By Peter Bachmann, on Wednesday, 29 October 2008  

Published in : The News, News October 2008

The economy of Shanghai expanded 10.1 per cent from January to September 2008, the city's Mayor Han Zheng said during a press conference. "Shanghai continues with its healthy, stable and smooth development," Han said following a meeting with Netherlands' Prime Minister Jan Peter Balkenende. The consumer price index rose 6.7 per cent in the same period year-on-year, well above the 4.8 per cent level that the government has set as its end of year goal. Investments grew 4.8 per cent, to RMB326.9 bn. New figures from the Shanghai Statistics Bureau show that around 40,000 foreign companies are registered in the city. Statistics for the third quarter ...

The Shanghai Composite Index, China's premier bourse, fell 2.7 per cent on Monday, to 2,143.42 points, the lowest mark since 8 December, 2006. The Shenzhen Composite Index lost 4 per cent. Heavyweight stocks, including PetroChina and Sinopec lost between 4.80 and 7.50 per cent, leading the Shanghai Composite Index to a 21 month-low. Property stocks were also under heavy pressure, after China Vanke cut prices in Shanghai and Hangzhou. Other stock markets in Asia gained ground as financial stocks increased in value after the U.S. government announced its takeover of Fannie Mae and Freddie Mac. The Shanghai Composite is down more than 60 per cent from its all time high of 6,124.04 in Autumn 2007.

China Invests in London Blue Chips The State Administration of Foreign Exchange (SAFE), which is owned by the People's Bank of China, has invested GBP9 bn in multinational companies listed in London, The Sunday Telegraph reports. The Chinese have bought stakes in a portfolio of blue-chip companies, including HSBC, Tesco, Unilever, Aviva, British Energy, Cadbury, the London Stock Exchange and, as reported, the Drax Group. Lockton Granted Insurance License Insurance broker Lockton has received approval from the regulator to operate in China. The U.S.-based firm will start business later this month from its office in Shanghai, and will provide both insurance and reinsurance broking services nationally throughout China. Lockton is only the second foreign insurance broker to set up a wholly foreign owned enterprise (WFOE) in China, after Marsh was awarded a license in 2007.