EUROPEAN BANKING: As part of its global expansion strategy, Bank of China opened its branch in Brussels, Belgium on December 7 to serve Chinese enterprises operating in Europe (WU WEI)

Subsidized Housing

China fulfilled its goal to begin construction of 5.8 million government-subsidized apartments in 2010.

At the beginning of this year, China planned to build 5.8 million government-subsidized apartments for low-income residents and those who live in shantytowns. Under the plan, 1.2 million dilapidated homes in rural areas will also be refurbished.

The investment of China's social housing program this year was expected to total 800 billion yuan ($118.96 billion), compared with 18.19 billion yuan ($2.73 billion) in 2008 and 55.06 billion yuan ($8.27 billion) in 2009.

Sales Up

China's stimulus program for home appliance purchases in rural areas continued to boost sales in the first 11 months of 2010, the Ministry of Commerce (MOFCOM) said on December 6.

The subsidy program, aimed at spurring domestic consumption, fueled rural purchases of home appliances, which hit 67.3 million units in the January-November period, an increase of 140 percent year on year, said MOFCOM.

Sales of subsidized home appliances in rural areas soared 180 percent to 150.4 billion yuan ($22.6 billion).

Of the three top selling items in rural areas, sales of refrigerators hit 51 billion yuan ($7.98 billion), TV sets 41.6 billion yuan ($6.25 billion) and air conditioners 16.2 billion yuan ($2.43 billion).

Railway Deal

The Ministry of Railway (MOR) and Alstom Group, a French rail and power generation company, signed a long-term strategic cooperation agreement in Beijing on December 7.

Under the terms of the agreement, the MOR and Alstom will accelerate cooperation on a range of rail sectors, including rolling stock and signal systems for intercity and high-speed trains.

Alstom will also work with the MOR and Chinese industrial partners to jointly design, develop and promote advanced rail products and services, which meet the requirements of both domestic and international markets.

Alstom has operated in China for more than 50 years. Its presence includes five joint ventures, eight project offices and three industrial partnerships in metro, locomotive and passenger trains.

Downgrading Ireland

Chinese credit rating firm Dagong Global Credit Rating assessed the sovereign credit rating of Ireland at BBB in its third sovereign or regional credit rating report released on December 6.

Dagong's rating for Ireland is lower than those given by Moody's, Standard and Poor's and Fitch.

Dagong made its assessment based on factors such as Ireland's increasing debt level, the administrative capability of its government, and economic and financial strength.

Dagong's report also rated four other nations—Finland, Uruguay, Kenya and Sudan.

In terms of domestic currency-denominated debt, Finland received the firm's top AAA rating, but with a negative outlook.

Uruguay was rated BB-plus while Kenya received a B rating.

Sudan was rated C, the nation's first sovereign credit rating.

More Treasury Bonds

The Ministry of Finance (MOF) said that it would sell a batch of 30-year long-term book-entry treasury bonds at an annual yield of 4.23 percent.

The bonds, with a total face value of 28 billion yuan ($4.2 billion), were sold over five days starting December 9, said the MOF.

The bonds are the 40th batch of its kind sold by the ministry in 2010, and are the fifth batch of 30-year T-bonds the MOF has sold this year.

The bonds became tradable on December 15 through the national inter-bank bond market and over the counter at designated commercial banks. Interest will be paid every half year.