The forecast of the World Bank (WB) for China's 2007 growth remains unchanged at 11.3 percent, according to its six-month report on the economic and social health of the East Asia and Pacific region. This news comes despite growing concerns about the U.S. subprime mortgage lending crisis and rising oil prices.

The WB tuned up its projection of Chinese economy from 9.6 percent to 10.4 percent in May.

In the new report, the WB said that although East Asian exports to the United States have slowed, more buoyant investment and consumption in China and other countries has allowed growth to remain strong and even pick up this year.

China's GDP grew by 11.5 percent in the first three quarters of 2007 from the same period last year, decreasing from 11.9 percent in the second quarter but higher than its standing at 11.1 percent in the first quarter.

Insurance Industry Boom

China's insurance sector is likely to collect a record 700 billion yuan ($94.6 billion) in premiums this year, said Wu Dingfu, Chairman of the China Insurance Regulatory Commission, at a forum on pension funds in Beijing.

In 2002, the figure was 304 billion ($41.1 billion), and last year 564 billion ($76.2 billion), when China jumped from 16th to ninth in the world rankings of insurance premium revenues, Wu said.

Chinese insurance revenue is expected to surpass 1 trillion yuan ($135.1 billion) by 2010, with insurance assets reaching 5 trillion yuan ($675.7 billion), according to the country's 11th Five-Year Plan (2006-10).

Volatile Market, Foreign Funds Weather

Funds run by foreign institutions yielded a higher return in October compared to that of equity funds operated by mainland money managers, according to a report recently released by Lipper, a fund rating company under Reuters.

Investors, turning cautious after a long rally, should switch their attention to bond-invested funds to minimize the pressure of an expected correction, according to Lipper.

Zhou Liang, China research head at Lipper, said, "The stability of mainland equity funds and mutual funds might undergo a tough test due to the volatile mood of investors."

The 13 funds operated by qualified foreign institutional investors that trade yuan-backed shares logged an average return of 3.61 percent last month, compared with a 2.28-percent return of domestic equity funds.

Toxic Toys Investigated

China's quality control watchdog said initial investigations had found the bead toys that were recalled in the United States contained a toxic chemical that was used as a softener in the production process.

The toys--products of Australia-based Moose Enterprises-were manufactured by the Wangqi Product Factory in China's southern city of Shenzhen, the General Administration of Quality Supervision, Inspection, and Quarantine (AQSIQ) announced.

The U.S. Consumer Product Safety Commission on November 8 ordered the recall of the China-made toy sets after at least five children were reported to have fallen ill after swallowing the beads in the United States and in Australia.

The Shenzhen factory started to produce the bead toys after its trial products provided to the agent received no objection. The packaging of the toys carried the warnings: "if swallowed, this toy can be dangerous to health" and "not for use for children under three years of age."

China has suspended exports of the bead toys and also the toy maker's export license, according to the AQSIQ.