Chutian was developed by the Hubei Daily Group, the biggest newspaper group in Hubei Province. Managers and editors were given free rein to run the paper, taking responsibility for the paper's profit-and-loss management. The group provided economic backing only for the first three years.

The paper made no profit in 1997, earned 18 million yuan (US$2.25 million) in the second year, and a whopping 30 million yuan (US$3.74 million) by the third year. In 2005, it raked in about 80 million yuan (US$9.98 million).

Its phenomenal progress guaranteed its position as the pillar department of the group.

When it first started operations, employee salaries were low and they had no formal office. Cai Huadong, the former chief editor of Chutian, said that its team of editors and reporters has grown from 38 to more than 220.

They enforced strict editorial guidelines, keeping editorial staff very separate from advertising sales and marketing.

Bonuses were and are performance-based, judged according to six criteria including timeliness and writing style.

And unlike many other newspapers that frequently change their slogans, Chutian's has always been: "Everything for the citizen". This is reflected in their news coverage that features every day news items from weather reports to forecasts of power cuts. So much so that the paper has become an indispensable part of their readers' lives.?

Annual seminars are held every year for editors and reporters to keep them up to date with the latest developments in relevant subjects such as reporting skills and branding. Participants are required to do the necessary research before attending these yearly seminars.

In addition to ensuring and maintaining quality standards, the paper prides itself as being socially and morally responsible, providing financial aid to impoverished college students, for example.

The paper has a current daily circulation of 1.2 million copies. It is published in a 32-page quarto format.

Hubei's cultural industry

Shen Haining, the vice director of the provincial Culture Department, said that the main task of the cultural industry reform was to differentiate between the needs of public non-profit institutions and other corporations that had the ability to generate income.

Financial support was not cut for public institutions such as museums, libraries and galleries. Those that could generate income, including newspapers, TV stations and publishing houses were encouraged to restructure.

Hubei is now home to 13 publishing houses. With over 100 newspapers and over 400 periodicals, an extensive publishing industry network has taken shape. The major media companies include Hubei Daily Group, Hubei Broadcasting and TV Group, Zhiyin Group and Changjiang Daily Group.

(China.org.cn by staff reporter Chen Lin, May 14, 2006)