Property watchdog targets 3 developers
Shanghai’s housing authority will begin probing three local property developers accused of fraudulent dealing in two days, the Shanghai Morning Post reported. Tomson Riviera, Jiahe International and Kinwai City Oasis are believed to made fraudulent sales and delayed the sale of apartments as the price of housing in the city continues to rise. Tomson, started selling China’s most expensive apartments in Shanghai’s Lujiazui financial area in October 2005 for around US$14,400 (RMB110,000) per square meter. It has allegedly only sold three apartments. Tomson claimed it has not violated any regulations. Hongkou district-based Jiahe has been suspected of reserving 200 plus apartments for speculation. Baoshan-based Kinwai has been suspected of fraudulent selling because it withdrew more than 300 contracts between October and February. Eight governmental departments, including the Ministry of Construction, have joined forces to crack down on illegal practices in the property market.

China Eastern Airlines approves 24% stake sale
The board of Shanghai-based China Eastern Airlines has agreed to sell a 24% stake to Singapore Airlines and Temasek, the financial magazine Caijing reported. Singapore Airlines will pay US$602 million (HK$4.7 billion) for 1.24 billion Hong Kong shares in China Eastern, giving it a 15.8% stake, the magazine said. Singaporean government-owned Temasek will pay HK$640 million for the remaining 8.2% stake. The deal means 2.98 billion H shares (traded in Hong Kong) will be issued to increase China Eastern’s market capitalization by 60%. China Eastern is also listed on the Shanghai Stock Exchange.

Shanghai geared up for precious metal futures
The central government has approved gold and silver futures trading on the Shanghai Gold Exchange – China’s only bourse for precious metal – China Economy reported. But the exchange still needs to lodge an application with the China Securities Regulatory Commission (CSRC) for the final go-ahead. The central bank regulates the trading of precious metal while the CSRC watches over futures markets. The Shanghai Futures Exchange currently trades copper, oil, rubber and aluminum. China is the world’s third largest gold consumer and fourth largest miner.

Banks recommended to diversify earnings
Large and medium-sized Chinese banks have been told to triple the proportion of revenue generated from non-interest income in the coming five to ten years, China Business News reported. Incomes from derivative financial services such as insurance and unit trusts usually make up of 50% of revenues at international nationwide banks, compared to just 17% at present in China. The percentage for region-wide or citywide banks should be around 20%, compared to 3.7% at present. China’s banks get 90% of their revenues from interest earnings. The central government has approved state-owned banks to offer brokering and fund management services to help them rake in more profits. Fund ventures established by the Industrial & Commercial Bank of China, China Construction Bank, Bank of Communications and their overseas partners add up to RMB60 billion. Chinese banks had issued almost 1.18 billion credit and debit cards by 2006.

Fudan reports infertility finding
Biology researchers with the prestigious Fudan University in Shanghai claimed they have discovered the first genetic connection to a possible cause of human infertility, the Shanghai Daily reported. The researchers said the discovery came after they started studying the movement of the SUN1 protein in the nuclear membrane of mice cells. When they intentionally split the protein, the disruption prevented reformation of chromosomes during reproduction in sexual cells. Mice born with abnormal SUN1 protein had much smaller testes or ovaries than normal mice and did not produce sperm or eggs, researchers said. As mice and humans share about 99% of the genes that influence reproduction, the finding is expected to provide a new clue for human beings to understand the reason for the disorder. However, it is still too early to say how the breakthrough on mice might be applied to treat human infertility.

Shanghai-Zurich flight to launch
Swiss International Airlines said it will kick off its Shanghai-Zurich direct flight by March 2008 with an Airbus A340 aircraft, the Liberation Daily reported. Currently China does not have direct flights to Switzerland. Air China and Shanghai Airlines are scheduled to join the Star Alliance in 2008, of which Swiss International Airlines are a member, and the newspaper reported the three airlines may collaborate. The Swiss carrier may also reach Beijing next year in conjunction with German Lufthansa via Munich. The Swiss carrier has bought several new Airbus models for its European routes since last winter.

Toyota builds a second factory in Guangzhou
Toyota Motors has started building a second plant in Guangzhou to meet skyrocketing demand in the world’s second largest vehicle market, Economic Daily reported. The Japanese automaker plans to snatch a 10% share of China’s auto market by 2010, up from the current 6.5%. The plant, which will take a year to build, will produce Camry and Yaris sedans. This is the Japanese automaker’s seventh production base in China. Guangzhou Toyota – Toyota’s venture with Guangzhou Automobile Group – started making cars in 2006 and its annual production capacity is expected to reach 200,000 vehicles. Toyota’s aggregate production capacity in China is approximately 620,000 vehicles.

Danone brings Chinese partner to court
Danone SA has finalized a lawsuit in California against its Chinese partner Hangzhou Wahaha Group and Ever Maple Trading for illegal competition, the Shanghai Business Journal reported. Ever Maple, which is based in British Virgin Islands, wholly owns Hangzhou Wahaha Food and Beverages Co – a subsidiary of Hangzhou Wahaha Group. Danone accused Wahaha of illegally selling products that are the same as those sold by its joint ventures and of making unlawful use of distributors and suppliers. It did not mention the amount of financial compensation it is seeking. Wahaha officials could not be reached for comment. The row was triggered at the end of last year when Danone proposed to buy Hangzhou Wahaha Group for US$520 million (RMB4 billion), which was turned down by Wahaha president, who claimed the company had been undervalued and the acquisition was unfair and hostile.