Analysts anticipate stock curbs
The State Council’s latest development research center report shows the government intends to employ strong measures to cool domestic stock markets, Shenyin Wanguo Nominees analysts told the China Business News. The official report said that macroeconomic controls were necessary to stabilize the domestic securities markets because current liquidity excesses could not be relieved in the short-term, the stock markets were showing signs of overheating, and the government needed to prepare the market for the upcoming launch of index-based options. The benchmark Shanghai Composite Index closed at 3,518.27 Friday, up 5.86% over the week. Turnover rose from 148.37 billion yuan in the previous session to a record 166.49 billion yuan (US$21.35 billion).

Budget hotel regulations on agenda
The China Hotel Association has drafted budget hotel standards and placed them on the agenda of its budget hotel standardization committee, China News reported. Official sources said the industry standards would regulate services, processes, and safety and environmental measures to standardize franchising and ensure the industry’s sustainability. Industry analysts estimate only one-third of existing budget hotel brands would meet the proposed standards, one-third would need some restructuring, and the rest would need large-scale restructuring. A recent National Development and Reform Commission (NDRC) study showed China had about 50 registered budget hotel chains with more than 600 outlets in operation by the end of 2005. The figure is now approaching 1,000, and major budget hotel brands are expanding at an average rate of 74% annually.

SO2 emission rules to be tightened
The government is planning to issue new regulations as part of its target of reducing sulphur dioxide emissions 10% by 2010, the China News reported. The National Development and Reform Commission (NDRC), the government’s planning body, said all coal-fired power plants would be required to improve the sulphur removal efficiency of their coal-fired generators and install equipment to capture sulphur dioxide before it is released into the air. The standards would be strictly enforced, and plants that failed to meet the standards would be penalized. China is the world’s second largest sulphur dioxide emitter, releasing 25 million tons of the gas in 2005. Coal-fired power plants were the main source.

Geographical curbs on cheques to be lifted
People’s Bank of China deputy governor Su Ning said that geographical restraints on corporate and individual bank cheques would be lifted when a national cheque image system (CIS) starts operation in late June, the Economic Information Daily reported.  CIS trial operations involving cross-province and inter-city cheque transactions began in Beijing, Tianjin, Shanghai, Guangdong, Hebei and Shenzhen on December 18, 2006. Cheques are among the most widely used non-cash payment tools in China. Central bank statistics show a total of 1.8 billion cheques, worth about 350 trillion yuan (US$43.75 trillion), were issued in 2005. Cheques can currently only be used in the city where they are issued.

TWT lists in Oz
Tianwaitian Umbrella Group (TWT) raised AU$4.1 million on the Australian Securities Exchange Thursday, China News reported. The stock debuted at  AU$0.59, 19% above its prospectus price of 50 cents. It was the first Australian listing by a mainland manufacturer. TWT chairman Xu Hainan said the listing served as a platform to tackle Australia’s lucrative outdoor product market, and that the capital raised would be used to develop new product lines and expand marketing and sales efforts. TWT, a leading Zhejiang umbrella and outdoor product maker, is based in Songxia Town, which is known as the "Umbrella City of China" because about 80% of the world's umbrellas are made there. TWT's net profit for the six months to December 31 was AU$1.76 million, above its prospectus forecast of AU$1.56 million.

3i plans 3 mainland listings
Europe’s largest venture capital and private equity firm, 3i Group, said it would consider exiting three companies - Little Sheep, Beijing Digital Electronic Communication Technology (BDECT) and Printemps Department Store – through listings on domestic or offshore capital markets, the Oriental Morning Post reported. 3i has invested US$22 million in BDECT, US$20 million in Little Sheep and US$31 million in Printemps. 3i achieved a 500% return on its 2004 investments in Focus Media and Qingdai Haiwan when exiting in 2006.