Review 2004 
cctv.com 01-18-2005 11:12
2004 was a colorful and memorable year for China's business and financial world. From the effects of macro-economic policies to corporate scandals and debacles, BizChina captures its impact in an hour of graphic insights and analysis. At the end of the program, we will also give you a glimpse into what the future holds, in the world's most dynamic and energetic economy. We've enjoyed and worked hard chronicling the most significant financial events in China as they happened. We hope you enjoy watching this year-end review, which we've prepared just for you.
Chris: GONG HEY FAT CHOI! That's Happy New Year! in Cantonese.
Jacq: Welcome to this special 1-hour BizChina year-end show.
Rui: Well, this is a rare opportunity for all 6 of us to be together.
Kate: And each of us will bring you a story to take a look back over the past year.
David: And we'll also be looking into the crystal ball to see what will come in 2005.
Tom: Xin Nian Kuai Le, and that's Happy New Year! in Putonghua.
Chris: When we look back at 2004 I think one of the most significant developments during the year was the introduction of macro economic control policies.
Tom: These policies to restrict the money supply and slow down investment in certain sectors touched just about every aspect of the national economy.
Kate: And the effects of these controls ultimately touches each and every one of us living here.
Rui: But while the introduction of new economic control measures has been making headlines all year, macro control itself is nothing new. Since the 1980's when China first began opening up, there have been three periods of what could be described as intense macroeconomic control - including this one.
Chris: Policy makers believe macro control is an important tool to keep the economy on track for long term, sustainable growth, avoiding damaging fluctuations and high inflation.
David: These are problems that many developing economies have experienced, and at least from data currently on hand, the policies seem to be working.
Jack: Just a few weeks ago policy makers confirmed that not only would macro economic controls remain in place; they could possibly be widened to build on the successes achieved so far this year.
Chris: It's safe to say 2004 was a year of special significance in China's economic history. The year marked a turning point from a rapidly expanding, some would say almost out of control economy, to a more stable and sustainable one.
In early December top Chinese leaders met for a three-day meeting to map out the countries economic policy and direction for the coming 12 months. They decided that in the interests of long-term development, China would give up its pro-active fiscal policy and implement what they described as a more prudent one. Later in the month, Finance Minister Jin Renqing said the prudent fiscal policy would be used to strengthen and improve the macro-economic controls.
To handle emerging problems in the economy, such as overheating, in the spring of 2004, the government began to implement macro-control policies. These included raising requirements for banks, stricter controls on land use, tightening the availability of cash. In October, the central bank raised interest rates for the first time in nearly a decade.
At the street in the front of Zhong Nanhai gate
Chris: The Forbidden City, just down the road from here, is well known throughout the world as the former seat of supreme power in China. These days, that power now lies in the complex behind me, Zhong Nanhai. This is the home and the workplace of New China's leaders - and it’s from behind these walls that come the policies that decide China's economic future.
The shift from a proactive to a prudent fiscal policy was made to fall into line with changes in Chinas macro- economic situation and consolidate the achievements of macro- control. President and Party General Secretary, Hu Jintao, stressed the need to beef up coordination between various macro-control policies to control total economic output properly. He said there was a need to adjust the economic structure to promote steady but relatively fast economic growth in 2005.
Liu Guoguang, consultant of Chinese Academy of Social Sciences, said, "From 2003, the Chinese economy entered a new growth cycle. Although we met difficulties, we are still on a up-trend. The over-heating phenomenon only exists in some sectors."
Prof. Wang Tongsan, Chinese Academy of Social Sciences, said, "I think that we can extend China's period of growth, and we have that ability. The current control measures are effective. A moderate macro-control policy is vital to our adjustments of the economy. At present, the growth of investment is still quite fast, cooling-down measures are still needed."
Chris: The proactive fiscal policy, characterized by increasing government expenditure mainly on investment in infrastructure projects, was introduced in 1998 to minimize the negative impact of the Asian financial crisis and to keep China's fast-running economic locomotive from losing steam.
The results of that policy can best be illustrated by the nation's ever-expanding network of expressways and constantly changing urban landscape. Aggressive government investment has indeed rid the national economy of the feared dangers of stagnation. But like many other policy initiatives, "proactive fiscal policies" have their own undesirable side effects. Over time, continuing government input has increased worries about overheating in some regions and industrial sectors, as well as presenting some potential financial risks.
At fruit and vegetable market
Chris: As the consumer price index stabilizes at slightly lower levels, fears of inflation are beginning to ease. Investment in fixed assets, particularly in the iron and steel, cement, aluminum and real estate sectors, has started to drop.
Sectors Affected/ Energy Sector
To help ease pressure on coal supplies, the central government has begun to take determined action to curb investment in new power plants. This after repeated warnings of over investment in the sector. In an urgent notice released a few weeks ago, the government said it will move to shut down any power plant construction projects that do not have official approval.
Wang Yonggan, secretary general of China Association of Power Plants, said, "The state macro-control policies measures have shown effects in the power sector. I think it's a healthy development since the measures have curbed the excessive growth of high power consumption industries and it will be easy for us to make long-term plans."
Third quarter energy consumption grew by 13 percent, down from close to sixteen percent in the second quarter. It is believed that growth in power demand will continue to slow down next year.
Real estate sector/outside property development
In October, the central bank has raised its one-year lending and deposit rates by a little over a quarter percent. Although considered a modest adjustment, it still sent a strong signal to the market.
Though investment in China's real estate sector contributed 2 percent to GDP growth in 2003, officials are still on the alert for any potential bubbles in this sector. And from the second half of 2003, the government adopted a series of deflation policy measures on land and money supply. But China's property market is still growing. Housing prices surged 13 percent in the first nine months of this year, the highest rise since 1996.
Steel sector
Chris: China's fixed asset investment in the steel sector grew an average 34 percent during the first ten months of the year. Though still high, it has dropped sharply from the over 170 percent growth rate recorded during the January to February period.
In the meantime, both demand and supply in the steel market is robust. With improved production structure and quality, steel enterprises are seeing an increase in operating profits.
Another measure of the success of these policies can be seen in GDP figures. From 9.8% to 9.6%, and then to 9.1%, China's GDP growth rate kept heading downward in the first three quarters. But with China's strong fundamentals, experts believe that the economy will continue with a high rate of growth in 2005.
Meanwhile, fixed-asset investment from January to November was nearly 29 percent higher than a year earlier. But, that's still an improvement on the January to October figure of 29.5 percent, suggesting a further cooling of the economy. After surging some 50 percent in the first two months of this year, investment growth has eased gradually as the government reined in credit and imposed limits on expansion in industries like steel and property.
Statistics show China's investment in fixed assets totaled 4.5 trillion yuan, or about 544 billion US dollars by September this year. This is up more than 27 per cent compared to the same period last year, but down 15 per cent compared with the growth rates in the first quarter.
Analysts believe China's policy-makers have made some rational and timely decisions. They say at this point in China's development, a mild turn in direction suggests a better understanding of how a market economy works and will provide the right environment for sustained and long term growth, the so called 'soft landing'.
JACQ: The government introduced macro-economic controls this year to cool down the economy, but one thing they don't want to cool down, is consumer spending. In fact, consumer spending has seen a steady increase this year.
RUI: The high sales volume is definitely a good sign for the healthy growth of the economy, especially as the central government tries to cool down investment.
DAVID: This year, we've seen China's consumer armies spending more on luxuries goods. And more international brands are tapping into the Chinese market.
TOM: And Chinese people are also splashing out on leisure and entertainment. And with relaxed regulations, many are venturing out of China.
KATE: And with car prices falling this year, many are fulfilling their dream of owning a car.
CHRIS: Well, we have seen some major changes in the consumption patterns of China's huge population. And this is all thanks to rapid urbanization and higher incomes. Basically, they have more cash to spare.
JACQ: And this is all good news, because the beauty of the consumer sector in China is that it just hasn't been affected by BJ's macro economic controls. So lets take a look at how, and on what Chinese consumers have been spending their money on this year.
This Christmas, some of China's richest generation enjoyed a celebration of fine wining and dining.
Tickets for this Christmas Ball at one of Beijing's 5-star hotels will set you back some 200 US Dollars. That's not a problem for some, because all 1,500 seats were sold out days before the event. And of course, all participants, splashed out on the right attire and make-up, fit for the occasion.
China's wealthy entrepreneurs, and high-income young professionals have enticed some of the world's most exclusive brands to China this year. Italian fashion house, Giorgio Armani, for example opened its flagship store on the Shanghai Bund in April. And French luxury goods maker Louis Vuitton, opened its biggest store in Asia in Shanghai this September. Many luxury firms see China as the new Japan – a country with a huge group of status-conscious, increasing wealthy people, hungry for brands, and fanatical about shopping. And with the industry estimate of over 10 million customers for luxury goods in China this year, this is a place, where luxury brands cannot ignore.
Some may splash out on luxury, but others are going back to basics.
Undeterred by urban traffic jams, car buyers pushed retail car sales to 5 million units this year, that's a jump of 30 percent from 2003.
But demand for passenger cars has been dampened by the government's macro-economic controls on the auto sector. In July, vehicle sales saw a month-on-month decline of nearly 9 percent. Meanwhile, intense competition has pushed consumers to delay their purchases, in anticipation of lower prices.
China's urban residents and investors have helped to push up property prices by 20 percent in some cities. But, with constant talk of a housing bubble, and with the government slamming the brakes in the property sector, prices have climbed more slowly this year.
The average price of urban residential property rose 10.2 percent between January and October. That's down from the 12 percent growth in the January to September period. Experts say that the effect of China's interest rate rise in October, it's first in nine years, as yet to filter out to the market, so pricing growth could slow down further next year.
Now that obtaining permission to go abroad is much easier than before, others are choosing to blow their money by going overseas.
On September 1, the first batch of Chinese tour groups set foot in Europe, after 26 European countries became approved destinations for Chinese tourists.
European tour packages can set you back anything from 12,000 yuan, or 1,400 US dollars, to 17,000 yuan, or about 2,000 US dollars. But despite the costs, tour operators say demand remains high.
Well, you don't necessarily need to go abroad to have fun. Savvy businesses know that they can make money by coming to China. The World Carnival came to Beijing for a 52-day spin in August. It attracted over 40,000 visitors a day and netted a total income of over 20 million dollars, and carnival thrill seekers looking for fun, forked-out up to 17 US dollars a pop for each ride.
China's consumer demands for cars, housing, communications products and even western fast foods, have been brisk this year. And this is all thanks to the growth in employment and income of the population.
Shanghai, China's most populous city saw its average disposable income grow to nearly 2,000 yuan this year, giving consumers more spending power. It was closely followed by the other major cities of Beijing and Guangzhou.
Although most are not income earning, the spending power of the student mass is a formidable force. These days, students are spending their money on anything from mobile phones, magazines, computers, cinema tickets, travel, exercise gear, and birthday parties. And to finance these extra luxuries, many students are taking on part-time jobs.
The Ministry of Commerce revealed that retail sales of China's consumer products had topped 5 trillion yuan by the early days of December, setting a historical record.
However, many analysts say that with China's huge GDP, consumption is relatively low, and that the population is still locking up their consumption power in their bank savings. But as these savings are released into the market, consumption can only grow in 2005.
From European tours to wild roller coaster rides, China's consumers have spent 2004, spending money to trade up their lifestyle. And that's no surprise, when urban disposal incomes have seen double-digit percentage gains this year.
Upgrading a lifestyle doesn't just mean wear nicer clothes, and driving a bigger car. Chinese consumers are spending more on leisure and entertainment. This latest New Year Chinese blockbuster has already grossed 1 trillion yuan.
Increasing incomes are definitely pushing up consumers' power. But even those with a very low income are helping to fuel consumer growth. These days, its hard to find a student without a mobile phone.
With spending on luxury goods and entertainment supporting economic growth in a year of macro-economic belt-tightening, it looks like ‘consumerism’ is becoming the new 'ism’ in modern China.
Chris: We've all had the chance to interview business leaders, government officials and economic experts over the course of the year. No matter which sector they came from, these interviews have really added a lot to BizChina. So, which interviewees left the biggest impression to you all?
JACK: I was really glad to get a chance to chat with eBay's CEO Meg Whitman, one of the most powerful businesswomen in the world. eBay's changed the way many people around the world buy things.
TOM: It's great being able to meet interesting, successful people and pick their brains a little. I almost always walk away from an interview having learned something interesting...
DAVID: Rui, now it’s your turn to show us some of the most interesting interviews over the past year.
So it seems like global CEOs are full of confidence when it comes to doing business in China. The co-operation between these international companies and their Chinese counterparts are definitely contributing to China's robust economic development.
Now let's turn to some major officials of the governments and international organizations, and find out what is their image of China.
With China's strong economic growth, all nations around the world are not neglecting the role of China. The country has therefore become a key focus in foreign trade policies in many countries.
David: 2004 was also the three-year anniversary of China's WTO membership.
Jacq: Yes, we crossed that threshold on December 11.
Chris: Over the past three years, most of China's commitments have been fulfilled, and the country's efforts have won high praise from the WTO and its members.
Tom: China has amended or abolished nearly three thousand laws and regulations to meet its commitments.
Chris: Next year we expect to see tariffs reduced even further and easier market access for overseas enterprises in more areas.
David: China's foreign trade volume also hit a new record in 2004: 1 trillion US dollars.
Chris: At the same time foreign direct investment, or FDI, also grew significantly. In the first 10 months of the year, actual FDI in China went up 22 percent over last year.
Kate: More and more small and medium sized foreign enterprises are seeking opportunities in China. That suggests the country's investment environment has improved.
Tom: We also saw Chinese enterprises expand overseas investment like never before. The so-called "go overseas" strategy has had an effect.
David: Now, let's have a look at how China's trading ties with the rest of the world changed in 2004.
"These products will be shipped to Australia on the 15th. The total number of cartons exceeds 1400. Workers are now trying to prepare all the parcels." "We are also in a hurry to make preparations for this batch of products, which should be ready on the 7th. There are also many other goods to be shipped to Malaysia, Singapore, and the United States."
During the past 5 years, this company made great strides in exporting its fabric products. Its revenue exceeded 7 million US dollars in 2003 and will most likely enjoy another big increase this year. All their goods are sold worldwide, especially in Europe and the U.S. Next year's removal of textile quotas will surely have a far-reaching and profound impact on future exports.
Jin Guyin, general manager of Hangzhou Tianshi Cloth Co., Ltd, said, "This is good news which brings more business opportunities to us. The problem is this: how we should compete with others internationally. We can't only depend on the mode of cutting down prices, which hurts everyone in the long run. We should try to enhance our product quality, learn to protect our property rights, and abide by the international business rules."
Because of cheap labor and low-cost real estate, China's textile industry is becoming more competitive in the global market for its good quality and customized service at an attractive price.
Zhao Shanming, general manager of Duorong Weave (Shanghai), said, "Over 90 percent of domestic producers are selling their fabrics abroad. China has the most complete industrial chain and the highest processing level in the world. If there were no quotas, China would have received more orders globally."
But it won't be an easy road to travel. Some countries will definitely put up more trade barriers on Chinese products. Altogether, foreign trade volume of a trillion US dollars means greater challenges ahead.
David Nye: "One trillion US dollars. Some call it a miracle; others say it was just a matter of time. When Customs officials released these figures, it was clear that China has become the world's third largest foreign trader. Well, it took merely 2 decades and an attractive opening up and reform policy to get the job done."
This is the first time China's has reached that level. The country's foreign trade volume took off after it began opening-up to the outside world and adopted the reform policy twenty years ago. The foreign trade, investment and consumption have formed the major driving force behind the country's phenomenal growth. It led to more jobs and a large amount of foreign exchange reserves.
David Nye: "But, believe it or not, the Commerce Ministry still isn't that impressed with the figures. They believe that quality is the issue, not quantity. Yes, they admitted China is a big player, but not a strong one."
60 percent of the increase in China’s import-export trade was attributed mostly to overseas-funded enterprises. Chinese exporters lack homegrown brands and an efficient distribution network. Added to that, only a few products have intellectual property rights and key technologies. China also faces trade disputes.
David Nye: "Private enterprise is the engine that runs trade. And Wangfujing symbolizes it. A new Trade Law has done away with government approval. With that in mind, it's sky's the limit for places like this.
Private enterprise accounts for about 20 percent of foreign trade volume. The proportion is expected to grow significantly in the coming years. Trading companies, be they local or foreign, will no longer need to seek government approval to engage in foreign trade. A newly revised foreign trade law abolished much of the red tape that hindered operations. Liberalizing foreign trade is also one of China's WTO commitments.
WTO membership has not only created a favorable environment for the development of enterprises, but has made China a most-favored investment destination. In the past two years, China's actual annual use of overseas capital has exceeded 50 billion US dollars. That figure is expected to top 60 billion US dollars in 2004.
David Nye: "The growth in foreign trade has allowed China to blend into the world economy. However, it is certainly not without risks. As the saying goes, you take the good with the bad. "
Kate: It's time again for the markets report.
Rui: ...certainly one of the best parts of BizChina.
Kate: Well thanks, but by now you must be fed up with me reporting doom and gloom for China's equity markets all year. Falling share prices, scandals…
Chris: Especially after April when the macro economic controls started to show some results. Those hurt everybody, except maybe those state-owned firms who perhaps have fewer concerns about borrowing costs...
Jacq: But the measures definitely hit privately owned enterprises hard -- they care very much about the cost of borrowing and those tough administrative control measures...
Tom: One side effect of this round of macro economic adjustment is that it has flushed out a lot of scandals in the Chinese equity markets. The reason is simple: when listed firms go belly-up those cloak and dagger operations come to light along with whoever was involved…
Rui: Yes, they pushed many securities houses into bankruptcy or right to the edge.
David: Luckily, this year we also saw the Chinese government make some efforts to better regulate the market and rationalize IPO listing procedures...
Kate: It is an ongoing process, and there are bound to be some growing pains...
This is not something that you want to see in the dead of winter. Covered by the beautiful snow is the bankrupt security houses, a big lock on the once busy door, and several bicycles lying on the ground disorderly in front of the once crowded roadside. There is no life here any more. All dead, they got shut down before winter descended, and had no chance to survive the New Year.
This is the face of ruin and despair. 2004 was supposed to be the antidote to three bearish years. Instead, it left investors even more heart-broken.
1. "We are really hopeless and no way out"
2. "The stock market is at a critical time now"
But not only for individual investors, Gone are the good old days for institutional investors as well--the days of a safe return on their investment, of "net present value" of their portfolios; the days when analysts used to recommend their stocks. Talk of minimizing risks in A-share markets and eerie silence has taken their place.
As the Shanghai index continued its downward spiral--falling even below the psychological 1,300 level, many wondered if this nightmare would ever end.
In early April, macro-economic controls for an overheating economy took hold. That's when the slump began. Listed firms were caught off-guard by tightened credit. Liquidity became such a huge concern that it threatened their very survival on the fledgling Chinese equity market.
The first to fall was the once-admired De Long. The company used to enjoy diverse business interests, from tomato-based products to securities. In its heyday, De Long was known as the "GE of China." It fed off legitimate ability and, unfortunately, bribery as well. While it was being propped up by bank loans, tighter credit shattered the supply chain.
The second victim was the scandals surrounding the Chinese IPO mechanism. One such scapegoat was Wang Xiaoshi, who used to be a director of the CSRC IPO office. He was accused of accepting bribes, and helping unqualified Chinese firms get listed on Chinese Bourses. He soon became a pariah in the eyes of investors and officials for obvious reasons.
The third one, though not a victim but nevertheless perplexing, is the so-called MBO debate, which was initiated by a professor, Larry Lang's essay. It's a simple tool used in a market economy setting for a long time. Yet economists and officials continued their debate over its viability to state-owned assets. It was finally decided that it be suspended for the meantime, pending further scrutiny.
Having said that, it does not mean that we are going to go through this hopeless winter, and remain gloomy. Jame Rogers, the famous financier, once encouraged Chinese investors: "never be depressed, look at the US, a so called mature market, which still has Enron and Wall Street scandals." If winter has already fallen, will Spring be faraway?
Almost two months ago, the Chinese state council issued the document, "Nine opinions on reforming and developing the Chinese equity market". Some say it was issued merely as a morale-booster, while others are convinced it's the Chinese market's sought-after answer.
This year, we also saw the continued liberalization of the Chinese equity market. QFII is the best example. While institutional investors lamented over stringent QFII quotas, they still fought to get their name on the list. UBS, ING, and Morgan Stanley all proved to foreign investors its reach in the Chinese market, after winning the first batch of QFII quotas from the Chinese government. And despite year-end unloading of blue-chip stocks, they continued to do brisk and lucrative business.
Tom: Well Kate, 2004 was definitely an eventful year for the stock markets, although we all wish it was a more positive one.
Kate: That's for sure! This year's ups and downs were like a roller coaster ride.
Chris: But this year's ride is almost over! There is not a whole lot of 2004 left.
Jacq: Right, the question now is what will 2005 deliver?
David: That's right, Tom why don't you gaze into future and tell us what's in store for next year?
Tom: Oh I see how it is. Lucky I brought my crystal ball! But before I give you a display of my psychic powers I’m going to put all of you on the spot! So give it up, one predication for 2005, Jacq?
Jacq: Oh.. According to the Chinese horoscopes, I will get a promotion this year.
Chris: Prediction? Well I predict the markets, or rather investors, will be just as unpredictable in their reaction to events and news as they have always been...
Mr. Sang, a sales executive in a multinational company, today has returned to the car dealership to gaze longingly at his favorite car: a Buick Sail. He has had his eye on it for a long time now, but this time he again decides to wait. Why does he choose to deny himself something he wants so badly instead of taking it back home?
MR. Sang said, "I've been kept an eye on this car for quite a long time, but I think the price of auto will still go down next year, since in 2006, the tarriff of auto will touch the bottom. So i prefer to wait for couple of month."
TOM SANTORO: Mr. Sang is not the only one betting that he will be able to get more for his money if he waits. These days there are more and more potential car buyers with money in pocket, but who decide to wait for the right moment to pay. Mr. Sang hopes the cost of a new car will drop next year, but he’s not the only one with financial hopes for 2005. Let’s go and take a look at what some other people expect for next year.
A citizen said, "I’ve put some money in stock market this year, but the performance was quite bad, so I hope it could be better in 2005."
Another said, "I just bought a house in Shangdi, I hope housing prices will be on rise, and loan rates will be lower next year."
Others said, "I always save my money in banks, so I hope the interest rate will be higher".
TOM SANTORO: As we approach the forth year of China’s WTO membership and the end of global tariffs on clothing, many industries, especially the textile sector, are expecting a new boom. Moreover, other areas of the economy will be opened to the world as never before, especially the financial and insurance industries.
The auto sector is one area of the economy that has felt the ripples of WTO membership more than others. Next year China expects car sales to increase by about 15 percent. Demand in other areas of the economy is expected to grow as well. Analysts say in 2005 demand for steel could be up by 14 percent, while the price for second-hand property will likely to surge by 15 to 20 percent. At the same time, the amount of overall foreign trade is also likely to maintain a fast rate of growth.
TOM SANTORO: If the country can reach these figures and keep the economy from overheating remains to be seen. Whatever the final number, China is likely to continue to develop as an engine of growth for the regional economy. However on the other hand, this year's economic tightening measures, along with several scandals, hit mainland stock markets hard. Of course it's impossible to say how markets will do in the coming year, but we do know some of the factors that will be influencing share prices.
Since August this year the central government has banned domestic IPO’s while they pounded out new regulations. Now those rules are ready. To help price new share offerings more reasonably than in the past, companies must now consult with 20 to 50 potential institutional investors, including QFII qualified foreign firms. Regulators have said they will lift the IPO ban in 2005, and that means the markets could be flooded with new shares. These new shares will soak up capital and make already tight liquidity even tighter.
Among those IPO’s overseas and domestic investors may soon be able to buy shares of the more financially sound big state-owned banks, like the BOC. These IPO regulations, and indeed the bank IPO’s themselves, are really a means to reform. China is working hard to strengthen its economic institutions as it cools the economy. But for all this a price must be paid. It seems apparent that the economic controls that have been the bane of stock markets will remain next year.
Another topic under heated discussion now is the country's GDP growth for next year, which is expected to continue at a break-neck pace next year. According to the State Information Center, China's GDP will grow by 8.5 percent in 2005. However some multinational sources like the World Bank suggest lower figures.
TOM SANTORO: 2005 will be a very crucial year for China, not only because it is the last year for the country’s 10th Five-Year economic development Plan, but also because it is getting close to the end of the WTO protection deadline. And more importantly, 2005’s economic performance will be related directly to the development of the next five-year plan. And what will it affect you and me? Let's wait and see.
Chris: Well we're all looking forward to 2005 with hope, and anticipation.
Jacq: Hopefully it will be a year of solutions rather than problems.
Rui: There are a lot of big questions for 2005. For example, will interest rates continue to be liberalized?
Kate: And will non-tradable state-owned shares be floated on domestic stock markets?
Tom: Will they launch the QDII program, which allows Chinese financial institutions to invest in overseas markets?
David: Will some mutual funds be elbowed out of the market, as competition gets even fiercer?
Chris: Will index futures be launched as expected in mid 2005?
Jacq: The market will see more IPOs of large state-owned enterprises. What will these giants bring to the market?
Chris: Who knows? Stick with BizChina.
All anchors: Happy New Year!
Editor:Wang Source:CCTV.com
