Going Middle Eastern

The Industrial and Commercial Bank of China (ICBC), the world's largest bank by market capitalization, opened its second Middle East subsidiary in Doha, Qatar, on October 21, marking a significant step in the bank's international expansion strategy.

The branch will provide a full range of financial services, including deposits, credits, trade financing, investments, asset management and consultations.

Prior to the Doha branch's opening, ICBC had opened an office in Dubai, an economic hub of the United Arab Emirates.

The Middle East subsidiaries will be committed to building a direct and accessible bridge for investment and trade between China and Middle East countries, said Jiang Jianqing, Chairman of ICBC, in a statement.

The bank also opened two branches in Sydney and New York in the past few weeks.

Sagging Canton Fair

Trade volume at the ongoing autumn session of the biannual Canton Fair, an important barometer of the country's trade situation, dropped by about 10 percent year on year amid global recession worries.

The first phase of the fair, which ran on October 15-19, registered a total trade volume of $16.45 billion, down 10.8 percent over the previous year, Mu Xinhai, a fair spokesman, was quoted as saying on October 20.

Orders from the United States posted the biggest drop to $1.63 billion, only one third of last year's volume, said Mu. The bleak trade volume at the fair is a microcosm of the country's export sector that is taking some blows from the sprawling U.S. credit crunch. In response, the country has bumped up the export rebate rates for some of its export products, such as textiles and garments.

Digging for Oil

PetroChina Co. Ltd. is set to bump up its investment in its oil and gas businesses by around 60-70 percent in 2009, PetroChina Chairman Jiang Jiemin told Xinhua News Agency on October 21.

PetroChina's losses from the global financial crisis were "limited and under control," because it had focused on oil and gas production and exploration in the past few years, Jiang said. He added that the company was mulling the acquisition of energy companies hit by the global credit crisis in the capital market and the resources market.

The current relatively low international crude oil price would allow PetroChina's refining sector to be profitable and enable the whole company to maintain a healthy and stable profit level, Jiang said.

Aiding Farmers

The National Development and Reform Commission (NDRC) announced on October 20 that it would raise the minimum purchasing price for wheat by a mighty 15.3 percent starting next year, as part of its efforts to boost rural income and add incentives for farmers to increase agricultural production.

In addition to the wheat purchasing price hikes, the commercial reserves of fertilizers will also be strengthened to ensure market supplies and price stability, the NDRC said.

The commission also pledged to further tighten subsidies for agricultural production materials, machinery and crop seeds. It also said it plans to raise the minimum purchasing price of rice next year, although it did not give further details.

Coal Reserve

China's largest open-pit coal mine in Haerwusu in north Inner Mongolia Autonomous Region is set to start production, according to its developer, Shenhua Zhungeer Energy Co. Ltd., a subsidiary of the Beijing-based Shenhua Group.

The company did not specify the exact date that the mine would start production.

With total coal reserves of about 1.73 billion tons, the mine is expected to be productive for 79 years. The company said its total investment in the project has topped 7 billion yuan ($1.02 billion).