No Bubble Economy

U.S. investment bank Goldman Sachs has allayed fears that China could emulate Japan's 1980s bubble economy in a new report.

China's stock market saw a whopping rise of 130 percent last year, land prices have surged in the past five years and the currency keeps going up, which have raised widespread debate over whether China's economy is overheating and developing a bubble like Japan in the 1980s, especially in the stock market.

Cheng Siwei, Vice Chairman of the Standing Committee of the National People's Congress, warned that a bubble was developing in the stock market last month.

However, the Goldman Sachs report said, "China now and Japan then share a few macro similarities, but a more open economy and markets, stricter forex controls and better developed corporate governance could prevent China from repeating Japan's boom-bust experience."

The 800,000th Chery Is Born

Chinese carmaker Chery has produced its 800,000th car to become the country's first indigenous automaker to reach the milestone, according to the China Securities Journal.

The company's 800,000th car was a QQ 6, a subcompact model that was launched in September last year and is euphemistically known as the "Chinese Beetle".

The carmaker, established in east China's Anhui Province in 1997, increased its annual output from 50,000 cars in 2002 to 189,000 in 2005 and 305,200 in 2006.

It is capable of producing 350,000 cars, 400,000 engines and 300,000 transmissions, according to the company website. Last year Chery became China's seventh largest automaker and fourth largest producer of sedans.

The company plans to double its exports in 2007. Last year it exported 50,000 vehicles, up 178 percent over the previous year.

Foreign Insurers Grow in Shanghai

Foreign-funded insurance companies held a 19.17-percent share of the insurance market in China's financial hub Shanghai in 2006, according to data from the Shanghai Bureau of the China Insurance Regulatory Commission.

Shanghai raked in 40.7 billion yuan in insurance premiums in 2006, including 10.52 billion yuan from property insurance companies and 30.18 billion yuan from life insurance companies.

Foreign-funded insurers in Shanghai collected 7.8 billion yuan in premiums, up 34 percent year on year; and their market share reached 19.17 percent.

No New Internet Bars in 2007

China will not approve the opening of new Internet bars in 2007, according to a directive issued by 14 government departments including the Ministry of Culture, the State Administration for Industry and Commerce and the Ministry of Information Industry.

The notice reiterated that Internet bars must not admit anyone under the age of 18. Internet bars that are found to have twice allowed minors on their premises will be forced to close for 15 days and fined. A third offense can lead to their business license being revoked.

There are currently about 113,000 Internet bars in China, according to the Ministry of Information Industry.

Over the past few years, China has seen an alarming rise in the number of teenagers addicted to Internet cafes and gaming.