It is widely believed that BOA is less likely to cash out in the short term, because CCB's shares have recently dropped sharply. Besides this, China's banking market has maintained its appeal to investors despite the global financial chaos, said Zhang Xiaojun, a banking analyst at China Nature Fund Co. Ltd. in a report.

"The stake increase also indicates that BOA is committed to a long-term investment in CCB as the cooperation benefits both sides in terms of management and risk control," Zhang said.

Rescuing Sanlu

The uncertainties over the future of paralyzed dairy maker Sanlu Group Co. are gradually being lifted.

Beijing-based Sanyuan Group Co. plans to acquire seven key affiliated plants of Sanlu, including four dairy plants in Shijiazhuang, the capital city of Hebei Province, where Sanlu was based. The other three were located in Tangshan of Hebei Province, Shandong Province and Henan Province, respectively.

Meanwhile, Wondersun Dairy Co. Ltd., based in Heilongjiang Province in northeast China, has officially denied reports that it was going to buy a Sanlu plant in the province.

Sanlu reportedly owns a roughly 90-percent interest in each of the seven plants. The three outside Shijiazhuang were once part of its nationwide expansion efforts.

The Beijing Municipal Government could issue loans to Sanyuan to fund the acquisitions, according to a report in the 21st Century Business Herald. Beijing Sanyuan Foods Co. Ltd., the Shanghai-listed unit of Sanyuan, could issue additional shares to the parent group in exchange for the plants, the report said.

In return, Sanyuan has reportedly agreed to retain all Sanlu's employees and assume part of its debt, a factor that scared off other potential bidders. Sanlu previously estimated that it had total debt of 395 million yuan ($57.8 million) by the end of 2007 and could receive a massive amount of compensation claims worth as much as 700 million yuan ($102.4 million) from consumers whose infants became ill or died after drinking its tainted formula. But analysts say its actual debt and compensation levels will far exceed the original estimates as the scandal continues to take its toll.

The talks between Sanlu and Sanyuan are still in process, and further details remain unclear. A decision is expected soon, however, because the governments of Beijing and Hebei Province are pushing for the deal to be signed, the report said.

Saving Rural Water

The government will spend 20 billion yuan ($2.93 billion) on rural water conservation projects this year as part of the country's efforts to increase domestic demand and revitalize its vast rural areas, according to an announcement by the State Council on November 18. The plan will be included in the Central Government's 100-billion-yuan ($14.6 billion) spending program during the fourth quarter of this year.

"The money will mainly go to projects that help reinforce risky water reservoirs, save water in major irrigation areas and improve drinking water safety in rural areas, as well as some other projects," said Chen Lei, Minister of Water Resources, in a statement.

Provincial economic and water resource departments are supposed to work together to ensure that the government funds are properly disbursed to specific projects covered in the plan within 10 days. All the projects must be completed by next March, the National Development and Reform Commission said in an announcement.

These projects are aimed at tackling major problems hindering rural development, such as insufficient irrigation facilities, so as to stem growing grain losses. According to a report by Xinhua News Agency, around 53 percent of China's arable land lacks basic irrigation facilities, causing annual grain losses of around 50 billion kg. Besides this, more than one third of the 85,000 reservoirs nationwide are rated as risky, while about one third of all counties and villages lack qualified water supply equipment, the report said.

Cultural and Creative Industry Expo

The Third China (Beijing) International Cultural and Creative Industry Expo (ICCIE) will be held December 17-21 in Beijing. Jointly sponsored by the Ministry of Culture, the State Administration of Radio, Film and Television, the General Administration of Press and Publication and the Beijing Municipal Government, the ICCIE has made "cultural innovation and trade in services" its theme and will include exhibitions, forums, summit conferences, trade promotions and theater performances.

The ICCIE will "show the confidence and strength with which China's cultural and creative industries meet the challenges and boost the prosperity and development of the cultural and creative industries," said Xiong Jiuling, Executive Deputy Secretary General of ICCIE Organizing Committee.