New Financial Head

(CFP)

Chinese banker Cai Jinyong was announced as the new executive vice president and CEO of the International Finance Corp. (IFC), a member of the World Bank Group, on August 10.

Cai will become the first Chinese to take over the position in the history of IFC. Following Justin Yifu Lin, he is another Chinese finance professional to hold a senior position in the World Bank Group. His appointment will come into effect on October 1.

"I am pleased that a world-class financial and development professional like Cai has decided to bring his considerable talent to the work of the IFC," said World Bank Group President Jim Yong Kim.

Cai has more than 20 years of experience in the financial services industry and related development.

IFC is the largest global development institution focused exclusively on the private sector. It is dedicated to helping private sectors in developing countries achieve sustainable growth and reduce poverty for the betterment of people's living conditions.

Forex Funds Down

China's central bank said on August 14 that yuan funds outstanding for foreign exchange fell to 25.66 trillion yuan ($4.07 trillion) at the end of July. It was a drop of nearly 3.82 billion yuan ($606.35 million) month on month.

The dip was the result of the country's shrinking export and foreign direct investment amid global economic woes. Trade surplus stood at $25.15 billion in July, far less than market expectations. Export growth edged up 1 percent in July from one year earlier, but fell 1.8 percent month on month.

The decrease in yuan funds outstanding for foreign exchange is also a strong indication of speculative capital flowing out of the country amid the sovereign debt crisis in Europe, the economic slowdown in the United States and rising expectation of a weaker yuan, analysts said.

China's slowing economy has raised concerns over its growth prospects, and has to some extent accelerated the exodus of foreign capital from the country.

No Anti-dumping Duty

The Ministry of Commerce (MOFCOM) announced that it will end an anti-dumping tax levied on dichloromethane imported from the United Kingdom, the United States, the Netherlands, Germany and the Republic of Korea starting on August 15.

MOFCOM made the decision after domestic industries failed to submit review applications with evidence sufficiently showing that the imports could inflict damage upon them.

The ministry in February asked domestic industries to apply for a review on the case to decide whether to continue the anti-dumping duty that ends on August 15.

On August 16, 2001, the ministry began levying a five-year anti-dumping tax on dichloromethane, commonly used as an industrial solvent. The tax was renewed for another five years in 2007.

Oil-Gas Discovery

China National Offshore Oil Corp. (CNOOC) announced on August 14 that it has made a major discovery in the Bohai Sea, successfully appraising two wells in the sea's Qinhuangdao 29-2 structure.

CNOOC said that it has discovered 218.4 meters of oil pay zones in the Qinhuangdao 29-2E-4 well, with a thickness of up to 133.7 meters.

The well is capable of producing 6,600 barrels of crude oil and 4.5 million cubic feet of natural gas per day.

The Qinhuangdao 29-2 structure is located in the central and northern part of Bohai, with an average depth of 27 meters.

NASDAQ De-listing

Focus Media Holding Ltd., a Chinese digital media company, is planning to de-list itself from NASDAQ in the largest ever such move.

The decision follows a series of attempted management buyouts of Chinese companies in recent months, many of which had seen their accounting practices questioned and their valuations take a hit as a result.

China's top private equity funds, including FountainVest Partners Co. Ltd. and China Everbright Ltd., and the U.S. buyout fund Carlyle Group LP, are offering $3.5 billion to take Focus Media Holding Ltd. private and are working toward that goal with Jiang Nanchun, CEO of Focus Media.

Wal-Mart's Stride

MOFCOM approved plans by Wal-Mart to increase its stake in a holding company of Chinese e-commerce website Yihaodian to 51.3 percent from 17.7 percent.

The deal was granted with restrictive conditions that will prevent Wal-Mart from entering China's value-added telecommunications service market through Yihaodian's business, which MOFCOM feared may impede market competition.

The transaction still needs further regulatory approval and has to meet other final conditions to be completed, said Christina Lee, senior director of Wal-Mart China's corporate affairs.

If successful, the acquisition will allow Wal-Mart to gain control of China's largest online supermarket and grab a bigger slice of the country's booming online shopping market.

Canton Fair

The 112th China Import and Export Fair will be held from October 15 to November 4 this year, according to a press conference co-organized by the Consulate General of China in New York City and China Foreign Trade Center (CFTC) on August 14 in Manhattan, the United States.

The fair, also known as the Canton Fair, is held biannually in Guangzhou, capital of south China's Guangdong Province, every spring and autumn. It has been held uninterruptedly since 1957. As the largest trade fair in China, it attracts over 200,000 buyers from more than 200 countries and regions in the world to participate annually.

"The upcoming fair will provide a unique platform for international commercial exchange, as well as sharing knowledge and information," said Xu Bin, Deputy Director General of CFTC.