China-Africa trade likely to hit record high in 2011
The level of trade between China and Africa in 2011 is expected to set a new annual record, as the bilateral trade has already almost matched 2010, a commerce official said Wednesday.
China-Africa trade volume rose 30 percent year-on-year to reach 122.2 billion U.S. dollars during the first three quarters of 2011, compared with the 126.9 billion U.S. dollars recorded last year, said Shen Danyang, spokesman for the Ministry of Commerce, at a regular press conference.
China has become Africa's biggest trading partner, with bilateral trade growing at an annual rate of 28 percent over the past 10 years, Shen said.
By the end of 2010, more than 2,000 Chinese companies had invested in the continent.
China invested 1.08 billion U.S. dollars in non-financial sectors in Africa during the first three quarters of 2011, up 87 percent from one year earlier, he said.
"China-Africa cooperation in various sectors, including telecommunications and tourism, has shown great growth momentum. Many Chinese financial institutions operate in Africa, and Chinese airlines have opened direct routes to the continent," Shen said.
Editor: Wang Guanqun
English.news.cn 2011-11-16 16:21:38 FeedbackPrintRSS
BEIJING, Nov. 16 (Xinhua)
Wednesday, November 16, 2011
China's trade surplus to drop to 150 bln USD this year: ministry
China's trade surplus to drop to 150 bln USD this year: ministry
China's trade surplus is expected to decrease to approximately 150 billion U.S. dollars this year, the Ministry of Commerce (MOC) said Wednesday.
The world's second-largest economy has already seen its trade surplus decrease this year, and the annual total could shrink by around 30 billion U.S. dollars from 2010 if the downward trend continues, MOC spokesman Shen Danyang said at a press conference in Beijing.
He attributed the surplus drops to the government's efforts to promote trade balance and boost imports.
Shen predicted that annual imports will rise by 360 billion U.S. dollars this year, noting that the increase will contribute to global economic growth.
The government will keep expanding imports, he said.
China's trade surplus fell 36.5 percent year-on-year to 17.03 billion U.S. dollars in October, far below the expected figure of 25.8 billion U.S. dollars.
China's foreign trade may reach 3.6 to 3.7 trillion U.S. dollars this year, up from nearly 3 trillion U.S. dollars in 2010, Shen said.
Foreign trade in October fell 8.3 percent from September to 297.95 billion U.S. dollars, but still rose 21.6 percent year-on-year, according to official data.
Editor: Wang Guanqun
English.news.cn 2011-11-16 16:05:22 FeedbackPrintRSS
BEIJING, Nov. 16 (Xinhua)
China's trade surplus is expected to decrease to approximately 150 billion U.S. dollars this year, the Ministry of Commerce (MOC) said Wednesday.
The world's second-largest economy has already seen its trade surplus decrease this year, and the annual total could shrink by around 30 billion U.S. dollars from 2010 if the downward trend continues, MOC spokesman Shen Danyang said at a press conference in Beijing.
He attributed the surplus drops to the government's efforts to promote trade balance and boost imports.
Shen predicted that annual imports will rise by 360 billion U.S. dollars this year, noting that the increase will contribute to global economic growth.
The government will keep expanding imports, he said.
China's trade surplus fell 36.5 percent year-on-year to 17.03 billion U.S. dollars in October, far below the expected figure of 25.8 billion U.S. dollars.
China's foreign trade may reach 3.6 to 3.7 trillion U.S. dollars this year, up from nearly 3 trillion U.S. dollars in 2010, Shen said.
Foreign trade in October fell 8.3 percent from September to 297.95 billion U.S. dollars, but still rose 21.6 percent year-on-year, according to official data.
Editor: Wang Guanqun
English.news.cn 2011-11-16 16:05:22 FeedbackPrintRSS
BEIJING, Nov. 16 (Xinhua)
US official courts FDI from China
US official courts FDI from China
Despite their previous frustrations, Chinese investors will find that the doors remain open for them in the United States, and there is potential in private sectors and the IT industry, a senior US financial official said on Wednesday.
There are no "off-limits" sectors for foreign investment in the US, though national security is still the main concern in reviewing individual cases, said Marisa Lago, assistant Treasury secretary for international markets and development, in an interview in Beijing.
Lago said the review mechanisms are neither mandatory nor directed toward any particular country and are but a small part of the overall investment experience between the two nations.
From 2008 to 2010, only 16 of 313 transactions submitted to the US Committee on Foreign Investment, an interagency government body to review national security issues, led to mitigating measures, she said.
Lago declined to comment on how many of the 16 cases involved Chinese companies.
The US would welcome the development of China's IT sector, she said, and strategic investment in IT companies in the US.
"We look to the private sector (in China) for its innovation, and they are the ones who are going to seek out business opportunities," she said.
Lago's comments were viewed by experts as intended to ease the tension caused by setbacks some major investors from China experienced, such as Huawei Technologies Co Ltd, and to convey a message of welcome to Chinese investors, who are expected to help boost a weak US economy and stimulate job creation, thus countering the high unemployment rate.
Zhou Shijian, a senior researcher with the Center for China-US Relations at Tsinghua University, said the US has always been a top destination for foreign direct investment (FDI) and that role will receive greater emphasis through US President Barack Obama's plan to attract trillion-dollar foreign investment over the next five years.
FDI from China to the US increased eightfold between 2005 and 2010, from $700 million to $5.8 billion, and Chinese companies are making important contributions to US output and employment, Lago said.
But Zhou highlighted another set of statistics: US investment in China amounted to $66.9 billion in the first six months of 2011 while Chinese investment in the US was only $5.17 billion during that period.
"So if you are really going to compare the investment climates of the two countries, the figures speak for themselves," he said.
In terms of attracting investment from China, US local governments are generally more open than the federal government because they need the jobs to generate growth and have fewer political concerns, Zhou said. "To that end, medium-sized and large investors are more competitive than smaller companies because they have a sound management system and can create a large number of job opportunities more quickly."
Zhou said that the US government need not be distrustful about dealing with China's State-owned enterprises.
"State-owned is not necessarily State-operated, because their profits and risks are still their own," he said.
"Asset prices in the US are now relatively low because of the economic downturn, and the country is remodeling its manufacturing sector, which provides great opportunities for Chinese investors," said He Weiwen, a Sino-US trade expert at the University of International Business and Economics in Beijing.
But investors should be smart in dealings with potential business partners, and make a thorough study before taking action, and also seek the help of global public relations agencies during the process, He said.
"Meanwhile, Chinese companies should take into consideration the benefit to the company as well as the welfare of local communities to achieve win-win cooperation," he said.
(Source: China Daily)
Editor: Lu Hui
English.news.cn 2011-11-16 11:56:21 FeedbackPrintRSS
BEIJING, Nov. 16 (Xinhuanet)
Despite their previous frustrations, Chinese investors will find that the doors remain open for them in the United States, and there is potential in private sectors and the IT industry, a senior US financial official said on Wednesday.
There are no "off-limits" sectors for foreign investment in the US, though national security is still the main concern in reviewing individual cases, said Marisa Lago, assistant Treasury secretary for international markets and development, in an interview in Beijing.
Lago said the review mechanisms are neither mandatory nor directed toward any particular country and are but a small part of the overall investment experience between the two nations.
From 2008 to 2010, only 16 of 313 transactions submitted to the US Committee on Foreign Investment, an interagency government body to review national security issues, led to mitigating measures, she said.
Lago declined to comment on how many of the 16 cases involved Chinese companies.
The US would welcome the development of China's IT sector, she said, and strategic investment in IT companies in the US.
"We look to the private sector (in China) for its innovation, and they are the ones who are going to seek out business opportunities," she said.
Lago's comments were viewed by experts as intended to ease the tension caused by setbacks some major investors from China experienced, such as Huawei Technologies Co Ltd, and to convey a message of welcome to Chinese investors, who are expected to help boost a weak US economy and stimulate job creation, thus countering the high unemployment rate.
Zhou Shijian, a senior researcher with the Center for China-US Relations at Tsinghua University, said the US has always been a top destination for foreign direct investment (FDI) and that role will receive greater emphasis through US President Barack Obama's plan to attract trillion-dollar foreign investment over the next five years.
FDI from China to the US increased eightfold between 2005 and 2010, from $700 million to $5.8 billion, and Chinese companies are making important contributions to US output and employment, Lago said.
But Zhou highlighted another set of statistics: US investment in China amounted to $66.9 billion in the first six months of 2011 while Chinese investment in the US was only $5.17 billion during that period.
"So if you are really going to compare the investment climates of the two countries, the figures speak for themselves," he said.
In terms of attracting investment from China, US local governments are generally more open than the federal government because they need the jobs to generate growth and have fewer political concerns, Zhou said. "To that end, medium-sized and large investors are more competitive than smaller companies because they have a sound management system and can create a large number of job opportunities more quickly."
Zhou said that the US government need not be distrustful about dealing with China's State-owned enterprises.
"State-owned is not necessarily State-operated, because their profits and risks are still their own," he said.
"Asset prices in the US are now relatively low because of the economic downturn, and the country is remodeling its manufacturing sector, which provides great opportunities for Chinese investors," said He Weiwen, a Sino-US trade expert at the University of International Business and Economics in Beijing.
But investors should be smart in dealings with potential business partners, and make a thorough study before taking action, and also seek the help of global public relations agencies during the process, He said.
"Meanwhile, Chinese companies should take into consideration the benefit to the company as well as the welfare of local communities to achieve win-win cooperation," he said.
(Source: China Daily)
Editor: Lu Hui
English.news.cn 2011-11-16 11:56:21 FeedbackPrintRSS
BEIJING, Nov. 16 (Xinhuanet)
China's exports under pressure: ministry
China's exports under pressure: ministry
China's exports are feeling pressure from global economic uncertainties, trade protectionism and rising domestic costs, the Ministry of Commerce (MOC) said Wednesday.
"We cannot be optimistic about the export situation during the coming period," MOC spokesman Shen Danyang said during a press conference.
He cited a downshift in global economic recovery, a downgrade of the U.S. credit rating and the spreading European debt crisis as exterior factors affecting China's exports.
Increasing inflationary pressure and the risk of a "hard landing" in major developing economies have also created uncertainties in global economic growth, he said.
Shen said frequent protectionist measures and trade disputes have had a "relatively large influence" on China's exports.
These issues, along with rising costs at home, have complicated the outlook for China's foreign trade, Shen said.
China's foreign trade in October fell 8.3 percent from September to 297.95 billion U.S. dollars, but still rose 21.6 percent year-on-year, according to official data.
October exports weakened 7.2 percent month-on-month to 157.49 billion U.S. dollars, while imports dropped 9.5 percent month-on-month to 140.46 billion U.S. dollars.
Editor: Yamei Wang
English.news.cn 2011-11-16 11:36:18 FeedbackPrintRSS
BEIJING, Nov. 16 (Xinhua)
China's exports are feeling pressure from global economic uncertainties, trade protectionism and rising domestic costs, the Ministry of Commerce (MOC) said Wednesday.
"We cannot be optimistic about the export situation during the coming period," MOC spokesman Shen Danyang said during a press conference.
He cited a downshift in global economic recovery, a downgrade of the U.S. credit rating and the spreading European debt crisis as exterior factors affecting China's exports.
Increasing inflationary pressure and the risk of a "hard landing" in major developing economies have also created uncertainties in global economic growth, he said.
Shen said frequent protectionist measures and trade disputes have had a "relatively large influence" on China's exports.
These issues, along with rising costs at home, have complicated the outlook for China's foreign trade, Shen said.
China's foreign trade in October fell 8.3 percent from September to 297.95 billion U.S. dollars, but still rose 21.6 percent year-on-year, according to official data.
October exports weakened 7.2 percent month-on-month to 157.49 billion U.S. dollars, while imports dropped 9.5 percent month-on-month to 140.46 billion U.S. dollars.
Editor: Yamei Wang
English.news.cn 2011-11-16 11:36:18 FeedbackPrintRSS
BEIJING, Nov. 16 (Xinhua)
Application not received for Tingyi, Pepsi business alliance: MOC
Application not received for Tingyi, Pepsi business alliance: MOC
A spokesman from the Ministry of Commerce (MOC) said Wednesday that the ministry has not yet received a declaration and application from Tingyi Holding Corp. and Pepsi for their proposed business alliance.
China's instant noodle and beverage heavyweight Tingyi Holding Corp. signed an agreement with soft drink giant Pepsi on Nov. 4 to create a strategic business alliance in China.
Based on the agreement, Tingyi Holding's affiliate company, Tingyi-Asahi Beverages (TAB) Holding, will be appointed as Pepsi's franchise bottler in China, while Pepsi's wholly-owned subsidiary, Far East Bottlers (FEB), will hold a five-percent indirect interest in TAB.
Editor: Wang Guanqun
English.news.cn 2011-11-16 16:32:22 FeedbackPrintRSS
BEIJING, Nov. 16 (Xinhua)
A spokesman from the Ministry of Commerce (MOC) said Wednesday that the ministry has not yet received a declaration and application from Tingyi Holding Corp. and Pepsi for their proposed business alliance.
China's instant noodle and beverage heavyweight Tingyi Holding Corp. signed an agreement with soft drink giant Pepsi on Nov. 4 to create a strategic business alliance in China.
Based on the agreement, Tingyi Holding's affiliate company, Tingyi-Asahi Beverages (TAB) Holding, will be appointed as Pepsi's franchise bottler in China, while Pepsi's wholly-owned subsidiary, Far East Bottlers (FEB), will hold a five-percent indirect interest in TAB.
Editor: Wang Guanqun
English.news.cn 2011-11-16 16:32:22 FeedbackPrintRSS
BEIJING, Nov. 16 (Xinhua)
New park project puts it way out ahead
New park project puts it way out ahead
Jilin province, whose animation business output showed immense growth in 2010, could turn itself into a training and research center for China's animation industry, the head of an animation group there remarked recently.
The output value of Jilin's animation industry was 6.2 billion yuan ($1 billion) in 2010, a 30 percent year-on-year increase, said Yang Zhouxian, executive director and deputy general manager of the Jilin Animation Comic and Games Group.
The group began a 60-million-yuan technology construction project - the Public Technology Platform for Jilin Comics and Animations - in 2010, to help develop the animation business in Jilin.
The first-phase, which involved 10 animation technology centers and 10 animation service centers, has been completed.
At the same time, the Jilin Original Animation Park and the Changchun Zhihe International Animation Industrial Park, in the capital of Jilin, are now ready to accommodate any animation companies that are ready to go.
The Jilin project has put it out ahead in China in the area of advanced equipment, technology, and research, in the field. Its motion-capturing studio is China's most advanced and the parks' companies use the facilities there for free or at a minimal cost.
Yang explained that his ambitious project has got help from the country's animation industry policies which have lead to a surge in both production and revenues.
China produced 385 animated films in 2010, a 28-percent increase from 2009. The industry also earned more than 500 million yuan from exports in 2010, a 60-percent year-on-year increase, according to the State Radio, Film and Television Administration.
Yang is optimistic and it is easy to see why: "China's animation industry is flourishing, but still has a lot of potential. The domestic cartoon market is enormous. You know, China has more than 370 million people below the age of 16, the primary consumer segment."
The project has had some "remarkable achievements" in innovation and professional training, Yang added, and is providing technology services to more than 40 animation companies in and out of Jilin province and training for nearly 1,000 people.
More than 10 cartoons were created through technological support from the project.
Some, such as Shaolin Haibao, appeared on CCTV and the 4-D cartoon, My Fellow Villagers, was acclaimed at the 2010 Shanghai World Expo. It has also published more than 150 cartoon books, including the Three Character Classic, The Monkey King Havoc in Heaven, and China's Twelve Zodiac Signs.
To increase their service capacity, the Jilin Animation Comic and Games Group plans to put 180 million yuan into the second phase of the project over the next three to five years. When it is completed, the new public technology project will have an extra 100,000 square meters of space to grow into.
(Source: China Daily)
Editor: Lu Hui
English.news.cn 2011-11-16 13:43:33 FeedbackPrintRSS
BEIJING, Nov. 16 (Xinhuanet)
Jilin province, whose animation business output showed immense growth in 2010, could turn itself into a training and research center for China's animation industry, the head of an animation group there remarked recently.
The output value of Jilin's animation industry was 6.2 billion yuan ($1 billion) in 2010, a 30 percent year-on-year increase, said Yang Zhouxian, executive director and deputy general manager of the Jilin Animation Comic and Games Group.
The group began a 60-million-yuan technology construction project - the Public Technology Platform for Jilin Comics and Animations - in 2010, to help develop the animation business in Jilin.
The first-phase, which involved 10 animation technology centers and 10 animation service centers, has been completed.
At the same time, the Jilin Original Animation Park and the Changchun Zhihe International Animation Industrial Park, in the capital of Jilin, are now ready to accommodate any animation companies that are ready to go.
The Jilin project has put it out ahead in China in the area of advanced equipment, technology, and research, in the field. Its motion-capturing studio is China's most advanced and the parks' companies use the facilities there for free or at a minimal cost.
Yang explained that his ambitious project has got help from the country's animation industry policies which have lead to a surge in both production and revenues.
China produced 385 animated films in 2010, a 28-percent increase from 2009. The industry also earned more than 500 million yuan from exports in 2010, a 60-percent year-on-year increase, according to the State Radio, Film and Television Administration.
Yang is optimistic and it is easy to see why: "China's animation industry is flourishing, but still has a lot of potential. The domestic cartoon market is enormous. You know, China has more than 370 million people below the age of 16, the primary consumer segment."
The project has had some "remarkable achievements" in innovation and professional training, Yang added, and is providing technology services to more than 40 animation companies in and out of Jilin province and training for nearly 1,000 people.
More than 10 cartoons were created through technological support from the project.
Some, such as Shaolin Haibao, appeared on CCTV and the 4-D cartoon, My Fellow Villagers, was acclaimed at the 2010 Shanghai World Expo. It has also published more than 150 cartoon books, including the Three Character Classic, The Monkey King Havoc in Heaven, and China's Twelve Zodiac Signs.
To increase their service capacity, the Jilin Animation Comic and Games Group plans to put 180 million yuan into the second phase of the project over the next three to five years. When it is completed, the new public technology project will have an extra 100,000 square meters of space to grow into.
(Source: China Daily)
Editor: Lu Hui
English.news.cn 2011-11-16 13:43:33 FeedbackPrintRSS
BEIJING, Nov. 16 (Xinhuanet)
JP Morgan Chase aims to boost Chinese presence
JP Morgan Chase aims to boost Chinese presence
JP Morgan Chase & Co is planning to increase its investment in China and the US bank is actively seeking to tap business opportunities among the country's small and medium-sized enterprises (SME), said a senior executive of the bank.
"While some firms are selling their investments in China, JP Morgan is increasing its investment," James E. Staley, chief executive of JP Morgan Investment Bank, told China Daily in a recent interview.
With the European debt crisis causing sharp volatility, sluggish equity markets and a difficult environment for debt, major global investment banks have delivered weak performances in the third quarter. Many are now considering cutting staff numbers and scaling back expansion plans.
However, Staley said that JP Morgan has no plans to pull back expansion and will continue to invest in emerging markets such as China, Indonesia, Colombia, Russia, and Poland.
The focus of the bank's investment in the Chinese mainland will be the hiring of more staff for local businesses, Staley said, adding that the bank is satisfied with the operation of its joint-venture securities operation with the Shenzhen-based First Capital Securities Co Ltd.
Meanwhile, the bank has signed an agreement to invest in a joint-venture guarantee company providing financial services to SMEs, an initiative led by the National Development and Reform Commission (NDRC), China's top economic planner.
JP Morgan will invest $200 million in the venture and will own a 24.9 percent stake in the new operation. Other major investors include the Export-Import Bank of China, the Chinese steelmaker Baosteel Group Corp, HNA Capital Holding Co Ltd, and the German industrial giant Siemens AG.
"It is a very new venture for the bank and it is a significant investment that we are making, which underscores our commitment to being a partner with China," Staley said.
The new venture has capital of 5.1 billion yuan ($803.4 million), making it one of the biggest companies of its kind in China, according to a statement from the NDRC. The company will begin operations once it obtains all the required government approvals, according to a source close to the deal.
"This initiative will provide us with the opportunity to make an investment in a financial-guarantee company serving the SME sector in China, one of the key growth engines for the Chinese economy," said Zili Shao, chairman and CEO of JP Morgan China.
According to the NDRC statement, JP Morgan will provide technical assistance in areas such as development strategy, risk control and product innovation. The company will be run independently by professional managers recruited from the market, according to people close to the deal..
Commenting on the prospects for the fourth quarter, Staley said he expects the market situation to recover and an improvement in activity across the investment banking sector, given the high probability that US economic growth will begin to return to a more normalized level.
However, he noted that the risks in the eurozone and the European banking industry continue to be the biggest challenge facing the investment banking business in the foreseeable future.
Staley said that his bank has about $3 billion exposure to European sovereign debt, which he believes is "totally manageable".
(Source: China Daily)
Editor: Lu Hui
English.news.cn 2011-11-16 11:52:47 FeedbackPrintRSS
BEIJING, Nov. 16 (Xinhuanet)
JP Morgan Chase & Co is planning to increase its investment in China and the US bank is actively seeking to tap business opportunities among the country's small and medium-sized enterprises (SME), said a senior executive of the bank.
"While some firms are selling their investments in China, JP Morgan is increasing its investment," James E. Staley, chief executive of JP Morgan Investment Bank, told China Daily in a recent interview.
With the European debt crisis causing sharp volatility, sluggish equity markets and a difficult environment for debt, major global investment banks have delivered weak performances in the third quarter. Many are now considering cutting staff numbers and scaling back expansion plans.
However, Staley said that JP Morgan has no plans to pull back expansion and will continue to invest in emerging markets such as China, Indonesia, Colombia, Russia, and Poland.
The focus of the bank's investment in the Chinese mainland will be the hiring of more staff for local businesses, Staley said, adding that the bank is satisfied with the operation of its joint-venture securities operation with the Shenzhen-based First Capital Securities Co Ltd.
Meanwhile, the bank has signed an agreement to invest in a joint-venture guarantee company providing financial services to SMEs, an initiative led by the National Development and Reform Commission (NDRC), China's top economic planner.
JP Morgan will invest $200 million in the venture and will own a 24.9 percent stake in the new operation. Other major investors include the Export-Import Bank of China, the Chinese steelmaker Baosteel Group Corp, HNA Capital Holding Co Ltd, and the German industrial giant Siemens AG.
"It is a very new venture for the bank and it is a significant investment that we are making, which underscores our commitment to being a partner with China," Staley said.
The new venture has capital of 5.1 billion yuan ($803.4 million), making it one of the biggest companies of its kind in China, according to a statement from the NDRC. The company will begin operations once it obtains all the required government approvals, according to a source close to the deal.
"This initiative will provide us with the opportunity to make an investment in a financial-guarantee company serving the SME sector in China, one of the key growth engines for the Chinese economy," said Zili Shao, chairman and CEO of JP Morgan China.
According to the NDRC statement, JP Morgan will provide technical assistance in areas such as development strategy, risk control and product innovation. The company will be run independently by professional managers recruited from the market, according to people close to the deal..
Commenting on the prospects for the fourth quarter, Staley said he expects the market situation to recover and an improvement in activity across the investment banking sector, given the high probability that US economic growth will begin to return to a more normalized level.
However, he noted that the risks in the eurozone and the European banking industry continue to be the biggest challenge facing the investment banking business in the foreseeable future.
Staley said that his bank has about $3 billion exposure to European sovereign debt, which he believes is "totally manageable".
(Source: China Daily)
Editor: Lu Hui
English.news.cn 2011-11-16 11:52:47 FeedbackPrintRSS
BEIJING, Nov. 16 (Xinhuanet)
Green industries to add millions of jobs
Green industries to add millions of jobs
Greening China's heavily polluting and energy-consuming industries will cause short-term losses but bring huge economic and social benefits in the long run, says a leading environmental think tank.
The China Council of International Cooperation on Environment and Development suggested that between now and 2015 the country should spend an estimated 5.77 trillion yuan ($909 billion) to improve energy efficiency and protect the environment.
Nudging out high polluting and energy-intensive industries could cost the country 952,100 jobs and more than 100 billion yuan in economic output by 2015, according to the council's calculations based on its methodology, but in return the country could save 1.43 trillion yuan in its energy expense, said a report by the council.
In addition, the growth of the green sector could boost GDP growth by 8.08 trillion yuan while creating 10.58 million jobs.
The council, comprising 200 world experts who regularly offer environment-related policy suggestions to authorities, is currently holding its annual conference in Beijing.
"The industrial sector is still the prime energy consumer and a major cause of pollution, so greening the sector is key for China's green transformation," said Li Ganjie, vice-minister of environmental protection and also the secretary-general of the council.
But even with such large-scale investment, the country is still set to face ever-greater challenges of environmental pollution and resource depletion in the coming decade considering the current level of industrialization and urbanization, Li warned.
By 2020, the country may still be troubled by serious environmental woes such as worsening air pollution, a deepening water crisis, continuous degradation of ecological systems, and mounting hazardous wastes, says the report.
Moreover, China will be under increasing international pressure to control its greenhouse gas emissions.
"The environmental protection situation in China is still described as 'grave', and the critical period for change still lies ahead," said Margaret Biggs, the council's executive vice-chairwoman.
The report also urged that government at all levels get rid of the obsession with GDP growth, reduce interference in the market, and deepen tax and price reforms to encourage green development.
"The blind pursuit of economic growth has now become a huge obstacle for China's green growth ... The government should clamp down on local protectionism that crowds out green investment," says the report.
More precisely, local authorities should quit their current role of making full decisions for project investment - a reason that polluting enterprises backed by the governments sometimes ignore environmental regulations.
"Local governments should not protect polluting firms and outdated production capacities just because of the tax revenues they bring," the report says.
Instead, the government should strengthen its supervision in mining activities, pollution emissions, food security and safety management.
Introducing environmental protection taxes, including a carbon tax, and reforming the pricing mechanism of key resources should also be prioritized.
"For pricing of key resources, particularly electricity, oil and coal, (it is necessary to) get the government out of the business of interfering directly in the economy, and let the market decide and reflect their scarcity," said Daniel Dudek, chief economist with the US-based Environmental Defense Fund and a member of the council.
(Source: China Daily)
Editor: Lu Hui
English.news.cn 2011-11-16 10:57:28 FeedbackPrintRSS
BEIJING, Nov. 16 (Xinhuanet)
Greening China's heavily polluting and energy-consuming industries will cause short-term losses but bring huge economic and social benefits in the long run, says a leading environmental think tank.
The China Council of International Cooperation on Environment and Development suggested that between now and 2015 the country should spend an estimated 5.77 trillion yuan ($909 billion) to improve energy efficiency and protect the environment.
Nudging out high polluting and energy-intensive industries could cost the country 952,100 jobs and more than 100 billion yuan in economic output by 2015, according to the council's calculations based on its methodology, but in return the country could save 1.43 trillion yuan in its energy expense, said a report by the council.
In addition, the growth of the green sector could boost GDP growth by 8.08 trillion yuan while creating 10.58 million jobs.
The council, comprising 200 world experts who regularly offer environment-related policy suggestions to authorities, is currently holding its annual conference in Beijing.
"The industrial sector is still the prime energy consumer and a major cause of pollution, so greening the sector is key for China's green transformation," said Li Ganjie, vice-minister of environmental protection and also the secretary-general of the council.
But even with such large-scale investment, the country is still set to face ever-greater challenges of environmental pollution and resource depletion in the coming decade considering the current level of industrialization and urbanization, Li warned.
By 2020, the country may still be troubled by serious environmental woes such as worsening air pollution, a deepening water crisis, continuous degradation of ecological systems, and mounting hazardous wastes, says the report.
Moreover, China will be under increasing international pressure to control its greenhouse gas emissions.
"The environmental protection situation in China is still described as 'grave', and the critical period for change still lies ahead," said Margaret Biggs, the council's executive vice-chairwoman.
The report also urged that government at all levels get rid of the obsession with GDP growth, reduce interference in the market, and deepen tax and price reforms to encourage green development.
"The blind pursuit of economic growth has now become a huge obstacle for China's green growth ... The government should clamp down on local protectionism that crowds out green investment," says the report.
More precisely, local authorities should quit their current role of making full decisions for project investment - a reason that polluting enterprises backed by the governments sometimes ignore environmental regulations.
"Local governments should not protect polluting firms and outdated production capacities just because of the tax revenues they bring," the report says.
Instead, the government should strengthen its supervision in mining activities, pollution emissions, food security and safety management.
Introducing environmental protection taxes, including a carbon tax, and reforming the pricing mechanism of key resources should also be prioritized.
"For pricing of key resources, particularly electricity, oil and coal, (it is necessary to) get the government out of the business of interfering directly in the economy, and let the market decide and reflect their scarcity," said Daniel Dudek, chief economist with the US-based Environmental Defense Fund and a member of the council.
(Source: China Daily)
Editor: Lu Hui
English.news.cn 2011-11-16 10:57:28 FeedbackPrintRSS
BEIJING, Nov. 16 (Xinhuanet)
Buyers and developers face some harsh home truths
Buyers and developers face some harsh home truths
Confidence shaken amid falling property prices as real estate agents suffer sudden slowdown in top-tier cities.
Li Wei, a company executive in Beijing, is depressed. The value of his apartment has shrunk by nearly 500,000 yuan ($78,700) as property developers slash prices to stimulate sales.
"It took me at least four years to save the 500,000 yuan, but the money evaporated within eight months!"
Li, 30, bought a two-bedroom apartment in the capital's Tongzhou district in February at 19,800 yuan a square meter. The price now is 13,400 yuan.
His case is not unique. With more property developers suffering cash-flow problems, under the government's tightening measures, they are making wider and deeper price cuts across China's major cities.
According to SouFun Holdings Ltd, owner of one of the country's biggest real estate websites, prices dropped in 58 of 100 sample cities in October, with the month-to-month decline increasing from 0.03 percent in September to 0.23 percent.
The number of cities experiencing falls also set a record for the year last month.
It is an interesting dilemma: Property developers finally reduced home prices, as the government desired, but they have felt a backlash from early homebuyers. In Beijing and Shanghai, the higher-than-expected price decline has triggered strong protests from earlier buyers, with some agitated people storming sales offices and asking for refunds.
Moreover, if home prices fall too far and too fast, will the drop undermine China's economic growth?
Property investment has accounted for nearly one-fourth of fixed asset investment, and land sales remain a key source for local governments' revenue, making real estate a major driver for China's economic growth.
Expect further drops
The central government, which has shown its determination to stay the course, seems confident that it can squeeze air out of the real estate bubble while maintaining a healthy growth rate.
Premier Wen Jiabao said in late October that the government would firmly maintain control over the property market - methods have included restrictions on home purchases and bank loans - even as it seeks to fine-tune other economic policies.
"I will especially stress that there won't be the slightest wavering in China's property tightening measures. Our target is for prices to return to a reasonable level," Wen said.
The increasingly cramped cash flow has led more property developers, including such large ones as Vanke and Longfor, to cut prices by a bigger margin.
"The decline in home prices is just beginning. And this price adjustment will cut deeper than was the case in 2008 to 2009," said Chen Li, head of China equity strategy at UBS Securities. "The fluctuations in the property market, in fact, may pose the biggest challenge to China's economy next year."
According to Zhang Dawei, marketing director of Centaline Group in Beijing, price cuts will spread from the suburbs into urban areas and from large apartments to small and medium-sized ones.
"Homebuyers' confidence has hit bottom," Zhang said.
Qi Tao, a lawyer in Shanghai, had planned to buy an apartment before the end of the year for his imminent wedding, but has changed his mind. "The price may drop further in the first quarter of 2012 if the government continues those tightening measures," he said.
Enough potential buyers like Qi have decided to wait things out that sales in the third quarter, a traditional high season for real estate, were unsatisfactory.
According to the third quarter report released jointly by Knight Frank and Holdways, international real estate brokerage companies, the total area of property sold in 20 major cities fell by 17.3 percent year on year, 1.6 percent quarter on quarter.
The so-called transacted areas of new homes in Beijing dropped 18.3 percent year on year, Shanghai dropped 21.8 percent, Guangzhou 15.7 percent and Shenzhen 8.7 percent. Ten other cities showed decreases of more than 10 percent. For Chongqing and Hangzhou, declines exceeded 50 percent.
JP Morgan said in a recent research note that steeper declines may lie ahead, and prices nationally could fall 5 to 10 percent - as much as 20 percent in some major cities - over the next 12 to 18 months.
"The correction has just started, but the likelihood of a nationwide collapse is very small, as bursting the bubble is clearly not part of the policy objectives," the note said.
Thomas Lam, head of research at Knight Frank in Greater China, said that since the growth of home prices has started to become controllable, the government is unlikely to launch further new tightening policies, although current policies are not expected to be relaxed in 2012.
"We expect property prices would only slightly adjust next year, while local governments could fine-tune their policies based on the cities' individual cases," Lam said.
Industry shuffle
Finance difficulties produce the No 1 headache for property developers, whether public or private companies.
Statistics from Zhejiang Hexin Flush Network Services, developer of stock analysis software, show that the average debt-to-asset ratio for 133 property developers listed on the Shanghai and Shenzhen stock exchanges rose to 63 percent by the end of the third quarter.
The ratios for 80 of those companies were above the average. Seven were over 85 percent.
According to Stephen Ip, infrastructure and real estate industry lead partner for KPMG China, property developers have found refinancing increasingly difficult, but worse situations could develop.
"Although the debt-equity ratio of some listed property companies have exceeded 100 percent, they still have alternatives to maintain operations, such as issuing convertible bonds or preferred shares to international institutional investors, selling project stakes and cutting prices to stimulate sales," he said.
Some larger developers, with better cash flow, are working to sharpen their competitiveness to stand out in a fierce market.
Shenzhen-based China Merchants Properties Development, one of the country's top four listed real estate companies, will invest more in research and development to make its products more environment-friendly.
"Though building green products will add to our cost by some 5 percent, it will help us attract more customers and improve our competitiveness when expanding into other regions," said Hu Jianxin, the company's deputy general manager.
Hong Kong-listed Beijing Capital Land aims to improve its commercial facilities when building residential projects. President Tang Jun said the company plans to construct five large outlet malls within three years to make its residential developments more attractive. It is also preparing to launch a call center to improve its customer relationship management.
Meanwhile, some property developers are facing real risks of bankruptcy in the coming months, and more distress-caused mergers and acquisitions can be expected in 2012, Ip said.
"A number of institutional real estate funds, mainly from the US, Singapore and Japan, are actively seeking opportunities in the market, competing alongside domestic buyers," Ip said. "Commercial real estate, such as office, retail and mixed-use developments in good locations, instead of residential projects, are their primary target assets, considering the comparatively lower risks."
China Merchant Property's Hu held a similar viewpoint. "As long as the rigorous property measures continue, especially the financing channels remaining tight for both property developers and homebuyers, a large-scale industry reshuffle is expected in 2012.
"For property developers with a sound balance sheet and business structure, however, the shuffle also provides a good chance to expand market share," Hu said.
In equity-exchange venues at Beijing, Shanghai, Tianjin and Chongqing, more than 600 property companies or projects have been sold this year, more than double the number in 2010, according to the China Securities Journal.
When is it too much?
What would happen to China's investment and economy if property prices dropped 30 percent? This is a question international investors ask often.
For UBS Securities, the answer is fairly simple: Both fixed investment and the economy would go into a hard landing.
"Property investment accounts for more than 20 percent of total fixed investment and we estimate that almost 30 percent of final products in the economy are absorbed by the property sector," said Wang Tao, a UBS Securities economist.
A collapse of property prices, properly measured, would likely be caused by a collapse in sales for an extended period and accompanied by a collapse in property construction.
"Given the importance of the sector to the whole economy, a hard landing would be hard to avoid," Wang said. "Such a property-led hard landing scenario is quite likely in the next few years, even though we do not think the property market is about to collapse now."
Chinese officials hold a different viewpoint.
Liu Mingkang, former chairman of the country's banking regulator, reiterated on Friday that Chinese banks will be able to cope, no matter what. "Even if property prices drop by 50 percent, the banks' provision rate could still reach 100 percent - meaning the banks' principal remains safe - though interest may suffer a loss," Liu said.
As of the end of August, outstanding property loans among Chinese commercial lenders stood at 10.4 trillion yuan, 19.8 percent of the total of outstanding loans. This ratio is much lower than the average international figure, usually around 50 percent for Europe and the US, Liu said.
However, some industry analysts said such a calculation is just a static estimation.
"Considering that most of local governments' bank loans are backed by land value, once the home price drops, the land price also falls," UBS' Chen said. "At that time, the local government may need other things to fill up the value gap, indicating potential risks for bad loans from local debts."
(Source: China Daily)
English.news.cn 2011-11-16 10:36:11
Confidence shaken amid falling property prices as real estate agents suffer sudden slowdown in top-tier cities.
Li Wei, a company executive in Beijing, is depressed. The value of his apartment has shrunk by nearly 500,000 yuan ($78,700) as property developers slash prices to stimulate sales.
"It took me at least four years to save the 500,000 yuan, but the money evaporated within eight months!"
Li, 30, bought a two-bedroom apartment in the capital's Tongzhou district in February at 19,800 yuan a square meter. The price now is 13,400 yuan.
His case is not unique. With more property developers suffering cash-flow problems, under the government's tightening measures, they are making wider and deeper price cuts across China's major cities.
According to SouFun Holdings Ltd, owner of one of the country's biggest real estate websites, prices dropped in 58 of 100 sample cities in October, with the month-to-month decline increasing from 0.03 percent in September to 0.23 percent.
The number of cities experiencing falls also set a record for the year last month.
It is an interesting dilemma: Property developers finally reduced home prices, as the government desired, but they have felt a backlash from early homebuyers. In Beijing and Shanghai, the higher-than-expected price decline has triggered strong protests from earlier buyers, with some agitated people storming sales offices and asking for refunds.
Moreover, if home prices fall too far and too fast, will the drop undermine China's economic growth?
Property investment has accounted for nearly one-fourth of fixed asset investment, and land sales remain a key source for local governments' revenue, making real estate a major driver for China's economic growth.
Expect further drops
The central government, which has shown its determination to stay the course, seems confident that it can squeeze air out of the real estate bubble while maintaining a healthy growth rate.
Premier Wen Jiabao said in late October that the government would firmly maintain control over the property market - methods have included restrictions on home purchases and bank loans - even as it seeks to fine-tune other economic policies.
"I will especially stress that there won't be the slightest wavering in China's property tightening measures. Our target is for prices to return to a reasonable level," Wen said.
The increasingly cramped cash flow has led more property developers, including such large ones as Vanke and Longfor, to cut prices by a bigger margin.
"The decline in home prices is just beginning. And this price adjustment will cut deeper than was the case in 2008 to 2009," said Chen Li, head of China equity strategy at UBS Securities. "The fluctuations in the property market, in fact, may pose the biggest challenge to China's economy next year."
According to Zhang Dawei, marketing director of Centaline Group in Beijing, price cuts will spread from the suburbs into urban areas and from large apartments to small and medium-sized ones.
"Homebuyers' confidence has hit bottom," Zhang said.
Qi Tao, a lawyer in Shanghai, had planned to buy an apartment before the end of the year for his imminent wedding, but has changed his mind. "The price may drop further in the first quarter of 2012 if the government continues those tightening measures," he said.
Enough potential buyers like Qi have decided to wait things out that sales in the third quarter, a traditional high season for real estate, were unsatisfactory.
According to the third quarter report released jointly by Knight Frank and Holdways, international real estate brokerage companies, the total area of property sold in 20 major cities fell by 17.3 percent year on year, 1.6 percent quarter on quarter.
The so-called transacted areas of new homes in Beijing dropped 18.3 percent year on year, Shanghai dropped 21.8 percent, Guangzhou 15.7 percent and Shenzhen 8.7 percent. Ten other cities showed decreases of more than 10 percent. For Chongqing and Hangzhou, declines exceeded 50 percent.
JP Morgan said in a recent research note that steeper declines may lie ahead, and prices nationally could fall 5 to 10 percent - as much as 20 percent in some major cities - over the next 12 to 18 months.
"The correction has just started, but the likelihood of a nationwide collapse is very small, as bursting the bubble is clearly not part of the policy objectives," the note said.
Thomas Lam, head of research at Knight Frank in Greater China, said that since the growth of home prices has started to become controllable, the government is unlikely to launch further new tightening policies, although current policies are not expected to be relaxed in 2012.
"We expect property prices would only slightly adjust next year, while local governments could fine-tune their policies based on the cities' individual cases," Lam said.
Industry shuffle
Finance difficulties produce the No 1 headache for property developers, whether public or private companies.
Statistics from Zhejiang Hexin Flush Network Services, developer of stock analysis software, show that the average debt-to-asset ratio for 133 property developers listed on the Shanghai and Shenzhen stock exchanges rose to 63 percent by the end of the third quarter.
The ratios for 80 of those companies were above the average. Seven were over 85 percent.
According to Stephen Ip, infrastructure and real estate industry lead partner for KPMG China, property developers have found refinancing increasingly difficult, but worse situations could develop.
"Although the debt-equity ratio of some listed property companies have exceeded 100 percent, they still have alternatives to maintain operations, such as issuing convertible bonds or preferred shares to international institutional investors, selling project stakes and cutting prices to stimulate sales," he said.
Some larger developers, with better cash flow, are working to sharpen their competitiveness to stand out in a fierce market.
Shenzhen-based China Merchants Properties Development, one of the country's top four listed real estate companies, will invest more in research and development to make its products more environment-friendly.
"Though building green products will add to our cost by some 5 percent, it will help us attract more customers and improve our competitiveness when expanding into other regions," said Hu Jianxin, the company's deputy general manager.
Hong Kong-listed Beijing Capital Land aims to improve its commercial facilities when building residential projects. President Tang Jun said the company plans to construct five large outlet malls within three years to make its residential developments more attractive. It is also preparing to launch a call center to improve its customer relationship management.
Meanwhile, some property developers are facing real risks of bankruptcy in the coming months, and more distress-caused mergers and acquisitions can be expected in 2012, Ip said.
"A number of institutional real estate funds, mainly from the US, Singapore and Japan, are actively seeking opportunities in the market, competing alongside domestic buyers," Ip said. "Commercial real estate, such as office, retail and mixed-use developments in good locations, instead of residential projects, are their primary target assets, considering the comparatively lower risks."
China Merchant Property's Hu held a similar viewpoint. "As long as the rigorous property measures continue, especially the financing channels remaining tight for both property developers and homebuyers, a large-scale industry reshuffle is expected in 2012.
"For property developers with a sound balance sheet and business structure, however, the shuffle also provides a good chance to expand market share," Hu said.
In equity-exchange venues at Beijing, Shanghai, Tianjin and Chongqing, more than 600 property companies or projects have been sold this year, more than double the number in 2010, according to the China Securities Journal.
When is it too much?
What would happen to China's investment and economy if property prices dropped 30 percent? This is a question international investors ask often.
For UBS Securities, the answer is fairly simple: Both fixed investment and the economy would go into a hard landing.
"Property investment accounts for more than 20 percent of total fixed investment and we estimate that almost 30 percent of final products in the economy are absorbed by the property sector," said Wang Tao, a UBS Securities economist.
A collapse of property prices, properly measured, would likely be caused by a collapse in sales for an extended period and accompanied by a collapse in property construction.
"Given the importance of the sector to the whole economy, a hard landing would be hard to avoid," Wang said. "Such a property-led hard landing scenario is quite likely in the next few years, even though we do not think the property market is about to collapse now."
Chinese officials hold a different viewpoint.
Liu Mingkang, former chairman of the country's banking regulator, reiterated on Friday that Chinese banks will be able to cope, no matter what. "Even if property prices drop by 50 percent, the banks' provision rate could still reach 100 percent - meaning the banks' principal remains safe - though interest may suffer a loss," Liu said.
As of the end of August, outstanding property loans among Chinese commercial lenders stood at 10.4 trillion yuan, 19.8 percent of the total of outstanding loans. This ratio is much lower than the average international figure, usually around 50 percent for Europe and the US, Liu said.
However, some industry analysts said such a calculation is just a static estimation.
"Considering that most of local governments' bank loans are backed by land value, once the home price drops, the land price also falls," UBS' Chen said. "At that time, the local government may need other things to fill up the value gap, indicating potential risks for bad loans from local debts."
(Source: China Daily)
English.news.cn 2011-11-16 10:36:11
China's railway investment decreases amid debt pressure
China's railway investment decreases amid debt pressure
China's railway investment in the first 10 months of this year fell sharply, as the Ministry of Railways (MOR) is facing mounting pressure to pay off creditors.
The ministry announced Tuesday that its fixed asset investments reached 429 billion yuan (about 68 billion U.S. dollars) in the first 10 months of this year, representing a sharp decrease of 25.2 percent from a year ago.
Its infrastructure investment in the first 10 months reached 367 billion yuan, falling 28 percent year-on-year, according to data released by the ministry.
Previous data shows that the MOR's outstanding debt totaled 2.23 trillion yuan as of the end of September, creating significant pressure for the ministry, as debt payments peaked in the fourth quarter.
The ministry has resorted to issuing bonds to finance its construction projects. In its latest effort to raise capital, it auctioned 30 billion yuan in bonds on Tuesday last week.
Other figures released by the ministry showed that the nation's railways carried nearly 1.6 billion passengers in the first 10 months, 11.2 percent more than in the same period last year. Freight transportation volume, meanwhile, rose 8.1 percent to 3.27 billion metric tons.
Editor: Wang Guanqun
English.news.cn 2011-11-15 16:51:25 FeedbackPrintRSS
BEIJING, Nov. 15 (Xinhua)
China's railway investment in the first 10 months of this year fell sharply, as the Ministry of Railways (MOR) is facing mounting pressure to pay off creditors.
The ministry announced Tuesday that its fixed asset investments reached 429 billion yuan (about 68 billion U.S. dollars) in the first 10 months of this year, representing a sharp decrease of 25.2 percent from a year ago.
Its infrastructure investment in the first 10 months reached 367 billion yuan, falling 28 percent year-on-year, according to data released by the ministry.
Previous data shows that the MOR's outstanding debt totaled 2.23 trillion yuan as of the end of September, creating significant pressure for the ministry, as debt payments peaked in the fourth quarter.
The ministry has resorted to issuing bonds to finance its construction projects. In its latest effort to raise capital, it auctioned 30 billion yuan in bonds on Tuesday last week.
Other figures released by the ministry showed that the nation's railways carried nearly 1.6 billion passengers in the first 10 months, 11.2 percent more than in the same period last year. Freight transportation volume, meanwhile, rose 8.1 percent to 3.27 billion metric tons.
Editor: Wang Guanqun
English.news.cn 2011-11-15 16:51:25 FeedbackPrintRSS
BEIJING, Nov. 15 (Xinhua)
China's Huawei to buy Symantec stake in JV
China's Huawei to buy Symantec stake in JV
Chinese telecom company Huawei Technologies Co. said Tuesday it will pay 530 million U.S. dollars for full ownership of the company's current joint venture with U.S. computer software security firm Symantec.
The firm will buy the 49 percent stake in the company that was owned by Symantec, according to a statement posted on Huawei's website.
Upon closing, the deal will put Hong-Kong-based Huawei Symantec Technologies Co. Ltd. solely into the hands of Huawei.
The deal is subject to regulatory approval and is expected to be closed in the first quarter of 2012, Huawei said.
The joint venture, established in 2008 by Huawei and Symantec, aims to provide innovative security, storage and systems management solutions. It has research and development centers in the Chinese cities of Beijing, Shenzhen, Chengdu and Hangzhou.
Editor: Yamei Wang
English.news.cn 2011-11-15 13:50:23 FeedbackPrintRSS
SHENZHEN, Nov. 15 (Xinhua)
Chinese telecom company Huawei Technologies Co. said Tuesday it will pay 530 million U.S. dollars for full ownership of the company's current joint venture with U.S. computer software security firm Symantec.
The firm will buy the 49 percent stake in the company that was owned by Symantec, according to a statement posted on Huawei's website.
Upon closing, the deal will put Hong-Kong-based Huawei Symantec Technologies Co. Ltd. solely into the hands of Huawei.
The deal is subject to regulatory approval and is expected to be closed in the first quarter of 2012, Huawei said.
The joint venture, established in 2008 by Huawei and Symantec, aims to provide innovative security, storage and systems management solutions. It has research and development centers in the Chinese cities of Beijing, Shenzhen, Chengdu and Hangzhou.
Editor: Yamei Wang
English.news.cn 2011-11-15 13:50:23 FeedbackPrintRSS
SHENZHEN, Nov. 15 (Xinhua)
China stock index futures end lower - Nov. 16
China stock index futures end lower -- Nov. 16
China's stock index futures closed lower on Wednesday, with the contract for November, the most actively traded, down 2.38 percent from the previous trading day to 2,677.0 points.
The December contract lost 2.37 percent to 2,682.8 points, while the contract for March 2012 fell 2.42 percent to finish at 2,705.0 points. The contract for June 2012 declined 2.46 percent to 2,719.6.
The stock-index contracts, agreements to buy or sell the Hushen 300 Index at a preset value on an agreed date, are designed to allow investors to bet on and profit from both gains and declines in the market.
The index futures was launched at the China Financial Futures Exchange (CFFEX) and started trading from April 16, 2010. The CFFEX has set the base value for all the four contracts at 3,399 points.
Editor: Wang Guanqun
English.news.cn 2011-11-16 16:31:23 FeedbackPrintRSS
BEIJING, Nov. 16 (Xinhua)
China's stock index futures closed lower on Wednesday, with the contract for November, the most actively traded, down 2.38 percent from the previous trading day to 2,677.0 points.
The December contract lost 2.37 percent to 2,682.8 points, while the contract for March 2012 fell 2.42 percent to finish at 2,705.0 points. The contract for June 2012 declined 2.46 percent to 2,719.6.
The stock-index contracts, agreements to buy or sell the Hushen 300 Index at a preset value on an agreed date, are designed to allow investors to bet on and profit from both gains and declines in the market.
The index futures was launched at the China Financial Futures Exchange (CFFEX) and started trading from April 16, 2010. The CFFEX has set the base value for all the four contracts at 3,399 points.
Editor: Wang Guanqun
English.news.cn 2011-11-16 16:31:23 FeedbackPrintRSS
BEIJING, Nov. 16 (Xinhua)
ChiNext Index closes lower -- Nov. 16
ChiNext Index closes lower -- Nov. 16
The ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, lost 27.46 points, or 2.98 percent, to close at 893.51 on Wednesday.
The index, together with the Shenzhen Component Index and the Shenzhen SME (small and medium-sized enterprises) Board Index, makes up the three core indices reflecting the performance of China's stocks listed on the Shenzhen Stock Exchange.
The ChiNext Board, which started trading on Oct. 30, 2009, mainly lists high-tech companies and those with high growth potential
Editor: Wang Guanqun
English.news.cn 2011-11-16 16:31:23 FeedbackPrintRSS
BEIJING, Nov. 16 (Xinhua)
The ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, lost 27.46 points, or 2.98 percent, to close at 893.51 on Wednesday.
The index, together with the Shenzhen Component Index and the Shenzhen SME (small and medium-sized enterprises) Board Index, makes up the three core indices reflecting the performance of China's stocks listed on the Shenzhen Stock Exchange.
The ChiNext Board, which started trading on Oct. 30, 2009, mainly lists high-tech companies and those with high growth potential
Editor: Wang Guanqun
English.news.cn 2011-11-16 16:31:23 FeedbackPrintRSS
BEIJING, Nov. 16 (Xinhua)
Shanghai stock indices close lower-- Nov. 16
Shanghai stock indices close lower-- Nov. 16
China's benchmark Shanghai Composite Index on the Shanghai Stock Exchange closed at 2,466.96 points on Wednesday, down 62.80 points, or 2.48 percent, from the previous close.
A Share Index: 2,583.77 points, down 65.86 points, or 2.49 percent;
B Share Index: 253.81 points, down 4.86 points, or 1.88 percent; Total Turnover: 92.40 billion yuan (14.44 billion U.S. dollars).
Editor: Wang Guanqun
English.news.cn 2011-11-16 16:22:25 FeedbackPrintRSS
BEIJING, Nov. 16 (Xinhua)
China's benchmark Shanghai Composite Index on the Shanghai Stock Exchange closed at 2,466.96 points on Wednesday, down 62.80 points, or 2.48 percent, from the previous close.
A Share Index: 2,583.77 points, down 65.86 points, or 2.49 percent;
B Share Index: 253.81 points, down 4.86 points, or 1.88 percent; Total Turnover: 92.40 billion yuan (14.44 billion U.S. dollars).
Editor: Wang Guanqun
English.news.cn 2011-11-16 16:22:25 FeedbackPrintRSS
BEIJING, Nov. 16 (Xinhua)
Taiwan stocks close 1.38 pct lower
Taiwan stocks close 1.38 pct lower
Taiwan's share prices fell 103. 54 points, or 1.38 percent to close at 7,387.52 on Wednesday, according to news reaching here from Taipei.
The benchmark weighted index traded between 7,541.68 and 7,385. 13 on a turnover of 86.99 billion new Taiwan dollars (about 2.88 billion U.S. dollars).
Editor: Wang Guanqun
English.news.cn 2011-11-16 16:04:44 FeedbackPrintRSS
HONG KONG, Nov. 16 (Xinhua)
Taiwan's share prices fell 103. 54 points, or 1.38 percent to close at 7,387.52 on Wednesday, according to news reaching here from Taipei.
The benchmark weighted index traded between 7,541.68 and 7,385. 13 on a turnover of 86.99 billion new Taiwan dollars (about 2.88 billion U.S. dollars).
Editor: Wang Guanqun
English.news.cn 2011-11-16 16:04:44 FeedbackPrintRSS
HONG KONG, Nov. 16 (Xinhua)
Chinese stocks drop 2.48 pct Wednesday
Chinese stocks drop 2.48 pct Wednesday
Chinese shares closed sharply lower Wednesday with the benchmark Shanghai Composite Index losing 2.48 percent, or 62.80 points, to 2,466.96.
The Shenzhen Component Index fell 2.55 percent, or 269.67 points, to close at 10,313.33.
Editor: Lu Hui
English.news.cn 2011-11-16 15:16:37 FeedbackPrintRSS
BEIJING, Nov. 16 (Xinhua)
Chinese shares closed sharply lower Wednesday with the benchmark Shanghai Composite Index losing 2.48 percent, or 62.80 points, to 2,466.96.
The Shenzhen Component Index fell 2.55 percent, or 269.67 points, to close at 10,313.33.
Editor: Lu Hui
English.news.cn 2011-11-16 15:16:37 FeedbackPrintRSS
BEIJING, Nov. 16 (Xinhua)
Accusation on yuan exchange rate groundless: MOC
Accusation on yuan exchange rate groundless: MOC
China's Ministry of Commerce (MOC) reiterated on Wednesday that accusations on the exchange rate issue of Chinese currency is groundless and unreasonable.
Many economists, both from China and abroad, have proved the exchange rate of yuan is not the major cause of trade imbalance between China and United States and its exchange rate is now at a reasonable level, MOC spokesman Shen Danyang said.
Editor: Zhang Xiang
English.news.cn 2011-11-16 12:05:40 FeedbackPrintRSS
BEIJING, Nov. 16 (Xinhua)
China's Ministry of Commerce (MOC) reiterated on Wednesday that accusations on the exchange rate issue of Chinese currency is groundless and unreasonable.
Many economists, both from China and abroad, have proved the exchange rate of yuan is not the major cause of trade imbalance between China and United States and its exchange rate is now at a reasonable level, MOC spokesman Shen Danyang said.
Editor: Zhang Xiang
English.news.cn 2011-11-16 12:05:40 FeedbackPrintRSS
BEIJING, Nov. 16 (Xinhua)
Shanghai starts issuing bonds
Shanghai starts issuing bonds
The auction of Shanghai's direct issuance of local government bonds, the nation's first, met with strong demand on Tuesday, enabling the municipal government to get financed at favorable rates.
Shanghai's issuance is part of a four-region trial program launched by the central government on Oct 20. Analysts say letting regional governments sell debt directly into the market will help make governments' books more organized and prevent chaotic accumulation of debt through financing vehicles, which came under the spotlight this year.
The government of Shanghai auctioned 3.6 billion yuan ($567 million) in three-year bonds at a rate of 3.10 percent and 3.5 billion yuan in five-year bonds at 3.30 percent. The issuance starts on Wednesday.
The rate is 1.7 percentage points lower than the 5 percent average yield of the five-year bonds sold by companies set up by the city to fund infrastructure, according to data compiled by Bloomberg.
In fact, the yields are almost the same as those of risk-free national bonds on the secondary market. Fixed-rate three-year central government bonds on the interbank market yielded 3.15 percent on Monday, with five-year debt yielding 3.30 percent.
"The fact the Ministry of Finance pays interest on behalf of local governments means that the bonds have the same credit ratings as those previously issued by the ministry," China International Capital Corp Ltd, the country's biggest State-owned investment bank by assets, said in a research note.
"Liquidity is relatively rich now in the market. The current economic fundamentals and policies are also preferable for the bond market, resulting in lower yields," the note said.
On Oct 25, Premier Wen Jiabao said monetary policies will be "fine-tuned", after inflation slowed to 5.5 percent in October year-on-year from a three-year high of 6.5 percent in July.
Shanghai's issuance makes it the first regional government to issue debt directly, under a trial program launched on Oct 20 that also covers Guangdong and Zhejiang provinces, as well as the city of Shenzhen.
The southern province of Guangdong plans to auction 6.9 billion yuan in bonds on Friday.
Before Oct 20, local governments were banned from directly issuing debt - the bonds were issued by the Ministry of Finance on their behalf.
The ministry issued 200 billion yuan in bonds on behalf of regional governments in 2009 and again in 2010, far less than the amount local governments actually needed.
Lacking a funding channel, regional governments set up a number of financing vehicles, or trust companies, to bypass the law and borrow from financial institutions. The National Audit Office said in June that 6,500 such entities borrowed 10.7 trillion yuan at the end of 2010, 27 percent of the gross domestic product that year.
Allowing regional governments to issue bonds directly will help improve transparency in local government debt, said Wang Jianhui, chief economist at Southwest Securities Co Ltd.
"The direct issuance is a breakthrough," he said. "It will make regional governments' books more transparent, exposing problems before they get worse."
The issuers of bonds are required to publish annual reports and stipulate clearer obligations than those financing vehicles do.
Liu Ligang, head of Greater China Economics at ANZ Banking Group, cautioned that direct issuance also needs proper supervision.
"We view this reform (the trial) as a milestone in the development of China's fiscal system and capital market," he said. But measures should be taken "to prevent the local government bond market from being a conduit for soft budget constraint".
In a research note, he suggested that the central government establish a set of institutions to prevent excessive debt issuing and draft a local-government bankruptcy law to provide an orderly resolution of a local-government default.
Meanwhile, rating agencies should be encouraged to participate in the local government rating process. Liu said he believes a debt limit of no more than 40 percent of local GDP should be adopted as a precaution.
(Source: China Daily)
Editor: Lu Hui
English.news.cn 2011-11-16 11:46:35 FeedbackPrintRSS
BEIJING, Nov. 16 (Xinhuanet)
The auction of Shanghai's direct issuance of local government bonds, the nation's first, met with strong demand on Tuesday, enabling the municipal government to get financed at favorable rates.
Shanghai's issuance is part of a four-region trial program launched by the central government on Oct 20. Analysts say letting regional governments sell debt directly into the market will help make governments' books more organized and prevent chaotic accumulation of debt through financing vehicles, which came under the spotlight this year.
The government of Shanghai auctioned 3.6 billion yuan ($567 million) in three-year bonds at a rate of 3.10 percent and 3.5 billion yuan in five-year bonds at 3.30 percent. The issuance starts on Wednesday.
The rate is 1.7 percentage points lower than the 5 percent average yield of the five-year bonds sold by companies set up by the city to fund infrastructure, according to data compiled by Bloomberg.
In fact, the yields are almost the same as those of risk-free national bonds on the secondary market. Fixed-rate three-year central government bonds on the interbank market yielded 3.15 percent on Monday, with five-year debt yielding 3.30 percent.
"The fact the Ministry of Finance pays interest on behalf of local governments means that the bonds have the same credit ratings as those previously issued by the ministry," China International Capital Corp Ltd, the country's biggest State-owned investment bank by assets, said in a research note.
"Liquidity is relatively rich now in the market. The current economic fundamentals and policies are also preferable for the bond market, resulting in lower yields," the note said.
On Oct 25, Premier Wen Jiabao said monetary policies will be "fine-tuned", after inflation slowed to 5.5 percent in October year-on-year from a three-year high of 6.5 percent in July.
Shanghai's issuance makes it the first regional government to issue debt directly, under a trial program launched on Oct 20 that also covers Guangdong and Zhejiang provinces, as well as the city of Shenzhen.
The southern province of Guangdong plans to auction 6.9 billion yuan in bonds on Friday.
Before Oct 20, local governments were banned from directly issuing debt - the bonds were issued by the Ministry of Finance on their behalf.
The ministry issued 200 billion yuan in bonds on behalf of regional governments in 2009 and again in 2010, far less than the amount local governments actually needed.
Lacking a funding channel, regional governments set up a number of financing vehicles, or trust companies, to bypass the law and borrow from financial institutions. The National Audit Office said in June that 6,500 such entities borrowed 10.7 trillion yuan at the end of 2010, 27 percent of the gross domestic product that year.
Allowing regional governments to issue bonds directly will help improve transparency in local government debt, said Wang Jianhui, chief economist at Southwest Securities Co Ltd.
"The direct issuance is a breakthrough," he said. "It will make regional governments' books more transparent, exposing problems before they get worse."
The issuers of bonds are required to publish annual reports and stipulate clearer obligations than those financing vehicles do.
Liu Ligang, head of Greater China Economics at ANZ Banking Group, cautioned that direct issuance also needs proper supervision.
"We view this reform (the trial) as a milestone in the development of China's fiscal system and capital market," he said. But measures should be taken "to prevent the local government bond market from being a conduit for soft budget constraint".
In a research note, he suggested that the central government establish a set of institutions to prevent excessive debt issuing and draft a local-government bankruptcy law to provide an orderly resolution of a local-government default.
Meanwhile, rating agencies should be encouraged to participate in the local government rating process. Liu said he believes a debt limit of no more than 40 percent of local GDP should be adopted as a precaution.
(Source: China Daily)
Editor: Lu Hui
English.news.cn 2011-11-16 11:46:35 FeedbackPrintRSS
BEIJING, Nov. 16 (Xinhuanet)
Banks still "in good shape"
Banks still "in good shape"
China's banking system will be in good shape as the government fine-tunes its macroeconomic policies, despite a warning from the International Monetary Fund (IMF) on Tuesday that lenders could face systemic risks if several major shocks took place simultaneously, said analysts.
Lu Zhengwei, chief economist at Industrial Bank Co Ltd, said that the probability of credit, property, currency and yield curve shocks occurring together is quite slim, and as liquidity is loosened next year, the risks could be contained.
"The whole system is still strong and healthy enough to counter major risks," Lu said.
The IMF conducted joint stress tests with Chinese regulators of 17 banks that account for 83 percent of the commercial banking system, as part of a financial stability assessment program jointly developed with the World Bank.
This is the first time China accepted the assessment of financial vulnerability, as a commitment to the G20 Washington Summit in November 2008.
In a report, the IMF said that the assessment shows most "appear to be resilient to isolated shocks" such as exchange-rate changes and deteriorating asset quality in the property market and loans to local government financial vehicles that were set up to finance infrastructure projects.
"However, the system could be severely impacted if several major shocks materialized concurrently," the report said.
The main near-term domestic risks to the financial system include the impact of the recent sharp credit expansion on banks' asset quality, the rise of off-balance-sheet exposures and lending outside of the formal banking sector, relatively high real estate prices and the increase in imbalances due to the current economic growth pattern, it said.
"The risks are manageable and can be addressed by reforms that upgrade the country's capacity to respond to crises while continuing to support strong domestic demand," Bloomberg News quoted Jonathan Fiechter, deputy director of the IMF's monetary and capital markets department, as saying.
To contain risks, interest rates should be the primary instrument to govern credit expansion rather than administrative limits on bank lending, and China needs to overhaul the way interest rates are set and allow the yuan to trade more freely, according to the IMF.
China's banks had built up sufficient capital to weather even the worst-case scenarios in the real estate market and local government loan defaults, said former top banking regulator Liu Mingkang earlier this month.
The risks related to Chinese banks' property loans are "totally" controllable even in the worst-case scenario where property prices fall 50 percent, and the risk of lending to local governments is generally controllable, Liu said.
As of Sept 30, banks had checked and rectified 60 percent of the loans made to local governments through financial vehicles, Liu said.
However, he earlier cautioned that commercial lenders also face risks from "shadow" banking and private financing activities.
The IMF assessment came a day after Bank of America Corp said it will sell a second batch of shares valued at 10.4 billion yuan ($1.64 billion) in China Construction Bank Corp (CCB), the world's second-largest lender by market value, for an after-tax gain of about $1.8 billion.
The bank sold half of its CCB stake three months ago to reduce its holding to 5 percent. After the new sale, it will only hold about 1 percent of CCB's shares.
CCB said on Tuesday that Bank of America's plan to sell its shares would not affect its performance, as the operation reflected market behavior.
Last week, Goldman Sachs Group Inc raised $1.1 billion by selling shares of Industrial & Commercial Bank of China Ltd, the world's biggest lender by market value. It was the third time that Goldman has cut its holding in ICBC.
Lu said it is normal for foreign investors to worry about the asset quality of Chinese banks, after the government encouraged a credit boom during the financial crisis and later tightened liquidity.
But Chinese lenders are still a good bet, and international investors should remain optimistic about high returns, according to Elaine Wong, managing director and head of Professional Services Asia-Pacific at Moody's Analytics.
(Source: China Daily)
Editor: Lu Hui
English.news.cn 2011-11-16 11:43:10 FeedbackPrintRSS
BEIJING, Nov. 16 (Xinhuanet)
China's banking system will be in good shape as the government fine-tunes its macroeconomic policies, despite a warning from the International Monetary Fund (IMF) on Tuesday that lenders could face systemic risks if several major shocks took place simultaneously, said analysts.
Lu Zhengwei, chief economist at Industrial Bank Co Ltd, said that the probability of credit, property, currency and yield curve shocks occurring together is quite slim, and as liquidity is loosened next year, the risks could be contained.
"The whole system is still strong and healthy enough to counter major risks," Lu said.
The IMF conducted joint stress tests with Chinese regulators of 17 banks that account for 83 percent of the commercial banking system, as part of a financial stability assessment program jointly developed with the World Bank.
This is the first time China accepted the assessment of financial vulnerability, as a commitment to the G20 Washington Summit in November 2008.
In a report, the IMF said that the assessment shows most "appear to be resilient to isolated shocks" such as exchange-rate changes and deteriorating asset quality in the property market and loans to local government financial vehicles that were set up to finance infrastructure projects.
"However, the system could be severely impacted if several major shocks materialized concurrently," the report said.
The main near-term domestic risks to the financial system include the impact of the recent sharp credit expansion on banks' asset quality, the rise of off-balance-sheet exposures and lending outside of the formal banking sector, relatively high real estate prices and the increase in imbalances due to the current economic growth pattern, it said.
"The risks are manageable and can be addressed by reforms that upgrade the country's capacity to respond to crises while continuing to support strong domestic demand," Bloomberg News quoted Jonathan Fiechter, deputy director of the IMF's monetary and capital markets department, as saying.
To contain risks, interest rates should be the primary instrument to govern credit expansion rather than administrative limits on bank lending, and China needs to overhaul the way interest rates are set and allow the yuan to trade more freely, according to the IMF.
China's banks had built up sufficient capital to weather even the worst-case scenarios in the real estate market and local government loan defaults, said former top banking regulator Liu Mingkang earlier this month.
The risks related to Chinese banks' property loans are "totally" controllable even in the worst-case scenario where property prices fall 50 percent, and the risk of lending to local governments is generally controllable, Liu said.
As of Sept 30, banks had checked and rectified 60 percent of the loans made to local governments through financial vehicles, Liu said.
However, he earlier cautioned that commercial lenders also face risks from "shadow" banking and private financing activities.
The IMF assessment came a day after Bank of America Corp said it will sell a second batch of shares valued at 10.4 billion yuan ($1.64 billion) in China Construction Bank Corp (CCB), the world's second-largest lender by market value, for an after-tax gain of about $1.8 billion.
The bank sold half of its CCB stake three months ago to reduce its holding to 5 percent. After the new sale, it will only hold about 1 percent of CCB's shares.
CCB said on Tuesday that Bank of America's plan to sell its shares would not affect its performance, as the operation reflected market behavior.
Last week, Goldman Sachs Group Inc raised $1.1 billion by selling shares of Industrial & Commercial Bank of China Ltd, the world's biggest lender by market value. It was the third time that Goldman has cut its holding in ICBC.
Lu said it is normal for foreign investors to worry about the asset quality of Chinese banks, after the government encouraged a credit boom during the financial crisis and later tightened liquidity.
But Chinese lenders are still a good bet, and international investors should remain optimistic about high returns, according to Elaine Wong, managing director and head of Professional Services Asia-Pacific at Moody's Analytics.
(Source: China Daily)
Editor: Lu Hui
English.news.cn 2011-11-16 11:43:10 FeedbackPrintRSS
BEIJING, Nov. 16 (Xinhuanet)
China's financial system is healthy: International Monetary Fund (IMF)
China's financial system is healthy: IMF
There are vulnerabilities in the financial sector, though the financial system is sound overall, the International Monetary Fund (IMF) said in a report released on Tuesday, as it called for further reforms.
In its first formal evaluation of China's financial system, the Washington-based lender said China needs to speed up its financial reform.
The IMF welcomed improvements in supervision and regulation and the upgrading of banks' risk management systems.
"China's banks and financial sector are healthy, but there are vulnerabilities that should be addressed by the authorities," said Jonathan Fiechter, deputy director of the IMF's Monetary and Capital Markets Department and the head of the IMF team that conducted the Financial Sector Assessment Program (FSAP).
Ba Shusong, deputy head of the Institute of Financial Studies at the Development Research Center of the State Council, told China Daily that the report is generally positive and it is constructive for the development of the financial system.
The FSAP was established in 1999 and carries out assessments in developing and emerging market countries.
Appraisal work by the FSAP in China started in August, 2009.
China is one of the 25 "systemically important" countries, including France, Italy and Brazil, that have agreed to mandatory assessments at least once every five years.
The central bank, the People's Bank of China, said in a statement on its website that although the IMF report was generally objective and positive, there were still several points of view that are not sufficiently comprehensive.
"The government's sway over financial markets has already evolved from direct intervention to asserting influence through regulation of financial companies," the bank said.
More commercially oriented mechanisms will be developed to form interest and exchange rates, the central bank said.
According to the IMF, the main near-term risks stem from sharp credit expansion, the rapid increase of off-balance sheet exposures, relatively high real estate prices and imbalanced economic growth.
"If several of the above risks were to occur at the same time, the banking system could be severely impacted," said the IMF, after jointly conducting stress tests of the largest 17 commercial banks.
"The banking system's non-performing loan ratio has been on a downward trend, reaching 1.1 percent at the end of 2010," thanks to strong economic growth and improvements in risk management, the IMF said.
But if credit increases more rapidly, it may result in a deterioration of bank asset quality in the coming years, the IMF said.
In October, the country's new yuan-denominated lending reached 586.8 billion yuan ($92.7 billion), up 17.5 billion yuan from a year earlier. It increased from 470 billion yuan in September, and 548.5 billion yuan in August.
Wang Tao, a Hong Kong-based economist at UBS AG, said that new lending may reach 550 billion yuan in each of the last two months of this year, bringing lending in this category in 2011 to 7.3 trillion yuan.
Both the growth of credit and money supply are on track for a "normal" range after government economic stimulus policies, said Ba with the State Council's development research center.
"To prevent over-dependence on bank loans, the central authorities are encouraging diversified financing channels, including non-bank and non-government financing," Ba said. "That is one of the reasons that off-balance sheet lending is increasing."
He was concerned about the still-imperfect regulatory system that may allow non-performing loans to pressure the financial sector.
The banking sector's direct exposure to the real estate sector is moderate, about 20 percent, which is relatively low compared with banks in the United States, the report said.
"But the indirect exposure is much higher," the IMF report said.
Zhang Zhiwei, chief China economist at Nomura International (Hong Kong) Ltd, said that housing investments may fall quickly in the coming month if the world's second-largest economy meets a sharp downturn.
(Source: China Daily)
Editor: Lu Hui
English.news.cn 2011-11-16 10:08:47 FeedbackPrintRSS
BEIJING, Nov. 16 (Xinhuanet)
There are vulnerabilities in the financial sector, though the financial system is sound overall, the International Monetary Fund (IMF) said in a report released on Tuesday, as it called for further reforms.
In its first formal evaluation of China's financial system, the Washington-based lender said China needs to speed up its financial reform.
The IMF welcomed improvements in supervision and regulation and the upgrading of banks' risk management systems.
"China's banks and financial sector are healthy, but there are vulnerabilities that should be addressed by the authorities," said Jonathan Fiechter, deputy director of the IMF's Monetary and Capital Markets Department and the head of the IMF team that conducted the Financial Sector Assessment Program (FSAP).
Ba Shusong, deputy head of the Institute of Financial Studies at the Development Research Center of the State Council, told China Daily that the report is generally positive and it is constructive for the development of the financial system.
The FSAP was established in 1999 and carries out assessments in developing and emerging market countries.
Appraisal work by the FSAP in China started in August, 2009.
China is one of the 25 "systemically important" countries, including France, Italy and Brazil, that have agreed to mandatory assessments at least once every five years.
The central bank, the People's Bank of China, said in a statement on its website that although the IMF report was generally objective and positive, there were still several points of view that are not sufficiently comprehensive.
"The government's sway over financial markets has already evolved from direct intervention to asserting influence through regulation of financial companies," the bank said.
More commercially oriented mechanisms will be developed to form interest and exchange rates, the central bank said.
According to the IMF, the main near-term risks stem from sharp credit expansion, the rapid increase of off-balance sheet exposures, relatively high real estate prices and imbalanced economic growth.
"If several of the above risks were to occur at the same time, the banking system could be severely impacted," said the IMF, after jointly conducting stress tests of the largest 17 commercial banks.
"The banking system's non-performing loan ratio has been on a downward trend, reaching 1.1 percent at the end of 2010," thanks to strong economic growth and improvements in risk management, the IMF said.
But if credit increases more rapidly, it may result in a deterioration of bank asset quality in the coming years, the IMF said.
In October, the country's new yuan-denominated lending reached 586.8 billion yuan ($92.7 billion), up 17.5 billion yuan from a year earlier. It increased from 470 billion yuan in September, and 548.5 billion yuan in August.
Wang Tao, a Hong Kong-based economist at UBS AG, said that new lending may reach 550 billion yuan in each of the last two months of this year, bringing lending in this category in 2011 to 7.3 trillion yuan.
Both the growth of credit and money supply are on track for a "normal" range after government economic stimulus policies, said Ba with the State Council's development research center.
"To prevent over-dependence on bank loans, the central authorities are encouraging diversified financing channels, including non-bank and non-government financing," Ba said. "That is one of the reasons that off-balance sheet lending is increasing."
He was concerned about the still-imperfect regulatory system that may allow non-performing loans to pressure the financial sector.
The banking sector's direct exposure to the real estate sector is moderate, about 20 percent, which is relatively low compared with banks in the United States, the report said.
"But the indirect exposure is much higher," the IMF report said.
Zhang Zhiwei, chief China economist at Nomura International (Hong Kong) Ltd, said that housing investments may fall quickly in the coming month if the world's second-largest economy meets a sharp downturn.
(Source: China Daily)
Editor: Lu Hui
English.news.cn 2011-11-16 10:08:47 FeedbackPrintRSS
BEIJING, Nov. 16 (Xinhuanet)
Monday, November 7, 2011
China faces huge lack of hearing aid specialists: ministry
China faces huge lack of hearing aid specialists: ministry
China is faced with a huge lack of hearing aid specialists who can examine and evaluate people's hearing problems and recommend suitable aid devices for them, the Ministry of Health said Monday.
A total of more than 60,000 hearing aid specialists are needed to serve China's 27 million plus people with moderate or severe hearing problems, but the country's number of available professionals is less than 20 percent of the total figure needed, according to the ministry.
China currently has only around 10,000 such technical professionals, the ministry said in a statement, adding that there needs to be one hearing aid specialist for every 400 hearing-impaired people, the ministry said in a statement.
China still has a long way to go in the training and selecting of enough qualified hearing aid specialists, said the ministry.
The ministry recently organized a national professional competition in hearing recovery in a bid to create a favorable atmosphere for training of hearing aid specialists.
Editor: Mu Xuequan
English.news.cn 2011-11-07 23:11:31 FeedbackPrintRSS
BEIJING, Nov. 7 (Xinhua)
China is faced with a huge lack of hearing aid specialists who can examine and evaluate people's hearing problems and recommend suitable aid devices for them, the Ministry of Health said Monday.
A total of more than 60,000 hearing aid specialists are needed to serve China's 27 million plus people with moderate or severe hearing problems, but the country's number of available professionals is less than 20 percent of the total figure needed, according to the ministry.
China currently has only around 10,000 such technical professionals, the ministry said in a statement, adding that there needs to be one hearing aid specialist for every 400 hearing-impaired people, the ministry said in a statement.
China still has a long way to go in the training and selecting of enough qualified hearing aid specialists, said the ministry.
The ministry recently organized a national professional competition in hearing recovery in a bid to create a favorable atmosphere for training of hearing aid specialists.
Editor: Mu Xuequan
English.news.cn 2011-11-07 23:11:31 FeedbackPrintRSS
BEIJING, Nov. 7 (Xinhua)
China targets functional foods in latest safety campaign
China targets functional foods in latest safety campaign
Chinese authorities announced on Sunday stepped-up regulations over the quality and safety of functional foods, in the country's latest efforts to address public concerns on health safety.
China will strictly follow the application procedures for entries into the functional food market. Companies with false filing information will be denied access and blacklisted, according to a circular issued by the food safety committee under the State Council, or the cabinet.
The move comes after China's State Food and Drug Administration on Thursday set up a special committee regarding functional foods and cosmetics.
The latest circular said China will toughen efforts to monitor and supervise the production and circulation of functional foods. It will launch extensive inspections on the sector more frequently, and products that advertise weight loss or relief from fatigue will be specially targeted, according to the circular.
It also called for intensified crackdowns on misleading advertisements and labeling. Practices of hyping false healing, faking experts' recommendations or patients' testimonies to prove the efficiency of the food will be put under greater scrutiny.
Meanwhile, China will intensify legal efforts to punish misconduct in the sector, including manufacturing and selling fake products and using illegal additives and exaggerated promotions, according to the circular.
To ensure the smooth implementation of the regulations, the circular said the country will come up with more detailed policies as soon as possible to address the issues.
China's market for functional foods has grown considerably over the years, but a lack of standards and regulations have triggered huge public complaints.
Editor: Lu Hui
English.news.cn 2011-11-06 19:30:41 FeedbackPrintRSS
BEIJING, Nov. 6 (Xinhua)
Chinese authorities announced on Sunday stepped-up regulations over the quality and safety of functional foods, in the country's latest efforts to address public concerns on health safety.
China will strictly follow the application procedures for entries into the functional food market. Companies with false filing information will be denied access and blacklisted, according to a circular issued by the food safety committee under the State Council, or the cabinet.
The move comes after China's State Food and Drug Administration on Thursday set up a special committee regarding functional foods and cosmetics.
The latest circular said China will toughen efforts to monitor and supervise the production and circulation of functional foods. It will launch extensive inspections on the sector more frequently, and products that advertise weight loss or relief from fatigue will be specially targeted, according to the circular.
It also called for intensified crackdowns on misleading advertisements and labeling. Practices of hyping false healing, faking experts' recommendations or patients' testimonies to prove the efficiency of the food will be put under greater scrutiny.
Meanwhile, China will intensify legal efforts to punish misconduct in the sector, including manufacturing and selling fake products and using illegal additives and exaggerated promotions, according to the circular.
To ensure the smooth implementation of the regulations, the circular said the country will come up with more detailed policies as soon as possible to address the issues.
China's market for functional foods has grown considerably over the years, but a lack of standards and regulations have triggered huge public complaints.
Editor: Lu Hui
English.news.cn 2011-11-06 19:30:41 FeedbackPrintRSS
BEIJING, Nov. 6 (Xinhua)
China to launch massive survey on TCM resources
China to launch massive survey on TCM resources
China will soon launch its fourth national survey on Traditional Chinese Medicine (TCM) resources to secure the industry's sustainable development, according to a senior health official.
The preparatory work has been completed and a pilot program for the survey will commence soon, covering six provinces and regions, including Anhui, Hunan, Hubei, Sichuan, Xinjiang and Yunnan, said Wang Guoqiang, vice minister of health.
Wang, also director of the State Administration of TCM, made the remarks Sunday at the annual gathering for the country's pharmaceutical professionals.
The last survey on this subject, conducted between 1983 and 1987, indicated that the country had over 12,000 types of TCM resources with the majority in the wild.
Experts predict that it is very likely that has changed after more than two decades.
"A new survey is crucial in drawing major plans for TCM resources' management, protection and utilization," said Prof. Huang Luqi, vice president of the China Academy of Chinese Medical Science.
It may also help to build a dynamic assessment system for those precious resources, Huang added.
TCM generally refers to the comprehensive Chinese medical system based upon the body's balance and harmony.
Among the components of TCM are traditional herbal drugs and inherent therapies, including acupuncture, physical exercise, and remedial massage.
Official figures showed that the TCM industry posted a strong performance in 2010, with the output value up 29.5 percent year-on-year to reach 317.2 billion yuan (50 billion U.S. dollars), which exceeded that of the country's entire pharmaceutical industry.
In addition, experts have forecasted that TCM's annual output value in China will exceed one trillion yuan by 2015.
Overseas markets, however, have only granted limited recognition to TCM, partly due to Chinese pharmaceutical enterprises' failure to obtain accreditations from markets such as the European Union, where TCM is generally categorized as a "food supplement."
Some producers complain that TCM's clinical efficacy and the chemical composition of the drugs can hardly be explained in scientific terms.
To curb these difficulties for market access, Chinese regulators have invested heavily in TCM's R&D projects and called for innovation in building clinical R&D systems, setting up key TCM labs, facilitating technology transfers into the industry and improving R&D management and quality control.
Promoting TCM is not only a solution to help China achieve universal health care at less expense, but also an indicator of the country's soft power and influence abroad, Wang said.
Editor: Deng Shasha
English.news.cn 2011-11-06 18:08:17 FeedbackPrintRSS
YANTAI, Shandong, Nov. 6 (Xinhua)
China will soon launch its fourth national survey on Traditional Chinese Medicine (TCM) resources to secure the industry's sustainable development, according to a senior health official.
The preparatory work has been completed and a pilot program for the survey will commence soon, covering six provinces and regions, including Anhui, Hunan, Hubei, Sichuan, Xinjiang and Yunnan, said Wang Guoqiang, vice minister of health.
Wang, also director of the State Administration of TCM, made the remarks Sunday at the annual gathering for the country's pharmaceutical professionals.
The last survey on this subject, conducted between 1983 and 1987, indicated that the country had over 12,000 types of TCM resources with the majority in the wild.
Experts predict that it is very likely that has changed after more than two decades.
"A new survey is crucial in drawing major plans for TCM resources' management, protection and utilization," said Prof. Huang Luqi, vice president of the China Academy of Chinese Medical Science.
It may also help to build a dynamic assessment system for those precious resources, Huang added.
TCM generally refers to the comprehensive Chinese medical system based upon the body's balance and harmony.
Among the components of TCM are traditional herbal drugs and inherent therapies, including acupuncture, physical exercise, and remedial massage.
Official figures showed that the TCM industry posted a strong performance in 2010, with the output value up 29.5 percent year-on-year to reach 317.2 billion yuan (50 billion U.S. dollars), which exceeded that of the country's entire pharmaceutical industry.
In addition, experts have forecasted that TCM's annual output value in China will exceed one trillion yuan by 2015.
Overseas markets, however, have only granted limited recognition to TCM, partly due to Chinese pharmaceutical enterprises' failure to obtain accreditations from markets such as the European Union, where TCM is generally categorized as a "food supplement."
Some producers complain that TCM's clinical efficacy and the chemical composition of the drugs can hardly be explained in scientific terms.
To curb these difficulties for market access, Chinese regulators have invested heavily in TCM's R&D projects and called for innovation in building clinical R&D systems, setting up key TCM labs, facilitating technology transfers into the industry and improving R&D management and quality control.
Promoting TCM is not only a solution to help China achieve universal health care at less expense, but also an indicator of the country's soft power and influence abroad, Wang said.
Editor: Deng Shasha
English.news.cn 2011-11-06 18:08:17 FeedbackPrintRSS
YANTAI, Shandong, Nov. 6 (Xinhua)
National standard for trans fat labeling
National standard for trans fat labeling
The amount of trans fat and other nutritional information will be marked on the labels of prepackaged food, according to the country's first national standard for food nutrition. The labeling will take effect on Jan 1, 2013.
"It will help standardize the nutrition facts labeling by food producers and facilitate consumers' rights to know and choose, while improving public awareness of food nutrition," said Yang Yuexin, a senior nutritionist with the Chinese Center for Disease Control and Prevention (CDC).
The new regulation by the Ministry of Health stipulates that food labels have to include the food's nutrition information, including levels of energy, protein, fat, carbohydrate and sodium.
Food products without proper labels showing the nutritional information will be banned when the new rule takes effect.
The new regulation also stipulates that if any hydrogenated or partially hydrogenated fat is used to produce the food, the level of trans fat will have to be highlighted on the nutrition information label.
Trans fat is usually produced during food processing when liquid oils are converted into semi-solid fats that help keep food fresh longer. However, the partially hydrogenated oil contains trans fat that can substantially increase the risk of heart disease.
However, Zhang Jian, a researcher with CDC's National Institute for Nutrition and Food Safety, said that compared to Western diets, the Chinese diet contains a far lower level of trans fat and there is no need to over react.
(Source: China Daily)
Editor: Mo Hong'e
English.news.cn 2011-11-04 11:41:56 FeedbackPrintRSS
By Shan Juan
BEIJING, Nov. 4 (Xinhuanet)
The amount of trans fat and other nutritional information will be marked on the labels of prepackaged food, according to the country's first national standard for food nutrition. The labeling will take effect on Jan 1, 2013.
"It will help standardize the nutrition facts labeling by food producers and facilitate consumers' rights to know and choose, while improving public awareness of food nutrition," said Yang Yuexin, a senior nutritionist with the Chinese Center for Disease Control and Prevention (CDC).
The new regulation by the Ministry of Health stipulates that food labels have to include the food's nutrition information, including levels of energy, protein, fat, carbohydrate and sodium.
Food products without proper labels showing the nutritional information will be banned when the new rule takes effect.
The new regulation also stipulates that if any hydrogenated or partially hydrogenated fat is used to produce the food, the level of trans fat will have to be highlighted on the nutrition information label.
Trans fat is usually produced during food processing when liquid oils are converted into semi-solid fats that help keep food fresh longer. However, the partially hydrogenated oil contains trans fat that can substantially increase the risk of heart disease.
However, Zhang Jian, a researcher with CDC's National Institute for Nutrition and Food Safety, said that compared to Western diets, the Chinese diet contains a far lower level of trans fat and there is no need to over react.
(Source: China Daily)
Editor: Mo Hong'e
English.news.cn 2011-11-04 11:41:56 FeedbackPrintRSS
By Shan Juan
BEIJING, Nov. 4 (Xinhuanet)
China to increase domestic supply of iron ore
China to increase domestic supply of iron ore
China plans to supply 45 percent of its iron ore use by 2015, a big increase from last year's 32 percent, as the country steps up efforts to protect its steel industry from a foreign monopoly over iron ore.
The country also aims to get half of its iron ore imports from Chinese-invested mines to break the grip of the three major global miners, Vale SA, BHP Billiton and Rio Tinto, according to a report from Monday's Economic Information Daily, a Beijing-based Xinhua-run newspaper.
China, the world's biggest consumer of iron ore, has been boosting domestic production of the mineral and increasing overseas investment to secure supplies as its steel firms, mainly dependent on imports, have been subject to price fluctuations.
The country imported 618 million tonnes of iron ore in 2010, taking up more than 68 percent of its consumption. In the first eight months of this year, China imported 448 million tonnes of iron ore, up 3.5 percent year-on-year, data from the Ministry of Industry and Information Technology (MIIT) showed.
The average price in the period increased by 38 percent from the same time last year to reach 163.75 U.S. dollars per tonne. The price increase added 130 billion yuan (20.47 billion U.S. dollars) in costs for China's steel firms, according to MIIT.
The world's top three producers, Vale SA, BHP Billiton and Rio Tinto, control two-thirds of the world's iron ore exports and have a say in global ore prices.
Whether China is able to guarantee the iron ore supplies matters to the development of the country's steel industry, said Luo Tiejun, deputy director of MIIT's raw material department.
"The whole steel industry has been living on a meager profit," said Zhu Jimin, president of Shougang Group.
Last year, the combined profits of the 77 big and medium-sized steel companies in China was only 88.1 billion yuan, but the combined cost increase of those companies caused by iron ore price hikes reached 196 billion yuan, Zhu said.
The profit ratio of medium-sized and large steel enterprises is 3 percent, lower than the 6 percent of the industrial sector in China, according to MIIT.
"The international monopoly has pushed the price of iron ore more quickly than the growth of steel prices," said Zhu.
China is working to establish a guarantee system for iron ore supply, according to the 12th Five-Year Development Plan (2011-2015) for the iron and steel industry, made public on MIIT's website on Monday.
According to the plan, China will encourage steel firms to cooperate with resource-rich countries, especially its neighbors, to co-exploit iron ore mines.
The country is expected to add more than 100 million tonnes in iron ore capacity abroad by 2015, said the plan.
According to the plan, China will continue to step up domestic exploration and mine consolidation. It also vows to improve the order of iron ore market in China.
The country's annual crude steel consumption will reach around 750 million tonnes by 2015, said the plan.
Editor: Mu Xuequan
English.news.cn 2011-11-07 23:15:53 FeedbackPrintRSS
BEIJING, Nov. 7 (Xinhua)
China plans to supply 45 percent of its iron ore use by 2015, a big increase from last year's 32 percent, as the country steps up efforts to protect its steel industry from a foreign monopoly over iron ore.
The country also aims to get half of its iron ore imports from Chinese-invested mines to break the grip of the three major global miners, Vale SA, BHP Billiton and Rio Tinto, according to a report from Monday's Economic Information Daily, a Beijing-based Xinhua-run newspaper.
China, the world's biggest consumer of iron ore, has been boosting domestic production of the mineral and increasing overseas investment to secure supplies as its steel firms, mainly dependent on imports, have been subject to price fluctuations.
The country imported 618 million tonnes of iron ore in 2010, taking up more than 68 percent of its consumption. In the first eight months of this year, China imported 448 million tonnes of iron ore, up 3.5 percent year-on-year, data from the Ministry of Industry and Information Technology (MIIT) showed.
The average price in the period increased by 38 percent from the same time last year to reach 163.75 U.S. dollars per tonne. The price increase added 130 billion yuan (20.47 billion U.S. dollars) in costs for China's steel firms, according to MIIT.
The world's top three producers, Vale SA, BHP Billiton and Rio Tinto, control two-thirds of the world's iron ore exports and have a say in global ore prices.
Whether China is able to guarantee the iron ore supplies matters to the development of the country's steel industry, said Luo Tiejun, deputy director of MIIT's raw material department.
"The whole steel industry has been living on a meager profit," said Zhu Jimin, president of Shougang Group.
Last year, the combined profits of the 77 big and medium-sized steel companies in China was only 88.1 billion yuan, but the combined cost increase of those companies caused by iron ore price hikes reached 196 billion yuan, Zhu said.
The profit ratio of medium-sized and large steel enterprises is 3 percent, lower than the 6 percent of the industrial sector in China, according to MIIT.
"The international monopoly has pushed the price of iron ore more quickly than the growth of steel prices," said Zhu.
China is working to establish a guarantee system for iron ore supply, according to the 12th Five-Year Development Plan (2011-2015) for the iron and steel industry, made public on MIIT's website on Monday.
According to the plan, China will encourage steel firms to cooperate with resource-rich countries, especially its neighbors, to co-exploit iron ore mines.
The country is expected to add more than 100 million tonnes in iron ore capacity abroad by 2015, said the plan.
According to the plan, China will continue to step up domestic exploration and mine consolidation. It also vows to improve the order of iron ore market in China.
The country's annual crude steel consumption will reach around 750 million tonnes by 2015, said the plan.
Editor: Mu Xuequan
English.news.cn 2011-11-07 23:15:53 FeedbackPrintRSS
BEIJING, Nov. 7 (Xinhua)
China's lending to small, micro-sized enterprises 27.9 pct of total loans
China's lending to small, micro-sized enterprises 27.9 pct of total loans
China has implemented a slew of measures to guide banks to loan more to small and micro-sized enterprises, and 27.9 percent of all outstanding loans by September went to those companies, the country's banking regulator said Monday.
The China Banking Regulatory Commission (CBRC) said that outstanding loans made to small and micro-sized companies totaled 14.75 trillion yuan (2.33 trillion U.S. dollars) by the end of September.
Shang Fulin, the newly-appointed chairman of the CBRC, said Monday that the commission had made a series of policies to support the development of small and micro-sized companies in recent years.
"Effective policy guidance has guaranteed the sustainability of banking services provided to small and micro-sized companies," Shang said.
On Oct. 24, the CBRC revealed a detailed plan to encourage financial support for the country's small and micro-sized enterprises in a supplementary notice to its previous support plan for financing small enterprises.
The supplementary notice ordered commercial banks to give more support to enterprises that borrow less than 5 million yuan and increase tolerance for non-performing loans to small and micro-sized firms.
Editor: Zhang Xiang
English.news.cn 2011-11-07 21:32:06 FeedbackPrintRSS
BEIJING, Nov. 7 (Xinhua)
China has implemented a slew of measures to guide banks to loan more to small and micro-sized enterprises, and 27.9 percent of all outstanding loans by September went to those companies, the country's banking regulator said Monday.
The China Banking Regulatory Commission (CBRC) said that outstanding loans made to small and micro-sized companies totaled 14.75 trillion yuan (2.33 trillion U.S. dollars) by the end of September.
Shang Fulin, the newly-appointed chairman of the CBRC, said Monday that the commission had made a series of policies to support the development of small and micro-sized companies in recent years.
"Effective policy guidance has guaranteed the sustainability of banking services provided to small and micro-sized companies," Shang said.
On Oct. 24, the CBRC revealed a detailed plan to encourage financial support for the country's small and micro-sized enterprises in a supplementary notice to its previous support plan for financing small enterprises.
The supplementary notice ordered commercial banks to give more support to enterprises that borrow less than 5 million yuan and increase tolerance for non-performing loans to small and micro-sized firms.
Editor: Zhang Xiang
English.news.cn 2011-11-07 21:32:06 FeedbackPrintRSS
BEIJING, Nov. 7 (Xinhua)
Hong Kong's forex reserves reach 281 bln USD in Oct.
Hong Kong's forex reserves reach 281 bln USD in Oct.
Hong Kong's foreign currency reserve assets reached 281.7 billion U.S. dollars by the end of October, 2011, up 4.1 billion U.S. dollars compared to the end of September, the Hong Kong Monetary Authority said here on Monday.
The 281.7 billion U.S. dollars foreign currency reserve assets represent about nine times the currency in circulation or 56 percent of Hong Kong dollar M3.
Editor: Zhang Xiang
English.news.cn 2011-11-07 19:34:43 FeedbackPrintRSS
HONG KONG, Nov. 7 (Xinhua)
Hong Kong's foreign currency reserve assets reached 281.7 billion U.S. dollars by the end of October, 2011, up 4.1 billion U.S. dollars compared to the end of September, the Hong Kong Monetary Authority said here on Monday.
The 281.7 billion U.S. dollars foreign currency reserve assets represent about nine times the currency in circulation or 56 percent of Hong Kong dollar M3.
Editor: Zhang Xiang
English.news.cn 2011-11-07 19:34:43 FeedbackPrintRSS
HONG KONG, Nov. 7 (Xinhua)
HK stocks fall on continued Europe debt woes
HK stocks fall on continued Europe debt woes
Hong Kong shares fell on Monday as traders remained nervous over the eurozone debt crisis with the Greek leaders struggling to build up a coalition government, and cautious ahead of China's key inflation data this Wednesday.
Hong Kong stocks fell 164.90 points, or 0.83 percent, to close at 19,677.89 on Monday. The benchmark Hang Seng Index traded between 19,649.57 and 19,977.09. Turnover totaled 55.45 billion HK dollars (about 7.14 billion U.S. dollars).
The Hang Seng China Enterprises Index lost 58.73 points, or 0. 55 percent, to close at 10,646.75.
Three sub-indices lost ground, with the Commerce and Industry sub-index falling the most by 1.13 percent, followed by the Finance 0.79 percent, and the Properties 0.56 percent. The Utility gained 0.51 percent.
China Construction Bank (CCB) fell 2.9 percent to 5.65 HK dollars, being the top drag on the Hang Seng Index after a media report that Bank of America, which sold about half of its 10 percent stake in CCB in August, was looking to further cut its stake in the Chinese lender.
CNOOC lost 2.2 percent to 14.92 HK dollars after a deal to a buy BP Plc's 7.1 billion U.S. dollars stake in Argentine crude producer Pan American Energy failed.
Great Wall Motor jumped 5.7 percent to 12.68 HK dollars after the automaker invested 412 million yuan (about 65 million U.S. dollars) in Baoding Great Wall Internal Combustion Engine Manufacturing and 1.06 billion yuan in Tianjin Boxin Autoparts.
Tingyi Holding Corp., China's largest packaged-food maker, surged 9.4 percent to 22.75 HK dollars. The company said PepsiCo Inc. will swap its China bottling operations for a stake in Tingyi 's beverage business.
Among other blue chips, HKEX, the city's sole bourse operator, dropped by 1.0 percent to 134.30 HK dollars. Hang Seng Bank rose by 0.7 percent to 99.75 HK dollars. (7.771 HK dollars = 1 U.S. dollar)
Editor: Zhang Xiang
English.news.cn 2011-11-07 19:23:09 FeedbackPrintRSS
HONG KONG, Nov. 7 (Xinhua)
Hong Kong shares fell on Monday as traders remained nervous over the eurozone debt crisis with the Greek leaders struggling to build up a coalition government, and cautious ahead of China's key inflation data this Wednesday.
Hong Kong stocks fell 164.90 points, or 0.83 percent, to close at 19,677.89 on Monday. The benchmark Hang Seng Index traded between 19,649.57 and 19,977.09. Turnover totaled 55.45 billion HK dollars (about 7.14 billion U.S. dollars).
The Hang Seng China Enterprises Index lost 58.73 points, or 0. 55 percent, to close at 10,646.75.
Three sub-indices lost ground, with the Commerce and Industry sub-index falling the most by 1.13 percent, followed by the Finance 0.79 percent, and the Properties 0.56 percent. The Utility gained 0.51 percent.
China Construction Bank (CCB) fell 2.9 percent to 5.65 HK dollars, being the top drag on the Hang Seng Index after a media report that Bank of America, which sold about half of its 10 percent stake in CCB in August, was looking to further cut its stake in the Chinese lender.
CNOOC lost 2.2 percent to 14.92 HK dollars after a deal to a buy BP Plc's 7.1 billion U.S. dollars stake in Argentine crude producer Pan American Energy failed.
Great Wall Motor jumped 5.7 percent to 12.68 HK dollars after the automaker invested 412 million yuan (about 65 million U.S. dollars) in Baoding Great Wall Internal Combustion Engine Manufacturing and 1.06 billion yuan in Tianjin Boxin Autoparts.
Tingyi Holding Corp., China's largest packaged-food maker, surged 9.4 percent to 22.75 HK dollars. The company said PepsiCo Inc. will swap its China bottling operations for a stake in Tingyi 's beverage business.
Among other blue chips, HKEX, the city's sole bourse operator, dropped by 1.0 percent to 134.30 HK dollars. Hang Seng Bank rose by 0.7 percent to 99.75 HK dollars. (7.771 HK dollars = 1 U.S. dollar)
Editor: Zhang Xiang
English.news.cn 2011-11-07 19:23:09 FeedbackPrintRSS
HONG KONG, Nov. 7 (Xinhua)
China to boost iron ore self-sufficiency ratio to 45 pct by 2015
China to boost iron ore self-sufficiency ratio to 45 pct by 2015
China plans to boost its self-sufficiency rate of iron ore to more than 45 percent by 2015, a move that intends to protect the country's steel industry from a foreign monopoly over iron ore, the Economic Information Daily reported Monday.
China will also aim to own 50 percent of foreign iron ore resources it imports by 2015, the report said, citing authoritative insiders from the China Iron and Steel Association.
China, the world's biggest consumer of iron ore, has been stepping up domestic production of the mineral and increasing overseas investment to secure supplies as its steel firms, mainly dependent on imports, have been subject to price fluctuations.
The world's top three producers, Vale SA, BHP Billiton and Rio Tinto control two-thirds of the world's iron ore exports and have a say in global ore prices.
Whether China is able to guarantee the iron ore supplies matters to the development of the country's steel industry, the report said, citing Luo Tiejun, deputy director of the raw material department with the Ministry of Industry and Information Technology (MIIT).
China imported 618 million tonnes of iron ore in 2010, taking up more than 68 percent of its consumption. In the first eight months of this year, China imported 448 million tonnes of iron ore, up 3.5 percent year-on-year, according to MIIT.
The average price in the period increased by 38 percent from the same time last year to reach 163.75 U.S. dollars per tonne. The price increase added 130 billion yuan (20.47 billion U.S. dollars) in costs for China's steel firms, the report said.
The profit ratio of medium and large steel enterprises is 3 percent, lower than the 6 percent of the industrial sector in China, the report said.
"The international monopoly has pushed the price of iron ore more quickly than the growth of steel prices," said Zhu Jimin, president of Shougang Group.
Luo said MITT has worked with other ministries to establish a guarantee and coordination mechanism for iron ore supply and will continue to step up domestic exploration and mine consolidation.
The ministry has also been encouraging Chinese companies to promote the construction of overseas iron ore bases, especially in neighboring countries, he added.
China is expected to add more than 100 million tonnes in iron ore capacity abroad by 2015, according to the 12th five-year plan on the country's steel sector published Monday on MIIT's website.
The country's annual crude steel consumption will reach around 750 million tonnes by 2015, according to the plan.
Editor: Zhang Xiang
English.news.cn 2011-11-07 19:17:33 FeedbackPrintRSS
BEIJING, Nov. 7 (Xinhua)
China plans to boost its self-sufficiency rate of iron ore to more than 45 percent by 2015, a move that intends to protect the country's steel industry from a foreign monopoly over iron ore, the Economic Information Daily reported Monday.
China will also aim to own 50 percent of foreign iron ore resources it imports by 2015, the report said, citing authoritative insiders from the China Iron and Steel Association.
China, the world's biggest consumer of iron ore, has been stepping up domestic production of the mineral and increasing overseas investment to secure supplies as its steel firms, mainly dependent on imports, have been subject to price fluctuations.
The world's top three producers, Vale SA, BHP Billiton and Rio Tinto control two-thirds of the world's iron ore exports and have a say in global ore prices.
Whether China is able to guarantee the iron ore supplies matters to the development of the country's steel industry, the report said, citing Luo Tiejun, deputy director of the raw material department with the Ministry of Industry and Information Technology (MIIT).
China imported 618 million tonnes of iron ore in 2010, taking up more than 68 percent of its consumption. In the first eight months of this year, China imported 448 million tonnes of iron ore, up 3.5 percent year-on-year, according to MIIT.
The average price in the period increased by 38 percent from the same time last year to reach 163.75 U.S. dollars per tonne. The price increase added 130 billion yuan (20.47 billion U.S. dollars) in costs for China's steel firms, the report said.
The profit ratio of medium and large steel enterprises is 3 percent, lower than the 6 percent of the industrial sector in China, the report said.
"The international monopoly has pushed the price of iron ore more quickly than the growth of steel prices," said Zhu Jimin, president of Shougang Group.
Luo said MITT has worked with other ministries to establish a guarantee and coordination mechanism for iron ore supply and will continue to step up domestic exploration and mine consolidation.
The ministry has also been encouraging Chinese companies to promote the construction of overseas iron ore bases, especially in neighboring countries, he added.
China is expected to add more than 100 million tonnes in iron ore capacity abroad by 2015, according to the 12th five-year plan on the country's steel sector published Monday on MIIT's website.
The country's annual crude steel consumption will reach around 750 million tonnes by 2015, according to the plan.
Editor: Zhang Xiang
English.news.cn 2011-11-07 19:17:33 FeedbackPrintRSS
BEIJING, Nov. 7 (Xinhua)
Senior Chinese leader calls for improved social management of prisoners, drug addicts, HIV carriers
Senior Chinese leader calls for improved social management of prisoners, drug addicts, HIV carriers
Senior leader of the Communist Party of China (CPC) Zhou Yongkang has called for improved services and social management for prisoners, drug addicts, mental patients and HIV carriers.
Services for and management of these members of society are critical to social stability and harmony, said Zhou, who is a member of the Standing Committee of the Political Bureau of the CPC Central Committee.
Despite notable progress, blind spots, management loopholes and potential safety hazards remain, Zhou said at a conference Monday.
Zhou advocates an approach that combines both education and assistance in an effort to ensure these people observe law and discipline, and to "live in harmony with society."
Zhou also underlined the importance of showing due respect to these groups and protecting their legitimate interests.
During the conference, Zhou asked authorities to help these people resolve practical difficulties in employment and family life, while tailoring assistance measures so they can better integrate with communities and society.
Editor: Zhang Xiang
English.news.cn 2011-11-07 20:41:23 FeedbackPrintRSS
BEIJING, Nov. 7 (Xinhua)
Senior leader of the Communist Party of China (CPC) Zhou Yongkang has called for improved services and social management for prisoners, drug addicts, mental patients and HIV carriers.
Services for and management of these members of society are critical to social stability and harmony, said Zhou, who is a member of the Standing Committee of the Political Bureau of the CPC Central Committee.
Despite notable progress, blind spots, management loopholes and potential safety hazards remain, Zhou said at a conference Monday.
Zhou advocates an approach that combines both education and assistance in an effort to ensure these people observe law and discipline, and to "live in harmony with society."
Zhou also underlined the importance of showing due respect to these groups and protecting their legitimate interests.
During the conference, Zhou asked authorities to help these people resolve practical difficulties in employment and family life, while tailoring assistance measures so they can better integrate with communities and society.
Editor: Zhang Xiang
English.news.cn 2011-11-07 20:41:23 FeedbackPrintRSS
BEIJING, Nov. 7 (Xinhua)
Senior Chinese official urges to promote cross-Strait economic ties
Senior Chinese official urges to promote cross-Strait economic ties
A senior Chinese official on Monday called on Taiwan entrepreneurs doing businesses on the mainland to promote cross-Strait economic relations for the well-being of people on both sides.
Jia Qinglin, a member of the Standing Committee of the Political Bureau of the Communist Party of China Central Committee, made the remarks at a technology seminar set up to help Taiwanese delegates promote their products in Beijing.
Jia said there have been -- and continue to be -- both opportunities and challenges for economic cooperation since the mainland and Taiwan deepened economic ties in May 2008.
The mainland's 12th Five-Year Plan, which started this year, and Taiwan's "Golden Decade" economic blueprint have provided more opportunities for the two sides, said Jia, who is also chairman of the National Committee of the Chinese People's Political Consultative Conference, China's top political advisory body.
At the same time, both the mainland and Taiwan need to upgrade and transform their industries amid international economic changes, Jia said, urging people on both sides to cooperate to improve the competitiveness of China as a nation.
Jia also stressed that the 1992 Consensus is fundamental to cross-Strait relations.
Editor: Zhang Xiang
English.news.cn 2011-11-07 20:22:10 FeedbackPrintRSS
BEIJING, Nov. 7 (Xinhua)
A senior Chinese official on Monday called on Taiwan entrepreneurs doing businesses on the mainland to promote cross-Strait economic relations for the well-being of people on both sides.
Jia Qinglin, a member of the Standing Committee of the Political Bureau of the Communist Party of China Central Committee, made the remarks at a technology seminar set up to help Taiwanese delegates promote their products in Beijing.
Jia said there have been -- and continue to be -- both opportunities and challenges for economic cooperation since the mainland and Taiwan deepened economic ties in May 2008.
The mainland's 12th Five-Year Plan, which started this year, and Taiwan's "Golden Decade" economic blueprint have provided more opportunities for the two sides, said Jia, who is also chairman of the National Committee of the Chinese People's Political Consultative Conference, China's top political advisory body.
At the same time, both the mainland and Taiwan need to upgrade and transform their industries amid international economic changes, Jia said, urging people on both sides to cooperate to improve the competitiveness of China as a nation.
Jia also stressed that the 1992 Consensus is fundamental to cross-Strait relations.
Editor: Zhang Xiang
English.news.cn 2011-11-07 20:22:10 FeedbackPrintRSS
BEIJING, Nov. 7 (Xinhua)
China to reduce scale of military logistics, improve efficiency
China to reduce scale of military logistics, improve efficiency
The Central Military Commission on Monday approved an instruction from the People's Liberation Army (PLA) General Logistics Department on deepening the reform of the management of military employees to boost efficiency.
"Employees, as an important force for the construction and development of the country's army, have been playing a key role in ensuring the fulfillment of various military missions in the face of security threats," said the document, entitled "Instructions on Deepening the Reform of the Management System of Military Employees."
While urging the guarantee of benefits for military employees, including salaries, social insurance and housing allowances, the document ordered further reduction of the size and scale of current public institutions under the PLA in accordance with the principles of high professional skills and efficiency.
All working posts set up in these public institutions should have concrete functions and official employment procedures that must be strictly followed to select the best, said the instruction.
According to the document, improving the benefits of these employees and deepening the management reform are essential to the construction of modern logistics and the promoting of army's combat power.
Editor: Zhang Xiang
English.news.cn 2011-11-07 19:50:15 FeedbackPrintRSS
BEIJING. Nov. 7 (Xinhua)
The Central Military Commission on Monday approved an instruction from the People's Liberation Army (PLA) General Logistics Department on deepening the reform of the management of military employees to boost efficiency.
"Employees, as an important force for the construction and development of the country's army, have been playing a key role in ensuring the fulfillment of various military missions in the face of security threats," said the document, entitled "Instructions on Deepening the Reform of the Management System of Military Employees."
While urging the guarantee of benefits for military employees, including salaries, social insurance and housing allowances, the document ordered further reduction of the size and scale of current public institutions under the PLA in accordance with the principles of high professional skills and efficiency.
All working posts set up in these public institutions should have concrete functions and official employment procedures that must be strictly followed to select the best, said the instruction.
According to the document, improving the benefits of these employees and deepening the management reform are essential to the construction of modern logistics and the promoting of army's combat power.
Editor: Zhang Xiang
English.news.cn 2011-11-07 19:50:15 FeedbackPrintRSS
BEIJING. Nov. 7 (Xinhua)
Chinese vice premier attends reception celebrating Islamic Corban Festival
Chinese vice premier attends reception celebrating Islamic Corban Festival
Vice Premier Hui Liangyu on Sunday evening attended a reception in Beijing and joined Islamic religious personages and representatives of Chinese Muslims in celebrating the annual Corban Festival.
The reception was held by the Islamic Association of China (IAC) on the eve of this year's Corban Festival, which falls on Monday.
Corban Festival, also known as Id al-Gurban, is a major Islamic festival showing faith and obedience to Allah. People slay livestock and divide it into three parts. One part is for the family, one for relatives and friends and the rest goes to charity.
Also present at the reception were diplomats from Islamic countries to China as well as senior Chinese officials including Ismail Tiliwaldi, vice chairman of the Standing Committee of the National People's Congress, and vice chairmen of the National Committee of the Chinese People's Political Consultative Conference (CPPCC) Du Qinglin and Abdul'ahat Abdulrixit.
Chen Guangyuan, the IAC president delivered a speech at the reception, extending congratulations to Muslims in China and around the world and giving his good wishes to the Chinese Muslims who are now in Saudi Arabia for their annual pilgrimage.
The IAC will continue the work to serve the Chinese Muslims and unite them to do good deeds and make contributions to the country's development and social harmony, Chen said.
Chen also prayed for the Muslims passed away in the recent earthquake in Turkey.
China has more than 20 million Muslims. They mainly live in the western provinces of Qinghai, Gansu and Yunnan, Ningxia Hui Autonomous Regions and Xinjiang Uygur Autonomous Region.
English.news.cn 2011-11-07 00:30:22
Vice Premier Hui Liangyu on Sunday evening attended a reception in Beijing and joined Islamic religious personages and representatives of Chinese Muslims in celebrating the annual Corban Festival.
The reception was held by the Islamic Association of China (IAC) on the eve of this year's Corban Festival, which falls on Monday.
Corban Festival, also known as Id al-Gurban, is a major Islamic festival showing faith and obedience to Allah. People slay livestock and divide it into three parts. One part is for the family, one for relatives and friends and the rest goes to charity.
Also present at the reception were diplomats from Islamic countries to China as well as senior Chinese officials including Ismail Tiliwaldi, vice chairman of the Standing Committee of the National People's Congress, and vice chairmen of the National Committee of the Chinese People's Political Consultative Conference (CPPCC) Du Qinglin and Abdul'ahat Abdulrixit.
Chen Guangyuan, the IAC president delivered a speech at the reception, extending congratulations to Muslims in China and around the world and giving his good wishes to the Chinese Muslims who are now in Saudi Arabia for their annual pilgrimage.
The IAC will continue the work to serve the Chinese Muslims and unite them to do good deeds and make contributions to the country's development and social harmony, Chen said.
Chen also prayed for the Muslims passed away in the recent earthquake in Turkey.
China has more than 20 million Muslims. They mainly live in the western provinces of Qinghai, Gansu and Yunnan, Ningxia Hui Autonomous Regions and Xinjiang Uygur Autonomous Region.
English.news.cn 2011-11-07 00:30:22
Senior official urges Xinhua to improve global communication capacity
Senior official urges Xinhua to improve global communication capacity
Senior Chinese official Li Changchun on Monday urged the country's state-run Xinhua News Agency to improve its capacity for international communication.
Li, a member of the Standing Committee of the Political Bureau of Communist Party of China (CPC) Central Committee, made the remark at a ceremony commemorating the agency's 80th founding anniversary.
"Xinhua must carry out a transformation from a traditional press institution to a modernized, multimedia agency in order to better compete with global news agencies," said Li.
Xinhua celebrated its anniversary in the Great Hall of the People in downtown Beijing on Monday. Headquartered in Beijing, Xinhua was founded on Nov. 7, 1931 in the city of Ruijin in southeast China's Jiangxi Province.
Li congratulated Xinhua on its anniversary, praising its 80 years of service.
"Xinhua needs to use all of its advantages to create a top-ranking international media organization commensurate with China's economic and social development and the country's international status," said Li.
Li also urged Xinhua to take advantage of advanced information technology to build a modernized communication system in order to improve its global influence.
English.news.cn 2011-11-07 11:31:38
Senior Chinese official Li Changchun on Monday urged the country's state-run Xinhua News Agency to improve its capacity for international communication.
Li, a member of the Standing Committee of the Political Bureau of Communist Party of China (CPC) Central Committee, made the remark at a ceremony commemorating the agency's 80th founding anniversary.
"Xinhua must carry out a transformation from a traditional press institution to a modernized, multimedia agency in order to better compete with global news agencies," said Li.
Xinhua celebrated its anniversary in the Great Hall of the People in downtown Beijing on Monday. Headquartered in Beijing, Xinhua was founded on Nov. 7, 1931 in the city of Ruijin in southeast China's Jiangxi Province.
Li congratulated Xinhua on its anniversary, praising its 80 years of service.
"Xinhua needs to use all of its advantages to create a top-ranking international media organization commensurate with China's economic and social development and the country's international status," said Li.
Li also urged Xinhua to take advantage of advanced information technology to build a modernized communication system in order to improve its global influence.
English.news.cn 2011-11-07 11:31:38
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