The Bank of Communica-tions, the Industrial and Commercial Bank of China, Minsheng Banking Co. Ltd. and China Merchants Bank are applying to establish their own aircraft leasing companies, according to a Xinhua report on September 17.

Minsheng Bank is estimated to be investing 3.2 billion yuan while the other three are thought to be investing 2 billion yuan respectively, said Yang Boqin, a senior official with Shanghai Ronglian Finance Leasing Share Co. Ltd.

China Construction Bank together with the four banks were listed in a pilot group when the Measures for the Administration of Finance Leasing Companies took effect on March 1, allowing Chinese banks to hold stakes in finance leasing companies. Aircraft leasing in China's airline sector is currently dominated by foreign companies.

Heightened Supervision of Stock Market

China's securities regulator set up a new committee to oversee mergers and acquisitions (M&A) of listed companies, in an effort to eliminate insider trading and guarantee transparency in government approval of listed companies' M&A activities.

The M&A activities that will need examination by the new committee include key assets restructuring moves, the issuance of new shares and the purchase of assets from specified parties, and the merger and separation of listed companies, according to a new regulation published on the website of the China Securities Regulatory Commission (CSRC).

The new committee will be composed of 25 commissioners appointed by CSRC, including five professionals with CSRC. Each commissioner is appointed for one year, and can be re-appointed for no more than three terms.

Closer Cross-strait Trade Ties

Trade between the Chinese mainland and Taiwan jumped to $77.54 billion in the first eight months, up 13 percent from the same period of 2006, according to the Ministry of Commerce.

Mainland exports to Taiwan rose 14.4 percent to $15.18 billion and imports from Taiwan climbed 12.6 percent to $62.36 billion, the ministry said.

Trade volume hit $107.84 billion last year, breaking the $100 billion mark for the first time. Two-way trade is likely to exceed $110 billion this year, Vice Minister of Commerce Jiang Zengwei told an investment forum in southeastern coastal city of Xiamen.

Oshkosh Wins Airport Bid

Oshkosh Truck Corporation, a Wisconsin-based specialty truck and truck body manufacturer, has won the bid to provide six airport rescue firefighting vehicles and two snow removal vehicles to Beijing Capital International Airport. Ma Xiuhong, Vice Minister of Commerce, Wisconsin Governor Jim Doyle and U.S. Ambassador to China Clark T. Randt were invited to a high-profile bid award ceremony.

The company, which has been supplying aircraft rescue and firefighting vehicles to China since 1982, has delivered 59 firefighting trucks to airports in China. The company has also recently opened an office in Beijing, which serves as the hub for Asian operations.

Warnings to Top Chinese Companies

Negative real interest rates and the risk of a U.S. slowdown are likely to affect the Chinese mainland's top earners in the next 18 months, according to Standard & Poor's Ratings Services.

The international ratings agency said in a recent report that leading Chinese firms are seeing strong growth, with earnings of the top 200 firms climbing 23.3 percent in 2006. Strong revenue and profits are concentrated in a handful of sectors led by oil and gas, according to the ratings agency.

But it said factors including negative real interest rates, inflation and excessive debt-fueled expansion are likely to curb earnings. Top Chinese companies are warned to keep a close watch on risks, including high oil prices and the liquidity and credit crunch.