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HONG KONG, June 2 (Xinhua) -- Mainland-based telecommunications giants China Unicom and China Netcom, both listed on the Hong Kong stock exchange, announced Monday that each share of Netcom will be exchanged for 1.508 Unicom shares in a proposed merger. The rate was based on the price of China Netcom shares on the Hong Kong mainboard before their suspension from trading on May 23, with a 3 percent premium, said Tong Jilu, executive director and chief financial officer of China Unicom. Chang Xiaobing, chairman and chief executive officer of China Unicom, also said each American depository share of China Netcom will be exchanged for 3.016 American depository shares of the new China Unicom, subject to shareholders' approval. (L-R) China Netcom CFO Li Fushen, China Netcom Chairman and CEO Zuo Xunsheng, China Unicom Chairman and CEO Chang Xiaobing and China Unicom CFO Tong Jilu join hands after announcing the merger of China Netcom and China Unicom in Hong Kong, South China, June 2, 2008. China Unicom also said it reached a framework agreement with China Telecom under which China Telecom will buy CDMA business and CDMA network from China Unicom Group. The merger is expected to be completed in October this year after the shareholders' conferences in September if everything went ahead smoothly, Tong said. The merged group, possibly bearing the name of China Unicom, will have an enlarged capital of 23.76 billion shares, worth a total of 439.17 billion yuan (63.28 billion U.S. dollars). It is expected to be a provider of integrated services including mobile and fixed-line telecommunications, broadband, data and value-added services. "The merger is in line with the trend of convergence of fixed- line and mobile networks, and is expected to enable the merged group to set clear strategy," Chang said, referring to the direction for the company to pursue 3G strength. China Unicom, currently one of the telecommunications giants in the Chinese mainland, is a far second to the largest mobile carrier China Mobile, while China Netcom is a provider of fixed line telecommunications and broadband services. The merger was currently between the Hong Kong-listed China Unicom Limited and the China Netcom Group Corporation (Hong Kong) Limited, but not a merger between their mother companies, Chang told a press conference held in Hong Kong. China Netcom will cease to exist as a listed firm after the merger, subject to approval from the shareholders at the company's annual conference, which is expected in September, said Zuo Xunsheng, chairman and chief executive officer of China Netcom. Shares of both companies will resume trading on Hong Kong exchange on Tuesday. The merger was part of a major regrouping in the Chinese telecom industry aimed at more competition by forming three providers of integrated services after regrouping. State authorities issued an announcement on May 24, saying that they "encouraged" a regrouping of the telecom corporations to form three providers of integrated services to increase market competition. China Mobile has recently announced a proposal to buy fixed-line operator China Tietong, or Railway Telecommunications. At a separate press conference in Hong Kong on Monday, the HongKong listed China Telecom announced that it has reached an agreement to buy the CDMA services of China Unicom, thus making it one of the three integrated services providers, too. China Unicom also announced at the conference that it will sell its CDMA services at 43.8 billion yuan (6.31 billion U.S. dollars)and that its mother firm China Unicom Group will sell its CDMA network at 66.2 billion yuan (9.54 billion U.S. dollars) to China Telecommunications Corporation, the mother firm of China Telecom. Speaking at a separate press conference in Hong Kong, Wang Xiaochu, chairman and chief executive officer of China Telecom, said that the deal is expected to be completed in October, subject to shareholder approval at annual conferences in September. China Telecom will pay for the transaction in cash, Wang said, adding that he expected the CDMA part to contribute net profit as early as 2012, although the deal could impact the earnings record of the company in short term. The regrouping will result in three separate providers of integrated services, with most of the analysts saying that they expected China Unicom to benefit the most from the regrouping whereas the strength of China Mobile could be reduced. Others, however, said they expected China Mobile to remain the giant among the giants and retain most of its power in the mainland telecom industry. Chang, head of China Unicom, also warned against "over optimism" about the increased strength of the merged company, saying it required long-term effort.
PYONGYANG, June 17 (Xinhua) -- Visiting Chinese Vice President Xi Jinping on Tuesday made a five-point proposal to strengthen bilateral ties and cooperation with the Democratic People's Republic of Korea (DPRK). Xi, who is also a member of the Standing Committee of the Political Bureau of the Communist Party of China Central Committee, made the proposal while meeting with Yang Hyong Sop, vice president of the Presidium of DPRK's Supreme People's Assembly. Firstly, Xi proposed maintaining the trend of mutual exchange of visits by high ranking officials, and strengthening political communication and close relations between the Chinese Communist Party and the Worker's Party of Korea. China will continue to exchange views on governance and party construction with the DPRK, maintaining communication on important issues, he said. Chinese Vice President Xi Jinping(4th L) talks with Yang Hyong Sop (3rd R), vice president of the Presidium of the Supreme People's Assembly of the Democratic People's Republic of Korea (DPRK) during a meeting in Pyongyang, capital of the DPRK, on June 17, 2008. Second, he proposed the observance of "China-DPRK Friendship Year" in 2009 -- the 60th anniversary of the establishment of diplomatic ties between the two countries. The third point of his proposal is that both sides should strive to deepen cooperation in agriculture, light industry, information industry, technology, transportation and infrastructure construction in the border areas. It should be a win-win cooperation, resulting in mutual benefits, the Chinese vice president said. China will encourage large and creditable enterprises to invest in the DPRK, he said, adding that the two sides could upgrade a number of ports to enhance their loading and unloading capacity. Fourth, Xi proposed the promotion of bilateral cultural exchanges. China will welcome artists' groups from the DPRK to the 10th Asian Art Festival in September and will continue to send high-level art groups to the International Spring Art Festival held in Pyongyang each April, he said. Finally, the Chinese vice president also proposed to strengthen bilateral coordination and cooperation in the six-party talks on the DPRK nuclear issue, and within the framework of the United Nations, to protect the interests of both countries.

BEIJING, Aug. 3 (Xinhua) -- China is likely to start monitoring ozone and particle pollution from next year as part of efforts to keep anti-pollution campaigns in force after the Olympics, an environmental official said on Sunday. Fan Yuansheng, of the Ministry of Environmental Protection (MEP), said the two pollutants had caused great concern and the MEP was making technical preparations to monitor them. "We should be able to start regular monitoring of ozone and PM2.5 (particle matter) next year, which would lead to measures to deal with them," Fan told a press conference. He was speaking in response to reports that China's environmental authorities had failed to include fine particles and ozone into their pollution measurements, causing ignorance of health damage caused by the pollutants. Photo taken on August 2, 2008 shows a parterre featuring the logo of the Beijing 2008 Olympic Games on Tiananmen Square in Beijing, capital of China. Fine particles, known as PM2.5, are tiny solid particles of 2.5 micrometers in diameter and smaller. Health experts believe they are unhealthy to breathe and have been associated with fatal illnesses and other serious health problems. Colorless ozone is also believed to cause respiratory problems and to affect lung functions. There have been worries that the air in Beijing, the Chinese capital that will host the summer Olympic Games in five days, may be unhealthy for some athletes competing outdoors to breathe. China has taken drastic anti-pollution steps, such as closing factories surrounding Beijing and ordering half of 3.3 million cars in Beijing off the roads, to try to clean the sky during the Olympics. "These measures have been effective so far," said Fan, Director General of the MEP's Department of Pollution Control. Beijing basked under blue sky this weekend after being blanketed in a humid haze for a week. The Beijing Meteorological Bureau said on Sunday favorable weather conditions and a series of anti-pollution measures had combined to clear the normal smog above the city. Fan Yuansheng refuted allegations that China's air pollution standards were more lenient than World Health Organization (WHO) guidelines. Standards that China was using to control four major air pollutants - sulphur dioxide, nitrogen dioxide, carbon monoxide and particles - followed the WHO's "phase one" guideline issued in 2005, he said. The WHO allows developing countries like China to begin from this guideline to eventually reach its stricter final goals, he said. Fan said measures adopted to reduce pollution in Beijing for its hosting of the summer Olympics would stay in force after the event. "Most of these measures are long-term ones and will remain after the Games. Not all the temporary measures will be retained after the Games, but they may provide clues for our future work," he said. The Chinese government recently warned that more factories could be temporarily shut down and more cars could be restricted from the roads in Beijing if "extremely unfavorable weather condition" occur to deteriorate the air during the Games. But many Beijing residents are more worried that air pollution could turn bad after the Olympics, with factories reopened, construction resumed and car no longer restricted. Fan argued that the Olympics would leave environmental legacies to Beijing and China, which has spent billions to clean the environment polluted by rapid industrialization. For example, the State Council, China's cabinet, has ordered all government cars to keep off the road for one day each week according the last figure of their plate number. This is a continuation of the temporary measures during the Olympic Games, Fan said. The MEP has launched a research on how to further improve air quality in the entire northern China where Beijing is, since air pollution is not a problem of Beijing alone, he said. Nearly 90 percent of coal-burning power plants in provinces neighboring Beijing have taken measures to reduce the emission of sulphur dioxide, and many vehicles have been upgraded to meet stricter emission requirements. Lu Xinyuan, Director General of the MEP's Bureau of Environmental Supervision, said about 200 environmental inspectors have been sent to Beijing and five neighboring provinces to check enterprises on their anti-pollution work. Meanwhile, 16 environmental groups based in Beijing on Sunday called on local motorists not to drive on Aug. 8, in order to help reduce pollution and road congestions when the Olympics open. They further encouraged private car owners to use public transport as much as possible during the Olympics and the following Paralympics to "contribute a blue sky to Beijing." The groups with over 200,000 members hoped the usage of private cars would be reduced by one million times if the campaign are well responded in the next two months, according to Yu Xinbin, member of the Global Village of Beijing, a non-governmental organization.
BEIJING, Aug. 18 (Xinhua) -- Wu Bangguo, chairman of the Standing Committee of the National People's Congress (NPC), met on Monday with some foreign leaders here to watch the Beijing Olympic Games. In his meeting with Ranko Krivokapic, the Republic of Montenegro parliament speaker, Wu said China advocated all nations, big or small, rich or poor, as equal members of the international community. Wu Bangguo (1st R), chairman of the Standing Committee of the National People's Congress (NPC), meets with Ranko Krivokapic (1st L), the Republic of Montenegro parliament speaker, in Beijing, China, Aug. 18, 2008. Ranko Krivokapic is here to watch the Beijing Olympic GamesChina valued its ties with Montenegro and would develop a long-term, stable and all-round relationship, as well as sound legislative cooperation with the Balkan country, he said. Krivokapic said the Montenegro parliament would enhance its cooperation with the NPC and adhere to the one-China policy. Wu Bangguo (R), chairman of the Standing Committee of the National People's Congress (NPC), meets with Abdelaziz Ziari, speaker of the Algerian parliament, in Beijing, China, Aug. 18, 2008. Abdelaziz Ziari is here to watch the Beijing Olympic Games. When meeting with Abdelaziz (Abdul-Aziz) Ziari, speaker of the Algerian parliament, Wu said the Olympics was going on smoothly, and China would honor its commitment to hold an unique and high-standard Games with distinctive features. He pledged to take the opportunity of the 50th anniversary of China-Algeria ties in the coming year to push forward the cooperation of mutual benefit. Ziari said the well-organized Olympic Games impressed him and demonstrated what China had achieved in its reform and opening-up drive. The Algerian parliament would further exchanges with the NPC. Wu Bangguo (R), chairman of the Standing Committee of the National People's Congress (NPC), meets with Kono Yohei, speaker of the House of Representatives of Japan's Diet, in Beijing, China, Aug. 18, 2008. Kono Yohei is here to watch the Beijing Olympic Games.When meeting with Kono Yohei, speaker of the House of Representatives of Japan's Diet, Wu said Sino-Japanese relations were at a new start in history and had great potential for further development. He recalled the Japanese trip by Chinese leader Hu Jintao in May which outlined the future development of the bilateral ties. He said the NPC would promote cooperation with the Japanese house of representatives through the regular exchange mechanism to push forward the strategic and reciprocal relations between the two countries. Wu expressed gratitude for Japan's support to the Beijing Games. Kono said the Japanese house would play a positive role in upgrading the relationship between the two countries.
BEIJING, July 7 -- Chinese state-owned banks, including Industrial & Commercial Bank of China, intend to boost the contribution of the credit card business to their profits as they tap the rising demand to use plastic to pay for purchases. ICBC, the country's biggest lender, expects to boost its credit cards in circulation to 50 million at the end of 2009 from 33 million now, Li Weiping, president of the Beijing-based bank's card center, told Shanghai Daily on Saturday in Shanghai. Industrial & Commercial Bank of China Ltd expects to boost its credit cards in circulation to 50 million at the end of 2009 from 33 million nowThe country's biggest bank, which had earlier planned to boost card number to between 35 million and 38 million, expects to achieve the target, going by the pace of its card issuance in the first half, Li said. The credit card business accounts for about 10 percent of the bank's intermediary business, or fee-based income, and is one of the main contributors. Chinese banks are shifting from its traditional deposit-lending business as they expand their profit avenues. ''We expect the contribution (of credit cards to profit) to grow by 2 to 3 percentage points annually,'' Li said. ICBC is among the country's "big four" state-owned banks to speed up the credit card business while their smaller joint stock rivals have already an edge in the market. China Merchants Bank, the sixth biggest lender on the Chinese mainland, has one-third share of the credit card market. Other state-owned banks, including Agricultural Bank of China, said they are seeking growth as they pursue prudent risk control. China Construction Bank expects to break even on its credit card business next year, said Wu Huitao, deputy general manager of the bank's credit card center. CCB targets card numbers at 20 million at the end of this year, from 16 million now, Wu said. Credit cards will be the most important consumer credit product after mortgages, with profit forecast to reach US.6 billion by 2013, accounting for 22 percent of total consumer credit profits, said New York-based McKinsey & Co.
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