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Goldman Sachs Group Inc. and Deutsch Bank AG have been hired by the Agricultural Bank of China Ltd. to underwrite an initial public offering in Hong Kong. Together with an IPO in Shanghai, the bank expects to raise a minimum of $20 billion.

The government of China is planning a share swap between state-owned carriers China Eastern Airlines Corp. and Shanghai Airlines Co., clearing the way for a possible merger which would benefit both companies by eliminating price competition. China Eastern reported a first-quarter net profit drop of 81% to 40.1 million yuan, while Shanghai Airlines' profit dropped 29% to 26.27 million yuan.

This article reveals the plan of the Chinese government to continue its aggressive stimulus efforts amid persistent problems and uncertainties from the global recession, according to Premier Wen Jiabao. While speaking at the 2009 World Economic Forum meeting, he points out that the government can reach an eight percent growth in gross domestic product this year. He describes China's economic growth as unstable, unconsolidated and imbalanced. He emphasizes the need for the Chinese government to respond to the economic crisis.