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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Maurice Winn who wrote (10942)	11/1/2006 11:56:13 PM
From: TobagoJack	Respond to of 217786

speeding towards teotwawki ... even more advanced than Ultima-capitalist Money Rock Hong Kong ! "November 2, 2006 China Council Approves Plans To Spin Off Its Postal System By ANDREW BATSON November 2, 2006 BEIJING -- China is moving forward with a plan to turn its postal system into a $10 billion standalone company, a change that would spin off one of the last businesses still run directly by the government. The State Council, the government's highest administrative body, published a document this week detailing its approval of the plan, which was finalized in August. The plan calls for the post office's business operations, which use the name China Post, to be injected into a new, state-owned company. The State Postal Bureau will continue to exist but is being changed into a purely regulatory organization. That shift could address some of the criticisms China has faced over its handling of the market for delivering documents and parcels. The huge and fast-growing market has attracted many of the world's big express-delivery companies, including FedEx Corp., United Parcel Service Inc. and Deutsche Post AG unit DHL. The foreign companies that compete with China Post have long complained that the government agency also had regulatory power over them. The planned change could be a step toward a more independent regulator and a more level playing field for those foreign companies -- although foreign executives also have expressed concerns about separate, proposed legislation that they say could further entrench China Post's market dominance. China Post carried 7.35 billion letters and 95.3 million parcels in 2005, earning revenue of 57.72 billion yuan, or $7.3 billion, an 8.1% increase over the previous year. The new company's other businesses will include the distribution of newspapers and magazines and the issuance of postage stamps. China Post Group will have registered capital of 80 billion yuan, or about $10 billion at current exchange rates. The new company also will incorporate the post office's savings operations, which are undergoing a separate restructuring to become a full-fledged bank that also makes loans. The postal-savings bureau's 1.3 trillion yuan in deposits would make it China's fifth-largest bank. China has over the past decade or so taken the government bureaus that once provided other essential services such as telecommunications and electricity and turned them into commercial companies. Several of them now trade on overseas stock exchanges. The State Council document didn't mention whether the new postal group would seek outside investors. -- Rick Carew contributed to this article. Write to Andrew Batson at andrew.batson@dowjones.com1 "