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SMART CARDS NEWS ON CHINA

 CONTENTS:

  November 2004 Issues

   " Bankcard News
   " Telecom News
   " News in General
   " News on the Smart Cards Projects in China
   " News on Vendors

  Other Issues


Bankcard News

1. ICBC Bank launched Peony Platinum Card
From a recent news release, ICBC Bank and Mastercard International joined hands to launch the Peony Platinum Card in Beijing. It is reported that this Cardholders can have the services of high-qualified credit consumption, money transfer settlement, cash deposit and withdraw. Besides, they can also enjoy the VIP services for the special counters at the business locations and Financing Center, and use this Card at all partner's shops of Mastercard International. Most important is that a free toll dial call to the Global Emergent Service Center of Mastercard will ensure that the Card holder can have the instant access to the service checking and the urgent cashing services.

2. The first student's credit card issued in Beijing
From the Press Conference organized by Jincheng International Credit Management Co.,Ltd. and Guangdong Development Bank Corporation, the first credit cards for the university students have been issued in Beijing by these two organizations, which symbolizes the official launch of establishment of students credit system.
In comparison with the other credit cards, it is reported that this student's credit card has more functions, such as the filing up of students' credits, issuance of personal credits reports and job guidance etc., apart from the over-cashing consumption, low-value financing and discounted consumptions at the merchants shops.

3. China Merchant Bank and C-trip.com launching "C-trip Travel Credit Card"
Two days ago, one " C-trip Travel Credit Card" was launched in Beijing by China Merchant Bank and C-Trip.com. As the first dual currency travel credit card in China, this Card presents another firm step for China Merchant Bank towards promoting its credit card business in the tourism sector in China, and also indicates the positive trial implementation of C-Trip.com to develop the tourism credit system as the largest travel service supplier in China.

4. ShenKa Credit Card promotes new products
Shanghai Bank and Mastercard International jointly organized the inaugural ceremony of Shanghai Bank ShenKa Mastercard. This is another new product for Shanghai Bank since its issuance of ShenKa Credit Card in 2002.
This Card is a dual currency of US dollars and RMB with the longest free interest of 56 days and maximum of 50,000 RMB credit limit. Apart from its functions of one main card and multi-subsidiary cards, security and caring services, this Card has the extended and complete services via the global connected network.

5. China Unionpay launched its services promotion to tourists to Hong Kong
Before the long week-end of the National Holiday (October 1), China Unionpay and Hong Kong Tourist Board started the event of "October Gifts from Hong Kong and China Unionpay" to pay back to the card holders via using cards to gain points at the discounted merchants' stores.
Since January, 2004, when China Unionpay started its RMB card business operation over the POS terminals and ATM machines in Hong Kong, it has achieved tremendous monthly growth of transactions. By August, there are 250,000 transactions of Hong Kong Tong cash transactions over ATM at a total of cashing value of HK$440 million and 370,000 transactions of POS consumption transactions at a total cash consumption via POS over US$1.05 billion.
At present, there are over 10,000 merchants in Hong Kong that accept the Unionpay bankcards, via 14,000 POS terminals and 1,100 ATM machines. The merchants accepting Unionpay bankcards cover the stores ranging from department stores, brands stores to the jewellery and diamonds stores, from Audio/Video shops, fashions to the beauty saloons and restaurants and entertainment etc. Tourists from mainland can free information checking at the ATM with Unionpay logos in Hong Kong and cash out the equivalent HK dollars to RMB5,000 every day.

6. Beijing PetroChina stations accepting international bankcards
PetroChina has started its fuel filling with bankcards at 101 gas stations in Beijing. According to the office manager of Beijing Municipal Bankcard Administration, SinoPech is beginning to install the card facilities at its 500 gas stations in Beijing.
As the Chief of Information Center of North China Sales Company of SinoPech said, the POS terminals installed by SinoPech will not only accept the China Unionpay cards, but also will accept the international bankcards issued by Visa, MasterCard, JCB and American Express. With this card consumption for gas filling, the cardholders can also do shopping at the convenient stores of the Stations. SinoPech Group has been busy in talking with Unionpay branches in the cities of Shijiazhuang, Taiyuan and Tianjin to install the POS terminals. This Group hopes that the families with cars can enjoy the gas filling with cards as free as the Beijing citizens.


Telecom News

7. Axalto's Multi-application Simera Airflex Card supporting UP New trend of China Unicom
Days ago, Axalto announced that it had successfully delivered to China Unicom the largest 64K UIM CDMA card in the world. With this introduction of Simera Airflex in Guangdong Province from Axalto, China Unicom plans to promote a series of value-added services of UP New Trend targeting the new generations of subscribers.
UP New Trend is a first national brand targeting the youngsters from China Unicom. The Simera Airflex card is tailor-made for the CDMA users of UP New Trend brand, which is supplied by Axalto. At present, this 64K card is R-UIM card of the largest capacity for commercial investment in the world and it can support the value-added services for Unicom Online business of the national format and Guangdong UP New Trend. These two products include the exciting applications, such as lovers' talk, powerful academy, hot spot news, and humors' wave and spicy recommendations etc. The users can make selections from the menu to choose their favorite functions so as to avoid the inconvenience of remembering different service passwords.

8. CDMA terminal separation from cards promoted to the global market
The Global Cooperation Forum on the CDMA Terminal Separation from Cards was organized by China Unicom in Beijing days ago. There were 200 representatives from 19 CDMA operators and terminal manufacturers, system equipment suppliers and card suppliers attending this Forum.
The two days'Forum addressed the topics ranging from technical standards for separation with cards, the marketing strategy and implementing programs for the separation, dual slots system and the market opportunity, the CDMA1X value added applications. The partners and China Unicom put on display the terminals of the separation and the variety of CDMA applications.

9. XiaoLingtong with separation from cards on the market for sale in October
UT Starcom has developed the first card separated terminal - Xiaolingtong in the world and will put on sale in October. The launch of this Xiaolingtong Terminal represents the Second Revolution of its technology, which changes the sale model of relying on the telecom operators. This large potential market attracts more strong manufacturers to join this market.
It is reported that UT Starcom launched this Separation technology will change the integrated mode of card and terminal from its present status. Instead, the newly launched model can store the personal data into one encrypted smart card - PIM card.


News in General

10. China encouraging the development of IC industry
From our SCFC news reporter, the State Commission of Development and Reform has decided to stop the policy of 6% import value-added tax ( the tax return upon payment ) for the IC products which is designed by the local designing company and manufactured on OEM basis from September 1, 2004. And on April 1, 2005, the policy (the tax return upon payment) will be halted for the over tax of VAT on the local manufactured IC products. According to the responsible officer, Chinese Government pays a greater attention to the IC industry and will put more incentives for the development of this industry.

11. The first group of national electronic information industrial bases approved
On Sept. 28, the Ministry of Information Industry-MII announced in Beijing that the first group of national electronic information industrial bases has been approved to set up in Beijing, Tianjin, Qindao, Shanghai, Suzhou, Hangzhou, Shenzhen, Fujian, Xiamen coastal areas and the Guangdong Pearl River Delta region. Mr. Wang Xudong, Minister of Ministry of Information Industry pointed out that the construction of the national electronic information industrial bases is an important event in the history of the Chinese national information industry. This is one strategic approach for the Chinese electronic industry to grow from a large scale into the stronger basis, further more this is a trial implement for the governmental authorities to transform the mentality and functions so as to direct and regulate or promote the regional industrial development.
This national electronic information industrial base stands for the regions concentrated with the large-scale , strong in R&D and leading enterprises, the well-established industrial chains and improved accommodated service systems. The first 9 bases have achieved their sales revenue, industrial growth value, profit tax and export revenue respectively at 81.0%, 75.7%, 82.6%. These regions have the most gathering of national electronic R&D academies, institutes and the national-level R&D centers apart from the attracting center for the overseas' investors for electronics. These attractions have upgraded the competing power of the regions, which helps implement the strategic approach for the building China into the power country of electronics in the world.

12. Haerbin city achieved outstanding outcome for the information construction
Centering on the building Haerbin into Digital Haerbin City with informatization and on the E-government, Haerbin has gained outstanding achievement in promoting the enterprise informatization, agricultural informatization and the key application projects.
The People's bank of China in Haerbin City organized all commercial banks to take vigorous efforts in enhancing the bankcard project. From the bankcard testing result, the success rate of transaction has gained improvement with ATM testing rate at 90%, POS transactions at 96% and 84% for the POS pre-authenticated transactions. The branches of ICBC, Agricultural Bank, Construction Bank, Communication Bank, and Everbright Bank have built up their infrastructure of cross-banking interop application. Over 310,000 bankcards have been issued with China Unionpay Logo. In the end of 2003, all the commercial banks issued a total of 7.59 million cards with 276 card issuing stations, 795 ATMs installed, 470 POS terminals and 8153 licensed merchants.
Haerbin Municipal Education Bureau proposed that to build Internet is to build schools, in a progressive approach to promote the School to School Internet project. 95% of the schools in the city have achieved the target of School to School Internet, and 50% of the schools have completed the Internet construction, with 60% from the rural schools. There are 51 schools in 12 counties built up with the school Internet.

13. China sees 30 million contactless IC cards in 2007
From a reliable source of Cards Tech & Security, by 2007, China is expected to have a 50% growth of contactless IC card in sales at a total of 30 million. Since 1996, the eighty cities of all 660 cities in China have issued over 20 million contactless IC cards as the temporary tickets. The majority of this IC ticket uses MIFARE technology from Philips Semi-conductor.

14. The First Global RFID China Forum held in Beijing
On October 10 to 11, the first Global RFID China Forum was held in Beiing, China World Trade Center. This Forum was organized by Shorecliff Communication LLC and Spark-ICE Beijing, and this is the first time for Shorecliff to move this event to China. Over dozens of top-level speakers, experts and related leading officials from 20 countries and regions have been present at this Forum. The speakers addressed the RFID solutions, and displayed the high-end RFID products. The officers from the leading authorities have been invited to attend the Forum, addressing on the Chinese intellectual property efforts and the application perspectives.


News on the Smart Cards Projects in China

15. Beijing Intelligent Traffic Development Plan Achieving its short-term target
The Director of Beijing Municipal Transport Development Center stated that the Headache of the difficult traveling in Beijing would be solved starting from 2005 at the 2nd Sino-European Metropolitan City Development Seminar opened on October 13.
The Director disclosed the short-term goal of the Capital intelligent transport development plan will be completed by 2005. The detailed contents include as follow:
-to speed up the construction of transport infrastructure;
-to expand the urban road network, improving the traffic structure and increasing the traffic volume of the public transport;
-to extend the coverage of the transport information;
-to build up the advanced urban public transport system, traffic management system, the travellors' information system and long-distance passengers and cargos' operation management system;
-to widely promote the application of YiKaTong IC card in the transports of metro, light-rails and public transport (buses and cable cars etc.).

16. Nanjin Metro contactless smart cards ticket vending system put into the market
Nanjin Panda electronic (Share-holding) Co.,Ltd. and French Thalles CGA Company have jointly established with 40% and 60% shares the Nanjin Thalles Panda Transport System Co.,Ltd.. This joint-ventured company will supply its transport equipment to the rail transport operators to the Chinese national market and South-eastern Asian market. One of the first installed system has been done for Line 1 of Nanjin Metro automatic fare collecting system with contactless smart card.
This Line 1 Metro includes one central processing system, ticketing system at all stations, the Intranet equipment, the auto gate with contactless card readers, TVM, sales terminals and handheld ticket checking devices as well as one maintenance center. The Deputy General Manager of Nanjin Metro Railway Co.,Ltd. and the Vice General of the Nanjin Metro Railway Engineering Project said, the Nanjin Municipal Authority had claimed to finish the construction of Line 1 by September of 2005, by when one YiKaTong System (All-in-one System) would cover pubic buses, taxi and ferry, and the metro system would be connected with YiKaTong system, he said. With one card, the Nanjin citizens will change for the new YiKaTong card with the existing IC card.


17. Fujian Province introduces YiKaTong (All-in-one) to hospitals, supermarkets, water and power supply in 2005
China Unionpay Fujian Branch disclosed to the reporter that Financing IC Card YiKaTong as one integral part of Digital Fujian in Fujian Province has passed the technical and business evaluation and review and come into the phase of Internet platform construction. This is the first and most advanced YiKaTong system in accordance to the national financing standard in China.
"Financing IC Card YiKaTong" is reported to be the supplement to the existing magstripe card, and make a regulating effort to the existing closed industrial IC card application system so as to break the monopoly building from the provincial bankcard interop network. Taking the advantage of the unified standard, and utilizing the 5000 physical networks and over 10,000 terminals from all provincial banks, one payment action of YiKaTong Card for all social payment will be achieved based on the open marketing operation in Fujian Province. It is said that this system will enable the cardholders to pay the bills of water, power and gas supply, and public transport, as well as the low-value payment of cable TV, Internet, taxi, hospital registration, tourism, petro gas, restaurants/hotels, real-estates and supermarket. etc. Besides, this system can also be connected with the healthcare, social welfare and tax-control systems, and build the connection with the highway toll payments and IC card system on the campuses.

18. Huaxia Campus card introduced to the Western Chinese Engineering University
Recently, Huaxia Campus cards have been issued in the Jinye College of Western Chinese Engineering University. This campus card developed by Huaxia Bank XiAn Branch can be used with Huaxia Bankcard and Campus card to conduct the functions of auto and self-service money transfer, to pay for the meals, depositing of money, consumptions and students' ID. Different from the other campus cards, Huaxia campus card is physically separated with Huaxia Bankcard. That's to say, Huaxia Bankcard can be used to settle the e-currency payment at the bankcard business operation locations, bank ATMs, shops, hotels and restaurants, while Campus card could only be used on campus for auto and self-service transfer of money. When the alarm is set for the limits of money stored in the campus cards, the campus system will automatically deduct RMB100 from the current account of the Huaxia Bankcard into the campus cards.

19. Fujian Xiamen social welfare IC card project rolled out
On October 11, the inaugural ceremony of the Social Welfare Card of P.R.China issued by Xiamen City was held at Xiamen Hotel. This social welfare card is the application carrier of citizen service information system. It is reported that this card will enable to proceed for the application of social insurance, job employment, and will be expanded to the sectors of public security, civil affairs, family planning, education, healthcare, housing allowance management center, labor affairs and political and labor union etc.

20. Gemplus Goldpac Joins hands with Shaoxin urban public transport
Recently, Gemplus Goldpac Holdings won the tender among the competing suppliers in the IC card tender project for the Shaoxin Urban Public Transport YiKaTong IC Card Co.,Ltd., based on the powerful technical backup of Gemplus.
With the strong technical backup of Gemplus, Goldpac company has the advantage of rich experience in urban public transport, high-way toll gates, banking card and applications, social welfare IC cards, the contactless IC card has been widely applied in the Urban Public transport, of cities in Guangzhou Yangchen Tong, Dalian, Chendu, Ningbo, Chongqin, Hefei, Zenjiang, Luzhou, Anshan, Jining, Weihai, Jiaxin, Taiyuan, Qindao, Xiamen, Dongyin, Liuzhou, Macau etc.

21. IC cards can be reloaded at banks in Shenyang City
From the news, Shenyang Passengers Buses Group has decided to introduce the bill payment via banking networks based on the comprehensive advises from the experts, citizens and the good referenced cases in China, in order to speed up the urban public transport IC card e-currency fare collection and to provide convenience for the citizens to purchase IC cards to reload the card.
It is reported that the program of bill payment via banking network is under study. At present, Shenyang Passengers Buses Group has expanded the business space of re-loading, adding more locations of re-loading and extending of business hours so as to solve the difficulty for the citizens to re-load the cards. From the internal report of the Group, Shenyang is going to integrate the bankcard with urban public IC cards in order to help the citizens pay with this card the bus ticketing, settle the bills of low-value consumptions. This effort will save lots of time and efforts of re-loading in the city.

22. Jinsui Campus IC card issued by Agriculture Bank in Xinjiang
Recently, 16,000 Jinsui Campus IC cards have been rolled out at Xinjiang Finance College, hence starting the issuance of Jinsui Campus card from Agriculture Bank in China.
It is reported that Jinsui Campus card is consisted of the Unionpay debit card of Agriculture Bank, College IC card, money transfer machines, auto-pay machines, ATMs, POS terminals. This is the first card integrated with bankcard and campus YiKaTong in Xinjiang and at the campus of Xinjiang areas. This Agriculture Bank has installed money transfer machines, bill payment machines, ATMs, window-service machines and e-file access control. This is a 24 hours' service. This card has won the appraisals from the students and their families because it has the functions of money depositing and withdrawal, shopping and bill payment outside the campus while it has the unique functions for the tuition management, duty checking, computer rooms and IC card for meals and students registrations.


News on Vendors

23. Infineon's investment in China reaching a total of 1.2 billion dollars by 2007
It is reported that Infineon Technology will total its investment at 1.2 billion US dollars in China by 2007 with its existing employed staff growing from 1,200 to 3,000.
The spokesman confirmed this news recently, saying that Infineon plans to take a 12% market share of semi-conductor industry in China within the next five years. This increase percentage will double comparing with the present 3.7%, with the intention of upgrading its position from No. 5 upto No. 4. The present No. 4 is Korean Samsung.

24. Watchdata's new smart meters launched in Beijing
From our magazine report, Watchdata System has announced recently that its newly developed smart water meter system has been put into the application of Beijing Municipal Urban Management sectors, such as the residents in Tongzhou district can use mobile phones to pay their water consumption bills without having to move out of the house. This smart water system can take real time tracking for the water consumption status and bill payment for the families, so that the Urban Water Company do not have to pay regular visits to check for the meters and collect the money from door to door. And the residents have not need to pay their bills at the appointed business locations, but all headaches of bill payment can be solved by mobile phones at home. The system developed by Watchdata helps the urban administrative bodies simplify their business proceedings, improve the water consumption cost and raise the efficiency of the official operations, while this also cuts the costs and time of the payment by the residents.

25. Gemplus Goldpac winning the YiKaTong Project at the Schools in Wuxi City
At one recent tender for school YiKaTong Card project in Wuxi city organized by Wuxi Education Commission and Wuxi Commerce Bank, Goldpac has won the project for YiKaTong Card project, including the supply of system platform, money transfer machines and cards. This shows the strength of Goldpac company in the technical and competing aspects for School YiKaTong.
This project covers all the schools in Wuxi city, with a milestone project for the promoting school YiKaTong in this city.

26. G & D Wanda totaling its roll-out at 1.0 billion cards in China over the past 10 years
Huangshi Wanda G&D announced recently that this company had totally rolled out over 1.0 billion cards over the past ten years with its annual production capacity at 280 million cards. Among the 1.0 billion cards, 320 million for banking, 65 million for telecom and 50 million cards for different sectors in social welfare, construction, customs, taxation and industry and commerce, the products and services ranging from financing, telecom to issuance, transport and healthcare etc.

27. Infineon Suzhou plant put in operation
Days ago, the German HQ Infineon announced that the first pack of storage products will be assembled from its Suzhou plant by the end of 2004, and volume production is planned to put in operation by early 2005. The Suzhou Assembly Plant is officially named as Infineon Technology (Suzhou) Co.,Ltd. At the same time, Infineon is planning to set up on IT development center of production techniques in Suzhou. The new plant is going to be set up in phases according to the global semi-conductors industry. The overall project will invest about 1.0 billion US dollars. According the new CEO, Infineon Suzhou Plant will have the largest production capacity of 1.0 billion storage chip products every year.

28. Huaxu Card Company passing the test of readers for the 2nd Generation of National ID card
In May, 2004, Huaxu Company won the tender for supplying as the readers for the 2nd Generation of National ID card by Ministry of Public Security. This company has launched series of readers meeting the needs of 2nd Generation of National ID Cards.
In mid of September, Huaxu participated in the central test for the National ID cards organized by the Ministry of Public Security. During the test, Huaxu company presented two readers complying with the technical specifications of GA450-2003 for the Dest-top ID Card Readers for Citizens and 1GA450-2003 No 1 Revised Technical Specification for the Dest-top ID Card Readers for Citizens.
On September 27, Huaxu had its products successfully tested by the Ministry of Public Security, and finally obtained the test report from the Quality Test Center of Security and Police Electronic Products of Ministry of Public Security. Having passed this test, Huaxu has proved that it can supply the products for the 2nd Generation of National ID Cards Project according to the state regulated standards.

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