Kicking off 3G Trials

China Telecommunications Corp. (China Telecom), the country's largest fixed-line operator, launched trials for the third-generation (3G) mobile services in Shanghai on March 16.

Shanghai Telecom, a unit of China Telecom, said in a statement that its 3G signals cover the area within the city's Outer Ring Road and will be extended citywide by the end of the year.

Industry analysts believe China Telecom chose Shanghai for its first 3G trial because its foothold there is more solid than in other cities.

The government awarded the long-anticipated 3G licenses this January to the country's three major operators, with China Telecom oper-ating on the WCDMA network.

A Helping Hand

China Development Bank, a major state-owned bank, inked an agreement with the Shenzhen Municipal Government on March 17 to provide a 200-billion-yuan ($29 billion) credit line to the coastal city in Guangdong Province, China Daily reported.

Under the agreement, the bank will distribute funds over the next five years as an effort to help Shenzhen push ahead with its hi-tech and cultural industries, improve its infrastructure, and mitigate the financial pains of small and medium-sized enterprises (SMEs) there.

More financing is on the way for those SMEs to help them expand their domestic and overseas markets, said Xu Zongheng, Mayor of Shenzhen, in a statement.

Logistics Giant

Grand China Logistics Group, the country's first comprehensive logistics company, was officially launched on March 17 in Shanghai by HNA Group, the parent of China's Hainan Airlines Co. Ltd.

The new company, with registered capital of 1 billion yuan ($146.3 million) and total assets of 5 billion yuan ($731.5 million), will be engaged in shipping, road transportation and airfreight. It is the first Chinese firm to work across all three sectors.

The company came into being following a government revitalization program to boost the logistics industry. Under the program, the gov-ernment is encouraging mergers and the sector's restructuring to foster a number of globally competitive companies by 2011.

Airline Suspended

The General Administration of Civil Aviation of China (CAAC) recently ordered East Star Airlines Co. Ltd., a private airline based in Wuhan, the capital city of Hubei Province, to suspend its flights because of its financial difficulties and weak management, according to a Xinhua News Agency report.

The CACC issued the order after the Wuhan Municipal Government submitted an application for the suspension "in an effort to safeguard the security of people's lives and assets," the local government said in a statement.

East Star reportedly had failed to pay plane rental fees to GE Commercial Aviation Services.

Venture Advisor

China's CITIC Securities Co. Ltd. has teamed up with U.S.-based Evercore Partners Inc. to create an investment banking venture that fo-cuses on cross-border mergers and investment management, according to a report in Shanghai Daily.

The venture will focus on sourcing and effecting transactions between China and other international markets, and will also manage a China-focused private equity business, according to separate statements by the two companies.

"This strategic cooperation initiative with CITIC Securities facilitates our clients' access to the Chinese market," said Roger Altman, Chairman and CEO of Evercore Partners, according to the article.