Challenging Year Ahead for SOEs
News, page 3
State-owned-enterprises (SOE) under the Central Government have been warned of a challenging year ahead in view of increasing pressure from inflation and stricter macro-economic measures. State-owned Assets Supervision and Administration Commission chief Li Rongrong expresses his concerns for SOEs with huge debts and over-dependency on loans for quick expansion. Li warns that these SOEs may face liquidity problems under mounting pressures next year.
Original article: [Chinese]

Cautiously Raising the Interest Rate
News, page 6
China has raised its benchmark interest rate for the sixth time this year on December 20 in yet another attempt to cool an overheating economy and curb inflationary pressure. The Central Bank has raised the one-year deposit interest rate by 27 basis points to 4.14 percent and the lending rate by 18 basis points to 7.47 percent.
Original article: [Chinese]

Nobel Laureate's Views on Chinese Government Investment Arm
News, page 8
Robert Merton, the 1997 Nobel Laureate in Economics, suggests that China should set up a mechanism to cool suspicions and concerns over its political motives behind the state investment arm – China Investment Corporation (CIC). Merton points out that when a country makes a concentrated investment in one area it could create alarm over state interference and control. He believes one way to avoid such an impression is to maintain multiple passive investment portfolios.
Original article: [Chinese]

Xiang River in Crisis
Nation, page 9
Drought coupled with years of environmental destructions has caused the water level in the once-majestic Xiang River in Hunan province to drop to a record low, with the shallowest point at a mere one meter deep. The receding waterline has put a halt on cargo transportation in many stretches of the river, affected power generation and dried up reservoirs.
Original article: [Chinese]

The World is Polluting China
Comments, page 14
As China becomes the world's factory and churns out a myriad of goods for global consumptions, it has also borne the environmental cost at a world-scale. Commentator Hou Dongmin argues that the west especially, with its high demand for consumer goods, has indirectly polluted China. In the meantime, as Chinese are growing more affluent and are catching up with consumerism, the earth's resources are under threat to deplete at an even faster rate in the near future.
Original article: [Chinese]