LIGHT AND SPEEDY: The second phase of the light rail project in Wuhan, capital of Hubei Province, is put into operation on July 28. Wuhan's light rail coverage has been extended 18.8 km, making it the longest city-owned light rail in China (WANG HE)

Bigger Private Role

The State Council promised private investors a bigger role in industries, from oil drilling to finance, and pledged to help private companies invest more abroad, according to a statement released on July 26.

The statement includes a five-page list of areas where the government promises easier accesses for private investment. The list covers things from infrastructure construction to financial services, retailing and logistics.

Private companies will be encouraged to partner with state oil and gas companies to "co-exploit" reserves and to play a role in major science and technology projects, the statement said.

They will be encouraged to invest abroad and regulators will treat every investment entity equally, according to the statement. Chinese foreign direct investment has surged in recent years, but much of that has been spending by state companies.

Currency Swap Pact

The People's Bank of China (PBC), the central bank, announced on July 23 a bilateral currency swap agreement with the Monetary Authority of Singapore (MAS).

The arrangement is a key pillar of cooperation between the PBC and the MAS and will strengthen regional economic resilience and financial stability, said the MAS, the central bank of Singapore, in a statement on its website.

The agreement, aiming to promote bilateral trade and direct investment for the economic development of the two countries, will provide Chinese yuan liquidity of up to 150 billion yuan ($22 billion) and Singapore dollar liquidity of up to 30 billion Singapore dollars ($22 billion). It has a three-year maturity and can be extended if both sides agree, according to the statement on the PBC's website.

It will also facilitate cross-border trade settlements in the Chinese currency, an arrangement now allowed in all countries and regions.

Global Head Hunting

The China Investment Corp. (CIC), the nation's sovereign wealth fund, is gearing up for a new round of global hiring to meet its "business development needs."

During this recruiting, the company is looking to fill 64 open positions, in areas ranging from asset allocation and risk management to strategic investment and private equity investment, according to a statement on CIC's website.

The CIC, with $300 billion at its disposal, seeks a more flexible investment strategy this year, as global markets failed to show a clear trend. The company earlier this month sold 5.1 million shares in Morgan Stanley after the stock rallied.

The fund, with about 200 employees on its payroll, announced vacancies for 33 categories in 13 departments in June 2009.

New Air Venture

China Eastern Airlines Corp., the nation's third largest air carrier, announced on July 27 that it will set up a 3.66 billion yuan ($540.3 million) joint venture airline company in southwest China's Yunnan Province in collaboration with the local government.

The carrier will invest 2.38 billion yuan ($350 million) and will own 65 percent of the new venture, while the Yunnan provincial state-owned assets supervision and administration commission will control the remaining 35 percent, according to the agreement between two sides.

China Eastern has already set up similar operations in east China's Jiangsu Province and central China's Hubei Province in cooperation with provincial governments.