TODAY'S BRIEFS Update - 28 October, 2008

TODAY'S BRIEFS

World Bank economist: China growth 8-9% in 2009
The World Bank's chief economist predicted single-digit growth for China next year, but said there would be strong consumer spending and fixed asset investment, Reuters reported, citing the Beijing Times. Justin Yifu Lin said China's economy is likely to grow between 8 and 9% in 2009, and that China would play an important role in helping to fight the world economic crisis. Lin said China would see an adjustment of 2 or 3% from its growth of recent years, but would still be a fast-growing country. According to official statistics released last week, China's economy slowed to 9% growth in the third quarter of 2008, from 11.9% in all of last year.

Mainland, Hong Kong stocks dive
Stock markets in mainland China and Hong Kong tumbled on Monday. The Shanghai Composite Index dropped 6.32% to a 25-month closing low of 1,723.351 points, Reuters reported. Fears of poor corporate third-quarter earnings reports helped trigger the decline. The Shanghai market saw 895 stocks fall and only 34 rise on Monday. More than 350 Shanghai A-shares dropped by the maximum 10% daily limit. Hong Kong's Hang Seng index suffered its biggest one-day fall in more than a decade on Monday, shedding 12.7% of its value. The Hang Seng closed down 1,602.54 points at 11,015.84, its lowest level since mid-2004. It has lost 60% of its value this year. During the day, the index was down 15%, its largest one-day decline since 1997.

China approves $292bn for railway construction
China's State Council has approved US$292.2 billion in spending to expand the country's rail network, state media reported. The money is for mid-term and long-term projects that were planned four years ago, the Ministry of Railways said. By 2010, China is expected to have 100,000km of rail lines, with another 20,000km to be added in the following 10 years. At of the end of last year, China's rail system spanned 78,000km.

5 kidnapped Chinese workers killed in Sudan
Five of nine Chinese oil workers kidnapped in Sudan were killed by their captors on Monday, Reuters reported, citing the Sudanese Foreign Ministry. Two others, held for more than a week, have escaped, and two more are still being held. The ministry blamed the Justice and Equality Movement (JEM), a Darfur rebel group, for the killings. A London-based JEM official denied the group was involved. The nine workers were seized near a small oil field where they were doing contract work for the Greater Nile Petroleum Operating Company (GNPOC). The company is a consortium led by China's CNPC. The government said the kidnappers had demanded that Chinese oil firms leave the region.

Despite profits, growth slows for listed companies
Third-quarter net profits of 645 Chinese listed firms fell by an average 16.07% from the previous quarter, state media reported. The decline comes despite the fact that profits for the first nine months were up 30.1% from the same period last year, the Shanghai Securities Journal reported. Rising costs and falling product prices were the main factors mentioned for the drop in profits. Nearly 1,000 other listed companies have yet to file their quarterly reports.

Gold, iron ore deposits found in Shandong
Two new gold and iron ore deposits have been discovered in Shandong province in eastern China, state media reported. Government geologists said the gold ore deposit has a proven reserve of 103 metric tons, with an estimated value of more than US$2.92 billion. The gold deposit was found in the southern section of the Jiaojia gold belt in Laizhou City. The area, at the northern edge of the Shandong Peninsula, has become a focus for exploration since China first found gold ore deposits there in the 1970s. Officials also announced a proven deposit of more than 1 billion tons of iron ore in Yanzhou, a small city in southern Shandong.

Toyota to build 7th China factory
Toyota plans to spend US$586 million to set up its seventh factory in China, AP reported. The new facility will be located in Changchun, capital of Jilin province, and will produce 100,000 Corolla sedans a year, the company said. The new plant will be a 50-50 joint venture with Chinese partner FAW Group. Toyota did not say when the factory would begin production. Toyota's sales in China jumped 24% year-on-year from January to September, to 429,000 units. In 2007 Toyota sold 499,000 vehicles in China.