China will have about 6.6 million college graduates this year and efforts should be made to “expand employment channels and create more opportunities for graduates,” the Chinese government said. Small and medium-sized enterprises that employ university graduates could enjoy preferential policies in obtaining loans and social security. “Graduates starting their own businesses can obtain loans worth up to CNY100,000 and get training subsidies,” a government statement said.

Hong Kong and Shanghai stocks suffered a beating on May 23, amid worries of a deepening European debt crisis and a liquidity crunch on the A-share market. The Hang Seng Index lost 488.37 points or 2.11% to close at 22,711.02, while the Shanghai Composite Index dived 83.89 points or 2.93% to 2,774.57. “The market thinks there is a possibility that Greece may default. If that happens it may be quite bad for global financial centers,” said Alastair Chan, Economist with Moody’s Investors Service. The Hang Seng dropped below its 200-day moving average on May 23 which had been seen as a strong technical support for the market, and in Shanghai, the benchmark hit its lowest level since February 10. Andrew Freris, Asia Chief Investment Adviser for BNP Paribas Wealth Management, said even if Greece were to default, it should have a minimal impact on Asian economies, because Asian banks are holding only a tiny amount of Greek debt. The launch of the international board is widely seen as a negative factor, Morgan Stanley Huaxin Funds Management Co said in a report, as it will certainly divert current capital, and the companies expected to be listed on the board will add pressure to the overpriced shares on the market. Analysts recommended buying consumption related shares and blue chips with low valuations, following a drop in the market last week. Steel firms led the decliners after data by the China Iron and Steel Association (CISA) showed that both steel prices and demand fell amid the impact of tightening measures. Thermal power plants fell as growing coal prices eroded companies’ profits and caused a nationwide shortage of electricity supply.

Royal Bank of Scotland (RBS) has launched a joint venture with China’s Guolian Securities, allowing it to manage share sales and issue debt in China’s fast-growing financial markets. RBS Asia boss John McCormick said the venture could also help UK companies tap Chinese capital. RBS will have a 33% stake in the venture, which will be known as Hua Ying Securities. “We want to be a top foreign bank in China,” Mr McCormick, RBS Asia Pacific Chief Executive, told the BBC. The joint venture will be based in Wuxi, Jiangsu province. RBS is the first UK bank and the seventh bank internationally to get approval to enter the investment banking business in China. A tie-up with a Chinese partner is a pre-requisite for a foreign bank wanting to enter the securities business.

Hong Kong and Taiwan are ready to sign a new civil aviation agreement that is expected to increase daily flights between the two places. It is the first deal between them since the handover of Hong Kong to China in 1997. The travel industry hopes the deal will help Hong Kong attract more Taiwanese visitors. Cathay Pacific Airway’s Chief Executive John Slosar said that the airline was interested in one or two more daily flights in addition to the current 108 round-trip flights. The existing agreement, which regulates the routes and number of flights between Hong Kong and Taiwan, was first signed in 1996 when the city was a British colony. It has been extended eight times since.

China’s civil aviation industry, including airlines and airports, earned CNY11.47 billion in net income in the first four months of this year, an annual rise of 17.7%. Domestic carriers earned CNY8.83 billion in the period, up an annual 34.1%, while profit of airports plunged 49% to CNY1.1 billion, the Civil Aviation Administration of China (CAAC) said. In April, net income of the industry surged an annual 53.8% to CNY4.16 billion. Domestic airlines flew 24.37 million passengers last month, a growth of 13% from a year earlier, and carried 2.6% more cargo at 478,300 tons. Passenger volume on China-Japan routes declined 32.2% in April. Air China carried 4.16 million passengers, up 9.5%, China Southern Airlines 6.76 million passengers, up 7%, and China Eastern Airlines 5.88 million passengers, a gain of 15.5% annually.