Numbers of the Week

140

More than 140 Chinese companies have been listed at Nasdaq, an increase of nearly 3 times from three years ago, said Robert McCooey, Senior Vice President of Nasdaq.

206 million

China's mobile Internet users totaled 206 million by the end of March 2010, growing 48.4 percent year on year, said Analysys International Consulting Co. Ltd.

TO THE POINT: The Chinese economy is likely to see a mild slowdown as its largest trade partner—the EU—suffers from a sovereign debt crisis and as the Chinese Government cracks down on the blistering property market. Steelmaker Ansteel is set to merge with smaller rival Pangang in a government effort to consolidate the country's steel industry. China's largest oil refiner Sinopec aims to expand its oil refining capacities to feed the buoyant domestic economy. Credit cards become a "must have" for numerous Chinese consumers, but concerns linger over risks of bad debt. E-commerce in China blossoms, with B2B trade leading the tide.

By HU YUE

Moderate Prospects

Investment and consumption have been the biggest motors of the economy, both surging in the first four months this year. Exports also regained some lost ground, soaring 30.5 percent in April from a year ago.

But clouds have been gathering over the prospects of Chinese exporters, said Ha Jiming, chief economist with the Beijing-based China International Capital Corp. Ltd.

The pain of the Greek sovereign debt crisis is spreading throughout Europe, which accounts for 16 percent of China's exports. Worse still, the euro has depreciated nearly 15 percent against the yuan, the Chinese currency, making Chinese goods even less competitive in Europe, said Yao Jian, spokesman of the Ministry of Commerce.

House prices largely held onto peak levels, but sales volumes are falling in many cities as a string of tough government measures gain traction. This is expected to pour cold water on property developers' enthusiasm for new projects, draining steam out of investments growth, said Wang Tao, chief economist at UBS China.

After a powerful rebound, the Chinese economy is likely to see a mild slowdown in the second half of this year due to withering exports and a lackluster property market, said Wang.

China will carefully time its exit from stimulus policies to avert a second dip in the economy, said Zhou Xiaochuan, Governor of the People's Bank of China, at the central bank on May 25.

Steel Consolidation

The Liaoning Province-based Anshan Iron and Steel Group (Ansteel) received a green light from the government to merge with the Pangang Group in Sichuan Province.

China's desire for a stronger, cleaner steel industry is deep-rooted. Bolstering its bargaining power in the international iron ore price negotiations also required consolidating the crowded, weak sector into a few bigger players through mergers and acquisitions.

For the two companies the deal could create a win-win situation. "The merger will not only enhance Ansteel's capacities, but also help strengthen the financial position of Pangang," said Li Xinchuang, President of China Metallurgical Industry Planning and Research Institute.

Pangang enjoys a technical edge in railway steel products while Ansteel excels in products with high value-added such as flat sheets, so they would fill the gaps for each other, said Li.