From 2002 to 2008, the number of centrally administered SOEs dropped to 141 from 196, while their total assets surged to 17.7 trillion yuan ($2.6 trillion) in 2008, twice the amount in 2002.

Domestic media reported that the balance sheets of the centrally administered SOEs would likely be published on the SASAC's website in April, allowing citizens to check the companies' real performance for the first time.

Managers Rally for Stimulus

China's purchasing managers' index (PMI) rose for the third consecutive month in February to 49 percent, edging toward the threshold level of 50 percent. An index growth above 50 percent indicates an economic upturn, while one less than 50 percent indicates a downturn.

The index fell to an all-time low of 38.8 percent last November amid fears of a large-scale economic recession during the next few years. Soon afterward, the Chinese Government announced its 4-trillion-yuan ($586 billion) stimulus plan to boost economic growth by expanding government spending on railways, automobiles and expressways.

Since January, the Central Government has approved revitalization plans for 10 major industries to boost economic growth. The automobile, cement and engineering equipment industries have taken the lead, in that their product prices have increased and share prices surged in the mainland stock markets.

The modest improvement in the PMI indicates that managers have some confidence in the country's economic performance, although they are still worried about the effectiveness of the stimulus packages.

More U.S. Treasuries

China has increased its holdings of U.S. treasury securities despite economists' warnings about devaluation risk.

At the end of last year, the Chinese mainland held $727.4 billion U.S. treasury securities, remaining the biggest holder of such investments since it overtook Japan last September.

China is one of the few countries that has increased its treasury holdings in the midst of financial storm.

Fang Shangpu, Deputy Director of State Administration of Foreign Exchange, said at a news conference that the amount included China's foreign reserve investments as well as investments by domestic financial institutions.

Analysts had argued that China should diversify its investment portfolio in case treasury yields were undermined by the credit crunch. They said if the U.S. had problems repaying the securities, the government could just start printing more greenbacks.

Jia Kang, Director of the Institute of Research at the Ministry of Finance, said at the Second Session of the 11th National Committee of the Chinese People's Political Consultative Conference in Beijing that buying U.S. treasuries was an "unavoidable choice" for China. He said under the immense pressure of the global financial crisis, U.S. treasury securities were a relatively safe investment, and no other assets had proved to be safer.

Sanlu Sold at Bargain Price

The curtain finally fell on dairy brand Sanlu after it was found guilty of producing tainted baby formula that killed at least six infants and injured another 300,000.

On March 4, Beijing Sanyuan Group Co. Ltd. won the bid for bankrupt Sanlu Dairy Group at a price of 617 million yuan ($90 million) for all valid assets and stake ownership. The offer was 109 million yuan ($16 million) less than the assessed value of Sanlu.

When reports of kidney stones in babies broke last September, Sanlu was accused of adding toxic melamine to its infant milk formula. Later, the chemical also was found in the milk products of other big-name dairy producers, although Sanyuan was not among them.

The Sanlu fallout cast a shadow over food security in China and diminished citizens' trust in domestic dairy brands. But it might also have been a blessing in disguise. Food supervision departments and producers have since tightened controls over food quality. On February 28, the Standing Committee of the National People's Congress passed the Food Safety Law to rebuild public confidence in food safety and enhance the country's food security controls.