Holiday Week

Statistics from the China National Tourism Administration show that during the weeklong National Day holidays, the number of tourists hit 133 million and revenues generated by tourism amounted to 55.9 billion yuan, growing 19.3 percent and 20.7 percent, respectively, compared with the National Day holidays of 2005 (see graph 1). On average, every tourist spent 420 yuan.

Of the total revenue, airlines earned 2.45 billion yuan, the same as the National Day holidays in 2005, and trains earned 1.31 billion yuan, climbing 6.9 percent year on year. The 39 major tourist cities gained 24.1 billion yuan in revenue, and other cities and scenic spots raked in 28 billion yuan.

Among the 133 million tourists, 34.05 million spent more than one night in hotels or guesthouses, up 19.2 percent over the year-earlier period, and 98.82 million had one-day tours, a year-on-year increase of 19.3 percent. The 39 major tourist cities received 51.29 million tourists altogether.

During the week, the 119 surveyed scenic spots received 17.43 million visitors, bringing in 608 million yuan of ticket revenues. Some 174 surveyed commercial establishments in the 39 major tourist cities reported revenues of 5.27 billion yuan, up 23.4 percent compared with the same period last year. Revenues of 179 surveyed catering businesses reached 391 million yuan, up 15.7 percent from a year ago.

Balance of Payments

In the first half of this year, China maintained a favorable balance of international payments under both the current account and capital account, and foreign exchange reserves grew rapidly, said the State Administration of Foreign Exchange (SAFE).

In the first six months, the surplus in the current account totaled $91.6 billion. Among the total, the surplus of goods, income and current transfers stood at $80 billion, $3.7 billion and $13.6 billion respectively, while services saw a deficit of $5.7 billion.

The surplus in the capital and financial account amounted to $38.9 billion. Of this total, net capital inflows of direct investment and other investment arrived at $31 billion and $35.2 billion while net capital outflows of portfolio investment were $29.2 billion.

Driven by the "double surplus," China's foreign exchange reserves reached $941.1 billion by the end of June, $122.2 billion more than that at the end of 2005.

The SAFE said in the statement that it would continue to make efforts to make the Renminbi convertible under the capital account and promote the international payment balance.

Overseas Securities Investment

China's overseas securities investments increased over 400 percent year on year in the first half of this year to a record high of $44.8 billion, according to statistics released by the SAFE.

The appetite of Chinese institutional investors for overseas securities is mainly due to higher interest rates in overseas markets, said the SAFE.

Since June 2004, the Federal Reserve of the United States has raised interest rates 17 times. Interest rates in Japan and Europe have also been inching up.

Chinese institutional investors invested $8.5 billion in overseas securities in the first six months.

During the same period, overseas investment in China's securities market soared 108 percent to $15.6 billion.

With more Chinese banks and enterprises pursuing overseas stock exchanges and the revitalization of China's stock market, overseas investment in China's securities market will continue to rise in the future, the SAFE predicts.

Technology Introduction

According to statistics released by the Ministry of Commerce, in total, China signed 8,112 contracts of technology introduction in the first three quarters, with a total value of $17.95 billion, surging 45.2 percent year on year. Among this total, technology fees arrived at $11.55 billion, accounting for 64.3 percent of the total contractual value.

From January to September, the transaction value of exclusive technology license contracts was $5.58 billion, zooming up 57.5 percent over the year-earlier period and accounting for 31.1 percent of the total contractual value of technology introduction. The value of technological consultation and services, as well as joint ventures and cooperative production involving technology introduction, stood at $4.05 billion and $3.72 billion respectively, accounting for 22.5 percent and 20.7 percent of the total value of technology introduction contracts.

The European Union (EU) was the biggest source of China's technology imports in the first nine months. China and the EU signed 1,990 contracts of technology introduction valued at $7.54 billion, 32 percent higher than the figure in the same period last year and accounting for 42 percent of the total contractual value of technology introduction. Japan and the United States ranked second and third, with respective contractual values with China arriving at $4.45 billion and $2.89 billion and accounting for 24.8 percent and 16.1 percent of China's total technology introduction.

During the first three quarters, the total value of technology introduction by state-owned enterprises amounted to $8.04 billion, shooting up 55.4 percent compared with the same period last year and accounting for 44.8 percent of the country's total. At the same time, foreign-invested enterprises introduced $8.69 billion worth of technologies, accounting for 48.4 percent of the total value of technology introduction.

The railway transportation sector saw the biggest increase in technology introduction. In the first three quarters, the sector imported $3.98 billion worth of technologies, 8.5 times the figure a year ago and accounting for 22.2 percent of the country's total imports of key equipment.

During this period, technology introduction in electronic and telecommunications equipment manufacturing as well as transport equipment manufacturing amounted to $3.49 billion and $1.48 billion respectively, accounting for 19.5 percent and 8.3 percent of the country's total value of technology introduction.

Banking Supervision Cooperation

China and Thailand have signed a memorandum of understanding on banking supervision cooperation, according to the China Banking Regulatory Commission (CBRC).

According to the memo signed by CBRC Director Liu Mingkang and Governor of the Bank of Thailand Pridiyathorn Devakula during the World Bank meetings in Singapore, the two countries agreed to cooperate on banking information exchange, market access and spot inspection.

The memo will help improve both countries' banking supervision cooperation mechanisms and enhance transnational banking supervision, said the CBRC.

By the end of August, three Thailand-funded banks had opened nine branches in China, while China opened one bank branch in Thailand.

The CBRC has signed memos and bilateral banking supervision cooperation accords with 22 countries and regions in accordance with the principles of the Basel Committee on banking supervision. The Basel Committee, founded in 1975 by 10 countries, aims at promoting international cooperation in banking supervisory matters.