➲ New plant in Africa

Chery Automobile Corp. Ltd., China's largest indigenous automaker, will build an assembly plant in Kenya next year, becoming the second Chinese company after truck manufacturer, Beiqi Foton Motors Corp. Ltd. This move is expected to tap the automobile market in East Africa and will further strengthen China's links with the continent. The company ventured into Kenya through a franchise in 2010 and sold 120 cars there. It aims to produce 1,000 units at its plant in 2013 which will serve Kenya, East Africa's biggest economy, and other countries in the region.   

➲ Contract to build a dam

The China Water and Electric Co. and the Guinean Government recently singed a contract of $526 million for constructing a dam to deal with the challenge of its capital's power shortage. According to the country's minister of energy, all five generators supplying electricity to Conakry, the capital city, are outdated machines. Of them, only two are operational and the other three have broken down without repair.

➲ Iron ore price index

The China Iron Ore Price Index, a gauge that will more accurately reflect the domestic market and give the country a greater say in global pricing, was put into pilot operation in August and will be in formal operation in October. This is according to the China Iron & Steel Association, the country's steel lobby and the index compiler.

The index includes domestic and import iron ore prices and will be released weekly. The domestic prices are based on dry iron ore concentrate from 14 provinces and regions, together with 32 mining areas. The imported prices are based on data from China's eight major ports. 

➲ Preferential tax policy continued

The Ministry of Finance has announced on its website that the Chinese Government will extend the tax reduction program for enterprises in west China for another 10 years to further support the country's western development strategy. Companies from incentive industries will continue benefiting from a 15-percent income tax deduction and duty-free in-house equipment until 2020.

➲ Checks for rare earths

China's rare-earth enterprises have been recently busy with upgrading production equipment and installing environmental systems in order to meet the nation's higher environmental standards, the China Securities Journal reported.

Early this year, the country said that it would launch a string of environmental checks for the rare-earth industry, which include self-checks by companies of the industry, preliminary checks by provincial environmental authorities and final checks by the ministry.  

➲ Fostering village banks

It will be easier for qualified companies to establish village banks across the country, particularly in the less developed western regions, the China Banking Regulatory Commission (CBRC), the country's top banking regulator, pledged recently. Since the nation started a pilot program in 2006, there were 536 village banks as of the end of May, with combined loans of 87 billion yuan ($13.5 billion) and deposits of 101 billion yuan ($15.6 billion) according to the CBRC.

➲ Advantage cut

The cost advantage of "made in China" was cut by about 20 percent, thanks to the rising raw material prices and yuan appreciation trend, according to the Shanghai International Sourcing Promotion Center. Many multinational companies are reducing the procurement of consumer goods from China and transferring it to Southeast Asian countries and Romania. But 70 percent of multinational companies surveyed are still intending to purchase from China, particularly industrial goods such as automobile parts, castings and machining parts.

➲ Stock-fund rule revised

Trading regulations on China's stock-fund companies have been recently revised to prevent a market manipulation that may hurt investors' interest, according to a notice by the China Securities Regulatory Commission.

The revised rule stipulates that stock-fund companies should make public disclosure of the purchase or sale of certain stock if the trading volume exceeds 5 percent of its total daily trading volume.

As the rule is being implemented, the constraining mechanism of funds that buy and sell stocks on the same trading day will be improved.

➲ Investment Fair

Scheduled to run from October 18 to 22, the Western China International Fair, a platform to showcase west China's business opportunities, will be held in Chengdu, capital of southwest China's Sichuan Province. First launched in 2000, the fair has attracted a total of 4,564 companies from 52 countries and regions to attend its 12th annual event. The exhibition will be divided into six halls, covering electronic information, hi-tech, international cooperation, agriculture and equipment manufacturing.