News@ChinabyNumbers

Zhang Lijun, China's vice minister of environmental protection, said Wednesday that overall the country's environment is still deteriorating, with improvements only seen in certain areas.

Although China is fulfilling its 2006-2010 goals of cutting sulfur dioxide and chemical oxygen demand – the major causes of air and water pollution, respectively – other emissions are rising, Zhang said.

The reduction in sulfur dioxide emissions, for example, came as a result of efforts to remove sulfur from coal, but China still consumed over 3 billion tons of coal last year, an annual record.

Xie Zhenhua, vice chairman of the National Development and Reform Commission and China's chief representative at the Copenhagen climate change talks in December, said 2010 would be a decisive year for the country in terms of meeting its energy-saving targets.

China reduced energy consumption per unit of GDP by just over 14% between 2006 and 2009, but requires a 6% cut in 2010 to reach its five-year target.

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Citic Group, the state-owned financial conglomerate, is planning to spin off its real estate unit in an initial public offering in order to raise funds for expansion.

Speaking at the National People's Congress, Kong Dan, Citic chairman, said the real estate share of the group's business – which stood at 5% of total net profit in 2009 – will rise in the medium term. This growth will be funded by a Citic Real Estate IPO.

Kong said the timing of the offering would largely depend on market conditions, but he didn't say where it would take place or how much would be raised.

Citic Group posted a gross profit of $5.13 billion in 2009, up 35.4% year-on-year. It plans to step up overseas expansion through its Hong Kong units, including Citic Pacific, in which holds a 58% stake, and Citic Ka Wah Bank, a fully owned subsidiary of Citic International Holdings, in which Citic Group has a 70% stake.

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Shenzhen Development Bank posted a net profit of $736.9 million for 2009, more than eight times the figure for a year earlier.

The strong performance was due to lower provisions for bad loans, higher fee income and massive loan growth as part of the government-led credit boom. Net interest income grew 3% to $1.9 billion while fee and commission income rose 39% to $172.8 million. Total outstanding loans totaled $52.7 billion at the end of 2009, up 27% from a year earlier.

The bank's non-performing loan ratio stood at 0.68%, unchanged from a year earlier, and its capital adequacy ratio rose to 8.88%, up from 8.58% at the end of 2008, thanks to a $219.7 million hybrid bond sale.

Private equity firm TPG retains a 16.76% stake in SDB, which Ping An Insurance intends to buy for $1.68 billion. The insurer will also buy $1.57 in new shares from SDB. These purchases will take Ping An's overall stake in the bank to 30%.

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Air China plans to raise about $952 million through a new share issue in order to pay down debt.

The announcement comes just three days after China Southern Airlines said it would issue $1.6 billion in new shares to repay debt. In both cases, the new shares will be sold privately to a small group of investors, including the airlines' state-owned parents.

Air China's parent will subscribe to 157 million of the 585 million new A-shares to be sold, paying at least $219.7 million. A wholly owned unit of the parent will also subscribe to the all of the 157 million new H-shares to be issued, paying no less than HK$6.62 ($0.85) each. The decision to tap the capital markets is a product of renewed investor interest following a recovery in domestic and regional traffic.

Shares in Air China have risen 11.5% in Hong Kong so far this year, while China Southern has gained 42%, helped by the airline's capital replenishment plan.

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The chairman of Bank of China said the lender wants to grow aggressively overseas but doesn't plan on making any acquisitions.

Xiao Gang told reporters Thursday that BoC's "overseas expansion plans will rely on [its] own strengths," noting that international business has already increased after foreign banks were crippled by the global financial crisis.

He didn't name any of BoC's new foreign clients, but said they included some Fortune 500 firms.

On the domestic front, lending boomed last year, reaching $1.42 billion, and the government has set a target of $1 billion in new loans for 2010.

Many banks have announced plans to raise fresh capital in order to meet regulatory requirements.

BoC said in January it would sell new shares equal to as much as 20% of its existing Hong Kong- and Shanghai-listed shares.

Xiao added that the bank hopes to sell new shares in Hong Kong as soon as possible, but shareholder and regulatory approval is still pending.

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Censorship of Google searches in China could stop within weeks, but the company is unlikely to leave the country entirely.

"There will be a way for Google to not pull out 100%," one source said, noting that the company could reach agreements with different Chinese agencies on an individual basis, allowing it to continue operating certain parts of its business.

In January, Google threatened to shut down its Chinese-language search site and exit China, citing problems with censorship and hacking.

However, Google CEO Eric Schmidt told a media summit Wednesday that "something will happen soon" regarding negotiations with the Chinese authorities. The company also moved to dispel rumors that it was planning to close its China business by the end of the month and had told its local advertising agents to cease operations in the country.

In addition to google.cn, the company has sales, research and other operations in China, as well as investments in some local firms.

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US President Barack Obama said Thursday that China's movement towards a more market-based currency system "would make an essential contribution to that global re-balancing effort."

Obama said Chinese exchange-rate reform was in line with the G20 goal of boosting consumption and domestic demand in countries that have external surpluses, such as China, and encouraging saving and exports in countries with external deficits, like the US.

With the Treasury Department's semiannual report in which it could declare China a currency manipulator only a month away, the Obama administration is under pressure to take action against what is perceived to be an artificially undervalued renminbi.

The currency's gradual appreciation against the US dollar was halted in mid-2008, although China's central bank said over the weekend that this is just a temporary crisis measure. Separately, the Commerce Department announced preliminary anti-dumping duties on imports of Chinese potassium phosphate salts, which are used in industrial cleaning products, fertilizers and food additives.

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Bank lending and investment spending, the foundation stones upon which much of China's stimulus plan was built, saw slower growth in February.

Urban fixed-asset investment rose 26.6% in January and February, the slowest rate of growth in a year and well down on the 2009 full-year figure of 30.5%, the National Bureau of Statistics said. It is a reflection of the shift in government policy, with Premier Wen Jiabao telling the National People's Congress last week that "the launching of new projects must be strictly controlled" this year.

New bank loans came in at $102.6 billion in February compared to $203.6 billion in January and $156.7 billion in February of last year. However, the timing of the Lunar New Year holiday must be taken into account when making such comparisons.

Industrial output expanded 20.7% year-on-year during January and February, picking up from an 18.5% increase in December, but here, too, comparisons are difficult given the low base last year.

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Zhang Deshun, former deputy chief of staff of the PLA navy, stated that the country harbors no ambitions to build military bases overseas.

Although the retired officer indicated that a Chinese naval force would take a greater role in UN-led anti-terrorism and anti-piracy missions, he also stated, "We have no agenda to set up military establishments, or threaten establishments of other nations overseas."

Other officials have stated that the Chinese navy is capable of operating overseas missions without the need to establish foreign military bases.

The statements came after speculation that China would establish foreign military bases to help defend its international shipping lines from pirates off the Somali coast.

China has engaged in overseas operations since December 2008, escorting 1,677 Chinese and foreign merchant ships.

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China Mobile will buy a 20% stake in Shanghai Pudong Development bank for $5.83 billion.

China's largest mobile carrier hopes the move will help it to expand into mobile financial services.

Under the terms of the deal, China Mobile subsidiary Guangdong Mobile will purchase 2.21 billion new shares in the bank for RMB18.03 ($2.64); the investment is subject to a three-year lockup period. The agreement will help Shanghai Pudong Development Bank to meet stricter capital requirement rules instituted this year.

If approved by shareholders and regulatory agencies, China Mobile will become the bank's second-largest shareholder, after Shanghai International Group and its affiliates.

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