Real estate investment has becoming more strict now. According to Sina News, many investors in China are keen to look for movie investment projects in China.

According to the report, there are currently 189 film project in 2010 reported and there were less than 100  in 2003. The reason is because, till June 20, 2010, the China movie market has already generated 4.4 billion RMB which increased 80% compared to last year. The market in China this year is expected to exceed more than 10 billion RMB. Even some people engaged in real estate speculation truned to  investing in the film market to capitalize on this burgeoning segment.

General Manager, Gaojun fom Beijing New Film Association said :” the investment for movie now is very fast, if fast, usually, 7-9 month can cover the investment, if slow, need 9-11 months, meanwhile, the return of investment is very high, one movie that they invested in has 200% investment return rate.

According to the National Bureau of Statistics, from January till June 2010, industrial enterprises in China’s 24 regions reported a profit of 1.61 trillian Yuan. Among the 39 major industrial sectors, communication equipment, computer and other eletronic equipment manufaturer growed 1.4 times.

As a part of an economic stimulus plan, China will spend 800 billion yuan for high-speed rail network by 2012. A number from China rail department shows that each kilometer of high speed rail, the investment reached 130 million RMB. This shows that China is willing to build up a good infrustruture so that it can create a better investment enviroment.

While importing international technology for high-spead rail, China is also catch up with its own technology development. There is a saying, from New York to Chicago is simiar as the distance from Beijing to Shanghai, however, in USA the rail will take 18-19 hours, in China, the high-speed rail only take 4 hours.

http://www.china.org.cn/china/2010-07/29/content_20596914.htm

SHANGHAI – Mainland stocks rose for a sixth consecutive day, posting their longest stretch of gains since February, on speculation slowing economic growth will prompt the government to relax property curbs and allow for more bank lending.

The benchmark Shanghai Composite Index gained 0.65 percent, or 16.66 points, to end at 2,588.68 points and e Shenzhen Stock Index climbed 0.6 percent, or 63.18 points, to 10,591.13 points.

“Easing monetary policies is a big possibility,” said Zheng Tuo, president of Shanghai Good Hope Equity Investment Management Co. “That’s probably what the government would start to do to counter the economic slowdown.” The central bank has raised banks’ reserve requirements three times this year and the government boosted down payments and mortgage rates for multiple-purchases of homes to curb record lending growth and asset bubbles.

Citigroup on Thursday lowered its full-year global growth forecasts for 2010 and 2011, according to a strategy report. It also cut its outlook for both years’ growth in the United States, China and emerging markets, the report showed.

China’s GDP growth forecast was cut by 1 percentage point to 9.5 percent, Citigroup’s biggest one-month cut in the country’s outlook since late 2001, the report said. The bank said China would grow at an 8.8 percent rate next year, 0.5 percentage points lower than previously forecast.

China Daily

BEIJING – Baidu Inc, China’s largest online search engine, has benefited from rival Google Inc’s recent woes in the Chinese mainland, with its earnings and market share both rising significantly over the past three months.

Baidu’s net income more than doubled in the second quarter year-on-year, reaching 837.4 million yuan, ($123.5 million), the company said on Thursday.

Meanwhile, Baidu took a 70 percent share of China’s search market by revenue in the second quarter, up 6 percentage points from three months earlier, while Google’s share fell from 30.9 percent to 24.2 percent over the same period, according to the latest report from domestic research firm Analysys International.

Baidu won advertisers from Google after the US company started redirecting its traffic to Hong Kong in March. It added 33,000 clients in the second quarter and currently has more than 250,000 customers.

Li Zhi, from Analysys International, said that Google failed to take advantage of the expanding search market “and the growing pie then fell into Baidu’s hands”.

China’s search market was worth 2.67 billon yuan in the second quarter, up 48 percent year-on-year, according to Analysys International.But she added the gap between the two companies was unlikely to grow to any great extent because Google had its Internet Content Provider license renewed this month.

Baidu’s second-quarter sales were 1.9 billion yuan, compared with 1.1 billion yuan a year earlier. The company said revenue is expected to rise 77 percent to 2.26 billion yuan in the third quarter.

Baidu Inc is in talks with mobile-phone makers about using its search box on handsets sold in China, the Wall Street Journal quoted Robin Li, the company’s chief executive officer, as saying. Baidu is also considering listing shares in China, the newspaper quoted Li as saying, without providing a timeline

China Daily

As the drafting process for China’s Twelfth Five-Year Plan (12th FYP) for Economic and Social Development (2011-15) continues, a clearer picture of China’s economic, industry, and social objectives—and the policy guidelines that will be used to achieve these goals—has emerged. The plan, which lays out national social and economic policies for the next five years, will focus on restructuring the country’s economy to rely less on exports and fixed investment. Other policy objectives of the plan will include developing new energy sources, increasing energy efficiency in industry, and correcting imbalances in education, healthcare, housing, income distribution, and social security.

Top priorities for the 12th FYP

The 12th FYP is expected to make several major changes to China’s economy. According to statements from senior PRC government officials, key areas for reform will include:

• Economic restructuring China will focus on shifting economic growth away from reliance on exports and investment toward domestic consumption. The drop in demand for China’s exports since the economic crisis highlighted for PRC regulators that relying on Western consumer demand to sustain domestic growth is untenable.
• Industry structure Industry-related policies will aim to accelerate the growth of China’s services industries. Though no targets have been announced, PRC regulators will look to increase the proportion of services industries in the overall economy from the current 43 percent. Policies will favor the development of the outsourcing, banking, insurance, e-commerce, logistics, and supply chain management sectors. Industries that suffer from inefficiency or overcapacity—such as cement and coal—will remain targeted.
• New energy The plan will set capacity quotas for four types of new energy: hydro, nuclear, solar, and wind. The PRC government reportedly aims to have a wind energy capacity of 90 gigawatts (GW) and nuclear energy capacity of 40 GW by the end of 2015.

Policy goals

FYPs typically continue long-term economic and social policy goals from previous plans. Many social and economic goals listed in the 11th FYP, such as minimizing urban-rural income disparities, address long-term challenges. The 12th FYP will revise targets for these goals.

• Economic growth Maintaining a stable economy and improving living standards remain priorities. According to PRC media reports, policymakers have set an average economic growth target of 7 percent for the 12th FYP, down from 7.5 percent in the 11th FYP.
• Urban and rural development Increasing urbanization, narrowing the income gap between urban and rural citizens, and connecting China’s cities with rural areas remain top concerns. A government economist recently said that China would invest up to ¥7 trillion ($1 trillion) to develop urban infrastructure, including ¥700 billion ($102.5 billion) on urban rail transit during the 12th FYP period.
• Energy efficiency China will set policies to achieve two major energy targets by 2020: reducing carbon intensity by 40-45 percent of 2005 levels and increasing the use of non-fossil energy to 15 percent of primary energy consumption. Because China is behind on its goal to reduce energy intensity, experts speculate that the country might have to strengthen its energy targets in the 12th FYP to reach these long-term targets.
• Basic public services Improving social insurance, healthcare services, and education remains a policy goal for the 12th FYP. In May, the State Council approved the Medium- and Long-Term National Educational Reform and Development Plan (2010-20), which aims to boost investment in China’s education system to 4 percent of gross domestic product by 2012, up from the current 3.48 percent. Similarly, the 12th FYP may include new targets for healthcare spending.
• Regional development Since the 9th FYP, regional development policies have focused solely on generating rapid economic growth in underdeveloped regions in central and western China. The 12th FYP will seek to encourage more balanced growth between China’s developed and underdeveloped areas.

China Economic Review July 2010

New energy initiatives  are always a hot topic especially as China has been  recently dubbed as the worlds leading  energy consumption country. While China has put a lot of effort in new energy development., according to recent news from Beijing, the  National Development and Reform Commission will submit a New Engergy Planning Proposal to the State Council proposing an  investment of about  RMB 2 trillion. Chinese Vice Premier Li Keqiang said that the new direction of energy to lead a new round of industrial revolution and accordingly, should be a great opportunity for USA based alternative energy companies  to consider  entering  the China market and share a piece of this huge cake. Having worked with a large Chinese energy concern,  CUBD can assist US companies to identify new opportunities in China.

http://www.robroad.com/industry/index.php/energy-new-power-development/

The China market offers opportunities for companies that can navigate its evolving sales and distribution landscape. CUBD brings more than 7 years experience in China Distribution strategies.

http://chinabusinessreview.net/public/1007/feuling.html

Foxconn Technology Group, the contract maker of Apple Inc iPhones and Hewlett-Packard Co computers, plans to establish a factory with 300,000 workers in Zhengzhou City, capital of central China’s Henan province, the local government said. CUBD client Unis TH Technology is also building a Technology Park in Zhengzhou City, capital of Henan Province.

http://www.chinadaily.com.cn/bizchina/2010-06/28/content_10029940.htm

http://www.aautech.com/foxconn-announces-investment-in-chengdu-and-zhengzhou.html

Fewer migrant workers are heading to manufacturing zones, putting pressure on wages.

http://online.wsj.com/article/SB10001424052748703609004575354501318242096.html?KEYWORDS=China+starts+looking+beyond+its+era+of+breakneck+growth