When Zhou Xiaochuan said bank rates should keep pace with price, was he implying an interest rate hike was around the corner? Nobody can say that. But that is enough to sparkle deep concerns among investors. Such sentiment has been dragging the mainland stock market down. Here are some other talks by other important figures of the central bank.

Su Ning, his vice governor, stressed during Sino-Japan Economic Forum recently that any changes in interests rates would depend on various policies to be issued this year. His words served as a reminder of the fact that PBOC is always very prudential on this issue.

Mu Huaipeng, head of a research institute of PBOC noted at an investment forum recently that there would be no decision on interest rates hikes until the price changes in June, July and August were taken into consideration. He said the central bank would give more play to interests rates and exchange rates in its monetary policy. Governor: bank rates should keep pace with price

How attractive China market is?

A report by United Nations Trade and Development Organization put China on the top of the list of countries pooling global capital. That is the natural result of years' efforts of Chinese government on giving attracting foreign investment a top priority. China is also trying to grow to be one of the important sources of global investment. The country encourages it enterprises to go international. For example, Chang Hong, a giant Chinese TV maker, has very successful experience in setting up production facilities in Indonesia. The next? In Canada, maybe. China still the most attractive destination for global investment

Another 15 years?

Facing mounting trade disputes and barriers against Chinese products, China began to have a mechanism to deal with the situation. Registered companies can get information on US trade remedy measures and helps of how to respond to such measures through a monitoring and early warning system. A new anti-dumping case these days involves shopping bags made in China. Nine bag makers/exporters have been put under investigation. And some of them are even facing up to more than 77 percent tariffs, the highest that can be imposed. China is also stepping up its efforts on anti-dumping investigations. The Ministry of Commerce held a hearing on imported chloroform. China to support its businesses to acquire status of market economy

The road ahead is likely very long. Anyhow, the first step has been taken. China was admitted into WTO after years of difficult talks. Now it has to embark on another long haul to get market economy status after WTO. It took China 15 years to be a member of WTO. And one of the costs is: US can regard China as a non-market economy for 15 years. Will it take China another 15 years to get the market economy status? We hope not. US Commerce Department's 1st hearing on China's market economy status

We are partners

What will EU new members bring to China-EU trade? A bigger market. When Mr. Claus Ebermann, EU ambassador to China, gave such an answer to this question a few months ago at a ceremony receiving a award of "Guest of Qiangguoluntan" of People's Daily Online on behalf of Lamy, EU trade commissioner, it seemed that this was no more than a vision. But now it is a reality. A contract has been singed between China and Poland, the third most attractive destination of global investment. There is reason to expect more from Chinese President Hu Jintao's tour to other three eastern and central European countries. China tightened trade ties with EU new members

Foreign strategic investors, that is a very hot name in China. Banks are encouraged to have them. And they are motivated to follow the trend. Upon the news about upcoming approval of QDII policies, the HK stock index was up while that in the mainland down. The accurate time of the approval? A top official, quote, "At any time".CBRC: QDII policies to bring more opportunities for foreign banks

The lack of financial derivative products is a problem in China's capital market. It is a good idea to have someone experienced to help it change the situation. China has found one --- not only the most experienced, but also the largest in the world. Of course, the partnership also means great opportunities for the partner.

Chicago Mercantile Exchanges is also US largest futures exchange. A top official of State Administration of Foreign Exchange of China stressed the key role overseas futures market played in hedging risks. Chinese companies have to go through very strict approval procedure to trade on overseas futures markets. China has three futures exchanges for commordities. Cooperation between China and world's leading forex market launched

A report by United Nations Trade and Development Organization put China on the top of the list of countries pooling global capital. That is the natural result of years' efforts of Chinese government on giving attracting foreign investment a top priority. China still the most attractive destination for global investment

China is investing heavily in Russia and Russia will prepare a favorable environment for Chinese investors. With the trade between the two sides increasing by about 36 percent this year, the goal of a trade volume of 20 billion USD seems achievable. China, Russia sign investment contracts worth US$700 million

Boeing 7E7,so-called dreamer next generation airline, will be equipped with its key parts made in China It is not the first time for Boeing to place an order in China. But what makes it different this time is that AVIC 1 and AVIC 2 participating into the production as Boeing's partners, not just suppliers.China to participate new-type Boeing airplane manufacturing

French firms always are eager to share some interest in China's railway market. And China welcomes them. China has sped up its railway for five times to catch up with its fast growing economy. There is competition. China welcomes French firms to participate in China's railways, aviation

More Pan-?

A framework accord signed the previous week marked the Pan-Pearl River Delta officially took shape and began to function. It is not only about cooperation within the region. Will Yunnan become a good bridge between this area and ASEAN? And other regional cooperation frameworks in the country, including the Yangtze River Delta and Bohai Rim, have already felt the pressure of competition. ASEAN-China trade, economic cooperation has huge potentialNew co-op opportunity emerging between China's Pan-Pearl River Delta and ASEAN

Getting small and down to the earth

7-11 stores are welcomed so warmly by its neighborhood in Beijing that, as Beijing Evening, a very popular local daily newspaper, reported, local residents around the stores line up for the Chinese style breakfast sold by the two stores. Such convenience stores will be even more prosperous in the future with the support of the government. In a campaign called "chain stores into rural areas", some state-owned circulation enterprises have successfully built and extended chain store networks in rural areas. Leading agricultural enterprises are also encouraged to open chain stores in urban areas to sell agri-products. Chinese commercial development blueprint tightens shopping-mall building

Taping into new sky

China is a promising market for air cargo business. With the relaxing of rules on air routes, joint ventures and solely funded businesses, the sector will welcome its good time.Reform in air cargo sector on horizon

Insurance companies are very active these days. Huatai Insurance Company of China, the country's first joint-stock property insurance company with nationwide operation, was approved to expand into life insurance business. And Ping'an Insurance began its road show in Hong Kong for its IPO which was supposed to be launched on June 17. HSBC Insurance is supposed to buy a bulk of Ping'an shares in this IPO, making HSBC the largest shareholder of Ping'an.An insurance joint venture set up by Citigroup and Shanghai Alliance Investment will be in operation in 2005.China's joint insurance venture opens branch in capital

More than 90 percent of galvanized steel sheets used in China have been imported. This will be changed as a state-of-art production line begins working in Dalian.Thyssenkrupp, the world's second biggest carbon steel manufacturer, holds 50 percent shares. Dalian is the choice because of its favorable investment environment and convenient geographic location. The company also assured its customers of its efficient distribution and logistics services.China's biggest steel joint venture begins production

Financing for environmental protection

A national conference on water pollution treatment in key drainage areas held recently, as well as the serious water shortage in major cities including Beijing and Shanghai, have made the whole country realize how severe the problem of water pollution is. Beijing had a public hearing last week to discuss about higher water prices. An official from World Bank said WB would pay more attention to environmental protection projects. It will double its loans for such projects next year compared with 2003 World Bank offers loans of US$ 128m to China

By People's Daily Online