INVESTMENT ENVIRONMENT

1. Location and climate

Yinchuan is located in the middle of the area irrigated from the Yellow River in Ningxia plain, at 105゜49' to 106゜35' E and 38゜52' N. It is the Helan Mountains to the west and the Yellow River to the East. The average elevation ranges between 1,200m. Yinchuan is in the temperate zone with the continental climate. Yinchuan is neither very cold in winter nor very hot in summer and the annual sunshine time is 2,898 to 3,040 hours. The average annual temperature is between 8.3℃ to 8.6℃ and the average rainfall ranges between 193 to 203 mm.

2. Administrative Area and Population

Yinchuan is composed of five parts: the old city, the new city, suburbs and two counties (yongning and Helan). The total area is 3,499 square kilometers, of which urban area covers 1,277 km2. By the year of 2000 the total population of Yinchuan is 953,800, including 175,00 Hui people and 593,800 living in urban area.

3. Natural Resource

Land: Yinchuan has the land of 5.3412 million mu of which farmland is 1.7941 million, forest land is 0.395 million mu. Water area is 0.2721 million mu.2.6353 million mu is suitable for further development in agriculture and forest, more than 0.1 million mu of natural lakes can be used for developing agriculture. The soil here is mainly gay desert soil.

Mineral: there are 20 kinds of mineral resources found in Yinchuan, reserved in more than 30 places, including 10 big deposits and 6 medium deposits and 5 small deposits. 17 of them are valuable for exploiting up on industry. The natural resources of coal, lime rocks, silica, dolomite, energy resources are rich. The water from the wells is hot and of deep permeation with the function of medical treatment.

Local specialities: There are many kinds of local products here. The famous ones are chinese wolfberry, locorice root, Helan inkstone, Tanyang Lamb skin and black moss. They are famous all over the world both for their quality and unique.

4. Infrastructure

Aviation: Yinchuan Hedong Airport is the state airport located in the east of the city proper. It can serve the Boeing 737 and other planes. It boasts domestic routes linking Yinchuan with cities such as Beijing, shanghai, Guangzhou, Chengdu, Xi'an, Urumchi, Wuhan, Shengyang, Kunming and Chongqing. There are over 40 planed flying to more than 10 big and medium cities in the country, radiating in all directions. Furthermore, the international routes will be open when necessary so as to meet the demands of our guests.

Railway: The Baolan railway running through Yinchuan from north to south joins up many key lines, leading to the coastal cities. Baozhong railway links Jingbao railway and Longhai railway. Therefore, merchandise can be transported to Middle Asia and Europe across the Europe-Asia Inland Bridge at Lanzhou city.

Highways: There are 1,088kms of highways in Yinchuan with 4 national roads(109,110,211,307) and Yinping, Yinba, Shiying, Yingu and Ningding road passing through, leading to inner Mongolia, Sha’anxi and Shanxi, etc. And Shizhong highway runs through the Region. There are 18 bus-roads in the urban district with length of 371.1 kms, handling 172,000 people daily.

Post and Communications: there are 275,000 exchange lines in Yinchuan. The rate of popularizing telephone has reached 37.3 sets every one hundred persons. And there are also complete post offices providing both internal and external postal services, as well as express mail service. Programme-controlled telephones with digital control have been installed throughout the city. The radio telephone and mobile telephone is developing very fast.

Power supply: Electricity supply in Yinchuan is big enough with safety and reliability. Within a circumference of 100 square kilometers there are 5 medium-sized power stations with total installed capacity of 2.23 million KW, and the energy production per capita ranks ahead in China.

Water supply: the ground water resources are very rich, supplying 400,000 m3 a day. The rate of using running water in the urban district is 100%. The Yellow River runs along the border of Yinchuan, with a length of 78.4km, 16 km away from the city proper. And its average annual flowing capacity is 31.5 billion cubic meters.

Natural Gas Supply: the gas project in Yinchuan has been completed. It can get natural gas from Shan Gan Ning gas field which is big enough to supply 41,503 m3 annually. And civil natural gas project is in course of construction.

Heat Supply: heat supply project is developing fast in the city. The heat and power plant has been completed and put into operation. And mass heat supply rate is 49.8%.

Labor force reserve: The labour force reserve in Yinchuan is plentiful. And there are more than 76,000 technicians included. Every year the students from colleges and special secondary schools and the workers trained after graduate or finish their school join in the reserve. Therefore it can meet the demands of foreign-funded enterprises.

INVESTMENT FIELDS

I Agriculture and Country Economy

1.Agriculture:

(1) Plantation: High grade wheat and rice, Chinese wolfberry, grape vine, silkworm production base, High-tech model agriculture base construction, and the second generation of energy-saving sunlight green house construction.
(2) Animal husbandry: Raising cattles, sheep and special economic animals.
(3) Aquaculture: Transportation and sale of commercial fish, promoting development of fine-grade aquatic products.

2.Water Works

Agriculture comprehensive development, flood control works, harness Yellow River for ecological structure.

3.Township Enterprises and Small Town Construction

Introducing Hi-Tech, utilizing achievements in scientific research construction of the towns of Yongning and Helan, organic town construction.

4.Ecological Project Development and Construction

II Industry

1.       Hi-tech industry

2.       Processing business of high-grade agriculture by products

3.       Medicine industry with distinguishing feature.

4.       Environmental protection and energy-saving industry.

5.       Natural gas and chemical industry base.

6.       Novel construction materials.

7.       To transform the existent enterprises.

III Tertiary Industry

1.       Business and trade: Retailing, wholesaling, chainbusiness, markets construction.

2.       Tourism: Develop tourism resources, and its infrastructure, set up tourism development company.

3.       Education: Distinctive national middle school, long range education center, further education center.

4.       Culture: Construction of cultural square, and Yinchuan television tower.

5.       Sports: Development and construction of sports center

6.       Finance: Joint venture or foreign funded bank, set up financial service company.

IV Urban Infrastructure

1.       Transportation facilities

2.       Protection and construction of the surrounding of lakes.

3.       Construction for civil natural gas.

4.       Urban environmental protection

5.       Gas supply of urban mass heating

6.       Urban drainage construction.

7.       Transfer the right of management of public business facilities.

8.       Urban transform

9.       Construction of urban gardens.

Also welcome to invest in the other fields.

INVESTMENT MODES

Other investment modes granted in accordance with certain regulations and laws.