EARLY HARVEST: Villagers reap rice in Xuan'en County of central China's Hubei Province on August 29. Output of early-season rice reached 32.76 million tons this year, a slight growth of 4.5 percent from a year ago, said the National Bureau of Statistics on August 30 (TIAN DAN)

Selling CCB Shares

Bank of America Corp. announced on August 29 it had agreed to sell 13.1 billion Hong Kong-listed shares of China Construction Bank Corp. (CCB) for $3.3 billion to raise capital to meet new international banking standards.

CCB said that Bank of America's move is "understandable." The banks will continue to expand their cooperation and will soon sign a five-year strategic agreement.

Bank of America is selling "to meet its own capital needs, and we think that the impact on CCB will be relatively small", said She Minhua, a banking analyst at Haitong Securities Co.

CCB's H shares rose just 1.8 percent on August 30, indicating that investors believed the sale would have a limited effect, Shen said.

Food Acquisition

Shanghai-based Bright Food (Group) Co. Ltd. signed a strategic partnership agreement with Food Holdings Pty Ltd. (Manassen Foods) on August 29 in Sydney, under which Bright Food will acquire a 75-percent equity stake in Manassen Foods.

Under the agreement, the remaining 25 percent shareholding in Manassen Foods will be retained by its current shareholders.

Bright Food said that this historic cooperation would provide major export benefits for Australian producers while expanding the international footprint of Bright Food.

This transaction has received the approval of Australian Foreign Investment Review Board and is subject to customary completion conditions and Chinese regulatory approvals.

Tariffs Down

China will eliminate tariffs and valueadded taxes on equipment and components used to develop coal bed methane (CBM) refining in mines starting this year in order to accelerate the exploration of CBM in China's coal mines, according to a joint statement issued by the Ministry of Finance, the General Administration of Customs and the State Administration of Taxation.

CBM is a type of natural gas that can be extracted from coal beds.

China CBM, a leading company engaged in prospecting and developing the country's CBM resources, and its domestic and foreign partners will be exempted from tariffs and value-added taxes on imports of machines, instruments and components that are used in CBM exploration operations from 2011 to 2015, said the statement.

Other domestic companies engaged in CBM exploration will be able to enjoy similar treatment after their applications are approved. These companies must make sure to file their applications before their imports arrive at Chinese ports.

Aviation Expo

Aviation Expo China 2011 will be held in the China National Convention Center in Beijing on September 21-24. With a 25-year history, it is the only aviation expo held in Beijing.

More than 200 exhibitors will participate in the event and nearly 80 percent of the exhibitors are from overseas.

Aviation Industry Corp. of China will display its latest models, including CJ1000A, China's domestically developed jumbo jet. Commercial Aircraft Corp. of China Ltd. will show its flagship product jumbo jet C919, which is expected to take off in 2014 and enter service in 2016.