Bankcard News

1. Agricultural Bank - Suchuan Branch Issues Social Welfare Card
From a recent release, Agricultural Bank of China-Sichuan Branch rolled out its first Five-in-One Issuance Social Welfare Card (Medical, Pension, Birth Delivery, Accidents and Un-Employment) in Leshan City. This symbolizes the new card into the bankcard family and the launching of Golden Insurance Project of Social Welfare information system in Leshan City. This card has two accounts of social security and banking application which integrates the social welfare and bankcard. It suites the insurance buyers who buy single or multi-insurances. The cardholders can settle the payments at all the social insurance, appointed hospitals and pharmacy shops, but they can also cash money over cross-banks ATM machines. With the development of Golden Insurance Project nationwide, the cardholders may use this multi-functional smart cards to apply for jobs, social insurance and civil pensions etc. Besides, this Card can be used as E-purse in China for the applications of public utilities, residential property management, medical cares and shopping.

2. Construction Bank of China Launching Financing Bankcard
On October 26, China Construction Bank of China-CBC staged its inaugural Ceremony of launching its LeDangjia Financing Bankcard in Beijing. This card is a multi-function debit card integrating transaction and value-added services, which is specially designed for the high and middle level individual customers with comprehensive, multi-functional and standardized financing tool. As introduced, this Financing Bankcard has more than one single card function, but has over 14 trading functions and 10 personal value-added services, including one card with multi-accounts; applying for mortgage, foreign currency trading, national debts trading and money reception & payment upon request; to provide bills checking via regular deliver; to provide differential services targeting different customers with Platinium, Gold and Silver bankcards.

3. Guangdong Development Bank Launching Business Type Corporate Credit Card
From one recent release, Guangdong Development Bank and MasterCard International made a joint announcement that they would launch the first business type corporate credit card - GuangFa MasterCard Business Card. This Card has the advantage of reducing the expenses of companies and of providing corporate financing management. GuangFa MasterCard is one dual currency credit card jointly issued by Guangdong Development Bank for the first time with one multi-national company.
To make a cooperative promotion for this issuance, Guangdong Development Bank and GE Capital Financial of US GE Corporation signed the partnership agreement. Hence, this GE Capital Financial will be the first user of this Bankcard.

4. The First Transparent VISAMINI card in China
From VISA International, Beijing Commercial Bank has joined hands with this Organization to launch the first transparent VISAMINI credit card in China. This Mini Card is international standard compliant dual currency debit card consisted of one big card and one smaller card. The bigger one is the size of the traditional card while the smaller card has a 43% size of the standard card - VISAMINI card. This Card has the two current settlement account of RMB and US dollar. If the cardholders use this card to cash money outside China or find there is no enough capital in the account, they can pay the difference with RMB.

5. AMEX and China Unionpay Join Hands to Develop the Credit Card Network
On November 8, American Express signed the cooperative agreement with China Unionpay in Shanghai to develop the AMEX card accepting business in China, including the ATM system sharing. According to the report, this Agreement will further help AMEX expand its business coverage in China and will provide more convenient services to the AMEX members.

6. Bank of China and China Life Insurance Developing Insurance Business with Great Wall Card
To further expand the cooperative efforts between banking and insurance, and to upgrade the cooperation, Bank of China-Liaoning Branch and China Life Insurance-Liaoning Branch signed the Cooperative Agreement on Great Wall Credit Card and Insurance Business in Da Liang City, which targets the 14 cities in Liaoning Province.
As it is reported, this Agreement covers two areas, firstly the Great Wall Credit Cardholders can buy the comprehensive insurance of thefts and grasping, property and accidents; secondly the Great Wall Credit Card business can be promoted to the insurance customers via the sales channel and subsidiary offices of the Life Insurance Company to develop the Great Wall Credit Cardholders. This operation will be inspected and cards are issued by Bank of China. Both parties utilize the advantages of human resources, network and customers' resource to make cross marketing and sales, so as to make up the differences between the parties, to make common efforts to achieve mutual development.

7. Construction Bank of China and HSBC Jointly Building up Pacific Credit Card Center
There are new breakthrough progresses of the cooperation between Construction Bank of China-CBC and HSBC which has become the focus of the industry for some time. From a recent press release by the Spokesman of CBC, the Pacific Credit Card Center has been officially set up. HSBC will handle the daily administrative management and assign the new CEO. The establishment of this Center sets the new milestone of the actual start-up of business operations between the two banks.

8. ICBC Guangdong Issued Peony Credit Card at Total Consumption Value of 10.5 Billion RMB
According to Industrial and Commercial Bank of China-ICBC Guangdong Branch, the Peony bankcard issued by this Branch amounted to 12.74 million by the end of September with direct consumption value over 10.56 billion Yuan, and taking the leading position in the bankcard industry of China.
In their bankcard business development, this Branch tried efforts in adjusting the bankcard business direction and branding sales strategy. It has introduced with the Headquarter " Peony Navigation Card", and also launched "Peony - Yuexiu Urban Construction Co-branding Card" which is targeting for the local market with Guangzhou Yuexiu Urban Contruction Real-estate Company and Guangzhou Yangchen Tong Card Co.,Ltd. These are the valued-added services provided to the peony cardholders via Peony Card preferential merchants' network.

9. Minshen Bankcard Initiating Macao RMB Card Consumption
From Beijing Administrative Department of China Minshen Banking Group, the Minshen Bankcard started its RMB consumption in Macao and has become the first RMB currency bankcard consumption in Macao. Thereafter, the RMB bankcards can be used in Hong Kong and Macao.
It is said that the Minshen bankcard holders will enjoy this service without application process, and they can use the Bankcards with Unionpay Logo issued at Mainland by this Bank. The cards that can be used are ordinary debit cards( including corporate and subsidiary cards ), unified cards and VIP cards. The cardholders can use the RMB money in the current accounts without buying the foreign currencies.

10. Guangdong Development Bank Launching Southern Airline Pearl MasterCard
Guangdong Development Bank, MasterCard and China Southern Airline jointly launched Southern Airline Pearl MasterCard, and issued two Pearl MasterCard with trendy designs of special edition: M ( Black ) and F ( Red ). This is airline co-branded credit card integrating the favored services of the three partners. Besides, it has the banking and airline membership services.

11. Tianjin Overpassing Beijing in the Card Consumption
From China Unionpay-Tianjin Branch, the cash consumption in Tianjin has been back off, yet with the increasing rate of using credit cards higher than in Beijing.
By September, 2004, there is an increase of licensed merchants at 866.06%, and a growth of 543.26% of POS terminals. ATM machines have grown at a rapid rate of 200 machines every year.
The bankcard industry in Tianjin is gaining a fast speed. From 2002, Tianjin has catched up with the rapid bankcard industrial development, since China Unionpay has been exploring the bankcard acceptance environment and adjusting the bankcard market structure. The further expansion into the retail stores, supermarkets, restaurants, hotels has improved the traditional bankcard acceptance while the greater efforts have been put into developing the whole salers' markets such as real-estates, vehicles, logistics etc.. The consumption value has grown from 8% in 2003 increasing up to 67.68%. At the same time, the bankcards have been widely deplored in hospitals, pharmacy shops, schools, petrol-chemistry, social welfares and traffic controls, as well as the sectors of gas, water and power suppliers to the civil resident areas.
By September of 2004, Tianjin has installed 55 information kiosks with a total 150,000 transactions with the value at 23.27 million Yuan.

Telecom News

12. China Mobile-Zhejiang Completes Trial on Over-Air Loading for Mobile Terminals
On November 11, China Mobile-Zhejiang released that the Over-Air Loading trial for mobile phones has completed in Huzhou, Zhejiang Province and it is expected to be promoted into the cities at all levels of the Province starting from the first quarter of 2005.
It is reported that this so-called Over-Air Loading System is one brand new electronic pre-payment down-loading service based on SIM cards. With passwords entered, the mobile subscribers will send the SMS to the loading center of Mobile operators before the mobile numbers of the subscribers are loaded.

13. Shanghai Unicom Joining hands with China Merchant Bank to Test Mobile Payment
Recently, China Unicom-Shanghai announced to work with China Merchant Bank to develop the Easy Purchase business. The YiKaTong users of this Bank can use SMS of China Unicom-Shanghai to settle their payment. As late as the end of 2004, the major banks of Construction Bank of China, Bank of China and Agricultural Bank of China etc. will join this Easy Purchase system. The mobile payment has started to move on in Shanghai.
In face of 500 million bankcard users and 200 million mobile subscribers in China, the mobile operators and banks in China are eager to look for the new business focus on value-added services. However, the industrial experts pointed out that the mobile payment chain is formed with front end clients of users, in the middle is the mobile operators and banks and contents providers are followed. At present, the mobile banking and payment operation business can be integrated with the banking industry. How to make it possible for the e-banking and Internet banking operating and interoperable, and how to utilize with maximum efforts to expand the contents providers- the back-end transaction enterprises so as to provide a rich-contents mobile banking service is the key of achieving the Mobile Zero Purse in China.

14. Gemplus Providing GemConnect Online(OTA) Solution for China Mobile-Hunan
Gemplus - the smart card solution provider announced that it would introduce to China Mobile-Hunan the OTA -GemConnect Online branding Management Application Solution based on 64K SIM card. This is a strategic support to China Mobile providing GoTone high-end subscribers in the world. It is reported that this advanced GemConnect Online(OTA) dynamic STK(SIM Card tool kits) platform ensures the high-end subscribers to achieve visual VIP service. This helps and solve the difficulties of providing VIP services according to the VIP cards and VIP manuals.

15. G & D Showcasing the First Dual Interface USIM Card to the World
From our recent report, G & D has developed the dual interface USIM card technology solution, which has been put on display at Cartes Paris. This product is named as STARSIM®Proximity innovative product. The contactless applications will be realized from USIM card. And the LCD screen of the mobile phones will present to the subscribers the transaction status and make timely correction.
From the on-site demonstration, G & D presented the access control application with mobile phones which can replace the access IC Card for employees to enter the company gates with the mobile phones.waving over the readers to identify their ID before entering the office building. Another interesting application is its e-purse function with USIM dual interface card. The users can store the money onto the cards via SMS. For instance, paying at fast food restaurants can be done with the mobile phones touching the readers and the money is automatically deducted. With this STARSIM® Proximity technology, the mobile operators and contents providers will provide the subscribers more potential services.

News in General

16. China Launched the Security Electronic Seals System
To secure the only identity, truth and legality of the action main entity in the information network
environment, and provide convenient management to the public security organizations and maintain the industry order of seals/stamps, the National electronic seals/stamps administrative application system has been in operation.
According to the responsible person of Items Evidence Test Center of Ministry of Public Security, the secure electronic seals/stamps are divided into electronic stamps and seals, which will be widely used in the e-government and e-commerce, such as Internet tax declaration, electronic settlement, the annual supervision of enterprises over the Internet, the contract signature via Internet and invoicing etc. When the users start the system, what they need is one smart key connected to the computers, and key in the relevant passwords, using the mouse to click the blank space of the electronic file, and then the stamps or contract stamps, or the seals for accounting, invoicing and legal persons will be made.

17. 7th Smart Cards + Smart Label(RFID), China & Users' Conference Coming back to Beijing in April
Following the success of 6th event - Smart Cards + Smart Label, China in Shanghai in May, 2004, the Organizers announced to move this annual event back to Beijing Exhibition Center on April 19 to 21, 2005. There are more attractive contents with innovations for 7th event focusing on the following two merging markets:

1) Smart Label ( RFID ) Solution Initiative for Logistics ( Transports, Warehousing and Retailing) in China. China RFID Users' Summit will group the local users and well-known vendors from home and abroad to meet and present the requests and expertise via the products showcase and solutions targeting the Chinese demands.

2) Payment Terminals are driving the market developments in terms of regulations and applications. One showcase area is kept for the display of mobile payments applications, banking terminals, EMV certification and tests as well as the IC card multi-application and security. One workshop on EMV migration and Bankcards will be held concurrently with the Show. By organizing the Workshop is to provide the interactive communication platform for the payment equipment suppliers and the banking users.

During the show, the Organizers will organize various events such as the New Products releases, the industrial sectors' Workshops or Forums. The Organizers are expecting to create more beneficial services contributing to the market development of smart cards and RFID technology.

18. International Micro-electronics Research Program Kicking off in China
Philips Electronics announced the signature of MOU for the International Micro-electronics Research Program in Shanghai, which is strongly promoted by Philips and jointly developed by Fudan University, Qinhua University and Netherland Delft Engineering College. This Program is the first case for the Chinese universities to work with the multi-national companies and to build up the education base of micro-electronics in China.
This Program has been done initially done based on the cooperation between Fudan Unversity and Netherland Delft Engineering College. And it has won the full supports from Philips from the beginning.

19. Hong Kong Chinese University Starting RFID Trial on Clothes
Hong Kong Chinese University - MBA College announced that this company would work with different companies, such as supply chain management companies, logistics, science and technical supports and supervision bodies to introduce the RFID technology into the commercial chains and make it possible within short period of time. This research will start from the fashion industry located in Hong Kong and Pearl River Delta region. The three main areas of this research cover the followings: a) the information basis for the global identity standard and information platform; b) the business level of integrating RFID application and c) the information security and privacy.

NewsBiz in China

20. WuLuMuqi City Urban Public Transport Company Successfully Installed IC Card Encrypted Key Management System
Having approved the application of WuluMuqi City, the IC Card Application Service Center of Ministry of Construction sent its technical people to this City and install the IC card encrypted key management system for construction utilities on November 10. The training on technical issues and card issuance was conducted. There are 2,300 public buses owned by this Company in WuLuMuqi city that started its initial roll-out of public transit IC cards in 2002. The system was done by Tianjin Global Magnetic Card Company. The System was done to upgrade the existing system of IC Cards. And the PSAM card - the IC card security authentication modules installed on the vehicles.

21. Travel Document IC Card Machines Installed for Auto-application to Hong Kong in Guangdong
Starting from November 1, the Exit and Entry Administration Office of Ministry of Public Security- Guangdong Province announced to introduce the Travel Document IC Card Machine. The citizens pertaining the travel documents ( 2000 Edition )to Hong Kong and Macao will apply for one IC card for the travel to Hong Kong or Macao with the permissions for individual tours, group tours, visits to relatives and business purposes. They can make their auto applications at the IC card terminals without filling forms or supplying proofing documents and nor even queuing in lines at the counters.

22. Electronic Licenses in Use in April, 2005 and Hundreds of Thousands of Enterprises Getting Electronic Keys
From the news of Shanghai Industrial and Commercial Administration, there are over 100,000 newly registered enterprises that have obtained their electronic Keys - the E-licenses and become the first group of enterprises enjoying this fast services. As the trial project of the National E-government in China, Shanghai Industrial and Commercial Administration has taken the lead of issuing e-licenses for the newly registered companies. At present, the popular rate is at 20% in Shanghai. According to the responsible person of this Administration, the companies that have got the traditional licenses may apply volunterely for the replacement of with new licenses when they come to apply for changes or annual test. Since the launch of E-Signature Law is implemented, the traditional licenses will be changed by phases. Later on the preparation for enterprise's change, checking, cancellations, annual test and setting up local branches can be done via Internet at one time.

23. The Asian First Future Shop Model set up in South China Mall
The South China Mall signed agreement with world IT leader-WincorNixdorf in Shenzhen on cooperation of building the Future Shop of WincorNixdorf-South China Mall. This symbolizes the basic business model of the South China Mall to be built for trial operation.
As reported, this Future Shop will be managed by full intelligent control system, for instance of integrating contactless IC card and PSA screen system for the shoppers to easily search for the commodities at the indicated locations, providing discounted prices and methods of consumption etc. At the Mall, Information Kiosks are installed for the shoppers to check for products information. These PSA and Information Kiosks are embedded with readers which catch the barcode data and send out via wireless LAN waiting for the feedback of the information of goods. This is the first case of smart control system of retailing in China.