Chinese Online Class - Foreign firms eye joint oil projects

BIZCHINA / Top Biz News

Foreign firms eye joint oil projects

By Wang Yu (China Daily)
Updated: 2007-03-10 09:56

Foreign giants are gearing up to further tap China's offshore reserves
since the country's top offshore oil firm opened an unprecedented number
of blocks for international collaboration.

"Our exploration and production (E&P) department is busy conducting
feasibility studies on relevant documents on CNOOC's blocks offered. We
are still waiting for study results to make a decision as to get involved
or not," Catherine Min, Total China's vice-president of communications,
told China Daily on Friday.

Besides the 22 blocks, Total is in close contact with CNOOC on several
other offshore projects in China, Min said without elaborating.

This year, 22 blocks covering an area of 114,050 square kilometers are
available for international cooperation, China National Offshore Oil Corp
(CNOOC) said in a public notice. It is largest-ever offer for
international cooperation in the country's oil and gas E&P.

"BP is among the first multinationals operating in China and is CNOOC's
partner in the Yacheng gas project. BP is constantly looking for material
opportunities to develop our upstream business in China and will review
the areas on offer," Zhao Yuanheng, a veteran spokesman of BP China, told
China Daily upon seeing CNOOC's notification.

BP is an early bird in the joint development of offshore projects in
China.

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Chinese Online Class

Chinesepod - Steel and iron investment drops in 2006

BIZCHINA / Center

Steel and iron investment drops in 2006

(Xinhua)
Updated: 2007-03-05 17:31

China's steel and iron investment frenzy showed signs of abating in 2006
as macro-regulation began to tame five straight years of steep 20 percent
growth.

Related readings:
Profit of steel industry hits historical high
Crude steel output to reach 460m tons this year
Talk of tax rebate cuts influences steel stocks
China ranks No 1 in stainless steel output

The latest figures released by the National Bureau of Statistics (NBS)
showed that total investment in the sector amounted to 224.65 billion
yuan, down 2.5 percent year on year.

The sum represented 2.4 percent of total national investments,
significantly down on the 3.1 percent for 2005.

The steel and iron industry was the only sector that posted negative
investment growth. Others continued to climb, in particular the real
estate sector which rocketed by 21.8 percent.

Insiders pointed out that more moderate investment was the result of the
cancellation of some new projects and the shutting down of operations
that violated regulations.

NBS revised the 2006 crude steel output figures up from 418 million to
422.7 million tons.

The growth rate of crude steel production was revised upwards from 18.45
to 19.7 percent.

Steel production totaled 473.4 million tons, 6.55 million more than the
January estimate. The growth rate was recalculated at 25.3 percent.

Wang Yingwu, an analyst with Usteel.com, predicted China's crude steel
production would grow more slowly in 2007 to reach 480 million tons.

China's fixed asset investments totaled 10.99 trillion yuan in 2006, up
24 percent year on year.

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Chinesepod

Chinese Mandarin - China grants US$13.4b QDII quotas to 15 banks in 2006

BIZCHINA / News

China grants US$13.4b QDII quotas to 15 banks in 2006

(Xinhua)
Updated: 2007-02-25 09:37

China's State Administration of Foreign Exchange (SAFE) granted 15 banks
overseas investment quotas totaling US$13.4 billion last year.

The 15 banks, all with the qualified domestic institutional investor
(QDII) status, include major Chinese commercial and foreign-funded banks,
such as Citibank and the Bank of East Asia, which were approved last year
to transform their Chinese branches into locally incorporated banks
registered on the mainland.

Meanwhile, 15 insurance companies were granted overseas investment quotas
of US$5.17 billion and one fund management company was given a quota of
US$500 million.

China started the QDII program in July 2006, allowing QDIIs to raise
renminbi funds from domestic individuals and institutions and convert
them into foreign currency for overseas investment.

China has also eased control on foreign exchange purchases by
individuals. It put an annual quota on foreign exchange purchases by
individuals in May 2006, rather than limiting the size of each purchase.

Purchases soared 220 percent year on year during the last seven months of
the year.

The annual quota for individuals was raised from US$20,000 to US$50,000
on February 1 this year.

(For more biz stories, please visit Industry Updates)

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Chinese Mandarin