese mainland remain an overhang on the market.
A sharp fall in mainland's stock markets sent the Hong Kong index lower in the early afternoon, but it regained ground to end at a new record high.
The benchmark Shanghai Composite Index, which tracks both A and B shares, fell 5.3 percent to 3615.87, following a 2.1 percent fall Wednesday, on expectations for more tightening measures.
Blue chips were mixed. Heavyweight HSBC rose 0.14 percent to 143.20 Hong Kong dollars while mobile giant China Mobile fell 0.1 percent to 86.50 Hong Kong dollars on profit-taking.
Chinese banks made further gains on prospects of further strength in the yuan, traders said.
China Construction Bank ended up 2.9 percent at 5.77 Hong Kong dollars, following its gain of 2.6 percent Wednesday.
Bank of China rose 2 percent to 3.98 Hong Kong dollars and ICBC increased 1 percent to 4.53 Hong Kong dollars.
Chinese developer C C Land rose 9 percent to 7.56 Hong Kong dollars after Citigroup initiated its coverage with a buy rating and a price target of 8.68 Hong Kong dollars.
"C C Land is the only property play that offers pure exposure to western China - a high-growth region," said Citigroup.
HK and China Gas gained 2 percent to 16.80 Hong Kong dollars after the exchange disclosed Chairman Lee Shau-kee had increased his stake to 40.14 percent from 40.07 percent. Lee bought 4.418 million shares from June 27-29 at 16.475-16.511 Hong Kong dollars each.
xinhuanet
The Hang Seng Index rose 34.44 points, or 0.2 percent, to 22, 252.99 after trading between 22,126.97 and 22,328.61 during the session.
Turnover reached 85.13 billion Hong Kong dollars (10.90 billion U.S. dollars), up from 83.43 billion Hong Kong dollars (10.69 billion U.S. dollars) Wednesday.
Analysts said the index is likely to consolidate in the near term as the index has gained 1,670 points since May 31. They added potential tightening measures on the Chinese mainland remain an overhang on the market.
A sharp fall in mainland's stock markets sent the Hong Kong index lower in the early afternoon, but it regained ground to end at a new record high.
The benchmark Shanghai Composite Index, which tracks both A and B shares, fell 5.3 percent to 3615.87, following a 2.1 percent fall Wednesday, on expectations for more tightening measures.
Blue chips were mixed. Heavyweight HSBC rose 0.14 percent to 143.20 Hong Kong dollars while mobile giant China Mobile fell 0.1 percent to 86.50 Hong Kong dollars on profit-taking.
Chinese banks made further gains on prospects of further strength in the yuan, traders said.
China Construction Bank ended up 2.9 percent at 5.77 Hong Kong dollars, following its gain of 2.6 percent Wednesday.
Bank of China rose 2 percent to 3.98 Hong Kong dollars and ICBC increased 1 percent to 4.53 Hong Kong dollars.
Chinese developer C C Land rose 9 percent to 7.56 Hong Kong dollars after Citigroup initiated its coverage with a buy rating and a price target of 8.68 Hong Kong dollars.
"C C Land is the only property play that offers pure exposure to western China - a high-growth region," said Citigroup.
HK and China Gas gained 2 percent to 16.80 Hong Kong dollars after the exchange disclosed Chairman Lee Shau-kee had increased his stake to 40.14 percent from 40.07 percent. Lee bought 4.418 million shares from June 27-29 at 16.475-16.511 Hong Kong dollars each.
xinhuanet
China to Further Open Mining Market
Chinese Vice Premier Zeng Peiyan says China will further open its national mining market to attract more foreign investment. Zeng Peiyan made the announcement on Tuesday at the China Mining 2006 conference in Beijing. He said China will increase international communication and cooperation for geological surveys, as well as actively absorb foreign capital, advanced technology and management for mutual benefit. Zeng Peiyan added China will support excellent domestic enterprises to go abroad to learn about the prospects of tapping into the country’s mineral resources. Officials from the Ministry of Land and Resources say to encourage more foreign investment, China will improve its mining industry and investment environment to ensure investors‘ legal rights.
CRI
Airbus A380 to Have 7-day Trial Flight in China
An Airbus A380 plane will arrive in Hong Kong on Saturday for the start of its seven-day trial flight in China. The plane with 555 seats will fly to Guangzhou, Beijing and Shanghai in the tour. Airbus A380 started trial flight on Nov. 13 to test its function and reliability in world major airports. The final authentification is expected to be finished in the middle of December. Up to date, five Airbus A380 planes have successfully complete their trial flights and Airbus has received orders for 166 jets from 15 customers. Airbus announced a 150-plane order from China on Oct. 26 when French President Jacques Chirac was on his visit to China.
FDI climbs after falling for 4 months
Nov.16 - Realized foreign direct investment (FDI) in the country rose in October after annualized declines in the previous four months, the Ministry of Commerce said Wednesday. The amount grew nearly 16 per cent to US$5.99 billion and 3,047 foreign-invested enterprises were approved. The country attracted US$48.58 billion in FDI from January to October, up 0.34 per cent from a year earlier, ministry spokesman Chong Quan told a news briefing. During the same period, 33,068 foreign-invested ventures were approved, down 6.32 per cent year on year. The ministry did not reveal figures for contracted FDI. Hong Kong ranked first among sources of FDI, followed by the British Virgin Islands and Japan. Although the increase was slight compared with last year, the average value of each investment deal rose, said Gao Hong, a research fellow with the Chinese Academy of Social Sciences. He attributed it to the government paying more attention to the quality of overseas investment rather than quantity. The figures released by the commerce ministry did not include investment flows to the financial sector, which has become a major destination of FDI since last year. "A lot of foreign money is coming into China‘s banking sector as the deadline at the year-end for the full opening of the banking sector draws near," Citigroup economist Huang Yiping said. The National Development and Reform Commission (NDRC), the top economic planner, said last week that the country welcomes foreign companies as strategic investors in commercial banks and State-owned insurers as long as the Chinese side holds a controlling stake. The move is expected to attract more inflows to the financial services sector during the 11th Five-Year Plan (2006-10). The banking regulator is expected to publish revised administrative rules on foreign banks, allowing them to deal with renminbi retail business. FDI in the sector jumped to US$12 billion last year, compared with less than US$2 billion in 2004. The spokesman also touched on China‘s trade and economic relations with Viet Nam, India and Pakistan with President Hu Jintao yesterday starting his visit to the three countries. Chong said he believes that Chinese products and services would have an easier access to Viet Nam after the Southeast Asian nation recently concluded negotiations for accession of the World Trade Organization. Bilateral trade between China and Viet Nam reached US$8.2 billion in 2005, and Viet Nam is one of the major overseas investment destinations of Chinese enterprises. Trade between China and India is expected to reach US$20 billion this year, two years ahead of the target set by the two governments. China is also likely to reach a free trade agreement with Pakistan in the near future, Chong said.
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