Perfect World Co., Ltd. [[PWRD]], a leading online game developer and operator based in China, today announces that it will launch the closed beta testing for its first 2D turn-based MMORPG “Fantasy Zhu Xian” on September 10, 2009.

“Fantasy Zhu Xian” is Perfect World’s first 2D turn-based MMORPG, which is based on a popular internet fantasy novel “Zhu Xian.” The game represents the world of “Zhu Xian” in a refreshing cartoon style. The game is run on the Company’s proprietary EPARCH 2D engine and can exhibit such special visual effects as “reflections,” “particle effects” and “translucency effects.” It also features a flying system that introduces a concept of altitude into a 2D game, which is very creative and advanced in terms of technology.

In the closed beta testing of “Fantasy Zhu Xian,” the players will not only experience the excitement of fighting in player vs. player turn-based battlefields, but they will also enjoy the multitude of experiences within the many instances available to the players throughout the game world. The players will also be able to engage in various round-the-clock activities in the game during the closed beta testing.

Mr. Michael Chi, Chairman and Chief Executive Officer of Perfect World, commented, “‘Fantasy Zhu Xian’ is an integral part of our diversified product portfolio. Both the storyline and play modes have shown a promising market potential. I believe that ‘Fantasy Zhu Xian’ will perform well in the closed beta testing.”

About Perfect World Co., Ltd. (http://www.pwrd.com )

Perfect World Co., Ltd. (NASDAQ: PWRD) is a leading online game developer and operator based in China. Perfect World primarily develops online games based on proprietary game engines and game development platforms. The Company’s strong technology and creative game design capabilities, combined with extensive knowledge and experiences in the online game market, enable it to frequently introduce popular games that are designed to cater to changing customer preferences and market trends promptly. The Company’s current portfolio of self-developed online games includes massively multiplayer online role playing games (“MMORPGs”): “Perfect World,” “Legend of Martial Arts,” “Perfect World II,” “Zhu Xian,” “Chi Bi,” “Pocketpet Journey West” and “Battle of the Immortals;” and an online casual game: “Hot Dance Party.” While a substantial portion of the revenues are generated in China, the Company’s games have been licensed to leading game operators in a number of countries and regions in Asia, Europe and South America. The Company also generates revenues from game operation in North America. The Company plans to continue to explore new and innovative business models and remains deeply committed to maximizing shareholder value over time.

Safe Harbor Statements

This press release contains forward-looking statements. These statements constitute forward-looking statements under the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “future,” “plans,” “believes” and similar statements. Such statements involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Potential risks and uncertainties include, but are not limited to, our limited operating history, our ability to protect our intellectual property rights, our ability to respond to competitive pressure, changes of the regulatory environment in China, and economic slowdown in China and/or elsewhere. Further information regarding these and other risks is included in Perfect World’s filings with the U.S. Securities and Exchange Commission, including its annual report on Form 20-F. Perfect World does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.

China Unicom (Hong Kong) Limited [[CHU]] announced its 2009 interim results today.

In the first half of 2009, the Chinese macroeconomy continued to encounter various challenges brought by the international financial crisis. With the restructuring of telecommunications industry and the issuance of the 3G license, industry competition environment has become increasingly complicated. In the first half of the year, the Company actively pushed forward its internal integration, leveraged on the advantage of full-service resources and stepped up efforts in business expansion. The Company has achieved new progress in various aspects.

In the first half of the year, the Company recorded operating revenue of RMB76.32 billion. Service revenue amounted to RMB74.51 billion, representing a decline of 4.3% over the same period of last year and a decline of 3.3% over the same period of last year when compared on the same basis (Note 1). Service revenue of the GSM business reached RMB34.19 billion, representing an increase of 5.7% over the same period of last year. Service revenue of the fixed-line business reached RMB40.19 billion, representing a decline of 11.3% over the same period of last year and a decline of 9.7% over the same period of last year when compared on the same basis (Note 1). Of the revenue from the fixed-line business, revenue from the fixed-line broadband service was RMB11.73 billion, representing an increase of 10.3% over the same period of last year.

Due to the impact of corporate restructuring and intensified industry competition, the Company recorded profit of RMB6.62 billion, representing a decline of 42.1% when compared with profit from the continuing operations over the same period of last year and a decline of 33.2% when compared on the same basis (Note 2). Basic earnings per share was RMB0.28.

In the first half of the year, the Company’s mobile business grew steadily and the revenue proportion from its mobile value-added services continued to increase. 3G service was launched. The fixed-line business saw greater downward pressure while the fixed-line broadband business continued to grow.

In the first half of the year, the net addition of GSM subscribers was 7.012 million, taking the total subscriber number to 140.377 million. ARPU was RMB41.7, representing a decline of 4.3% over the same period of last year and remained stable compared with the second half of last year. The Company’s mobile value-added services accounted for 26.8% of the total revenue from mobile services, representing an increase of 2.5 percentage points over the same period of last year. Revenue from GPRS reached RMB1.32 billion.

In the first half of the year, the net addition of fixed-line broadband subscribers was 4.832 million, taking the total subscriber number to 34.913 million. ARPU was RMB60.2, representing a decline of 13.5%; a total of 1.118 million local telephone subscribers were lost, taking the total subscriber number to 108.452 million. The revenue proportion of the fixed-line non-voice business to the total fixed-line service revenue (excluding upfront connection fees) reached 47.2%.

Since obtaining the 3G (WCDMA) operating license on 7 January, the Company fully focused on developing 3G network construction and preparing for business operation, and has achieved extensive network coverage. Due to bulk purchase and the synergic effect on networks, the construction cost was reduced. With the same amount of capital expenditure on the 3G network construction as planned for the year, the number of cities covered by 3G network will be expanded from the original 284 cities planned earlier this year to 335 cities.

On 28 August, the Company and Apple reached a three-year agreement for the Company to sell iPhone in China. The initial launch is expected to be in the fourth calendar quarter of 2009. This will provide users with brand new communication and information experience.

In the second half of the year, the Company will implement various effective measures to maintain the steady growth of its mobile business and mitigate the decline of its traditional fixed-line business. The Company will endeavor to promote the rapid growth of its mobile value-added service, fixed-line broadband internet service and integrated services, increase revenue contribution from non-voice and new services. The Company also highly emphasizes on 3G business and will step up its efforts on network construction and optimization, continuous product innovation, and improvement on sales and marketing and handsets strategies. The Company will continue to push forward the 3G pre-commercial trial and aims for a successful launch of 3G business within the year. Meanwhile, the Company will further advance internal integration, strengthen operational management, effectively enhance execution, to continuously increase the overall strength and quality of development of the Company.

Chinese solar companies Suntech Power (STP), Trina Solar (TSL), Yingli Green Energy (YGE), JA Solar (JASO), LDK Solar (LDK), and China Sunergy (CSUN) have all performed terribly recently as have their U.S.-based counterparts First Solar (FSLR) and Evergreen Solar (ESLR). A look at China’s rise to become the global leader in solar energy shows how the country has, in the process, destroyed the basic economics of the industry – hurting both Chinese and American solar companies.

The New York Times ran a frontpage article today titled “China Racing Ahead of U.S. in the Drive to Go Solar.”

The article’s takeaway is that despite President Obama’s ambition to make the United States “the world’s leading exporter of renewable energy,” China is actually walking the walk rather than just talking the talk:

“I don’t see Europe or the United States becoming major producers of solar products — they’ll be consumers,” said Thomas M. Zarrella, the chief executive of GT Solar International, a company in Merrimack, N.H., that sells specialized factory equipment to solar panel makers around the world.

Since March, Chinese governments at the national, provincial and even local level have been competing with one another to offer solar companies ever more generous subsidies, including free land, and cash for research and development. State-owned banks are flooding the industry with loans at considerably lower interest rates than available in Europe or the United States.

Tellingly, Chinese-based Suntech Power Holdings [[STP]] will become the second-largest supplier of photovoltaic (PV) cells in the world this year behind Arizona-based First Solar, Inc. [[FSLR]].

But there is a darkside to China’s impressive growth for those looking to capitalize on the rise of Chinese solar companies:

Chinese companies have already played a leading role in pushing down the price of solar panels by almost half over the last year.

Indeed, less than two years ago the average U.S. retail price of a 200-watt module was $1500 while now it is less than $650.

From an investment-perspective, the real story here is that, thanks in part to China’s aggressive strategy for growing its solar industry, the solar market is flooded with products for which there is no demand. Demand for solar panels is largely dependent on government subsidies because solar energy is still more expensive to produce than using fossil fuels or even wind power (even with the drop in the price of solar panels), and these government subsidies worldwide are being scaled back due to tax revenue concerns. The decrease in subsidies is only compounded by dampened demand due to the worldwide economic downturn. Basically, the economic downturn is a double-whammy for solar demand: it hurts demand the way a recession hurts demands for all kinds of products while also decreasing government revenue on which solar subsidies (and much solar demand) depend. Global demand for solar panels is expected to drop nearly 20% this year.

Even worse, this decrease in demand is being met not with a decrease or even flat supply, but with an increase in supply – total solar cell manufacturing capacity will be up more than 50% this year, and is projected to grow at an astonishing annual rate of about 50% for the next 5 years.

This sobering mismatch – increased supply and decreased demand – is taking its toll on Chinese solar companies’ stock prices over the last month:

• Suntech Power Holdings [[STP]] is down 29%.

• Trina Solar Ltd. [[TSL]] is down 16%.

• Yingli Green Energy Holdings [[YGE]] is down 29%.

• JA Solar Holdings [[JASO]] is down 29%.

• LDK Solar Co. [[LDK]] is down 25%.

• China Sunergy Co. [[CSUN]] is down 17%.

This terrible performance is during the same period that the S&P 500 gained 5%. American solar companies are not immune, given the global nature of the solar market:

• First Solar, Inc. [[FSLR]] is down 24%.

• Evergreen Solar, Inc. [[ESLR]] is down 27%.

Looking back 12-months leads to an even less flattering profile for most of these stocks, with many losses far greater than 50%.

The simple fact is the blood-letting is probably only going to continue. Save for First Solar and Trina Solar none of these companies are profitable – and with the very bad economics of the market right now there is no reason to think any of them are going to become profitable or get more profitable any time soon.

China Nepstar Chain Drugstore (NPD) was Monday’s top Chinese stock mover after shares jumped nearly 10% after announcing a special cash dividend.

China Nepstar Chain Drugstore [[NPD]] added nearly 10% per share, or some $66 million in market capitalization, Monday. The Shenzhen, China-based retail drugstore chain announced disappointing second quarter results. EPS were only $0.02 compared to analysts’ expectations of $0.04 and revenue was only $78 million compared to expectations of $86. Worse, same-store sales, a key indicator for retailers, dropped 1.3% from the same period a year earlier.

The key development driving today’s gains was China Nepstar’s announcement that it will play a one-time cash dividend of $1.50 per American Depositary Share to shareholders of record as of September 25.