China to launch central e-government network
The State Council Information Office (SCIO) announced it had awarded contracts to China Netcom and China Telecom to implement an e-government network for central government communication and data transmission, Economic Information Daily reported. The network would be separate from existing social and public communications resources. The data transmission network, which would be used by government departments such as the State Council, the National Development and Reform Commission and the State-owned Assets Supervision and Administration Commission, was considered an important part of the e-government network.

China ready for index futures: official
China Financial Futures Exchange (CFFE) deputy general manager Hu Zheng told the Securities Times that China was ready for index-based futures. Hu said he hoped introducing hedging products would provide institutional investors with the risk management tools needed in an efficient modern capital market. China's securities regulator was expected to grant the first licences to trade index-based futures within the next month. However, the long-delayed launch of the country's first financial futures product is not expected before June and could even be pushed back until next year. Hu said that the CFFE should focus on index-based products especially index-based options, which have been developing rapidly in European and Asian markets.

SASAC plans reorganization fund
China plans to set up a US$1.30 billion (RMB10 billion) fund to help the restructuring of its state-owned enterprises, Li Baomin, the vice director of the Research Bureau of the State Assets Supervision and Administration Commission (SASAC) told the China Business Times. The fund, which would be formed as an investment firm using capital from state-owned, social and foreign sources was likely to be expanded to 70 billion yuan, he said. Li said current corporate restructuring, which has been largely driven by SASAC, had been hindered by a lack of involvement from private investors and local state-owned companies.

CASS report warns of structural inflation risks
The China Academy of Social Sciences (CASS) has called on the central government to tackle the root causes of rising property prices and structural inflation risks in a new report into the country’s economy, the China Business Times reported. The report said fluctuations in the price of international goods could  drive forecast annual CPI growth over 3%. It also noted a range of structural problems that could lead to asset bubbles. Rapid long-term growth in the currency supply could lead to inflation in the securities and real estate markets, it said, despite current government imposed controls designed to offset this risk.  CASS called for the government to take further economic and administrative measures to tackle the root causes of rising property prices and structural inflation risks.