Dear Sirs

KOTRA (Korea Trade-Investment Promotion Agency), a non-profit government organization, will host a series of trade event, both in on-line and off-line format.

This time we proudly would like to offer you on-line meeting event with Korean companies. Carefully-selected 1,000 quality products from Korea will be available for you in the form of e-catalogue including 3D type. We expect that the whole contents will be uploaded by not later than May 6 so that you can make an appointment for on-line meeting in advance with particular Korean company which, you think, can meet your purchasing requirements.

As for the on-line meeting, we present the meeting date to take place anytime convenient for you between May 7 and May 9. Appointment with Korean counterpart can easily be made by visiting this site beginning from April 22 till May 6. You can simply notify convenient time suited to your local time so that the Korean representatives can be called on to their computer to meet with you on the internet.

Thank you for your reading

OH YOUNG-KYO
CEO & President

Budgeting Olympic windfall
2002/04/23

The upcoming 2008 Olympic Games will undoubtedly generate scores of business opportunities and massive earnings for companies around the world, but finding ways to raise the massive funds needed for the Games still remains a question for decision-makers.

Despite an optimistic forecast of a 0.5 to 1 per cent stimulus to the country's economic growth, it is estimated that the grand gathering will demand a huge pool of funds amounting to some 300 billion yuan (US$36.1 billion) in the coming six years before the goal of completing overall infrastructure by 2007 is met.

Beijing's Olympic budget is reportedly more than seven times the size as Sydney's was for 2000, more than five times the projected spending for Athens, Greece, in 2004 and 32 times what Los Angeles spent in 1984.

Huge amounts will be spent on diverting water from southern China to northern China, relocating thousands of polluting factories from Beijing to the hinterlands and improving factories to make them more environmentally friendly. The capital city will also add 400 bus lines and invest US$3.6 billion in high-tech gadgetry, including a digital network capable of HDTV transmission for all Olympic venues.

But a detailed and practical financing plan needs to be mapped out before eager companies can claim a stake in the grand gala.

Among the financing alternatives include mature routine methods which will be introduced to cover the heavy expenses.

These items will include ticket income, corporate sponsorships, television broadcasting rights and marketing and licensing spin-offs, which are expected to cover a minor part of the total price of the grand Games.

Meanwhile, the Chinese Government is preparing to develop a special Olympic lottery to help fund the multi-billion-dollar budget.

And dividends from the International Olympic Committee, amounting to some US$1 billion, will also offer a hand in alleviating the financial burden.

However, income from these channels will only begin to flow after or near the close of the Games in 2008, creating a problem as all the massive spending needs to be accomplished by 2007.

Although public spending from tax income has been promised for the Games, it could be risky to put such heavy pressure on Beijing's fiscal revenues, which are required elsewhere.

Less popular options call for an introduction of private corporate funds, but most infrastructure facilities take a long time to construct and must operate for a long period before they begin generating sound returns, which deters private investors from entering the market.

Support is building among the financial sectors for the introduction of a market-oriented, commercial mode of financing.

"Asset-backed securitization would be the best and most practical choice for the Games to gather enough funds," said He Xiaofeng, deputy director of the Beijing Development Institute at Peking University, the think-tank responsible for developing the financing plan for the 2008 Olympic Games.

Under the group's plan, the municipal government would set up a special institution which would then develop financing portfolios covering a number of investment tools to raise the needed funds.

Although immediate high returns are unlikely, these projects and facilities could generate stable and long-term returns, which would lay a solid basis for the issuing of the bonds and shares and other valuable assets.

To encourage liquidity, the portfolio, which would include municipal bonds, investment funds, infrastructure-backed securities and other options, would be issued and listed on the capital market.

He said relevant laws and regulations would be needed to be adjusted for this scheme to be implemented, but that these measures are still believed to be the most practical and efficient financing method.

"These measures will not only maximize fund channels for the Olympic Games, but also it could diversify investors' channels and spur the growth of China's capital market," the deputy director said, who added that the new attempt could also set the benchmark for China's future financial innovations.

Apart from the construction, transportation and services sectors, financial institutions are also expected to benefit from a range of opportunities.

On the front list would be commercial banks, insurance companies, bond underwriters and accounting firms.

"The massive construction of the Olympic venues and infrastructure facilities will lead to many business opportunities for property insurance firms," said Yuan Changjun, a professor at the University of International Business and Economics.

Meanwhile, billions of visitors and thousands of game players will need life insurance and other insurance services, a virtually untapped market in China, where the insurance system is not as efficient as those in Western countries.

A commercial bank will be selected to act as the agent bank of the Games, through which many financial interactions and product innovations will be introduced to the market.

"A plan is under review to establish an agent bank for the Games," confirmed He of the Beijing Development Institute.

A number of banks, including the four State-owned commercial banks, are now racing for the post, which holds promising profits.

Among these banks, China Construction Bank has been the most aggressive, having clinched a deal to lend 5 billion yuan (US$603 million) for land development in the Olympic Park and with plans to launch an Olympic branch.

"But it is hard to forecast when the bank will get the go-ahead as it also needs the green light from the International Olympic Committee," said He.

A number of international heavyweights in the accounting sector are also competing for the coveted position of chief financial consultant of the Games.

Investment bankers are pinning their hopes on a big rise in future mainland merger and acquisition deals to come to the rescue of a sharp slowdown in Asian M&A activity. Tagalder is positioned in these big upcoming events.

Most of the larger Japanese manufacturers look at China as the most important place for their future investments, the Nikkei Keizai Shimbun reports on Sunday. The paper surveyed 32 major manufacturers and 25 of them see China as the most important option for future investments.

The companies also try to tap into the large consumer market, companies expect to boom now China has entered the World Trade Organization (WTO). But the majority sees China rather as a production base. Most expectations for sales in China are expected from the Japanese firms working in China.

The production of chemical products for the Japanese market tops the list, an industry where companies like Asahi Kasei Corp. and Mitsui Chemicals Ltd are expanding their activities in China.

Food producers also move to China, as the domestic economic crisis in Japan forces them to look for more cost-effective ways of production.

Japan is already China's largest trade partner, followed by the United States.

Deregulation and the opening up of the domestic capital market is rapidly evolving. A handful of foreign companies are awaiting approval to sell shares to mainland investors. Meanwhile national brokers will for the first time be allowed to set their own commission fees starting from May.

Among the first foreign companies expected to get official approval to issue China's first depositary receipts are Hong Kong listed China Mobile (H.K.), China Resources Enterprises Ltd., Shanghai Holdings Ltd. and Beijing Enterprise Ltd., Bloomberg reported on Thursday. With the depositary receipts investors on the mainland can use the local Renminbi currency to buy shares of the companies, currently traded in Hong Kong dollars.

The upcoming possibility is seen as the first step to give the mainland's 60 million investors access to Hong Kong's stock market, the news agency writes. The breakthrough is also regarded as a boost for the depressed financial sector in Hong Kong.

The introduction of the receipts are part of China's measures to further open up its US$550 billion capital market, in line with its commitments made to the World Trade Organization (WTO).

In another effort to increase investment in the domestic capital market, the China Securities Regulatory Commission (CSRC) announced the nation's 121 brokerages companies can set their individual commission fees within a certain range from May 1 on, contrary to the current fixed commission rates, Bloomberg reports on Friday.

The top rate possible to charge on Class A shares reserved for domestic investors will decrease from 0.35 to 0.30 percent. The top rate for Class B shares open to domestic and foreign investors remains 0.43 percent.

Unconfirmed stories from other sources suggest China wants to speed up its financial industries faster for foreign investors than agreed under the WTO protocols. The insurance sector is said to open 18 months ahead of the agreed three years. Also the banking sector is expected to open up faster, but no details are known yet.

China has become world's largest consumer of stainless steel, overtaking the United States and Japan, according to professor Li Cheng, executive vice president of the China Stainless Steel Council.

Li said that China's conspicuous consumption of stainless steel in 2001 was about 2.25 million tons, while conspicuous consumption in the US was 2 million tons and in Japan 1.5 to 1.6 million tons.

China's consumption of stainless steel has been growing at an average rate of 17 percent for the past 10 years, while the world' s average growth rate has been 4 percent to 7 percent. In 2000 however China's per capita stainless steel consumption was only 1. 4 kg, while the world's per head consumption was 4 kg.

Li said China's stainless steel output had been hovering around 300 thousand tons a year for several years since 1990.

The output in 2001 was about 700 thousand tons, but at the same time 1.6 million tons worth 2.2 billion U.S. dollars was imported.

China is expanding its stainless steel production capacity, which will reach 3 million tons per year in 5 years. The stainless steel industry will by then be 80 percent self-sufficient.

Li says China Stainless Steel Council has been and would be devoted to the promotion of the utilization of stainless steel, as well as to services to and the supervision of stainless steel producers.

China to Transform SOEs Using Foreign Fund
2002/03/24

BEIJING, Mar 24, 2002 (Xinhua via COMTEX) -- China will transform its state- owned enterprises (SOEs) using foreign investment, in order to upgrade them into modern companies, said Dai Xianglong, governor of the People's Bank of China here Sunday.

He told the China Development Forum 2002 that China had entered a new phase of using foreign investment. In the near future, China would attract further foreign capital in combination with domestic investment.

He said many SOEs had built up joint ventures after obtaining foreign investment and thus sharpened their competitive edge.

Dai said China would attract more foreign capital to promote financial reform. Meanwhile China would support domestic companies in buying foreign currency and investing abroad.

At present, China's foreign exchange reserves, net assets of commercial banks abroad and Chinese enterprise investment overseas reached 350 billion U.S. dollars.

He said that as Chinese residents and enterprises had more foreign currency savings, legal financial institutions could be set up to collect the money and invest overseas.

China to Further Open Agricultural Market
2002/03/23

BEIJING -- China will further open its agricultural markets under the World Trade Organization (WTO) to increase produce exports, Agriculture Minister Du Qinglin said here Sunday.

At the 2002 annual China Development Forum, which opened here Sunday morning, Du pointed out that further opening China's farm product market may offer larger scope for WTO members to allocate and share resources.

As a member of the WTO, China would enjoy nondiscrimination in trade, which would lead to the expansion of export markets for its farm products. China would take an active part in WTO activities and the lawmaking process since it was entitled to participate in the new round of WTO negotiations and had a say in making new rules and regulations, Du said.

Foreseeing the impact of the influx of foreign farm products, China was taking measures to restructure the agriculture industry and reinforce its status as a primary industry, and divert the surplus labor force in the rural areas, Du revealed.

He said agricultural restructuring should be focused on four aspects: adjusting the layout of agricultural production; improving the quality of farm products; developing the processing industry and increasing the added value of farm products; and pushing forward employment restructuring in rural areas.

Hong Kong Earmark $630 Million to Help SMEs Adopt e-Business
2002/03/21

Tagalder's CEO, Peter Chun, met with Mr. Sin Chung-kai, the Legislative Councilor representing the Information Technology Functional Constituency in Hong Kong. Mr. Sin assured to Mr. Chun that the current government policy fully supports and encourages IT development in this region.

"With the total of $1.9 billion of SMEs Fund, the Government needs to earmark at least one-third of amount ($630 million) to assist SMEs in adopting e-business if Hong Kong intends to become a leading digital city." Mr. Sin commented.

Mr. Sin appreciates the Government's initiative that additional $600 million of funding will be injected to assist SMEs. As e-business will be an inevitable trend in the information economy, he stressed that it is extremely important to our local business, especially the SMEs have sufficient resources and support to master and to take advantage of new electronic business mode.

"Facing with economic restructuring, Hong Kong's SMEs need to urgently regain their competitive edge by investing and deploying IT in their business. Such move not only help to lowering their business operational cost, and to maintaining their own competitiveness in the information economy, but also in tandem with Government's plan to transform Hong Kong into an International Transportation and Logistics Hub." Mr. Sin continued.

"We understand that many SMEs may not be in a position to invest in IT under the current ailing economic situation. The additional government financial support will serve as an immediate measure to assist them in employing IT, contributing to the overall well-being of Hong Kong's business in the future." Mr. Sin added.

Mr. Chun informed that Tagalder group has partnered with several technology providers and will work closely with Hong Kong Government to develop IT business in Hong Kong, China and Asia countries.

Ban for FI in 75 sectors - catalogue
2002/03/14

Beijing - The Chinese government has released a list of sectors banned for foreign investments (FI) starting from April 4 according to Reuters.

Construction, operation of power grids and aviation transport control companies are some of the sectors that will remain under strict Beijing control after the countries accession to the World Trade Organization (WTO) in December the article stated.

The Foreign Investment Guidance Catalogue also includes a continued grip on the media sector to ban politically sensitive news or pornographic content. Broadcasting and television sectors, all state owned, will remain closed for FI it said.

Beijing is also banning FI in the production and development of genetically modified seeds, a highly controversial decision as foreign industry officials claim it is to protect the extensive local market according to Reuters. Chinese officials however say it is in the interest of protecting public health.

The government stimulates FI in 262 areas up from previously 186 Xinhua reported. Barred foreign investment sectors would decrease from 112 to 75 sectors.

For Mark Schaub, lawyer at King and Wood in Shanghai, this is an important document for law but he sees changes with the previous edition.

"There is a different emphasis," Schaub said. The catalogue is protecting the traditional industries such as tea, trees, fisheries and herbal medicine but "It is encouraging telecom and power industries."

"It also encourages Western China for opportunities," Schaub said.

The release of the 25 page document follows last month's cabinet approval of new rules on FI aimed at bringing the investor opportunities in harmony with China's WTO commitments. The list was last updated in 1997.

China is keen to attract more FI to compensate for slowing export growth. Shi Guangsheng, Foreign Trade Minister, said on Tuesday that US$45-50 billion of FI would flow into China this year. Last year, the countries FI amounted to US$46.8 billion.

Downturn will hit SOE's also this year - Li Rongrong
2002/03/10

Beijing – Tax income will reduce as profits of State-Owned Entreprises (SOE's) continue for a second year, minister Li Rongrong of the State Economic and Trade Commission (SETC) announced during a press conference on Friday.

Falling prices, falling exports will cause a profit loss of 1.4 percent or 6.2 billion Renminbi (US$749 million) to 233 billion Renminbi (US$28 billion). "We are not very optimistic about this year's economic environment," Li was quoted as saying. "From January this year, we can clearly see the trend that prices are going down."

Deflation has been dogging China's economy since the Asian economic crisis in the second half of the 1990s and has never been brought under control. Since both investments and consumption do not seem to be serious under pressure the effects of the deflation might be limited.

SOE's continued to loose market share as the government closed down last year 460 SOE's, causing 700,000 job losses and wrote off 51.5 billion Renminbi (US$6.2 billion) in bad assets, the China Daily reports.

China's two largest oil companies Sinopec and PetroChina alone fired 600,00 workers and made reservations of  41 billion Renminbi (US$4.9 billion) for their compensation.

For this year China has set aside 80 billion Renminbi (US$1 billion) to deal with mergers and bankruptcies in the state-sector.

While Li promised to strengthen the smaller SOE's and allow them more freedom, the private sector develops into the real driving force of China's economy.

Tighter supervision economy to face WTO challenge - Zhu
2002/03/06

Beijing - Premier Zhu Rongji underlined the need for tighter supervision of China's fast growing economy in order to face the challenges of the nation's recent accession to the World Trade Organization (WTO), various media report on Wednesday.

The domestic market should be made healthy and ready for global competition, Zhu told the National People's Congress (NPC) at the opening of the parliament's annual session on Tuesday.

According to Zhu, the government will continue heavy spending on public work projects to encourage economic growth, Shanghai Daily reports. China will issue 150 billion Renminbi (US$18.1 billion) in treasury bonds to finance the projects this year, the same amount as last year.

The state will further carry on policies to stimulate domestic demand and investment, deepen reform, open up the domestic market, accelerate economic restructuring and overhauling the market order, the newspaper writes.

WTO membership will, in the short term, challenge less competitive industries and enterprises, the premier said. He admitted urban jobs would also be lost as a result of the WTO membership, but insisted that China's accession "benefits [our] economic development as a whole", the Guardian writes.

According to the Wall Street Journal the frequent invocations of the WTO and its expected impact were one of the few fresh notes in Zhu's speech, which further offered little differences from past speeches to the congress. The premier stressed that this year the state will improve laws and regulations to ensure fair treatment for foreign firms.

The hardship in the agricultural sector, with farmers facing an ongoing decline of income, is among the economic and social problems that need to be solved urgently, Zhu said. The premier announced that the state will increase farmer incomes among others by accelerating agricultural and rural economic restructuring, China Daily mentions.

Earlier, job losses at the countryside as an effect of China's accession into the WTO were estimated to be around 20 million.

Minister of the State Development Planning Commission Zeng Peiyan announced on Tuesday that farmers' income will rise by 4 percent this year. He said the government plans to relax restrictions on farming work and farmers operating business in urban areas, Hong Kong iMail reports

Broadband expected to soar in China
March 3, 2002

Shanghai - Metro Ethernet broadband access services in Asia-Pacific are expected to rocket this year with China leading the pack in large scale deployments according to CNET.

Users see metro Ethernet as an alternative to ADSL (Asymmetric Digital Subscriber Line) or cable modem, according to an Asia-Pacific study by IDC Asia-Pacific, a market research firm.

Based on fiber networks, metro Ethernet offers LAN type connectivity to urban areas. It scales from 2Mbps up to 1Gbps in bandwidth and is more affordable than traditional broadband services such as ADSL, CNET wrote.

The IDC study revealed Ethernet subscribers in the Asia Pacific region, apart from Japan, are expected to grow from last years 280,000 to 9.3 million in 2006. A compound annual growth rate of 110 percent, the report said.

In 2001 metro Ethernet subscribers across the region contributed $395 million to the metro Ethernet market and this is expected to reach $19 billion in 2006.

Although China will dominate the subscriber market, Korea is where the revenues will be strongest, Renee Gamble, IDC Communications Research market analyst.
In China Ethernet services to residential areas will start from US$13 a month for 2Mbps as opposed for US$18 for ADSL, while companies will pay US$140 per month, US$15 cheaper than the ADSL equivalent, Gamble said.

Critical mass will be found in the residential market where competitive pricing against ADSL services will position the market for tremendous growth," Gamble said.

Last years new push to attract customers to DSL broadband has not given the results the sector had hoped for. The near outlook is dim as China Telecom, China Netcom and Great Wall have tried vigorously to sell the idea of broadband to the market, People's Daily wrote. But, after one year, Shanghai is leading with only 2 percent of the cities households having a broadband connection. The competition is fierce in Shanghai where three operators offer broadband.

Alcatel, leading foreign DSL provider in China is optimistic about the possibilities. "The demand for Internet access service in China has been ever growing," said Etienne Charlier, Vice President of Marketing and Sales Support, Broadband Networking Division, Alcatel Asia Pacific. He estimates that by 2005, the number of connected computers to the Internet will reach 40 million and that of Internet users will total 200 million, he said.

According to Charlier there is a lack of content for broadband users. About 63 percent of information sought by users on the Internet is news, 31 percent is science, technology and education.

Ad market second largest in Asia
2002/02/28

Beijing - China's rapidly growing advertising agency increased revenue by 15.8 percent last year according to reports by AC Nielsen Media International as stated by the Shanghai Daily on Wednesday.Chinese advertisers spend US$11.2 billion last year, second in place to Japan in Asian ad revenue, the paper said.

The industry is likely to grow because of the nation's entry to the World Trade Organization (WTO) and Beijing's successful bid to host the 2008 Olympics.

"The good news for the market in general is that China's entry into the WTO will attract lots of foreign companies to invest in China, which in turn will bring substantial spending on ads," said Forrest Didier, managing director of AC Nielsen's Asian Pacific Branch.

The drop of import taxes is likely to increase the sales of foreign products in China and might likewise enhance the usage of marketing tools.

"Thriving consumer demand matching the nation's optimism following its winning bid for the 2008 Olympics will continue to sustain high ad spending in the Asia-Pacific region," Didier said.

Previous ad revenue from Olympics amounted to US5$ billion, the paper wrote.

Last year proved to be historical highs for media concerns in ad revenue. Television ads totaled US$ 8.1 billion, newspapers received US$2.9 billion in ads and magazines reached the US$0.2 billion. The most heavily advertised products were tonics, over the counter drugs and residential property projects, the paper said.

The Chinese market became even more attractive to advertisers with its rapid economic growth at a time when most other regional countries are facing recession," said media planner and buyer Chris Walton, chief executive officer of Mindshare's China Branch.

"China's ad industry is still not very well developed, which means that investment at the moment may enjoy high rewards.
Walters said cars, banking, insurance and some luxury brands, driven by tariff cuts following China's WTO entry will be the next big spenders in the advertising market in China.

The State Administration of Industry and Commerce (SAIC) is predicting the industry will keep on growing in double digits for the next few years. However, it warned new government policies that restrictive advertising of prescription drugs, China's biggest advertisers, will hurt the sector.

Foreign investment in SOEs encouraged
2002/02/27

Beijing - The government approved new regulations for foreign investment on Tuesday. These include rules to encourage overseas investors to take shares in state-owned enterprises (SOEs) and thus help speed up their reform, China Daily reports on Wednesday.

The state plans to sell a certain amount of SOE shares to foreigners over the next five years, according an unnamed official of the State Development Planning Commission (SDPC) in the newspaper. Foreign investors will even be allowed to hold the controlling stake in large SOE, apart from those of key importance to national or economic security.

The new regulations on foreign investment will take effect on April 1, replacing the current rules issued in 1995. Adjustments were necessary to comply with the commitments the government made by joining the World Trade Organization (WTO).

The new rules classify foreign investment into four categories; encouraged, permitted, restricted and banned, AFX Asia writes. Overseas investment will especially be promoted in the agricultural sector (transportation, energy, technology and raw material) and new technology. Further, more investment opportunities will be given in capital-intensive projects like infrastructure, energy and transport, as well as in the areas of environmental protection, energy-saving and energy efficiency.

The state will keep encouraging investment in the western regions of the country by offering more favorable tax policies in the next 10 years.

The category 'permitted' includes joint ventures in which the Chinese partner has a controlling stake of more than 51 percent, or a dominant holding in case of three or more partners. Restricted are investments in backward technology, energy consuming, environment unfriendly projects and some mineral exploitation. Banned are investments in areas that cause pollution, threaten national security and 'the interests of society'.

The service industry, including banking, telecommunications, securities, insurance and tourism will gradually be opened up for more Sino-foreign cooperation, China Daily writes without giving further details.

Record growth for China foreign reserves
2002/02/19

Beijing - China's foreign exchange rate reserves climbed to a record $217.4 billion at the end of January 2002 according to Bloomberg.

It is an increase of $5 billion from the previous month according to People's Bank of China Governor Dai Xianglong. Dai repeated his pledge to keep the currency stable at a speech in Hong Kong to the General Chamber of Commerce last night.

``The Renminbi exchange rate is reasonable at the moment, and we would like it to remain stable,'' Dai said who previously attended a meeting of central bankers from Asia organized by the Bank of International Settlements.

China's immense foreign reserves, following Japan as the second largest in the world, will simplify the procedure to keep its currency hooked at about 8.3 to the U.S. dollar.

Dai cautioned about the effect of devaluating the Japanese Yen that it might spread over the Asian region as governments try to protect their national export by devaluating their own currency. However, Dai remained determined to keep the Remnibi hooked to the U.S. dollar.

Dai also looked into the possibility to cut rates for the first time in more than two years. A date hasn't been set according to Bloomberg on whether the Chinese government will lower interest rates to combat the slowing global economic growth.

Last year the Chinese GDP decreased about 0.7 percent to 7.3 percent from the previous 8 percent in 2000.

Spending rises over Chinese New Year
2002/02/15

Shanghai - Consumer spending rose sharply this week, as Chinese are enjoying their Spring Festival holiday to celebrate the arrival of the Year of the Horse.

China has extended the number of holidays over de past few years dramatically in an effort to jumpstart consumer spending after a slowdown during the Asian economic crisis at the second half of the 1990's. This policy has been baptized the 'holiday economics'.

The Chinese New Year traditionally is a time of spending. The usual family get-together goes hand in hand with gifts, dinners, and travel costs. No difference this year, as especially domestic shop and restaurant owners once again saw the money flow in easily.

Between February 9 and 14, sales at 2,000 outlets of Shanghai's 210 leading retailers reached 2.03 billion Renminbi (US$ 244.5 million), the Shanghai Daily reports on Friday. This is an increase of 12.4 percent over the same period last year, according to figures of the Shanghai Commercial Commission.

The top 170 hotels and restaurants in China's largest city saw sales rise to 7.8 million Renminbi (US$ 943.533), up 47.6 percent compared to the same period in 2001. Super- and hypermarkets had combined sales of 1.42 billion Renminbi (US$ 171.7 million), up 17.8 percent from last year. Only department stores had to face a drop in sales compared to 2001, with 2.7 percent less at 444 million Renminbi (53.7 million).

Retailers elsewhere in the country are likely to benefit from similar spending moods, yet figures are not yet available. Some reports in the past year suggested that China's holiday economics had lost much of their momentum, but initial signals suggest that holidays still enhance consumer spending.

Railway cargo market open to foreign investment
2002/02/11

Beijing - In the coming years, China will gradually open up its tightly controlled railway transportation sector to foreign companies, China Daily reports on Monday.

In a first step, the Ministry of Railways will allow foreign firms to set up joint ventures in the domestic railway cargo market. From this year to 2003, however, the Chinese partners should hold the majority of the shares in such joint ventures.

From 2004 to 2006, the foreign firms will be allowed to hold a majority stake in the company. After 2006, the domestic railway cargo market will be fully open to foreign companies.

Opening up the railway sector is one of the many promises China has to fulfill under its recently achieved membership of the World Trade Organization (WTO). Different from the cargo business, railway passenger transportation will not be affected by the WTO entry, China Daily writes. Therefore, the cargo and passenger transportation operations will soon be separated.

According to railway minister Fu Zhihuan the country will as well put several profitable railway lines up for international bidding in the near future.
The government will also welcome foreign investment in railway construction. The country badly needs more railway tracks to comply with the domestic railway transportation needs. But so far foreign investors have been reluctant, as the return on investment in railway construction requires a long-term commitment.

It is the season to be jolly - jolly prosperous, if you are in the festive decoration business in Wuhan. The approach of the Spring Festival has imbued local people with a sense of the coming festivities, and traditional decorations are taking the fancy of many.

There have been vigorous sales of decorations in shopping malls, supermarkets and markets, mainly for trinkets and small items. Red lanterns, decorative firecrackers, Chinese knots and decorative paintings of the Chinese character for "fortune" are all extremely popular. These have become the "must buy" items for celebrating the Chinese New Year.

In the past, people were only concerned about stocking up food and drink for the Spring Festival, but now they are keen to create a festive mood in the home. People in the trade agree that the demand for festive decorations has fueled the growth of a lucrative holiday-season market.

Out of feelings of nostalgia, more and more people are choosing traditional festive decorations - but their decorations also convey auspicious messages and cater to the urge to spend.

Decorations for celebrating the Spring Festival.

Chinese knotting is an age-old folk art. Silk threads are tied by hand into basic knots of different patterns with auspicious meanings, and these basic knots of different meanings are then tied to other decorative objects to make pieces of beautiful artwork rich in cultural significance.

Thousands of varieties of decorative knots are available in the market. There are "plain sailing" and "safety" knots for drivers; "prosperity" knots with chilli, fish and prawn motifs; "romantic" knots with heart-shape patterns; "fortune" knots tied to ancient coins; "happiness" knots featuring the double-happiness character; and "longevity" knots tied to pictures of the crane and the pine.

These knotted decorations come in different sizes. Some are two to three metres long and can be hung as good luck charms. Others are made into earrings, bracelets, rings and necklaces, and worn as fashion accessories.

Chinese knots are not very expensive. Small items cost only a few yuan. Even larger good luck charms cost no more than Rmb100 to Rmb200 (HK$94.3 to HK$$188.6). They make good presents and ornaments.

Auspicious Chinese knots for the New Year.

There has in fact been a mushrooming of shops selling these decorative knots in Wuhan. The proprietor of one knotting art shop says he has opened five branches in the city since he entered the market more than a year ago. He is now netting Rmb10,000 (HK$9,433) daily on average, with customers from all social strata, including foreign tourists.

The popularity of Chinese decorative knotting has fueled the growth of other related businesses. Courses on knotting arts are very popular among young people. There are even those who make a living out of teaching knotting at "toy bars". Many people, especially young women, are learning this trendy art out of curiosity or for fun. Most learn Chinese knotting not because they want to acquire a new skill with which to make a living but because they want to learn how to express their best wishes through the art of knotting.

Most of the decorative knots sold in the market come from the northern provinces. Some special knots are even patented or have their own trademarks. Many production enterprises have already established extensive marketing networks and the scale of their production has been steadily expanding. Dozens of books on knotting are selling extremely well.

from special correspondent Yan Hua, Wuhan

Sina plans second stock listing
2002/02/08

Beijing - Despite surging sales, China's loss-making Internet portals are still struggling to cope with the highly unpredictable market. In the latest strategy to boost profits, NASDAQ-listed Sina.com plans for a second stock listing as well as the acquisition of local businesses.

According to Sina's chief executive Daniel Mao, the company has been working for a long time towards a second listing on the Hong Kong or even the domestic Chinese stock markets. However, he did not disclose a deadline for the proposed initial public offering (IPO), China Daily reports on Friday.

Sina is also looking for cooperation with local firms, especially traditional industries and IT businesses, to strengthen its operations. It even considers starting its own TV program or magazine, or providing content to existing off-line media, Reuters writes on Thursday.

The main reason to head for the mainland or HK stock markets is a poor NASDAQ valuation, analysts told the China Daily. Thus, due to its great popularity among Chinese users, Sina's stock price on a domestic exchange would most likely be substantially higher than its price on NASDAQ.

Main rivals Sohu.com and Netease.com do as well show a poor performance on NASDAQ. Shares of the big three portals all trade around US$1, significantly lower than their IPO prices of between US$13 and US$20 per share, Reuters reports.

According to the news agency, the portals - all looking for ways to boosts revenue - are in a dilemma. "To an extent, they just can't go around and change their business model like that, because they will come under a lot of fire from shareholders. But at the same time, it's pretty obvious that just with the original business models that they were going to go ahead with, they were not going to get very far", Reuters quotes an anonymous analyst from Hong Kong.

Both Sina and Sohu, currently engaged in a copyright-war, published their latest financial reports this week. The increasing popularity of SMS (Short Message Services) seems to be the main incentive for surging quarterly sales. Sina's revenues grew 12 percent in the last quarter of 2001, compared to the previous quarter. In the same period, Sohu saw its profits rise 15 percent compared to the previous quarter.

Shipping giant Evergreen finds way to expand in China
2002/02/07

Taipei - Taiwanese Evergreen Marine, the world's biggest container shipping company, prepares to expand its business on the mainland. To gain better access to the market, the company will register about half of its fleet in Europe.

By registering abroad, Evergreen found a way to deal with restrictions it is currently facing. This means, primarily, Taiwan's ban on direct trade with China. And, according to analysts, China's limitations for Taiwanese shipping companies to establish agencies on the mainland, the Financial Times (FT) writes on Wednesday.

Evergreen-chairman Chang Yung-fa said he already registered two of an initially planned 40 vessels in Britain, according FT. Another 40 vessels will be registered in Italy. "Italy said it will treat Evergreen ships as Italian ships, and ask China to treat Evergreen's investment in China the same as Italian firms' investment", Chang told The Taipei Times. According to the paper, it is likely that Evergreen already got permission of the Chinese authorities to enter the mainland's shipping market through European subsidiaries.

Taipei has harshly criticized Evergreen's apparent attempt to win Beijing's favor. Minister of Economic Affairs Christine Tzung said that though companies can make their own choices, and the government won't interfere with actions of businesses, "one should not place personal interests before those of the nation".

Before, various companies found other ways to dodge the current limitations, like making a detour through Japanese territorial waters. However, as larger companies can effort these solutions, smaller businesses keep suffering from the current restrictions

State approves airline mergers
2002/02/06

Beijing - The government has given the final green light for the merging of the existing nine state-owned airlines into three aviation groups, various media report.

The three biggest airlines will swallow up six smaller ones. China Southern will merge with China Northern Airlines and Xinjiang Airlines into a group with 180 aircraft, 50.1 billion Renminbi (US$ 6.05 billion) in assets and more than 34,000 employees, Reuters writes on Tuesday.

Air China will unite with China Southwest Airlines and China National Aviation Corporation, creating a group with 118 planes, over 20,300 workers and 56.06 billion Renminbi (US$ 6.77 billion) in assets.
China Eastern is to merge with China Northwest Airlines and Yunnan Airlines. The group will have 47.3 billion Renminbi (US$ 5.71 billion) in assets, 118 airplanes and more than 25,000 members of staff.

The state formally approved the plan late last month, the Civil Aviation Administration of China (CAAC) announced on Tuesday. According to CAAC-minister Liu Jianfeng, the merging of the airlines will start soon, with the process completed soon, China Daily reports on Wednesday.

Last year, airline officials said the consolidation would be completed by the end of this year. However, analysts predict it will take longer because of the complexity of the deals, and the many assets and debts involved, Reuters writes.

Regional airlines can in the future decide for themselves whether they want to join any of the three giant carriers.

With the reconstruction, the government aims to strengthen the position of the national airline companies, facing a stronger global competition now that China joined the World Trade Organization (WTO).

The CAAC further announced plans to restrict air routes involving Beijing, Shanghai and Guangzhou, China Daily writes. Starting this summer, only airline companies with headquarters in those cities will be able to fly the lucrative routes. Around the start of winter, flights transferring through the three cities will also be stopped.

China Telecom restructuring not at broadband speed
2002/02/05

Beijing - The delayed restructuring of China Telecommunications Corp. has caused a slowdown in business for foreign telecom companies dealing in China according to the Wall Street Journal on Tuesday.

The drop in the global telecom market has hit the biggest industry players such as Lucent Technologies, Nortel Networks and Cisco Systems in equipment sales. All have come to rely a great deal on the Chinese market which is second in size after the US for many involved, the paper wrote.

The discussions on the split up of the fixed line monopoly of China Telecom into two competing firms started last year. But state maneuverings have slowed down the process.

The company will be divided into a northern and southern operator competing on national level. Both companies can enter each others territory and offer all services from local and long distance calls to data communications and eventually mobile-phone services. Each company will own the local phone networks in the area but ownership of the fiber-optic network connecting provincial networks into a national grid will be split with 70 percent owned by the southern company and 30 percent by the northern company according to the paper.

The details preventing a closure in the deal concern the splitting up of the fiber-optic network that lies across the country.

The indecision has left China Telecom - and the other carriers involved - powerless, stalling purchasing and business decisions and a planned stock offering originally estimated at $6 billion the paper stated.

The slowdown in restructuring is not only hitting equipment sales but also China Telecoms willingness to contemplate new projects, just when foreign investors are eager to explore the market after China joined the WTO.

"Until the shakedown is finished, Chinese Telecom companies are not in a position to talk about new partnerships and alliances," said AT&T China president Art Kobler.

The details of dividing up the network combined with the uncertainty over job assignments have left Chinese telecom executives unwilling to make major investments. Last year China Telecom cut its budget for network expansion from an originally planned $12 billion to $9 billion according to estimates by Lehman Brothers in Hong Kong.
Lehman estimates that China's total investment in new phone networks will be down 8 percent this year the first decline in years.

WTO-optimism on the retreat - analysis
2002/02/3

Shanghai – Worries on China’s way to deal with its membership of the World Trade Organization (WTO) have hit the foreign business community, less than two months after the country entered the organization.

China has started to release regulations to open up industries according to its obligations under the WTO. But often those regulations are accompanied by whole sets of new limitations that virtually reverse the promise of opening up. “It is one page of opening up and fifteen pages of trying to reverse it,” a European business man said on a meeting in Shanghai on Saturday.

Many did expect and tough and lengthy struggle to open up industries on a provincial and local level. The worrying part is that some of the new blockades also occur in the national regulations.

Hardest hit are at this stage have been the financial services, where both the merchant banks and the investment banks have been confronted by regulations of both the People’s Bank of China (PBOC) and the China Securities Regulatory Commission (CSRC). In both cases huge cash requirements are making expanding into China too expensive for many foreign players.

In other industries, like the retail, business people complain that diminished import tariffs have been replaced by higher internal barriers that make some goods even more expensive that before the tariff cut on January 1.

"China is trying to buy more time by introducing non-tariff barriers after it got into the WTO," says Jim Enters, vice-president of the European Chamber of Commerce in China told Chinabiz earlier this week. "I have seen it in Japan, in Korea. The newcomers do stick to official regulations by lowering their tariffs but raise other barriers. China is learning very fast."

For the time being China’s major trade partners maintain an optimistic tone. Seeking redress from WTO arbitrators may not be the wisest move US trade representative Robert Zoellick told the US-China Business Council on Thursday according to a dispatch of Dow Jones. "I do sense a willingness to try to come to grips with these problems, but we need to help them come up with solutions as opposed to just smacking them," he said.

Among the foreign business community the support for that view point might be losing support.

Presumed delay of state-share sale revives stock markets
2002/02/01

Shanghai - Domestic stock markets revived significantly on Thursday, in response to signs that the government will, again, suspend its planned massive sale of state-owned shares.

The stock markets went up after chairman Zhou Xiaochuan of the China Securities Regulatory Commission (CSRC) suggested that the sell-off, announced last weekend, could be suspended in the interest of investors and market stability.
Stock indexes in Shanghai and Shenzhen rose around 7 percent. The trading volume reached 28.48 billion Renminbi (US$ 3.4 billion), the highest since last October, when the state last suspended the sell-off of the shares.

"We will proceed with any reform only under the preconditions of ensuring the stability of the stock market and the protection of investors' interests", Zhou is quoted in the China Daily on Friday.

The chairman of the stock market watchdog further said that market regulation is a long-term issue and gradual process that needs to take into account domestic circumstances, the South China Morning Post reports.

The statements show a government caught between the need to raise money for reforms and the desire to keep the financial markets stable and investors' confidence high.

The controversial plan of the government to sell off state-owned shares, mainly to cash money for projects such as its social security system, caused unrest on the stock markets before. Last year, it got the markets tumbling fast until the state announced a reversal of its policy in October. Recent efforts to put the plan back on track caused new unrest, and it is yet to be seen how long the renewed confidence will hold on this time.

The government is in a catch-22 situation as it does need to sell its shares to finance the pension system that is on the verge of a breakdown.

PacificNet.com, Inc.
January 12, 2002

PacificNet.Com, Inc., a company based in USA and Hong Kong and listed in Nasdaq under the symbol PACT, has appointed Mr. Peter Chun of Tagalder (2000) Inc. as its financial advisor and marketing strategic alliance.

PacificNet.com, Inc., incorporated on April 8, 1987, is an IT solutions and consulting company that develops and implements full-service IT solutions. PacificNet has developed a suite of proprietary e-commerce software applications, and offers services such as hardware support, CRM, ERP, customer care, call center, logistics and supply chain management. The Company's business strategy is to offer Asian businesses complete e-business solutions, including front-end services such as Website design, hosting, product database development and management, and shopping cart applications, as well as back-end services such as order processing and transaction payment processing. In addition, the Company has been engaged to develop business-to-business (B2B) e-commerce solutions for certain strategic partners and other major Asian companies.

Hong Kong, the trading hub of Asia and focal point for business in the region. Home to the Hong Kong International Stationery Fair - the quickest and easiest way for you to reach stationery and office product buyers from Asia and around the world.

In January 2002, over 15,400 buyers from 105 countries and regions converged upon Hong Kong for the International Stationery Fair; a 31% increase from the debut event in 2001. Internationality at the show was extremely high, with almost half the buyers coming from outside Hong Kong.

Held in tandem with the Hong Kong Toys & Games Fair - the world's third largest of its kind - the show is a serious marketing venue for stationery and office products, offering unrivalled opportunities for manufacturers wishing to increase market share in Asia.

Come and get a feel for the markets, learn the demand trends, keep an eye on the competition. If you're in the business of stationery, you cannot afford to miss this show!

What the exhibitors said...

Returning Hong Kong exhibitor Tiger Enterprise Corp. increased their booth size to 54 square metres for 2002. "Last year we had a booth at both the stationery fair and the toys fair," said Betty Chan, Tiger's Sales Manager, "but our product are more suited for the stationery fair, so this year we decided to put all our marketing efforts into this show."

Mirage International (USA) expressed enthusiasm for the high number of professional stationery buyers that they had seen. "Buyers here are focused on stationery," said Nancy Wen. "It is a place for serious business."

Exhibitors in the office products category were similarly impressed with the show. Rolf Hess of Peach Office Products was very pleased with the company's first participation in the Hong Kong International Stationery Fair. "We made the right decision to come here, the results have been excellent," he said on the final day. "We are here looking for partners and distributors, and we've made many potential contacts."

What the buyers said...

"We are specialist suppliers of inkjet and laser toners, paper and printed stationery," said Ed Oswald, Director of Tonetime in the UK. "I came here looking for manufacturers who can provide quality products from Asia, and have found many useful business contacts. This show is an excellent venue for sourcing."

Shopping for major Japanese retailer The Loft Co., VIP buyer Shinji Hirata found great benefits in holding the stationery fair alongside the toy fair. "25% of our business is in stationery products, and we also carry a wide range of adult games and toys. The line between toys and stationery products is sometimes very fine, and so it makes sense to put these two shows side-by-side."

Foreign Firms to Invest More in 2002
01/01/2002

Over half the foreign companies operating in Korea say they will make more new investments next year than they did in 2001, sentiment that is a marked contrast to that of most domestic firms. Foreign businessmen cited government bureaucrats and local executives as the two groups that most discouraged new investment in Korea.

The JoongAng Ilbo Economic Research Institute recently surveyed 77 major foreign companies in Korea in cooperation with the American Chamber of Commerce and the European Union Chamber of Commerce.

About 56 percent of the respondents, 43 companies, said that they will expand their businesses in Korea next year either by increasing investments in existing businesses or by entering new industries. Their confidence seemed to be based on healthy revenues this year and an optimistic business outlook for 2002.

Half the respondents said they forecast Korea's economic growth to reach 3 to 5 percent in 2002. This is in line with the government's pledge to pull up next year's gross domestic product growth by 4 percent.

Although less than half of the firms polled said the investment environment for foreigners in Korea improved in 2001, when asked whether they had experienced discrimination while doing business in Korea, about one third of respondents said "almost never." That is significant progress: four years ago, when Korea opened its door to foreign investors in earnest, most firms answered in various surveys that they were faced with discrimination.

The survey respondents grumbled about Korean government officials, executives, and labor unions. When asked to select the groups that are the biggest barrier to drawing more investment to Korea, almost half of the firms selected government officials, followed by Korean business executives at 17 percent and employees at 14 percent.

About one in three foreign companies said they had received demands from government officials for bribes or kickbacks. Five firms said they acceded to the demands; the rest said they refused.

When questioned about the biggest difficulties of doing business in Korea, foreign firms cited complex administrative regulations and labor relations as the biggest nuisances.

High economic growth (27 percent) was selected as the biggest factor attracting investment to Korea, while healthy domestic demand and highly educated human resources were the next two most chosen responses, at around 20 percent each.


Source by : JoongAng Ilbo (2001. 12. 26)

WTO: Tomorrow is the DAY
November 11, 2001 

Monday will be the first working day after China entered the World Trade Organization and for most, not much will have changed.

On Monday China will enter a five year transition period where – varying from sector to sector – changes will take off one after another. Banks will have a freer access to the Chinese market, in five year time, while fund managers can already set up their joint ventures on Monday, actually: the first contracts have already been signed.

A picture in the China Daily shows on Saturday a port in Eastern China “as the port‘s business is becoming more and more busy amid China’s anticipated entry into the World Trade Organization”. In the short run, due to falling exports because of the severe economic crisis, the opposite might happen.

While very much is still in the dark on what the WTO really means for different industries, lawyers will see their workload, and income go up. Journalist might be busy too, as conflicts because of non-compliance are likely to go up. The expectations of fast changes will be smothered in endless bureaucratic battles. The WTO simply is not a powerful institution. It might at best be a useful instrument when both sides voluntarily agree to cooperate.

Both foreign business people and authorities in Beijing will run into local trade barriers, stubborn petty officials, corruption and other blockades that will prevent real free trade to take off.

Decreasing tariffs, open trade will in the end change the whole structure of some industries. The financial industry, the car industry and many more will feel the forces of competition. But things will not be different on Monday. There will be fast changes in China’s economic structure in the coming ten years. So, in that way nothing will change compared to the past ten years. China will not become a paradise for business. It will also not collapse. It will change, very fast.

Tagalder is on the forefront and ready to for this great opportunities. Tagalder has a team of management stationed in Hong Kong and access to China market and Asia for various business ventures in progress.

ANNUAL GENERAL MEETING OF THE SHAREHOLDERS OF TAGALDER (2000) INC. HELD AT THE OFFICES OF UNITED VAN LINES, MISSISSAUGA, ONT. ON TUESDAY OCTOBER 30, 2001 AT THE HOUR OF 3: 00 P.M. TORONTO TIME

IT WAS UNANIMOUSLY RESOLVED:

ELECTION OF DIRECTORS

APPOINTMENT OF AUDITORS

APPROVAL OF FUTURE PRIVATE PLACEMENTS

ACQUISITION OF ADDITIONAL INTEREST IN PLYWOOD OPERATION

ACQUISITION OF SHOE MANUFACTURING COMPANY

ACQUISITION OF INTEREST IN TAGALDER GLOBAL INNOVATIONS LTD

ACQUISITION OF INTEREST IN SUPER SUCCESS ELECTRONIC COMPANY

<>China and the world will face tough economic challenges next year, minister Li Rongrong of the State Economic and Trade Commission (SETC) warned at a press conference on Wednesday during the APEC-meetings in Shanghai.

<>Economic crises in the past four years have severely disrupted the capital markets and Asian business people are eager to tap into the rich resources of Chinese savings, said Roman R. Del Rosanrio jr, chairman AB Capital & Investment corp. in the Philippines. “China can develop into Asia’s most important capital market, but is now only inward looking,” he said. “Its savings are too large to use only within its own borders and it will have to look for attractive investments opportunities outside China.”

<>“We want to invest for two reasons,” said Bill Gates at a press conference at the APEC CEO Summit in Shanghai on Friday. “We think the market will grow and China has incredible human resources.”

The Microsoft’ founder encouraged China to put more effort in the education of software engineers. “Education is the major challenge,” said Gates. China needs at least a 100,000 software engineers per year to get on the same level as India and the US, he estimated.

<>Fortis has obtained a license for life insurances for the whole of China, while its foreign competitors are limited to certain regions, mostly Shanghai and Guangzhou.

The Belgium-Dutch financial services provider signed on Friday bought a 24.9% interest in the Tai Ping Life (TPL). Fortis paid US$88 million for the equity and will expand its share up to 49% or more, depending on the regulation China is going to adopt under the WTO-agreements, a press release of the company says.

<>United States-based life insurer New York Life and French giant AXA Group revealed plans to enter, or expand, on the mainland market before the country enters the World Trade Organization (WTO), the South China Morning Post (SCMP) reports on Monday.

<>French telecom giant Alcatel will invest US$312 million to increase its stake in Shanghai Bell, the nation's largest maker of telecommunication networks, and merge all of its China operations within two years, media report on Wednesday.

Alcatel will buy 8.35 percent of Shanghai Bell from the Belgian government and 10 percent plus one share from the Chinese government. Thus Alcatel will hold a 50 per cent plus one share stake in total, compared to the current 31.65 percent stake. The Ministry of Information Industry (MII) will control the Chinese stake.

China remains an oasis of economic growth as the country started a weeklong holiday. Masses were out in force in the large cities to celebrate to combination of National Day and the traditional Mid-Autumn festival.

Airlines have been adding over 1,000 flights. TV-stations showed how extra trains have to accommodate the expected 60 million tourists that are expected to travel this week. In China it is holiday as usual and only premier Zhu Rongji added the fight against terrorism as an extra during a speech that also could have been held last year.

The economic threats did not appear on any of the agenda’s of China’s nationwide receptions and parties. But representatives of shipping lines and traders at celebrations in Shanghai warned it was still too early to feel the effect on the worldwide recession on China’s export. “Most orders were already in the pipeline,” said one of them. “We expect only to see an effect of the economic downturn in November. In the longer run, the American Christmas is in the end decisive for China’s export. Are the Americans going to buy for Christmas?”

As China’s economy mostly dependents on domestic demand, estimations for its economic growth have only been downgraded marginally, from close to eight percent growth for its GDP to between 7 and 7.5 percent.

And as trust is a major pillar under a country’s economic strength: China might just have a very effective tool to face the economic storm that is hitting the rest of the world.

Tagalder will continue in its active merger and acquisition activities in China and believe that it will benefit Tagalder in the long run.

For further details, please click here.

Please be advised that the company will be holding its Annual and Special Meeting of shareholders in Mississauga, Ontario. Pursuant to National Policy Number 41 the following are the relevant dates:

If you have any questions please contact the undersigned or email to: maureen@tagalder.com 

Yours truly,

TAGALDER (2000) INC.
Maureen Espin,
Director

Special Offer  
August  28, 2001

Tagalder has special offers to all foreign companies, which plan to build manufacturing facilities in China. Tagalder will assist foreign companies to establish  joint-venture or privately owned companies with preferential treatment in terms of enterprise income tax and land acquisition 

Tagalder is specially interested in food processing, high-tech, auto-parts,  environmental technologies and any other businesses with demand in land use. 

The location will be in Shenyang, the industrial center of North Eastern China. The population in the city and the surrounding areas is over 30 millions.

The offer will be valid till China's official entry into WTO.

For further information, please contact:  offer@tagalder.com 

Tagalder and APEC CEO Summit 2001 in Shanghai  
August 9, 2001

NDP (Hong Kong), a member firm of Tagalder Global Innovations Ltd., is contracted by APEC CEO Summit 2001 in Shanghai to provide lighting production for the close ceremony in the evening of October 20, 2001.

NDP, established since 1987 in San Francisco, is a full service Design & Production company specializing in computer-aided interior & set design and fabrication, special i.e.,  effects, intelligent lighting & laser technology.  Its major cliental include big names such as Disney, Fox, NBC, AT&T, Phillips, Sega, Warner Brothers, etc.

APEC CEO Summit 2001 will be held on October 18-20 this year in Shanghai, China. This is the first such Summit to be convened in China.

For further information, please click on the item interested:

APEC CEO Summit 2001 in Shanghai 
NDP (Hong Kong) Ltd

Shenyang Economic & Technological Development Zone  
July 20, 2001

A team of 5 members led by Mr. Liu Yijie, Director of Shenyang Economic & Technological Development Zone Investment Promoting Bureau, met with Mr. Roger Lam, Edward Chan and Charles Kwok, directors of Tagalder, during their visit to Toronto. 

SETDZ is a special development zone reporting directly to Central Government in China promoting foreign investment in industries and technologies. Many multinational companies such as Coca Cola, Sanyo, ABB, Hitach, already established in this zone. SETDZ has successfully negotiated an investment of US$1.2 billion subway project with SNC Lavalin of Canada.    

Mr. Liu informed that SETDZ is ready for China's WTO entry and will work more closely with Tagalder in promoting investment into the zone.  Tagalder will assist SEDTZ to establish an industrial  park in auto part manufacturing for the subway project and for the rapidly growing automobile market in China.

For further information on SETDZ and investment into China, please click here.

If interested in the Auto part manufacturing opportunities and investment into the industrial park, please contact us at :

autopart@tagalder.com 

US SEC Filing  
June 23, 2001

Tagalder's President, Roger Lam, informed that Tagalder has completed its filing to US SEC. 

Tagalder's information is now searchable on US EDGAR and Canadian SEDAR databases.  

To view the filing, click the following links:

US SEC EDGAR DATABASE

CANADIAN SEDAR DATABASE

Please check back in the near future when further progress can be disclosed.

Tagalder and The Hong Kong Polytechnic University  
June 16, 2001

Tagalder's CEO, Peter Chun, was invited as a key speaker in a Forum hosted by Hong Kong Polytechnic University. Tagalder's active merger/acquisitions caught the attention from the local business communities in Asian countries.

Tagalder's CEO, third from the left

The Forum on 8th June, 2001 concentrated  on "the roles and responsibilities of academia, the industry and the government in  the IT  R & D support for SME after China becomes a member of WTO". 

Executives and professionals from many international and local companies were invited to attend the Forum. 

Tagalder is working on joint partnership in utilizing university's lab and research/development facility to develop some of its IT products.

Peter Chun, Tagalder CEO
 and
Professor Tharam Dillon
Dean of Computer Science

Interest in Hong Kong Polytechnic University, click here.

Tagalder Global Innovations Ltd.  
June 16, 2001

Tagalder is negotiating with New Dimension Production (HK) Limited ("NDP")  to form Tagalder Global Innovations Ltd. ("TGI"), which will acquire NDP and two other advertisement companies in Hong Kong and China.

NDP US, established since 1987 in San Francisco, is a full service Design & Production company specializing in computer-aided interior & set design and fabrication, special i.e.,  effects, intelligent lighting & laser technology. 

Its major cliental include big names such as Disney, Fox, NBC, AT&T, Phillips, Sega, Warner Brothers, etc.

NDP is renowned for its innovative turnkey designs & operations for trade shows, conventions, motion pictures & video productions, concerts & special events, as well as theater, disco/club, and shopping mall installations.

New Dimension Productions (H.K.) LTD was established in 1997 to support the company's on-going & future projects in the Far East. The scope of business as well as basic operations of NDP- HK are very similar to the U.S. operation despite the geographical and cultural differences.

NDP's scope of business can be generally divided into the following 4 categories:

1. Concept & Theme development and implementation
2. Computer-aided Interior & Set design and fabrication
3. Lighting, Laser, Special Effects and AV design and consultation
4. Lighting, Laser, Robots, Blimps, PA & related equipment sales, rental, installation, & programming

The formation of TGI is one of Tagalder's strategic move into the multi-media production and advertisement company that it will become the major force in promoting Tagalder's business in China and the global market. 

Tagalder is ready for the great push when China becomes WTO member. 

Tagalder's Year 2000 Consolidated Financial Statements  
May 19, 2001

Tagalder's President, Roger Lam, announced that the Corporation has released its Consolidated Financial Statements of December 31, 2000 and its first quarter Consolidated Financial Statements of march 31, 2001. The Corporation has a historical turn around year by consolidating and paying off all its debts and increasing its assets to closed to C$2 million in the first quarter of 2001. 

Roger indicates that Tagalder will exceed its initial target of growing its assets to  C$5 million by the year end of 2001. The annual sales generated from its shareholdings in its diversified businesses will also exceed C$3 million this year. 

Further announcements from Tagalder's CEO, Peter Chun, are expected in the next few weeks on the new developments in Tagalder's Asian division.        

Roger is grateful to the full support from Tagalder's Chairman, Murray Eades,  and the board members, Chief Executive Officer, Peter Chun, and the management team, Tagalder's partners and shareholders. 

The Corporation's business is progressing as planned and the management is confident that Tagalder will transform into a strong income generated company by the year end of 2001.

For further details of the financial reports, please click here.

New Board Member  
April 28, 2001

Tagalder's Chairman, Murray Eades, is pleased to welcome Mrs. Maureen Espin to its Board of Directors. Mrs. Espin has more than twenty years experience in the area of corporate compliance. She has provided both accounting and compliance services to Tagalder since July 1996.

Mrs. Espin’s connection with Tagalder from its outset gives her a broad based knowledge of the Company and its background. She is well known to, and trusted by, many long term shareholders of the Company. This has enabled her to handle shareholder relations in difficult times. The depth of knowledge and experience that she brings to the Board will be a significant resource for her fellow Directors.

Super Success Electronic Company Limited  
April 18, 2001

The corporation is actively negotiating the acquisition of Super Success Electronic Company Limited in China. The electronic products from this factory are exported to Middle East, Asia and North America.  

For product information, please visit:

Tagalder Products and Services

Shoe Factory acquisition  
April 8, 2001

Tung Shing Development Ltd, Tagalder's associate company, has successfully acquired 75% interest in Shenzhen Punluen Industrial Co., Ltd, a fashion shoe manufacturer. The profitable shoe company has annual sales over US$5 million.

Tagalder will add shoes to their product to distribute to Asian countries, Korea, Middle-East and North America.

For further information, please check here.  

Meeting with Taishan City Mayor, China  
March 18, 2001

Tagalder's management met with Mayor of Taishan City, Guangdong, China to discuss business development in the city. 

Taishang is one of the top 100 rich cities in China. It is the most popular oversea Chinese town with over 1 million  oversea Chinese population. Since the economic reform, its oversea Chinese has injected over US$100 million into the local economics.

Tagalder is working with the city in some of infrastructure projects. Details is forth coming in next couple weeks.

To know more about Taishan City, click here.

Mr.  Daniel Chan,  Asia GM of Tagalder (left)

 Mr. Zhao Ruizhang, Taishan City Mayor (middle)

Mr. Peter Chun, Tagalder CEO (right)

Tagalder's acquisition of Tung Shing Development  
March 15, 2001

Tagalder today announced in a Press Release that it has acquired a twenty percent (20%) ownership interest in Tung Shing Development Limited. The purchase price was set at C$1,113,208.

Tung shing's prime business is a plywood manufacturing operation in Weidong, China. The company has recently entered into an agreement to manufacture and supply plywood and other wood products to GDCE5, one of the major construction companies in China. Production is expected to commence in the spring of this year. 

Mr. Peter Chun, Director and CEO of Tagalder, has been appointed as Tagalder's representative on the Board of Directors of Tung Shing. 

For detail, please click here.

Tagalder's CEO interviewed by Metro Broadcast in HK 
March 3, 2001

Mr. Peter Chun, Tagalder's CEO, was interviewed by Hong Kong Metro Broadcast on Tagalder's expansion plan in Asia. Since last interview by the radio talk show on January 17 this year, the station received many positive responses from the audiences.

The interview conducted in two parts, one on February 28 and one on March 1, all in Chinese. For interested readers, please click here and select the correct date for further information.  

Tagalder's Asia Division and Management
January 30, 2001

Peter Chun, Tagalder's CEO, announced two new additions to the management team to develop its Asia Business.

Daniel Chan - General Manager, Asia Pacific
Daniel has more than 10 year of business experience, specialized in China trade and pharmaceutical business, good connection in China and Asia area.

Vincent Jew - Vice President, Asia Pacific
Vincent has more than 30 year of business experience. He owns various businesses in Hong Kong, US, Taiwan, China and Singapore.  His expertise includes Entertainment, Production, telecommunication, dry cleaners franchise and IT. Vincent is very reputable and has good connections in business.