Society

Three Chinese companies plan to seek nearly $3 billion from Hong Kong investors this month, according to people familiar with the matter, adding to a surge of initial public offerings in coming weeks just as the market shows new signs of flagging.

Shanghai Pharmaceuticals Holding Co. plans to seek up to $2.22 billion through a May 20 listing, said people familiar with the matter. It joins two others now expected this month, according to other people: Chinese chemical fiber manufacturer Billion Industrial Holdings Ltd., which is seeking up to $449 million, and flooring maker China Flooring Holding Co., which is seeking up to $300 million.

Showing a willingness to control rising prices with aggressive tactics, Chinese authorities on Friday fined consumer-goods maker Unilever PLC for talking publicly about planned price hikes, which the government said contributed to a scramble for products like soap and detergent in the inflation-hit country.

The National Development and Reform Commission, China's economic planning agency, fined Unilever two million yuan ($308,000), saying the Anglo-Dutch company had broken the law when it spread information about impending price increases and disrupted market order.

China's government is battling mounting inflation problems that run the risk of destabilizing the country. Inflation hit a 32-month high in March. China's consumer-price index jumped to 5.4% from a year earlier, the fastest rise since July 2008, as soaring commodity costs have driven food and consumer-goods companies to raise prices.

The fine issued to Unilever comes as Chinese consumers have grown fearful of the increasing costs of their food and other daily necessities. To soothe their woes, China's leaders, who believe state power is a critical component to maintaining economic growth and stability, have stepped in. But the Chinese government has limited tools to curb inflation in part because of its exchange-rate regime.

The Chinese government's heavy hand, while intended to maintain social calm, poses risks for companies operating in China, such as Unilever. Surging commodity costs are not only affecting the pocket books of consumers, but also many businesses' profit margins.

Unilever appears to be the only company that has been fined. A noodle maker, Tingyi Holding Corp., was given a warning over discussing price increases publicly, but no fine was issued.

From January to March this year, the national patent applications in Shenzhen amounted to 12899 pieces, up by 30.57% over the same period of last year, among which, invention patent totaled 5956, up by 25.92%, a city’s Intellectual Property Rights Meeting held by Shenzhen Municipal Market Supervision Administration before the 11th World Intellectual Property Rights Day was told.

It’s anticipated the national patent applications in Shenzhen will break through 60000 pieces and the invention patents will exceed 30000 by the end of this year. Meanwhile, the PCT international patent application in Shenzhen totaled 647 pieces from January to February, continuing to rank top in the country.

In order to promote water conservation, Beijing will expand its strict water quota system to all enterprises in the city in 2011 and 2012, said Cheng Jing, head of the Beijing Water Authority, on May 3.

The city will continue to strengthen water resources management and will phase out private water wells after the South-to-North Water Transfer Project is completed in 2014.

Cheng said that Beijing is now in its 12th consecutive year of drought. In the past five years, the precipitation of the city dropped 20 percent, and the inflow of water into the city's reservoirs fell 70 percent.

The city is seeing a steady decline in the amount of surface water and groundwater, and its water availability per capita is only one-thirteenth of the global average.

Furthermore, the postponement of the South-to-North Water Transfer Project to 2014 has made Beijing’s water crisis even worse. Therefore, all enterprises and individuals in the city have to reduce their water consumption.