TO THE POINT: China's benchmark Shanghai Composite Index closed at a record high of 5552 points on the last trading day before the seven-day national holiday (October 1-7), a fat "Golden Week" gift for stock investors. Externally, the Chinese foreign reserve company made its debut on September 29 in an effort to seek international investment profits. Industrial profit from January to August soared 37 percent year-on-year, among which foreign and private companies contributed a significant part. Starting from December 1, the rights to pricing aviation insurance premiums will be handed over to insurance companies in order to build a healthy competition atmosphere. To make better inroads into the Chinese market, Dell has decided to partner with local retailer Gome to sell its personal computers in their stores across the country. By LIU YUNYUN

Dell's New Move

Dell, one of the world's leading personal computer manufacturers, is looking to make waves in the emerging Chinese market after announcing it will sell personal computers (PCs) through China's largest electronic retailer, Gome Group.

For years, Dell had been unique in the PC market by maintaining a direct sales model, greatly cutting distribution fees.

The Beijing-based Gome would let Dell use its vast retail network --- close to 1,000 stores across 168 Chinese cities --- to sell its desktop models in China, the world's second-largest PC market by shipments.

Mou Guixian, Vice President of Gome, said that the cooperation between the two indicated that large home appliance retailers in China have now become one of the major conveyor belts for IT product sales. Mou said there will be no price difference between the direct sales model and the Dell PCs sold in Gome, adding that more promotion activities will be held in Gome.

Dell stated on its company website that the reason to enter the Chinese retailing channel is to enhance its direct sales and attract more clients in China.

The PC news came after Dell announced it would also cooperate with retailers Bic Camera in Japan, Carphone Warehouse in Britain, and Wal-Mart in the United States.

Room to Improve

China will end the fixed aviation accident insurance premium of 20 yuan from December 1 onward this year, according to the China Insurance Regulatory Commission (CIRC), in an effort to stimulate insurance companies to improve services.

The 20-yuan insurance premium, with a ceiling of 400,000 yuan for accident compensation, has long been a huge profit source for insurance companies.

In the past, unifying premium prices for aviation accident insurance was aimed at stabilizing the insurance market and avoiding vicious competition, but it was also seen to suppress initiatives for insurance companies to improve their services.

The CIRC decided to hand pricing rights to the insurers and let them develop insurance products to serve the ever-diversifying market needs of the increasing number of travelers.

In hopes of improving insurance services and protecting consumer rights, the CIRC is also requiring that insurers strengthen their internal management and monitoring.

Through market competition and government regulation, China may see lower insurance premiums with higher compensation and longer expiration periods, according to CIRC. Insurers can also make further profits by providing customized services.

By the end of last year, 22 life insurance companies and 11 property insurance companies offered aviation accident insurance coverage.

Statistics from CIRC show that the aviation accident insurance premiums totaled 176 million yuan in 2006 and 127 million yuan for the first seven months this year. Meanwhile, there were no aviation accidents in 2006 and none so far this year.

Forex Investment to Debut

China's foreign reserve fund (forex investment) with registered capital of $200 billion, will commence operations on September 29, according to China Securities News.

The agency's board will be comprised of 11 members, including three executive directors and two independent directors.

Lou Jiwei, a former deputy finance minister, has been tapped as chairman of the agency, and the general manager will be Gao Xiqing, vice-chairman of China's national pension fund.