AUTO MANIA The eighth China Shenyang International Auto Industry Exhibition is held on July 7-12 in Shenyang, capital city of northeast China's Liaoning Province. More than 200 auto and auto parts makers from home and abroad brought their latest products to the show (REN YONG)

Banking Prudence

The China Banking Regulatory Commission (CBRC) on July 8 issued a circular prohibiting banks from investing wealth management funds in secondary-market stocks.

The CBRC banned banks from investing wealth management funds in secondary-market securities-backed funds, equities of unlisted companies and shares in listed companies that are not allowed to be issued or traded publicly.

The circular said banks should not spend clients' wealth management funds on high-risk investments or complicated financial products.

The circular urged banks to protect clients with medium or low incomes while providing rational investment services for high-end clients.

Dairy Deal

China National Oils, Foodstuffs and Cereals Corp. (COFCO), the country's largest food importer and exporter, announced on July 6 that it will team up with Hopu Fund, a private equity investment company, to buy a 20-percent stake in the Hong Kong-listed China Mengniu Dairy Co. Ltd.

The two companies will invest HK$6.1 billion ($800 million) in Mengniu, making it the biggest acquisition deal so far in the country's food industry.

COFCO President Ning Gaoning said in a statement that the company regarded the deal as a good opportunity to enter the dairy industry from "a higher starting point."

Aircraft R&D

China on July 6 began construction on its research and development center for large aircraft in Shanghai.

The first phase of the center will be completed and put into use at the end of 2011, according to Commercial Aircraft Corp. of China Ltd. (COMAC), designated maker of China's large aircraft.

The center is one of COMAC's key entities to press ahead with design, manufacturing and services of large aircraft, and will play a significant role in China's future aircraft development, said Jin Zhuanglong, General Manager of COMAC, at the inauguration ceremony.

Financing Wind Power

The Asian Development Bank (ADB) announced on July 7 that it would extend a long-term loan of 164 million yuan ($24 million) to a wind farm project in north China's Inner Mongolia Autonomous Region.

The proposed wind farm, which covers 12 square km in Chifeng of Inner Mongolia is expected to produce 133 gigawatt hours every year. ADB hopes to propel Chinese clean energy projects that have been held back by a lack of financing, said Hisaka Kimura, an investment specialist with ADB.

Exploring China

Dell Inc., the world's second largest personal computer (PC) maker, will tap into the small and medium-sized business (SMB) market in China, senior Dell official Steve Felice said in a recent interview with China Daily.

The PC maker will take measures including increasing advertising and product offerings targeted at SMBs, a sector that Dell believes will see a strong rebound next year, according to the newspaper.

The SMB sector currently accounts for more than 25 percent of Dell's business in China, the second largest PC market in the world. In 2008, sales in China contributed about 5 percent to Dell's total global revenue.