Two separate anti-trust investigations into Chrysler and Audi have found that the two multinational carmakers have pursued monopolistic practices and will be punished, NDRC spokesman Li Pumin said on August 6.

Li told reporters that the Chrysler investigation was launched by the Shanghai Municipal Development and Reform Commission and the Audi probe was conducted by the Hubei Provincial Price Bureau.

The two investigations are drawing to an end, he said, without specifying details of the punishment.

Li also confirmed that the Jiangsu Provincial Price Bureau has just launched an anti-trust investigation into dealers of German auto giant Mercedes-Benz in five Jiangsu cities.

The NDRC has recently finished investigations into 12 Japanese companies and found monopolistic behaviors in auto parts and bearing prices. Li said the commission will punish them in accordance with the law.

Shanty Renovation

China will step up financial support to ensure that its annual target for renovation of shantytowns can be met, according to a government document published on August 4.

The country will support state-owned companies to raise funds for shantytown renovation through issuing bonds, said a State Council circular.

Private companies will enjoy the same preferential policies as their state peers when they participate in renovation projects.

The new housing finance division in the China Development Bank should prioritize lending to shantytown renovation projects, and commercial banks should improve lending services to them, according to the circular.

Shantytown renovation is considered key to China's urbanization. The government has set a goal of subsidizing the rebuilding of 4.7 million housing units across the country this year.

Bank Regrouping

The Shanghai and Hong Kong-listed China Everbright Bank announced on August 2 that the State Council has approved the proposed restructuring of its parent company China Everbright (Group) Corp.

According to the restructuring proposal, the corporation will be transformed from a wholly state-owned enterprise to a joint stock company and will be renamed China Everbright Group Corp.

The new company will be jointly set up by the Ministry of Finance (MOF) and Central Huijin Investment Ltd.

MOF's capital contribution will comprise its equity interest in China Everbright (Group) Corp., its equity interest in China Everbright Holdings Co. Ltd. and the principal and interest of the credit extended to China Everbright (Group) Corp. by the MOF.

The capital contribution of Central Huijin will comprise the 9-billion shares it holds in China Everbright Bank, its equity interest in China Everbright Industrial (Group) Co. Ltd. and the principal and interest of the loans from the People's Bank of China.

China Everbright (Group) Corp.'s businesses have covered bank, securities, insurance, trust, investment bank and assets management since its founding in 1983.