Business news for Mon, 24 Dec 2007 & with words economic+government. 5 news.

THE China Development Bank and the Tianjin Binhai New Area signed an agreement to set up a venture capital fund to boost high-technology start-ups in the fastest-growing economic zone in north China. The Ministry of Science and Technology Website released yesterday the joint efforts to kick off the first government-backed venture capital worth two billion yuan (US$270 million) with equal contributions from the CDB and the TBNA. Pi Qiansheng, a vice-ministerial official who heads the TBNA administration, said the government funded and operated venture capital would primarily perform as a fund of funds, an investment fund that has a strategy of holding a portfolio of other investment funds rather than investing in tangible projects. Pi said that the fund of funds will choose outstanding domestic and overseas venture capital funds, including private equity funds, to invest. The selected venture capital funds will be asked to prioritize their investment portfolio in high-technology

CHINA Unicom Ltd, the smaller of the nation's two mobile-phone operators, rose to the highest in Hong Kong trading in almost a month after a report said the country's top economic planning agency supported a breakup of Unicom. The shares gained 3.6 percent to HK$17.36, their best performance since November 30, at the end of trading yesterday. The National Development and Reform Commission said allowing China's fixed-line carriers to acquire Unicom's mobile networks is the most efficient plan for the industry, the Shanghai Securities News said yesterday, citing a research report by the country's top planning body. China, the world's largest mobile-phone market by users, is expected to reorganize the industry by breaking up Unicom into two operators to be run by the fixed-line companies. China Mobile Ltd controls two-thirds of the nation's wireless subscribers and is adding customers at four times the pace of Unicom. "The government is concerned China Mobile is much too

SRI Lanka's central bank will probably keep its benchmark interest rate unchanged at the highest level in Asia in a bid to contain inflation without threatening economic growth. Central Bank of Sri Lanka Governor Nivard Cabraal will leave the repurchase rate at 10.5 percent for a 10th straight meeting, according to nine of 11 analysts surveyed by Bloomberg News. Two expect a half point increase. The decision is due tomorrow in Colombo. The central bank forecasts the economy will next year expand between seven percent and 7.5 percent, the fastest pace in 30 years, as the government spends money to rebuild the eastern region captured from Tamil Tiger rebels in July. Cabraal said last month that borrowing costs at a five-year high were sufficient to bring inflation below 10 percent next year from about 20 percent now. "The central bank will look to fuel growth as much as possible," said Geeth Balasuriya, an analyst at HNB Stockbrokers Pvt in Colombo. "Although

GOVERNMENT subsidy support for meat production will be stable even when pork prices fluctuate, the Ministry of Finance said yesterday. Speaking at an online press conference, Zeng Xiao'an, deputy director of the MOF's Department of Economic Development, said the government would take subsidies for piglet keepers into a long-term mechanism framework. "It does not matter whether pork prices are rising or falling, the supportive policies will be successive," said Zeng. "We will only adjust the strength of the policies based on real conditions," Zeng said when asked about the policies' time limit. To combat escalating inflation, China pledged to draw up a series of measures, including more subsidies for farmers. From July next year to the end of June in 2009, subsidies for each reproductive female piglet will be raised from 50 yuan (US$6.75) to 100 yuan, said Zeng. Also, the central government will allocate 2.5 billion yuan next year to support the

Two conservative economists ranked Arizona second in the U.S. for its low taxes, pro-business regulatory environment and limited government.