The China Association of Automobile Manufacturers said on its website that in the first half of this year, a total of 3.61 million passenger motor vehicles were sold in the country, an increase of 17 percent over the same period last year. But the growth rate was 5.2 percent lower than during the same period in 2007.

Sales of sport utility vehicles (SUVs) grew the most and were up 42 percent. Analysts at the association attributed the fast growth of SUV sales partly to mounting demand driven by disaster-relief efforts.

The top 10 brands accounted for 1.76 million units, or 65.86 percent, of total car sales in the country. They included FAW Volkswagen, Shanghai Volkswagen, Shanghai GM, FAW Toyota, Chery, Dongfeng Nissan, Beijing Hyundai, Guangzhou Honda, Geely and Chang'an Ford.

Many analysts agreed the upcoming Olympics in August also could affect new car sales. From July 20 to September 20, Beijing, a major auto-buying city, will implement a policy to reduce traffic during the summer games. Vehicles with odd-numbered plates only can drive on odd-numbered dates, while cars with even-numbered plates only can drive on even-numbered dates.

Ambitious Offer

China Oilfield Services Ltd. (COSL) announced on July 7 that it would buy Norwegian company Awilco Offshore ASA (AWO) for about $2.5 billion, creating the world's eighth largest rig fleet.

When the deal closes in September or October, the new COSL will consist of 34 operated rigs (including rigs under construction) with operation and growth opportunities in most major international markets.

The deal is the largest one where a Chinese company has bought 100 percent of a European company.

COSL said in a company statement that the offer represented a premium of 18.7 percent over the closing price of AWO shares on July 4.

Guan Zhonghua, Chief Financial Officer of COSL, believes the offer was reasonable and said on the company's website that the firm would continue acquiring overseas businesses during the next few years.

"AWO's modern high-specification rigs and cutting-edge technology for offshore drilling is a good strategic fit for COSL pursuant to its globalization and growth strategies," said the company statement.

Merrill Lynch upgraded COSL's Hong Kong-listed shares from "neutral" to "accumulation." It estimated that COSL's profit in 2010 would be double that of 2007. Last year, COSL's earnings per share stood at 0.54 yuan ($0.08).