China Huanqiu Chemical Engineering Corp (HQCEC), one of the country's top international contractors, yesterday formally renamed itself as China Huanqiu Contracting Engineering Corp with the approval of the State Administration for Industry and Commerce. The company said its new name would help it expand its scope of business beyond chemical engineering to cover oil, gas, coal, petrochemical and fertilizer sectors to better compete with overseas contractors.

During the Ninth Five-Year Plan period (1996-2000), HQCEC signed contracts in design and consulting projects with a total value of US$402 million. About 70 per cent of its business comes from the overseas market, the company said.

Examination centre moves

The Examination Centre of the Ministry of Education signed a contract with Tsinghua Science Park yesterday in Beijing to move its headquarters to the university park.

The centre will co-operate with Tsinghua University, one of the most prestigious higher learning institutions in the country, to further improve the examination system of China's higher education sector.

Financial institutions targeted

A training programme on financial marketing and investment consulting will be conducted early next month by Chinashine Consulting to help domestic financial institutions gain advanced foreign expertise in the sector. A group of senior managers from big investment banks such as Goldman Sachs and Morgan Stanley will give lectures on management, marketing and investment planning.

HSBC launches new service body

HSBC opened its second premier financing centre in China yesterday. The Beijing-based centre was announced by Wang Tongshi, chief executive of HSBC's China business.

Customers with deposits of at least US$50,000 can enjoy the bank's premier service, which is limited to deposits, withdrawals and foreign exchange trading.

Wang also stated that HSBC will offer online banking services next year in China.

Motorola unveils fresh handset

Motorola launched its latest handset on Sunday in Guangzhou, capital of South China's Guangdong Province. The new cellular phone, Motorola C300, is specially designed for the younger generation with an embedded QQ function (Chinese version of ICQ) and a flashing light notification function when a call or a short message is received.

Environmental contracts renewed

Agilent Technologies and the Research Centre for Eco-Environmental Sciences under the Chinese Academy of Sciences (RCEES), China's most influential environmental research organization, recently renewed their co-operation agreement on the Asia-Pacific Environmental Analysis Lab. The co-operation, which has yielded significant achievements since its debut two years ago, will continue to focus on analysis of pollutants and food safety inspections to contribute to the growth and development of China's environmental protection and food safety.

Both parties have also agreed to engage in a Persistent Organic Pollutants (POP) analysis project, which aims to introduce global standards in POP analysis to the Chinese market, strengthening the competitiveness of local businesses in the international arena.

Business school to attract talents

Paul Danos, dean of Tuck School of Business at Dartmouth of the United States, recently paid his first visit to China to try to attract more talented Chinese students.

As the first school to provide business management education for graduate students, Tuck was established in 1900 and selected by the Wall Street Journal as the top business school for the last few consecutive years. Parallel with China's rapid economic growth, Dean Danos said more Chinese students are eyeing MBA degrees (master of business administration) from elite schools.

SHANGHAI

Visa International's initiative

Visa International announced yesterday that all the merchants with China UnionPay, owner of China's national payment system, will be able to accept Visa cards. This is another significant move between the two since China UnionPay became a Visa principal member in May. It also paves the way for all Visa cardholders to enter into China's national payment settlement through China UnionPay. Currently only 16 per cent of China's 300,000 points of sales (POS) accept Visa cards.

SEOUL

POSCO to liquidate joint venture

South Korean steel giant POSCO Co said yesterday it has decided to pull out of its troubled joint venture in Venezuela.

The joint venture, POSVEN, was established in 1997 by POSCO, Raytheon of the United States and other firms from South Korea and Venezuela to produce 1.5 million tons of hot briquetted iron. But labour action has suspended operations since August.

"POSVEN is deemed non-viable amid volatile market conditions and foreign exchange rates in Venezuela and thus we have decided to abandon the business," a POSCO official said.

The company will write off its 40 per cent controlling stake in POSVEN, he said, adding POSCO's two affiliates would also withdraw their 10 per cent stake from Venezuela.

HELSINKI

Fortum to sell Norwegian unit

Fortum Corp said yesterday it had reached an agreement with Italy's ENI to sell Fortum Petroleum, its Norwegian exploration and production business, for a total US$1.078 billion in cash.

The agreement with the Italian energy company comprises US$420 million in cash for 100 per cent of the equity, plus US$658 million for the assumption of interest-bearing loans, the Finnish state-controlled energy group said. Fortum said the financial effects of the transaction will be dependent on the results of Fortum Petroleum during the fourth quarter of 2002.

FRANKFURT

ECB: Inflation set to slow

Several factors currently suggest that inflation in the 12-country euro zone is set to slow, a member of the European Central Bank's (ECB) executive board, Sirkka Haemaelaeinen, said in a magazine interview released yesterday.

"Uncertainty has increased, but the following factors point to a slowdown in inflation: the rise in the value of the euro and the decline in the price of oil, even if no one knows how it will develop from here," Haemaelaeinen told the weekly Focus on Money.

MOSCOW

US opens door to Russian steel

US and Russian officials concluded two days of trade talks on Tuesday by signing a steel agreement that partially lifts anti-dumping laws against Russian producers.

But the two sides reported little to no progress over other trade liberalization issues that if resolved would allow Russia to join the World Trade Organizations, with Moscow sticking to its refusal of a quick freeing of prices in its energy sector.

The steel deal, signed by US Assistant Secretary of Commerce Faryar Shirzad and Russian Deputy Economic Trade and Development Minister Maxim Medvedkov, allows Russia to export an additional 200,000 tons of slab steel annually to the United States, Russian officials said.

XIAMEN

Electronic IPOs

Xiamen Faratronic Co Ltd said yesterday that it plans to issue 50 million common A shares in its initial public offering at 8.04 yuan (97 US cents) per share.

With a price to earnings ratio of 20 times, the company expects to raise net proceeds of 382.56 million yuan (US$46 million) through placement in the secondary market.

Stake swap deal

Xiamen Prosolar Technology Co Ltd said yesterday that it has entered into a swap deal with its second largest shareholder Xiamen Dayang Group Co Ltd.

Under the deal, the company will swap a 90 per cent stake it holds in Xiamen Xiangyu Dayang International Trade Co Ltd for a 14.12 per cent stake held by the latter in Shanghai Xiada Real Estate Co Ltd.

SHANGHAI

Merger approved

Sva Electron Co Ltd said it held the board of directors meeting on Tuesday, during which the board approved the proposal to buy Shanghai Jiahuida Real Estate Development Management Co Ltd.

Meanwhile, the board approved the company to perform the duty of a shareholder of Jiahuida Real Estate by offering shareholder loans up to 130 million yuan (US$15.7 million) according to investment proportion to Jiahuida.

Capital expansion

Shanghai Fosun Industrial Co Ltd said yesterday that it will add 85 million yuan (US$10 million) in registered capital, including 82 million yuan (US$9.9 million) in cash, to Shanghai Fosun Medicine Science Technology Development Co Ltd.

After the capital expansion, the company's capital contribution to Fosun Medicine will increase from 14.25 million yuan (US$1.7 million) to 96.25 million yuan (US$11.6 million).

HAIKOU

Airline shares

Hainan Airlines Co said its 85.76 million corporate shares and 64.8 million staff shares will become tradable on the Shanghai Stock Exchange from Monday. In the meantime, the portion of staff shares totalling 205,416 shares held by the company's directors, supervisors of board, and senior managers will still be locked up.

HONG KONG

Gas investment

Gas distributor China Gas Holdings Ltd said yesterday it would invest HK$42.5 million (US$5.45 million) in a joint venture with a Chinese mainland company to expand its natural gas business there.

China Gas said in a statement it had invested in the venture through a 57-per cent stake in China City Gas Construction Investment Co Ltd, which has a 93.2-per cent shareholding in Jiaozuo City Gas Development Co Ltd, a joint venture in the Central China's Henan Province.

Telephone giant

Hong Kong's top telephone company PCCW Ltd was reported to layoff 500-600 staff as it transfers a total of 3,000 workers to a new services unit, a further move to make the debt-laden firm leaner and fitter, local newspapers reported.

About 600 middle and senior management staff will be axed, the reports said.

"About three-quarters of the 3,000 workers affected will have a pay cut," said Leung Ting To, chairman of Pacific Century CyberWorks Employees General Union.