AUTO MANIA: The Seventh China (Guangzhou) International Automobile Exhibition is held on November 24-30. More than 70 automakers and 600 auto parts producers brought their latest products to the show (YUAN HONGWEI)

Connecting West China

China plans to extend railway lines by more than 50,000 km in the vast western region by 2020, Yan Hexiang, Deputy Director of the Development Planning Department under the Ministry of Railways, told Xinhua News Agency.

The country will push more projects, such as the Chengdu-Guiyang Railway and Kunming-Nanning Railway, to start construction at an earlier date, said Yan.

More investments will also be pumped to facilitate railway construction in west China, added Yan.

The western region comprises 12 provinces, autonomous regions and municipalities, which have a combined population of about 370 million and account for 71.4 percent of the country's total land area.

Fending off Risks

The China Banking Regulatory Commission (CBRC) on November 23 called on the commercial banks to better manage their risks and avoid year-end volatility in lending.

Efforts should be made to ensure that lending increases at a stable and sustainable pace, said the CBRC.

Financial institutions with a low capital adequacy ratio and no practical remedy plans would face restrictions in overseas investment and branch expansions.

The commission also called for enhanced inspections in the financial system to detect problems after a significant lending spree.

China's yuan-denominated new loans in the first 10 months of this year totaled 8.92 trillion yuan ($1.31 trillion), far exceeding the government's target of 5 trillion yuan ($731.5 billion) for the entire year.

Banking Overseas

Malaysia has approved a commercial bank license to the Industrial and Commercial Bank of China Ltd. (ICBC), China's largest commercial bank, said Bank Negara Malaysia, Malaysia's central bank, in a recent statement.

The license followed a bilateral arrangement between the China Banking Regulatory Commission and Bank Negara Malaysia, as well as the governments of the two countries earlier this year.

This is part of ICBC's commitment to pressing ahead with global expansions. The bank will dedicate its efforts to facilitating trade and financial ties between the two countries.

Ambitious Auto Hopes

German auto giant Volkswagen Group has unveiled an ambitious strategy called "Strive to Win," which plans to more than triple its sales in south China from 150,000 units to half a million annually, China Daily reported.

To meet the target, 20 new or upgraded models from Volkswagen, Audi and Skoda brands will be launched between 2010 and 2012, according to Volkswagen Group China.

More efforts will additionally be made to strengthen marketing, services and technology advances as part of the south China strategy, which for the Volkswagen plan includes the provinces of Zhejiang, Jiangxi, Fujian, Guangdong, Hainan and the Guangxi Zhuang Autonomous Region.

Swiss R&D Expansion

The Swiss pharmaceutical and chemical giant Merck Serono plans to establish a global research and development (R&D) center in Beijing to strengthen its global R&D capabilities and expand business in China.

The Geneva-based company will invest more than 150 million euros ($226 million) and create 200 new jobs over the next four years to set up the new center and conduct R&D activities in China.

"The creation of the China R&D center marks a new milestone in Merck Serono's commitment to China, where there is a rising demand for more medical care options," said Elmar Schnee, President of Merck Serono, in a statement.

During the first nine months of this year, Merck's sales in China surged 40 percent year on year, with an expected growth rate of 30 percent next year.