According to a report from the Organization for Economic Co-operation and Development revealed, China has overtaken Japan to become the second biggest spender on research and development behind the US. The country is expected to invest $136bn in research and development this year after growing by more than 20 per cent in the past year, ahead of the $130bn from Japan but still well behind the $330bn the US will invest, the OECD said. (Source: finance times)


Japan is to introduce rules to tighten up on management buy-outs following investor concern that MBOs are being pushed through at low prices and with poor disclosure. Shiro Okita, of the Financial Services Agency, said the new rules, due to come into effect later this month, would mean minority investors could no longer be fobbed off with unfair prices. (Source: finance times)


According to a report, the hedge fund universe has expanded substantially since the start of the millennium, with at least 6,500 vehicles in existence today. With the launch of many new hedge strategies, demand for hedge funds began to pour in from wealthy private clients and intermediaries. A client director at GAM noted that, it is now widely recognized that including hedge funds within a portfolio of traditional assets, such as equities and bonds, can significantly improve risk-adjusted returns. He added that, with the rapid growth in the number of hedge funds, it is becoming increasingly difficult to find the winners. (Source: Trust net)


India’s high economic growth is being driven by the appearance of a wealthy Indian middle-class. Over the last three years the real growth rate has averaged around 8% and the Indian government's aim is to achieve a real growth rate of 10% per annum.

An expert says India's main investment themes are consumption, investment and outsourcing. She says that the economic sectors benefiting most from growth are financial services, outsourcing consumer stocks, leisure, pharmaceuticals, construction, banking and agriculture. However, the risks to the sustainability of India's high growth rate are underlined by some statistics such as high inflation, unemployment, budget deficit, high public debt, current account deficit and a rising population. (Source: Trust net)


Over the course of this year UK financials have done well in absolute terms, although the two largest sub sectors, banks and life assurers, have performed in line with the market rather than outperforming. General Financials, real estate and non life assurers, by contrast, have outperformed the market. However, since July the sector has been helped by factors such as an improvement in the housing market and fewer concerns about interest rates. (Source: Trust net)


According to an investigation, Britain’s 54 billionaires are paying personal taxes on only a fraction of their wealth as experts identify the UK as the world’s first “onshore tax haven”. The UK billionaires paid income tax totaling just ￡14.7m on their ￡126 billion combined fortunes, and only a handful paid any capital gains tax. While middle-class Britons face an increasing tax burden, the country is increasingly regarded as an “onshore tax haven” by the super-rich and their advisers. (Source: Timesonline)


The World Bank launched on Monday a rural community development fund that will provide farmers in 12 poverty- stricken villages with low-cost loans. The fund, worth 1.33 million U.S. dollars, was launched as a three-year pilot program in poor villages in central China's Henan province and southwestern Sichuan province. At resent, impoverished farmers have found that the country's banking reforms, which involved closing many local branches, made it difficult for them to get bank loans. The World Bank program will help villagers manage their own resources and the affairs in their own communities. (Source: Xinhua)


With an eye on future business prospects, a host of foreign banks are preparing to establish or expand their automatic teller machine (ATM) networks to tap into the huge opportunities offered by the opening of China's banking sector. Under the new regulations on foreign banks, those who incorporate locally can provide renminbi services and issue bank cards to individual Chinese customers without geographic limitations. Citibank and HSBC have signed agreements to become members of China UnionPay, the country's sole bankcard transactions operator. When overseas banks are allowed to offer renminbi retail business, China UnionPay cardholders can also withdraw cash from their ATMs. (Source: Chinanews)


Members of the Swiss government have reiterated their determination not to give an inch to the European Union regarding the country's tax system. According to the European Commission, the Swiss tax system is "incompatible" with the 1972 free trade agreement between Switzerland and the EU because it distorts trade within the bloc. The EC takes issue with laws that allow local cantonal governments considerable freedom to set their own levels of taxation in a bid to attract international holding companies and high-net-worth individuals to relocate in Switzerland. (Source: Tax-News.com)


The Chinese authorities have reportedly uncovered the largest case of money laundering yet reported in the country. Shanghai Securities News revealed that the 5 billion yuan (US$630 million) money laundering operation had been discovered by chance during an investigation into the falsification of business names by government agencies, including the Shanghai office of the central bank. While details of the alleged crimes are currently scant, it is believed that the case involves an "underground" banking operation conducting illegal remittance, foreign exchange and other services. (Source: taxnews)


China's export growth is expected to slow down next year, according to a blue book released by the Chinese Academy of Social Sciences (CASS). Affected by appreciation of the RMB and adjustment of tax rebate to exporters, the export growth may drop by 12 percentage points from 2006 to 14.9 percent in 2007, said the report. It is estimated that the year-on-year import growth will be 22 percent, seven percentage points higher than growth of export. (Xinhua)


Li Yang, a former central bank adviser said that China is unlikely to further tighten its monetary policy next year. He said that China’s monetary policy will be “neutral,” Li didn’t specify any reasons for his prediction, but China’s economic growth recently has slowed after authorities twice raised lending rates this year and three times increased the yuan reserve requirements of commercial banks. Although Li’s remarks are his personal view, as a former member of the central bank’s monetary policy-making committee, his comments can be seen as giving guidance to the market on the central bank’s likely course of action. (Source: p5w.net)


As widespread pollution could hold back China's continued economic growth the country may introduce an environmental tax. "The country will gradually levy environment tax when conditions are ripe," Mao Rubai, chairman of the Environment and Resources Committee of the National People's Congress or parliament was quoted as saying at a workshop in Shenzhen, Guangdong Province. He also aid formulating an effective economic policy such as collecting an environment tax was critical. (Source: Xinhua)


Irish Finance Minister Brian Cowen has announced further restrictions on controversial tax reliefs which can be used by wealthy taxpayers and businesses to substantially reduce their tax bills. The new measures, announced as part of the 2007 budget, are being introduced with effect from 1 January 2007 and will limit the use of these tax breaks by those with high incomes. (Source: taxnews)


The Finance and Revenue Ministers in New Zealand have been working together with the financial services industry to come up with some New Zealand offshore investment tax changes to make the taxation of overseas investments fairer and at the same time to bring offshore and onshore investment vehicles somewhere in line in terms of attractiveness and competitiveness. The proposed changes are now in the hands of a review panel from the Finance and Expenditure Select Committee. So far the changes have received a positive reception from all sides in the argument about the New Zealand taxation of offshore investments. (Source: Shelteroffshore)


The offshore companies sector in Panama is likely to receive a sudden wave of additional interest from those with structures currently incorporated in Uruguay as the Uruguayan Ministry of Finance introduced proposals to the government recently that will rule out the tax effectiveness of Financial Investment Corporations in Uruguay by 2010. (Source: Shelteroffshore)


To cooperate the implement of The foreign fund banks management Regulation of People’s Republic of China issued by the State Council, the chairman of China Banking Regulatory Commission Liu Mingkang recently sign the six chairman order in 2006 to issue detailed rules of the above regulation which will take effect from December 11, 2006 simultaneously. The relevant official said the detailed rules fully reveal China’s commitment to WTO on principle canceling non-prudent regulation and giving nationality treatment to foreign-fund banks. (Source: China Finance Net)


Chinese Minister of Commerce Bo Xilai Monday urged Chinese enterprises to take precautions against economic, political and personal risks as they step up their investments in overseas markets. Noting that global conditions have grown more complicated in recent years. He said the Chinese Government will spare no effort to help Chinese enterprises invest safely abroad by facilitating agreements and working with local governments. He added that China's embassies in investment destination countries must provide information and ensure the personal safety of Chinese investors' staff. (Source: www.p5w.net)


China’s central bank issued yesterday report for 2006 finance stability expounding domestic finance status quo and the implement result of monetary policy. Reporter observed that the central bank warned in advance risk caused by likely housing price declining for first time in column in the 169-page long report. The report indicated that the potential risk caused by fluctuation of real estate market needed much attention under the soaring housing price and large loan size on property sector. (Source: China Finance Net)


The Administration of Copyright issued charge standards on copyright fees for music, musical TV products in Karaoke business industry on November 22, 2006 that the basic standard is 12 yuan per unit room daily and Guangzhou is subjected to the trial city on the charge. Guangzhou cultural and entertainment association stresses in a declaration that it will say no to the copyright fee which is not meaning to resist the charge but just unsatisfied to the charge standard.