Trade Financing Scheme

The Ministry of Finance announced on March 23 that China agreed to purchase private placement bonds in the International Financial Corp., a private lending arm of the World Bank.

POWERING NINGXIA The Huadian Lingwu Electric Power Co. Ltd., a major thermal power generator in northwest Ningxia Hui Autonomous Region, starts construction on an air-cooling unit that has a capacity of more than 1 million kilowatts of electricity (LUO BO)

This move is designed to support world trade financing and help turn around the global trade gloom. As the financial storm escalates, the deepening recession is drying up financing that global companies rely on for trade.

"The world economy, the emerging markets in particular, is faced with severe trade financing difficulties," said Vice Finance Minister Li Yong in a statement. "We should make more efforts to support trade financing."

Banking Overseas

China Construction Bank Corp. (CCB), the country's second largest lender, recently announced that it received permission from the British Financial Service Authority to set up a subsidiary in London. This would be CCB's first subsidiary in Europe and its third worldwide.

The London subsidiary will reportedly be engaged in a variety of banking business, including deposits, loans and trade financing. CCB also has pledged to serve as a bridge for trade and finance cooperation between China and the UK by strengthening the subsidiary's services and efficiency.

In the past few years CCB has been implementing an ambitious overseas expansion plan. It currently operates a number of branches and offices around the world.

Pharma Venture

Royal DSM N.V., a Dutch chemical giant, has paid 188 million yuan ($27.5 million) to purchase a 9.77-percent stake in Shanghai-listed North China Pharmaceutical Group Corp. (NCPC), a major pharmaceuticals manufacturer based in Hebei Province.

The deal will take advantage of DSM's advanced technologies and management expertise as well as NCPC's existing factories and equipment and sales and distribution networks, according to a Xinhua News Agency report.

"The strategic partnership with NCPC is set to help us better tap into the Chinese market," said Jan Zuidam, a senior DSM official, in a statement.

Sedan Recalls

The General Administration of Quality Supervision, Inspection and Quarantine recently announced that Ferrari Maserati Cars International Trading (Shanghai) Co. Ltd. has issued a recall for 171 of its imported Maserati sedans that were sold in China.

The sedans, which have flawed dashboard software, were produced by the Italian luxury car maker Maserati S.p.A. before February 24. The software does not activate a dashboard alarm when driver and passenger safety belts are not fastened, according to a China Radio International report.

Ferrari Maserati will inspect cars in its inventory and will not put them on sale until the problems have been fixed, the report said.