Chinasoft is a publicly listed company trading on the HK GEM. Management owns 18%; CS&S 8%; Far East Technology International 25%; overseas individual investors 21%; and the public about 27% of the company. Far East Technology International is an investment company with businesses in the industrial sector, information technology sector, and property development and investment sector. The company has been trading on the HKSE since 1973. CS&S was established by the Chinese Ministry of Information Industry and is a well established national software developer that specializes in computer software development, system integration and information services. Having established a firm foothold in the China market, CS&S has been one of the largest system integrators in China for many years, making contributions to the information and software industry. CS&S is listed on the Shanghai Stock Exchange.

The company is considering an expansion program costing around $20 million. IFC is evaluating ways of working with the company on its expansion program.

15.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	15.0

* These investment figures are indicative

Chinasoft is headquartered in Beijing with branch offices and delivery centers in six cities.

Development Impact Information technology is an increasingly significant component that underlies the foundation for growth for infrastructure in developing countries. This holds true particularly for China, where growth is fueled by efficient deployment of information technology. Software development and IT solutions deployment play an increasingly important role in supporting domestic growth and are key pillars of support for the country’s government IT spending policies. The net result is overall growth in the industry, stronger service offerings to end customers and increased efficiencies enjoyed by end users (e.g., State Boards or consumers). For example, Chinasoft recently completed the development and implementation of a pilot new rural cooperative medical scheme management information system in Zhejiang province. The system improved healthcare in the area by creating a system that enabled 870,000 farmers from 18 towns and villages to visit doctors and receive medical treatment in ten medical institutions. An involvement in Chinasoft would also fit well with the current government's vision of development. The Government of China has recently welcomed the World Bank's report "Seizing the 21st Century: The China Knowledge Economy" and has emphasized information infrastructure and research & development as important pillars of the knowledge economy. In addition, China's 10th Five-year Plan has specifically identified the application of information communication and technology as a cornerstone of its strategy to raise productivity and generate greater benefits. IFC Role Chinasoft currently targets the domestic market, but the Company could grow substantially by exporting its products and services to foreign markets. IFC will leverage its expertise and connections to help Chinasoft access the international outsourcing business. China is considered a key market for IFC in the global technology sector going forward. IFC recently sponsored a TATF study of China’s ICT market, which is being used as a blueprint for further investments in the technology sector in the PRC. An involvement with Chinasoft falls within the scope of recommendations provided in the study.

Based on available information, this is a category C project according to IFC''s environment and social review procedure. During appraisal, the project team should assess Chinasoft''s office buildings to determine whether improvements in fire and life safety and employee health and safety provisions are required.
Location of environmental documents in locally affected community