China’s industrial firms increased earnings 42.1% year-on-year in the first five months of 2007 thanks to strong economic expansion, the Economic Daily reported. National Bureau of Statistics figures show companies earned a combined US$118.5 billion (RMB902.6 billion) for the period. Industrial sales revenues surged 27.4% to US$1.86 trillion (RMB14.2 trillion). Chemical firms earned more than three times the profit for the corresponding period last year, and steel makers more than doubled profits. Construction materials manufacturers saw a 70.1% year-on-year profit jump. China’s economy grew 11.1% year-on-year in the first quarter, comfortably outpacing expectations.

The Shanghai Gold Exchange plans to work with the Industrial and Commercial Bank of China (ICBC) to launch gold bullion trading for individuals across the country in July, the Shanghai Financial News reported. Individual investors will be required to trade from a minimum threshold of 100 grams, which is worth around US$2,100 (RMB16,000) based on Tuesday’s prices. ICBC’s Shanghai Branch launched an individual gold trading pilot program in July 2005, but lowered the threshold from 1,000 grams to 100 grams last December to appeal to more traders. By last Friday, the bank had had 3,301 gold-trading accounts with a cumulated turnover of 7,557.6 kilograms. Gold is a traditional symbol of  wealth in China, and the country is the third largest gold consumer in the world. The Shanghai Gold Exchange – the nation’s only bourse for precious metal, trading platinum, gold, and silver – traded 1,249 tons of gold in 2006, up nearly 37.8% from 2005.

Prices for Pu erh tea have rocketed amid increasing demand in recent years, and investors have been quick to enter the market to capitalize. As the Beijing Star Daily reports, moves are afoot to more closely regulate activity.

Gao Xiqing, vice chairman of the National Council for Social Security Fund and an influential investor, expressed his concern over the skyrocketing Chinese stock market. 

Economic growth, increased awareness of insurance products, and expanded insurance services coverage pushed premiums up by 22.7% in the first quarter of this year. 

In its World Economic Outlook report, the IMF predicts China’s economy will grow by 10% this year and 9.5% in 2008, off last year’s scorching 10.7% growth but still “rapid” expansion.

A rapidly increasing number of individual investors and changing priorities among there institutional counterparts has led to changes in the investor structure of the domestic fund market, the Shanghai Morning Post reported.

Guangzhou Shipyard International Company Limited is banking on cost advantages allowing it to capitalize on  growing global demand for new ships and oil tankers.