W E E K E N D BUSINESS 10 APRIL 7 - 8, 2007 DAILY

INBRIEF Oil sector Index trading China’s securities regulator on Friday released detailed rules faces new to guide fi rms dealing in stock index futures that will be launched this year. The draft rules, posted on the website of the China challenges Securities Regulatory Commission (CSRC), requires a fi rm to have Middle East cost-competitive a registered capital of at least 50 million yuan products seen as major threat in order to deal in index trading. The CSRC is By Wang Yu improve their administration seeking public opinion to cope with the future on the draft till April 12. competition, according to Chinese petrochemical Pan Derun, vice-chairman of Equity investment companies should gird for China Petroleum and Chemical China’s insurance new challenges in three years, Industry Association. regulator has given triggered by cost-competitive “Chinese petrochemical insurance companies products flooding in from firms will not be able to permission to double, overseas, especially Middle compete with their Middle to 10 percent, the East countries. Eastern counterparts on proportion of assets This advice was highlighted cost and price. Middle East they may hold in by company executives and countries have access to cheap domestic equities, association leaders during a crude oil and their refining industry sources said Top attraction discussion on the sidelines of capacity will reach peak levels on Friday. An astronaut’s uniform is attracting the attention of many visitors to the 11th Investment & Trade Forum for Cooperation a petrochemical conference by 2010. The only way for us Given that Chinese between East & West China, which opened on Friday in Xi’an, capital of Northwest China’s Shaanxi Province. Yuan Jingzhi organized by the China to survive is to enhance our insurers’ assets totalled Petroleum and Chemical technological capabilities and 1.97 trillion yuan Industry Association on Friday. stick to production of high-end at the end of 2006, “We believe the demand products,” Pan said. the relaxation will for petrochemical products These high-end petrochemical potentially allow as will remain robust this year, products should include much as 100 billion Eurizon buys stake in Union Life given the fast development of composite materials made from yuan to fl ow into the the country’s manufacturing petroleum, Pan said. stock market. industry. Therefore, we are China’s petrochemical INSURANCE largest life insurer in terms of stake in the banking sector. premiums amounting to more confi dent of this year’s business production is increasing with More rural banks premium income. The Wuhan- “To be a financial holding than 3 billion yuan.” turnover. However, the situation more capacity planned and China will allow joint By Hu Yuanyuan based insurer was founded group is our target,” Dai said. Before the eventual deal will not last long and may major projects either under stock commercial banks by six companies, with the “And we would like to achieve with Eurizon, Union Life was change after 2010,” said Xu construction or awaiting to establish branches Zhongfa Industrial Group it before 2010.” in talks with more than 20 Weihui, president of Sinochem government approval. and sub-branches at the Eurizon Financial Group, an holding the largest stake. He said Eurizon’s strong foreign investors. International Corporation. Sinopec was given the green county level, according Italian-based consortium, on With the new cash injection, background in the banking Union Life is hoping to fi nd China’s petrochemical light recently from the National to the China Banking Friday bought a 19.9 percent Union Life’s registered capital is and asset management sector another partner to buy the industry may face a diffi cult Development and Reform Regulatory Commission stake in Union Life Insurance now more than 1.3 billion yuan. was one of the major reasons remaining 5 percent that is time after 2010 because of Commission (NDRC) to build a (CBRC). for 800 million euro. Eurizon becomes the second- for the stake sale. on offer. imports of low-cost and scale- 800,000-ton-per-year ethylene The move is to provide The deal makes Union Life largest shareholder, with two Eurizon Financial Group, “We are still in the produced petrochemicals from steam cracker in Wuhan, better fi nancial the most expensive insurer for on the board. with 192 billion euro under negotiation stage,” Dai said. “It refi neries and crackers located capital of Hubei Province. services for building overseas investors, with each “We are also going to issue management, is a subsidiary must be a fi nancial institution, in the Middle East. Earlier this year, the NDRC the countryside, share valued at 6.5 yuan. subordinated bonds this year of Intesa Sanpaolo, the third- but it is undecided yet whether “The capacity of Middle approved the expansion plan developping county- “Our clear corporate or in 2008, thus increasing our largest bank in Europe. it will be a bank or insurer.” Eastern refi neries and crackers of Sinopec’s refinery and level economies, and governance was the major registered capital to 2.5 billion “The introduction of However, the price for the will further increase in three petrochemical project in Fujian small enterprises in attraction for Eurizon,” said yuan and paving the way for a foreign investors can not only remaining 5 percent will be no years and by that time, their Province. rural sector, the CBRC Dai Hao, chairman of Union future listing,” said Dai, adding strengthen our management lower than 6.5 yuan, Dai said. petrochemical products will PetroChina, the country’s said on Friday. Life. “But Chinese shareholders that the company will probably and solvency but also With the insurance sector boast an obvious cost and price top oil company, is set to To this end, the will continue to maintain the embark on an initial public enhance our capabilities in growing at an average 30 percent advantage,” Xu said. build a gigantic refi nery and commission lowered controlling stake in the long offering (IPO) in 2015. product development and risk annually in the past two decades, Chinese petrochemical an ethylene plant in Sichuan entrance requirements term.” Meanwhile, Union management,” Dai said. “And an increasing number of foreign companies have no other Province. The ethylene plant for the establishment Established in 2005, Union Life is actively seeking we are going to set up six to insurance companies have option, but to enhance their will produce 800,000 tons of of rural banking Life is the country’s 10th- opportunities to buying a eight branches this year, with hopped on the bandwagon. technological capabilities and petrochemicals annually. institutions in December.

Support for sector China Development Bank said on Friday Stocks stay fi rm, despite motoring ahead it has been actively offering fi nancing AUTO the previous two years. support to the country’s “The current momentum environmentally banks’ ratio adjustment By Yu Qiao of our restructuring strategy friendly projects. — Olympic Program — and the The bank granted a total MARKET effect on April 16, will have a Bank of China fell 1.8 percent to new models we are going to of 201.76 billion yuan in minor impact on China’s stock close at 5.45 yuan, while Bank German carmaker Volkswagen introduce this year, will help loans to environment- By Jin Jing markets, though it came a little of China slid 1 percent to close AG on Friday reported a keep the growth rate of our related projects by the earlier than expected. at 5.63 yuan. 23 percent growth in first- sales and profitability,” said end of last year. “This is just a run-of-the- “The drop in bank prices quarter sales in China, the Winfried Vahland, president In 2005, it granted loans : The Shanghai mill adjustment that investors was nothing more than an world’s second-biggest vehicle and chief executive offi cer of of 42.22 billion yuan, stock market on Friday should not spend any time adjustment after rising for a market. China. accounting for 17.7 brushed off the latest increase worrying about,” Jonathan long time,” said Zhang Yidong, The company said in a Volkswagen’s venture with percent of the country’s in banks’ reserve requirement Anderson, chief economist of an analyst at Industrial statement it sold a total of SAIC Motor Corp will launch a total investment in ratio announced on Thursday, United Bank of Switzerland Securities. 202,623 in the Chinese Skoda Octavia compact sedan the environmentally with the index standing at (UBS) Asia, said in a written “The reserve rate hike mainland and Hong Kong Winfried Vahland in May. The German carmaker friendly sector. 3323.59, up 0.13 percent from comment. however has great signifi cance from January to March, will also introduce a Magotan the day before. Stephen Green, senior because the stock market is compared to 164,708 units in the first three months of mid-sized sedan with its other Work on plaza The Shanghai Composite economist of Standard still flushed with liquidity,” for the corresponding period this year. partnership, First Automotive Construction work on Index, the most widely-watched Chartered Bank, said the he said. last year. However, more than half Works Corp. The models are the BDA International indicator of the mainland stock reserve rate hike was within Share prices of companies in This is the first time the of the GM sales came from part of 12 to 14 new products Plaza, an offi ce complex market, rose 4.45 points in his expectations. “We have been the real estate sector rose the group’s quarterly China sales the Chinese-branded Wuling Volkswagen has planned for in the Beijing Economic Friday’s trading, with 575 expecting the People’s Bank of most. Financial Street Holding have exceeded 200,000 units, micro buses made at the US production in China from 2005 & Technological out of 912 companies closing China to raise the reserve ratio Co Ltd, the Beijing-based real it said. carmaker’s in to 2009. Development Area higher. once every quarter this year,” estate developer, surged to the The sales, including 178,070 southern China. Under the Olympic Program, (BDA), began on Friday. Turnover on the Shanghai he said. daily allowable limit to close at Volkswagen-branded vehicles Volkswagen said its China the group also plans to cut costs The plaza, occupying an Stock Exchange amounted to As expected, the share 18.48 yuan. Poly Real Estate and 24,342 units under the financial results in the first in China by 40 percent in 2008 area of 120,000 square 122 billion yuan, up 6 percent prices of all banks fell in Group Co Ltd rose 8.85 percent brand, enabled the quarter was above that of a from 2005. meters, will consist of 14 from the day before. The Friday’s trading. But the to close at 31.6 yuan. group to keep its two decades year earlier and in line with its Sales of China-made vehicles offi ce buildings, easing smaller Shenzhen Composite decline was slight. Industrial Companies in the non-ferrous leadership in the passenger expectations. grew by a quarter to 1.27 million demand in the BDA area. Index climbed 1.2 percent to Bank Ltd, which made its metals sector also fared well sector in China. Last year, the group units in the fi rst two months of close at 9268.23. debut on February 15, was due to strong performance in General Motors on Tuesday regained profits thanks to this year, including 787,100 Agencies-China Daily Analysts said the reserve down 3.3 percent to 28 yuan. the commodities market, said its China sales climbed by brisk sales and cost-cutting passenger cars, according to requirement hike, which takes The Industrial and Commercial analysts said. a quarter to 291,588 vehicles efforts, after losing money in industry data.

Major Currency Cross Rates Brazil Switzerland Renminbi Indonesia India Japan S.Korea Malaysia Mexico New Philippines Russia Singapore Thailand Taiwan Wuxi aims to be outsourcing hub 06/Apr/07 US$ Australia $ Real Canada $ Sfr Yuan Euro Britian £ HK$ Rup Rupee Yen Won Ringgit Peso Zealand $ Peso Rouble $ Baht $ US$ 1 1.2217 2.0316 1.1515 1.2163 7.7237 0.7452 0.5074 7.8163 9100 42.720 118.78 931.9 3.4485 10.9941 1.3826 48.025 25.9208 1.5129 32.45 33.084 Australia $ 0.8185 1 1.6629 0.9425 0.9955 6.3218 0.6100 0.4153 6.3976 7448 34.966 97.22 762.7 2.8226 8.9986 1.1317 39.308 21.2161 1.2383 26.56 27.079 OUTSOURCING and its geographic location, By the end of 2006, a total of Brazil Real 0.4922 0.6014 1 0.5668 0.5987 3.8018 0.3668 0.2498 3.8473 4479 21.028 58.47 458.7 1.6974 5.4115 0.6806 23.639 12.7588 0.7447 15.97 16.284 could be a great attraction for 72 Fortune 500 companies had Canada $ 0.8685 1.0611 1.7644 1 1.0563 6.7078 0.6472 0.4407 6.7882 7903 37.101 103.16 809.3 2.9949 9.5480 1.2008 41.708 22.5114 1.3139 28.18 28.732 By Te Gao outsourcing companies, he said. established operations in the Currently, there are more city. The companies include Switzerland Sfr 0.8222 1.0045 1.6704 0.9467 1 6.3504 0.6127 0.4172 6.4265 7482 35.124 97.66 766.2 2.8354 9.0393 1.1368 39.486 21.3120 1.2439 26.68 27.201 than 150 universities in Wuxi the US retail giant Wal-Mart Renminbi Yuan 0.1295 0.1582 0.2630 0.1491 0.1575 1 0.0965 0.0657 1.0120 1178 5.531 15.38 120.6 0.4465 1.4234 0.1790 6.218 3.3560 0.1959 4.20 4.283 Wuxi, a city in East China’s and nearby regions, making Stores Inc and Japan’s Mizuho Euro 1.3419 1.6395 2.7262 1.5451 1.6321 10.3644 1 0.6809 10.4886 12211 57.326 159.39 1250.5 4.6275 14.7529 1.8554 64.445 34.7831 2.0301 43.54 44.395 Jiangsu Province once it a potential candidate for Bank Ltd. More than $20 billion Britian £ 1.9709 2.4079 4.0040 2.2693 2.3970 15.2223 1.4687 1 15.4047 17935 84.195 234.10 1836.5 6.7965 21.6676 2.7250 94.650 51.0859 2.9816 63.95 65.203 recognized as a manufacturing companies looking for low-cost has been invested in the city. HK $ 0.1279 0.1563 0.2599 0.1473 0.1556 0.9882 0.0953 0.0649 1 1164 5.466 15.20 119.2 0.4412 1.4066 0.1769 6.144 3.3163 0.1936 4.15 4.233 base, is now stepping up efforts outsourcing. “Developing the outsourcing to build itself into a leading IT training schools such as sector is an important step Indonesia Rup 0.0001 0.0001 0.0002 0.0001 0.0001 0.0008 0.0001 0.0001 0.0009 1 0.005 0.01 0.1 0.0004 0.0012 0.0002 0.005 0.0028 0.0002 0.00 0.004 outsourcing center for the NIIT, Asia’s largest IT trainer, for the city to upgrade from India Rupee 0.0234 0.0286 0.0476 0.0270 0.0285 0.1808 0.0174 0.0119 0.1830 213 1 2.78 21.8 0.0807 0.2574 0.0324 1.124 0.6068 0.0354 0.76 0.774 service industries. have set up schools in the city. manufacturing to a knowledge- Japan Yen 0.0084 0.0103 0.0171 0.0097 0.0102 0.0650 0.0063 0.0043 0.0658 77 0.360 1 7.8 0.0290 0.0926 0.0116 0.404 0.2182 0.0127 0.27 0.279 “We are striving to become iSoftStone Information based economy,” Gong said, S.Korea Won 0.0011 0.0013 0.0022 0.0012 0.0013 0.0083 0.0008 0.0005 0.0084 10 0.046 0.13 1 0.0037 0.0118 0.0015 0.052 0.0278 0.0016 0.03 0.036 one of the nation’s Top 10 Service Corporation, a leading adding that the city’s service Malaysia Ringgit 0.2900 0.3543 0.5891 0.3339 0.3527 2.2397 0.2161 0.1471 2.2666 2639 12.388 34.44 270.2 1 3.1881 0.4009 13.926 7.5165 0.4387 9.41 9.594 outsourcing centers by 2010,” outsourcing company in China, sector has already shown early Gong Peixing Mexico Peso 0.0910 0.1111 0.1848 0.1047 0.1106 0.7025 0.0678 0.0462 0.7110 828 3.886 10.80 84.8 0.3137 1 0.1258 4.368 2.3577 0.1376 2.95 3.009 said Gong Peixing, executive has also invested $50 million in signs of taking off. vice-mayor of Wuxi. Wuxi to set up an IT institute, as In the past fi ve years, foreign Currently, more than 20 New Zealand $ 0.7233 0.8836 1.4694 0.8328 0.8797 5.5862 0.5390 0.3670 5.6531 6582 30.897 85.91 674.0 2.4941 7.9514 1 34.734 18.7472 1.0942 23.47 23.928 “With an annual growth of part of the city’s effort to train investors have established more IT, and business procedure Philippines Peso 0.0208 0.0254 0.0423 0.0240 0.0253 0.1608 0.0155 0.0106 0.1628 189 0.890 2.47 19.4 0.0718 0.2289 0.0288 1 0.5397 0.0315 0.68 0.689 40 percent, the total output of 30,000 software engineers than 510 outsourcing companies outsourcing companies, have Russia Rouble 0.0386 0.0471 0.0784 0.0444 0.0469 0.2980 0.0288 0.0196 0.3015 351 1.648 4.58 36.0 0.1330 0.4241 0.0533 1.853 1 0.0584 1.25 1.276 the city’s outsourcing sector is before 2010. in the city, with a total investment established operations in Wuxi. Singapore $ 0.6610 0.8076 1.3429 0.7611 0.8039 5.1054 0.4926 0.3354 5.1666 6015 28.238 78.51 616.0 2.2795 7.2671 0.9139 31.745 17.1337 1 21.45 21.868 expected to amount to 35 billion Wuxi, as an important of $4.5 billion. Meanwhile, the Thailand Baht 0.0308 0.0377 0.0626 0.0355 0.0375 0.2380 0.0230 0.0156 0.2409 280 1.316 3.66 28.7 0.1063 0.3388 0.0426 1.480 0.7988 0.0466 1 1.020 yuan by 2010,” Gong said. Yangtze River Delta hub, city’s software outsourcing To comment or alert us to a story, Taiwan $ 0.0302 0.0369 0.0614 0.0348 0.0368 0.2335 0.0225 0.0153 0.2363 275 1.291 3.59 28.2 0.1042 0.3323 0.0418 1.452 0.7835 0.0457 0.98 1 Wuxi’s abundant talent pool, has been attracting foreign industry has also seen brisk e-mail [email protected] well-developed infrastructure investors over the years. growth during the period. * Figures are mid-rate of currencies as quoted by Citigroup. The rates are for indication only.