SSE to strengthen market monitoring
The Shanghai Securities Exchange’s (SSE) just released 2006 annual report on market monitoring pledged enhanced scrutiny of primary market trading and information disclosure from listed companies, the China Securities Journal reported. The report said the SSE would improve information sharing with the Shenzhen Stock Exchange and China Financial Futures Exchange and conduct more joint investigations into suspected irregularities. By March 2007, the SSE had conducted 137 investigations into suspicious market activity and 14 into information disclosure from listed companies, accounting for 63% and 73% of last year’s total investigations, respectively. The three exchanges have formed a preliminary framework for cross-market securities and options trading in preparation for the launch of index-based futures and options.

Shanda may form in-game advertising JV
Shanda plans to form an in-game advertising joint venture with a 4A advertising agency, Sina Tech reported, citing sources close to the situation. In-game advertising is new in China but is considered to be an important profit point for free online content providers. In-game advertising volume accounted for less than 3% of the total online advertising market in 2006. The main players included InGameAd Interactive and Cool Media. Focus Media president Tang Zhi had earlier denied media reports the company was looking to  acquire InGameAd Interactive.

Longhu Real Estate plans Hong Kong listing
Property development and management firm Longhu Real Estate Development plans to  list in Hong Kong this year, Chongqing Daily reported. Chongqing executive vice mayor Huang Qifan said the company was considering several international investment groups to underwrite the offering, including Morgan Stanley. Longhu, a privately-held company, reported  US$464.5 million (RMB3.6 billion) in total sales revenue in 2006.

Gome shops for mobile phone retailer
Gome standing vice-president Wang Junchou said the company was looking to acquire a mobile phone retailer in order to enter the mobile phone franchise market, the Beijing Morning Post reported. Wang said Gome was in talks with several mobile phone retailers and was building a telecommunications retailing. Market sources identified Zoomflight as one of the retailers being groomed. Gome announced in April a plan to open 100 mobile phone stores in key cities this year, and president Chen Xiao said the company aimed to capture a 10% share of the mobile phone market this year, worth about US$2.55 billion (RMB19.5 billion) in sales. Gome is also cooperating with China Mobile, offering discounted policy to consumers that purchase phones through Gome.

Online shopping gains ground in key cities
A report by Internet research firm China Intelli Consulting (CIC) said online shopping was well-established in the first-tier cities of Beijing, Shanghai and Guangzhou, and was also increasing in popularity in Wuhan and Chengdu, China News reported. According to the report, Taobao.com, eBay and Paipai.com were the three most popular C2C e-commerce websites in 2006. The report said 4 million people shopped online in the three cities; books and audio-visual products were the most popular items, followed by clothes and cosmetics.