A NEW LANDMARK: The Hangzhou-Zhijiang Bridge connects the Binjiang and Zhijiang districts of Hangzhou, east China's Zhejiang Province. The bridge is 4.7 km long, 90.5 meters high and 40.5 meters wide, the largest of its kind in the country (JU HUANZONG)

Travel for Luxury

An increasing number of Chinese consumers are traveling overseas to buy luxury items, according to a survey released on January 22.

Research carried out by the audit, tax and advisory firm KPMG found that the number of Chinese consumers traveling overseas increased to 71 percent of those surveyed in 2012, from 53 percent in 2008.

Among those who travel overseas, 72 percent said they purchased luxury items such as cosmetics, watches and bags.

About 1,200 Chinese consumers aged between 20 and 44 across 24 cities took part in the survey. The participants had a minimum household income of 7,500 yuan ($1,190) per month in first-tier cities and 5,500 yuan ($884) elsewhere.

When buying cosmetics and perfume, 60 percent of respondents said Hong Kong, Taiwan and Macao were their top locations, compared with 43 percent in 2009. Europe saw a marked increase, up to 20 percent in 2012, from 3 percent in 2009.

The survey highlights a strong preference for items from European countries: Switzerland came top for watches, France for cosmetics, perfumes, clothes and bags, and Germany for cars, said Nick Debnam, KPMG's Asia Pacific chairman in consumer markets.

The survey results may lead to luxury companies adjusting their brand and marketing strategies for Chinese customers, he added.

Rating for Local Governments

The Chinese rating agency Dagong Global Credit Rating Co. Ltd. launched its rating system to evaluate local government debt in Beijing on January 21.

The system uses a method created by Dagong, which is different from that used in the West. It evaluates the credit status of local governments based on a number of factors and is not simply a focus on fiscal revenue and expenditure.

"The core of the rating system is to unveil the credit ceiling for local governments, which will be a visualized warning to them," said Guan Jianzhong, Chairman and CEO of Dagong.

The company's rating system can help raise local governments' debt management and efficiency in using the debt and prevent credit risks, he said.

According to Dagong, some local governments have shown interest in its credit rating system. But the company's difficulty is in figuring out the scale of a local government's invisible debt, said Guan.