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<title>China Business</title><image>
<title>People's Daily Online</title><link>http://english.people.com.cn/</link>
<url>http://english.people.com.cn/images/en/top_logo_e.gif</url>
</image>
<description>People's Daily Online</description>
<link>http://english.people.com.cn/90001/90778/90857/index.html</link>
<item>
<title>Chinese investment in UK grows fast</title>
<NEWS_ID>6442550</NEWS_ID>
<link>http://english.people.com.cn/90001/90778/6442550.html</link>
<pubDate>Fri, 04 Jul 2008 17:16:28 +0800</pubDate>
<description><![CDATA[Foreign investment from China into the UK grew by 13% during in the last financial year, making China the 9th top investment source globally, said a report released Friday by UK Trade and Investment, the UK Government's international busine ...]]></description>
<full-text><![CDATA[Foreign investment from China into the UK grew by 13% during in the last financial year, making China the 9th top investment source globally, said a report released Friday by UK Trade and Investment, the UK Government's international business development organisation. 

Chinese companies invested in 59 projects in the UK in 2007-2008, up from 52 the year before. Altogether 1,337 jobs were created or secured by the new Chinese investments made last year. 

Those new investments were in the automotive, telecommunications, media and pharmaceutical industries. Big projects include the Shanghai Automotive Industry Corporation (SAIC) Motor Technical Centre for the design and development of vehicles for the global market, China Mobile's first overseas office and headquarters for operations in Europe, Middle East and Africa, the national broadcaster CCTV's European headquarters, and a traditional Chinese medicine research center in Cambridge by the Guangzhou Xiangxue Pharmaceutical Factory.

In the last fiscal year, 1,573 foreign investment projects were made in the UK. That is a 10 percent increase from the previous year. Investment from Asia Pacific grew 25 percent, more than double the global rate. Major investors from that area are Japan, India and China. Japan is the 3rd and India is the 8th source of foreign projects in the UK. 

Investments from the top three, USA, France and Canada, are all down while the most significant growth --- a rise of more than 80 percent --- comes from Sweden and Ireland. 

By People's Daily Online
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<title>London confident on having 100 Chinese companies listed by 2010</title>
<NEWS_ID>6442544</NEWS_ID>
<link>http://english.people.com.cn/90001/90778/6442544.html</link>
<pubDate>Fri, 04 Jul 2008 17:10:13 +0800</pubDate>
<description><![CDATA[The London Stock Exchange（LSE) looks forward to increasing the number of Chinese companies listed from 74 to 100 by 2010; and has seen a strong interest from Chinese companies to list there. 

David Lewis, the Lord Mayor of London, said  ...]]></description>
<full-text><![CDATA[The London Stock Exchange（LSE) looks forward to increasing the number of Chinese companies listed from 74 to 100 by 2010; and has seen a strong interest from Chinese companies to list there. 

David Lewis, the Lord Mayor of London, said during his China visit recently that China is a very important market and London wants to persuade more Chinese companies to list there. 

Currently more than 700 foreign companies from 70 different countries are traded on the London Stock Exchange. Among them 74 are from China, and 68 of them listed on AIM, the growth market of the London Stock Exchange. 

Jiang Nan, chief representative of the LSE's Beijing office, is very confident that the number of Chinese companies on the LSE would grow to 100 by 2010, a goal agreed on by the governments of the two countries. "We have seen a strong interest from Chinese companies to get listed on the LSE," she said. 

Jiang has noticed emerging trends in the prospect of more Chinese companies going public on the LSE this year. Some companies on the AIM will transfer to the main market. Some are considering listing on both the LSE and Borsa Italiana which has been acquired by the LSE. And more mega-projects will be listed. 

"Chinese companies are doing well on the LSE," said Jiang. "Of course for any particular company, the most important thing is you've got to have a good equity story to attract investors."

In addition to big cities like Beijing, Shanghai and Tianjin, Mr. Lewis' China trip also includes his first visit to Xiamen and Changsha, medium-sized cities in southern coastal areas and in the central part of the country. 

According to the press officer of the City of London, they chose these two cities because Xiamen had many SMEs and would have a greater influx of Taiwan investment and Changsha had growing heavy industry. 

Mr. Lewis' delegation includes more than 40 members from over 30 British businesses, ranging from the LSE, banks, law firms, and accounting firms. 

By People's Daily Online
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<title>China's Calm Response to High Oil Prices</title>
<NEWS_ID>6442540</NEWS_ID>
<link>http://english.people.com.cn/90001/90776/6442540.html</link>
<pubDate>Fri, 04 Jul 2008 17:06:41 +0800</pubDate>
<description><![CDATA[In the beginning of July, global crude oil prices continued to rise beyond 140 US dollars a barrel. The price of China's gasoline and diesel products had already risen prior to this. Mr. Liqun Jin, Vice President of the Asian Development Ba ...]]></description>
<full-text><![CDATA[In the beginning of July, global crude oil prices continued to rise beyond 140 US dollars a barrel. The price of China's gasoline and diesel products had already risen prior to this. Mr. Liqun Jin, Vice President of the Asian Development Bank, said several days ago that it is "urgent and necessary" for China to raise the price of domestic oil products accordingly. It will help lessen the discrepancy between domestic oil prices and global crude oil prices, straighten out price relations, and encourage the economical use of oil. 

The government takes measures to protect the livelihood of the people 

"The increase in oil prices has been a cause of worry, but the government will give us subsidies. We are still optimistic about the future prospects of taxi driving," said Wang Shibo, a taxi cab driver in Beijing. From June 20 onward, the price of 93 grade gas rose from 5.34 to 6.20 yuan per liter, an increase of 0.86 yuan. When filling up his car with 30 liters of gas, Mr. Wang paid 25.80 yuan more than he would have before the price increase. The price of oil has risen, but taxi drivers everywhere remain calm. This is also representative of the overall public reaction.

After adjusting oil prices, the government immediately gave 19.8 billion yuan in subsidies to the fishing industry, forest industry, urban public transportation, rural roads and transportation, urban taxis, and grain and rice farmers.

At the same time, relevant ministries quickly announced that during the period before taxi rates change, the central and local finance bureaus will provide the taxi industry with a subsidy. Furthermore, they have required the subsidy to be delivered as quickly as possible in cash to cab drivers. 

It is necessary to loosen price controls on oil

Industry experts say that loosening price controls on oil products is a necessary course of action. The recent price adjustment is no different than previous price adjustments; the price has merely increased by a slightly higher amount this time. In order to straighten out the prices of oil products, the country has increased the price of domestic oil products by a small increment, gradually reducing the difference between domestic and global oil prices.

Experts have given three reasons for this course of action: first, given the discrepancy between domestic and foreign oil prices, loosening price controls indicates that oil prices are rising significantly, but at present the nation's macroeconomic controls aim mainly to guard against inflation. In an environment where commodity prices continue to rise and inflationary pressure does not decrease, price controls on oil cannot be completely loosened. Second, because of the lack of a strong petroleum futures market, the quality of management and technology in domestic oil companies is rather lacking, and they cannot shoulder the cost of such pressure on their own. This was a factor that led up to the loosening of price controls. The loosening of controls also serves to break up the monopolization of the industry and develop a more market-based premise. Furthermore, at present, energy resources are scarce, and in an environment where oil prices are shooting upward, petroleum is a strategic resource tied to national security. The fact that this country is a latecomer in the global oil market means that it lacks the ability to compete with that market, and thus confirms the necessity of protecting the administrative monopoly over the oil industry. It is not yet time to remove all controls on oil prices. Third, this country's strategic oil reserves are still at an early stage. They are far too low to influence the market. Oil companies also do not have the ability to counteract international oil giants. At present, it is too risky to lift price controls. Therefore, we must be careful and prudent. 

New energy industry produces more opportunities  

European Union expert Freeman said recently that the Chinese government's decision to increase the price of oil products is in accordance with both short term and long term inters t]]></full-text>
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<title>Chinese shares close mixed, energy stocks fall</title>
<NEWS_ID>6442536</NEWS_ID>
<link>http://english.people.com.cn/90001/90776/90884/6442536.html</link>
<pubDate>Fri, 04 Jul 2008 17:04:49 +0800</pubDate>
<description><![CDATA[Chinese shares closed mixed on Friday. Coal shares dived on the market talk that the government will rise tax on coal production. 

    The benchmark Shanghai Composite Index was 33.64 points, or 1.24 percent down to close at 2,669.89 poi ...]]></description>
<full-text><![CDATA[Chinese shares closed mixed on Friday. Coal shares dived on the market talk that the government will rise tax on coal production. 

    The benchmark Shanghai Composite Index was 33.64 points, or 1.24 percent down to close at 2,669.89 points. The Shenzhen Component Index gained 0.03 percent to 9,400.72 points. 

    Combined turnover on the two bourses decreased to 93.9 billion yuan (around 13.4 billion U.S. dollars) from 114 billion yuan on the previous trading day. 
 
Source:Xinhua]]></full-text>
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<title>China's Baosteel agrees with BHP Billiton on iron ore price increase</title>
<NEWS_ID>6442476</NEWS_ID>
<link>http://english.people.com.cn/90001/90778/90857/90860/6442476.html</link>
<pubDate>Fri, 04 Jul 2008 15:58:37 +0800</pubDate>
<description><![CDATA[Baosteel, China's largest steel maker, said Friday it had agreed with BHP Billiton on a price increase of up to 96.5 percent for iron ore in 2008, nearly double that of 2007. 

    The prices were to increase by 79.88 percent to 96.5 perc ...]]></description>
<full-text><![CDATA[Baosteel, China's largest steel maker, said Friday it had agreed with BHP Billiton on a price increase of up to 96.5 percent for iron ore in 2008, nearly double that of 2007. 

    The prices were to increase by 79.88 percent to 96.5 percent, respectively, depending on the category of iron ore, the company said in a statement on its website. 
 
Source:Xinhua]]></full-text>
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<title>Shanghai Pudong Bank sees H1 net profit up more than 140%</title>
<NEWS_ID>6442473</NEWS_ID>
<link>http://english.people.com.cn/90001/90778/90857/90859/6442473.html</link>
<pubDate>Fri, 04 Jul 2008 15:57:19 +0800</pubDate>
<description><![CDATA[Shanghai Pudong Development Bank Co. (SPDB), partly owned by Citigroup Inc., on Friday said the unaudited first half net profit may soar more than 140 percent from a year earlier. 

    The surge in profit came on wider interest rate marg ...]]></description>
<full-text><![CDATA[Shanghai Pudong Development Bank Co. (SPDB), partly owned by Citigroup Inc., on Friday said the unaudited first half net profit may soar more than 140 percent from a year earlier. 

    The surge in profit came on wider interest rate margin, lower corporate income tax rate, and greater fee income, the mid-sized lender said in a statement to the Shanghai Stock Exchange. 

    Net profit was 2.55 billion yuan (371.5 million U.S. dollars), or 0.59 yuan per share, in the first six months of last year. 

    Pudong Bank reported a 186.55 percent increase in net profit in the first quarter of the year, on top of a 63.85 percent rise last year. 

    Its shares rose 2.60 percent to 20.95 yuan on Friday. 

    Pudong Bank led three rivals in profit growth forecasts in the six months ended on June 30. 

    Industrial and Commercial Bank of China (ICBC), the country's largest lender, also said on Friday the first half net income may be more than 50 percent higher than the 40.8 billion yuan recorded in last year's corresponding period. 

    Shenzhen Development Bank forecast its first half profit would rise 85 to 95 percent, while Bank of Ningbo forecast an increase of between 50 and 70 percent. 
 
Source:Xinhua]]></full-text>
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<item>
<title>ICBC forecasts over 50% rise of H1 net profit</title>
<NEWS_ID>6442472</NEWS_ID>
<link>http://english.people.com.cn/90001/90776/90884/6442472.html</link>
<pubDate>Fri, 04 Jul 2008 15:56:36 +0800</pubDate>
<description><![CDATA[The Industrial and Commercial Bank of China (ICBC), the country's largest lender, said on Friday its unaudited first half net profit may jump more than 50 percent from a year earlier. 

    Net profit was likely to be more than 61.26 bill ...]]></description>
<full-text><![CDATA[The Industrial and Commercial Bank of China (ICBC), the country's largest lender, said on Friday its unaudited first half net profit may jump more than 50 percent from a year earlier. 

    Net profit was likely to be more than 61.26 billion yuan (8.9 billion U.S. dollars) in the six months ending on June 30, according to Xinhua's calculation. 

    This was driven by rapid growth in the net interest and fee incomes and lower corporate income tax rate, ICBC said in a statement to the Shanghai Stock Exchange. 

    China's economy, which grew 10.6 percent year-on-year in the first quarter, has boosted bank card sales and loans demand from businesses and individuals. 

    Net income was 40.84 billion yuan (5.9 billion U.S. dollars), or 0.12 yuan per share, in the first six months of last year, based on the Chinese accounting standards. 

    ICBC saw net profit soar 77.02 percent in the first quarter of 2008 on top of a 66.4 percent increase last year. 

    ICBC shares edged up 0.63 percent to 4.78 yuan at 14:32 in late afternoon trade on Friday. 
 
Source:Xinhua]]></full-text>
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<title>Sinopec denies cancellation of state refinery subsidies, tax rebates</title>
<NEWS_ID>6442466</NEWS_ID>
<link>http://english.people.com.cn/90001/90776/90884/6442466.html</link>
<pubDate>Fri, 04 Jul 2008 15:55:19 +0800</pubDate>
<description><![CDATA[Sinopec Group, China's top refiner, denied on Thursday the market talk that the government would stop subsidizing the company or cancel import tax rebates, local media reported Friday. 

    The company had not received any notice from th ...]]></description>
<full-text><![CDATA[Sinopec Group, China's top refiner, denied on Thursday the market talk that the government would stop subsidizing the company or cancel import tax rebates, local media reported Friday. 

    The company had not received any notice from the government on calling off the favorable policies, Beijing Times quoted an unidentified Sinopec official as saying. 

    China has been subsidizing Sinopec and the China National Petroleum Corporation (CNPC), the country's largest oil producer, to cushion them from soaring world crude prices, as refined oil is sold at state-capped, below-cost prices nationwide. 

    The government mentioned policies would be adjusted once fuel prices were straightened, but the recent increases had only lessened the distortion instead of removing it completely, the official said. 

    On June 20, China raised the benchmark retail price of gasoline and diesel by 16 percent and 18 percent respectively. 

    Following the adjustment, Sinopec now sells gasoline in Beijing at 7.19 yuan (1.04 U.S. dollars) per liter for the highest grade of 98# petrol, still about half of that in Hong Kong. 

    Counting all the subsidies and price adjustment, Sinopec was still losing 900 yuan for refining each tonne of oil, according to the source. 

    In April, Sinopec received 7.1 billion yuan in subsidies in April. This followed 5 billion yuan in 2006, 4.9 billion yuan in 2007 and 7.4 billion yuan in the first quarter this year. 

    The company also received 2.51 billion yuan in refunded value-added taxes on imported gas and diesel from April to June, according to the Ministry of Finance. 

    The tax rebates, however, may be ended from July, said Thursday's Securities Times. 

    Sinopec shares rose 0.41 percent on Thursday in Shanghai, under-performing the benchmark Shanghai Composite Index that rose 1.95 percent. It slipped 1.34 percent to 9.6 yuan on Friday morning. 
 
Source:Xinhua]]></full-text>
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<title>Asia's largest A380 hanger put into use</title>
<NEWS_ID>6442437</NEWS_ID>
<link>http://english.people.com.cn/90001/90776/90882/6442437.html</link>
<pubDate>Fri, 04 Jul 2008 15:26:03 +0800</pubDate>
<description><![CDATA[Ameco Beijing's A380 hanger, Asia's largest aircraft maintenance hanger, was put into operation on July 4, according to the Aircraft Maintenance and Engineering Corporation (Ameco Beijing). 

This giant hangar, located to the north of the ...]]></description>
<full-text><![CDATA[Ameco Beijing's A380 hanger, Asia's largest aircraft maintenance hanger, was put into operation on July 4, according to the Aircraft Maintenance and Engineering Corporation (Ameco Beijing). 

This giant hangar, located to the north of the new third terminal in the Beijing Capital International Airport, with an capacity to accommodate all Boeing and Airbus series aircraft, including the A380 "superjumbo" aircraft, according to the Ameco Beijing, a joint venture between Air China and Lufthansa.

It started construction in September 2006 and received final approval on June 6, 2008.

By People's Daily Online]]></full-text>
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<title>Ship power maker targets growing Chinese market</title>
<NEWS_ID>6441812</NEWS_ID>
<link>http://english.people.com.cn/90001/90776/90884/6441812.html</link>
<pubDate>Fri, 04 Jul 2008 08:49:44 +0800</pubDate>
<description><![CDATA[SHANGHAI: Wartsila, one of the world's major ship power suppliers and manufacturers, is moving to tap into the vast Chinese shipbuilding sector, banking on its advanced technology and services.

"The commitment by the Chinese government t ...]]></description>
<full-text><![CDATA[SHANGHAI: Wartsila, one of the world's major ship power suppliers and manufacturers, is moving to tap into the vast Chinese shipbuilding sector, banking on its advanced technology and services.

"The commitment by the Chinese government to make China the leading shipbuilder in the world is beginning to show. New shipyards are being opened and developed and we have seen the flow of shipbuilding orders moving in this direction," said Ole Johansson, president and CEO of Wartsila Corp.

"We have every reason to believe that by 2015, China will be the leading shipbuilder in the world," said Johansson. The Finnish company's core business provides complete lifecycle power solutions.

Johansson said the products and technologies created by his company are cheap and environmentally friendly. CO2 reduction has always been a major focus for large diesel engines, Johansson said.

"We all know that shipping contributes to emissions. That's why we look at it as our responsibility to create technologies that reduce emissions. We serve shipyards from all over the world, offering standardized services," he said. "Chinese shipyards have to compete on the same terms and conditions as anyone else."

Wartsila entered China in 1991. "In recent years, we've made big investments to establish three joint venture companies, one wholly owned company and several licensees in China," said Johansson.

On April 8, Wartsila and Zhenjiang CME Co Ltd (CME) in Jiangsu province jointly signed a licensing agreement for the manufacture and sale of Wartsila RT-flex low-speed marine diesel engines by CME in China.

The agreement grants CME the right to manufacture all sizes of Wartsila RT-flex low-speed engine types at its new factory in Zhenjiang.

According to the mid to long-term shipbuilding plans approved by the State Council on August 16, 2006, the localization rate of major ship components built in China has to reach 60 percent by 2010 and up to 80 percent by 2015.

"This will provide a golden opportunity for Wartsila China to offer a more comprehensive product portfolio and service package to customers through our advanced manufacturing facilities and large vendor base," he said.

Source:Xinhua
]]></full-text>
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<title>Govt might scrap crude oil import subsidies</title>
<NEWS_ID>6441805</NEWS_ID>
<link>http://english.people.com.cn/90001/90776/90884/6441805.html</link>
<pubDate>Fri, 04 Jul 2008 08:47:45 +0800</pubDate>
<description><![CDATA[The government may scrap the subsidies to State refiners on crude imports, following the decision to raise the price of refined oil products on June 20.

The subsidies could end from this month itself, Shanghai Securities News reported ye ...]]></description>
<full-text><![CDATA[The government may scrap the subsidies to State refiners on crude imports, following the decision to raise the price of refined oil products on June 20.

The subsidies could end from this month itself, Shanghai Securities News reported yesterday, citing sources from the country's largest refiner Sinopec.

According to an official with a Sinopec refinery, the company did not get the notice on subsidies for July. "We had been notified that if we did not get the notice by the end of June, it (the subsidies) would stand cancelled," he said in the report.



A PetroChina Co gas station attendant fills up a car in Shanghai. 
China's two leading oil companies, PetroChina and Sinopec, yesterday declined to comment on the report.

Facing soaring global crude price, China began to give monthly subsidies to oil firms on crude imports from April. Industry insiders said the subsidies are given in the form of value-added tax refund, under which the government refunds 75 percent of value-added taxes on crude imports.

Under this mechanism, in April Sinopec received around 7 billion yuan of subsidies.

On June 20, the government raised the price of gasoline and diesel by as much as 18 percent to narrow the gap between the high crude price on the international market and the low price of refined oil products at home.

Analysts said the price rise would help domestic oil companies tide over the difficulties. Their refining businesses are seeing big losses due to the gap between high global crude price and low refined oil price. However, the price rise still cannot fully offset their losses as crude prices are surging even higher.

"Without the subsidies, the government may think of other measures to help domestic oil refiners," said Liu Gu, an analyst with Guotai Jun'an Securities in Shenzhen.

"As crude prices continue to surge, Chinese refiners are still facing difficulties. In our projection, Sinopec's profit will fall by over 60 percent in the second quarter," she said.

Sinopec may post a loss in the third quarter of this year if the country scraps the 75 percent refund on oil import taxes, Goldman Sachs Group Inc said in a report. The refiner said its first-quarter net profit fell 65.78 percent to 6.7 billion yuan because of rising costs and government control over fuel prices.

PetroChina, the nation's largest oil producer, said its first-quarter profit fell 31.5 percent as refining losses and windfall taxes cut its earnings from record crude prices.

Source:China Daily
]]></full-text>
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<title>China's Jilin launches integrated 5-year plan to boost grain output</title>
<NEWS_ID>6441732</NEWS_ID>
<link>http://english.people.com.cn/90001/90778/90857/90862/6441732.html</link>
<pubDate>Fri, 04 Jul 2008 08:18:24 +0800</pubDate>
<description><![CDATA[Jilin Province has started an ambitious program to increase grain output by more than 5 billion kilograms within five years. 

    If it succeeds, Jilin, in northeast China, will become the country's fifth-biggest grain producer after Hen ...]]></description>
<full-text><![CDATA[Jilin Province has started an ambitious program to increase grain output by more than 5 billion kilograms within five years. 

    If it succeeds, Jilin, in northeast China, will become the country's fifth-biggest grain producer after Henan, Shandong, Jiangsu and Heilongjiang provinces. 

    The program, seen as a national grain security issue, was approved on Wednesday by the State Council, the Cabinet. 

    Costing 26 billion yuan (about 3.72 billion U.S. dollars), the program includes 10 major projects: water diversion, expansion of the irrigated area of Jilin's central and western regions, further mechanization of farming, cultivating and popularizing improved grain varieties and disseminating advanced farming techniques. 

    The funds will come from special government allocations and subsidies, bank loans and funds raised by Jilin Province, according to Vice Governor Wang Shouchen, who is in charge of agricultural affairs. 

    Wang said Jilin made a breakthrough by using a multi-faceted approach that included economic and social development, environmental protection and conservation, rather than just targeting higher production. 

    Jilin will have another 200,000 hectares of arable land under the plan. It will also upgrade 1.33 million ha of low- to medium-yield farmland and improve 2 million ha of high-yield farmland. It has 5.33 million ha of farmland and is capable of producing 25 billion kg of grain annually. 

    Situated deep in the Songliao Plain, which is formed by the Songhua, Nenjiang and Liaohe rivers, Jilin boasts fertile farmland and is one of the world's top three corn production belts. 

    Governor Han Changfu is upbeat about fulfilling the grain plan, since Jilin has ample land, fertile soil and a strong scientific base in agriculture. 

    "With the new program, Jilin, which has many natural advantages, will use its grain production potential more fully," said Han. 

    "Through improved water conservation, land reclamation, cultivation of high-grade farmland, promotion of mechanization and popularization of new grain varieties, Jilin can see its grain production capacity rise from the current 25 billion kilograms to 30 billion kilograms in five years or a bit more," he said. 

    Industrialization and urbanization has pushed up grain demand in China, while land and water shortages, as well as climate change, have hurt grain production. 

    Also at Wednesday's meeting, the State Council approved a plan to ensure China would be 95 percent self-sufficient in grain over the next 12 years after hearing how farmers faced tremendous challenges in increasing output. 

    The State Council agreed China faced grim challenges in grain security. It approved a plan to ensure grain output exceeds 500 billion kg by 2010 and 540 billion kg by 2020. 

    This year, the country could see the fifth consecutive bumper harvest of summer grain, the first such run of harvests since 1949,the Ministry of Agriculture has said. 

    Summer crops, which usually account for about 23 percent of the total annual grain output, would surpass the 115.34 billion kg produced in 2007, the ministry said.  

Source:Xinhua]]></full-text>
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<item>
<title>China's political advisors call for anti-inflation measures</title>
<NEWS_ID>6441730</NEWS_ID>
<link>http://english.people.com.cn/90001/90776/90884/6441730.html</link>
<pubDate>Fri, 04 Jul 2008 08:16:13 +0800</pubDate>
<description><![CDATA[China's senior political advisors warned Thursday that the government should try to guide consumption with planned financial policies while avoiding demand-driven inflation. 

    The government should deal with inflation by focusing on c ...]]></description>
<full-text><![CDATA[China's senior political advisors warned Thursday that the government should try to guide consumption with planned financial policies while avoiding demand-driven inflation. 

    The government should deal with inflation by focusing on consumption, investment, international trade, and employment, they agreed at the Second Meeting of the Standing Committee of the 11thNational Committee of the Chinese People's Political Consultative Conference (CPPCC). 

    The Committee members discussed the development of the reform and opening-up drive and the acceleration of the social security system. 

    They discussed ways to speed up financial reforms, deepen cultural reforms, encourage greater participation by the citizens of Hong Kong, Macao and Taiwan and expatriate Chinese and increase employment. 

    The members agreed the global economic environment had deteriorated, and China's economic and social development was encountering challenges. 

    They called for the reform and opening-up drive to continue unabated as the country was at a crucial period of building a prosperous society. 

    Present were Jia Qinglin, chairman of the CPPCC National Committee and member of the Standing Committee of the Communist Party of China (CPC) Central Committee Political Bureau, Wang Gang, vice chairman of the CPPCC National Committee and member of the CPC Central Committee Political Bureau, and other vice chairpersons of CPPCC National Committees.
 
Source:Xinhua]]></full-text>
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<title>Hong Kong's retail sales value growth slows down in May</title>
<NEWS_ID>6441727</NEWS_ID>
<link>http://english.people.com.cn/90001/90776/90884/6441727.html</link>
<pubDate>Fri, 04 Jul 2008 08:15:09 +0800</pubDate>
<description><![CDATA[Hong Kong's retail sales saw a slower growth in May, with total value up 12.9 percent on a year earlier to 23.1 billion HK dollars (2.96 billion U.S. dollars), the Census and Statistics Department said Thursday. 

    The moderate growth  ...]]></description>
<full-text><![CDATA[Hong Kong's retail sales saw a slower growth in May, with total value up 12.9 percent on a year earlier to 23.1 billion HK dollars (2.96 billion U.S. dollars), the Census and Statistics Department said Thursday. 

    The moderate growth was mainly due to the high base of comparison last May, when the value of retail sales began to register double-digit growth, it said. 

    The revised estimate of total retail sales value in April was 22.8 billion HK dollars (2.92 billion U.S. dollars), up 18.6 percent on a year earlier. 

    Taking this year's first five months together, total retail sales rose 16.8 percent in value and 10.4 percent in volume over the same period last year, according to the department. 

    The sales volume of miscellaneous consumer durable goods dipped2.9 percent while that of food, alcoholic drinks and tobacco also went down 1.2 percent. 

    Based on the seasonally adjusted series, the total retail sales volume fell 2.4 percent in the quarter ending May compared with the preceding three-month period. 

    Looking ahead, the expected global economic slowdown, the ongoing financial market turbulence, inflation and high international commodity prices, the upward pressure on global interest rates, and the consolidation in local asset prices in recent months are likely to have some impact on the local economy and consumer sentiments, the department said. 

    But the firm labor market conditions and further growth of inbound tourism should continue to support the retail business, it said.
 
Source:Xinhua]]></full-text>
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<title>Hong Kong monetary chief calls for reviewing financial stability arrangements</title>
<NEWS_ID>6441723</NEWS_ID>
<link>http://english.people.com.cn/90001/90776/90884/6441723.html</link>
<pubDate>Fri, 04 Jul 2008 08:13:41 +0800</pubDate>
<description><![CDATA[Hong Kong Monetary Authority Chief Executive Joseph Yam said Thursday that the metropolis should reassess its financial-stability arrangements, as New York and London have done that already. 

    In his Viewpoint column published here Th ...]]></description>
<full-text><![CDATA[Hong Kong Monetary Authority Chief Executive Joseph Yam said Thursday that the metropolis should reassess its financial-stability arrangements, as New York and London have done that already. 

    In his Viewpoint column published here Thursday, Yam, who is executive chief of Hong Kong's de facto central bank, said though Hong Kong has a fairly robust framework for financial stability, it does not mean there is no scope for improvement. 

    Yam said financial authorities in developed markets, like the United States and the United Kingdom, have been devoting attention to the establishment of an effective framework for financial stability and taken the view that their central banks can play a greater role. 

    "I think there is a need for us to examine in detail the financial reform agendas of other jurisdictions and monitor developments on this front closely," Yam said in his column. 

    "For example, although Hong Kong already has a framework for the provision of liquidity to the financial system when it is under stress, similar to what is being envisaged in the proposed reform measures in the United States and the United Kingdom, there is always scope for refinement at both the policy and operational levels," he said. 

    He added: "Without suggesting the existing arrangements are in any way inadequate, questions can be asked about whether the established liquidity-support mechanism for the banking system should be extended to other institutions crucial to the systemic stability of the financial system, or whether the provision of liquidity should continue to be dealt with case by case." 
 
Source:Xinhua]]></full-text>
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<title>Hong Kong stocks end to three-and-a-half-month low </title>
<NEWS_ID>6441655</NEWS_ID>
<link>http://english.people.com.cn/90001/90776/6441655.html</link>
<pubDate>Thu, 03 Jul 2008 20:21:19 +0800</pubDate>
<description><![CDATA[Chinese financial firms and insurers led Hong Kong shares to a three-and-a-half-month low Thursday, as the market tracked declines in the U.S. and regional bourses. 

    The blue-chip Hang Seng Index fell 461.67 points, or 2.1 percent, t ...]]></description>
<full-text><![CDATA[Chinese financial firms and insurers led Hong Kong shares to a three-and-a-half-month low Thursday, as the market tracked declines in the U.S. and regional bourses. 

    The blue-chip Hang Seng Index fell 461.67 points, or 2.1 percent, to 21,242.78 after trading between 21,163.57 and 21,742.07 during the session. It was the index's lowest close since it ended at 21,108.22 on March 20. 

    Turnover dropped slightly to 75.81 billion HK dollars (9.73 billion U.S. dollars) from Wednesday's 76.28 billion HK dollars (9.79 billion U.S. dollars). 

    Analysts and traders said they expect the benchmark index to fall in the near term, with immediate psychological support at 21,000 points. 

    On Wednesday, the U.S. market closed 20 percent below its record close in October, confirming a bear market. The Dow Jones Industrial Average fell 1.5 percent to 11,215.51. Fears of a bear market spread to Asia, and Japan's Nikkei 225 Stock Average retraced for the 11th straight day, falling 0.2 percent to 13,265.40. Stocks in China and Taiwan also fell sharply during the day, before ending higher on bargain hunting. 

    Ping An Insurance suffered the largest percentage fall among the 43 blue chips in the index, tumbling 8.6 percent to 48.90 HK dollars, after a 7.8 percent fall in the previous session. 

    Ping An's larger peer, China Life Insurance, also fell 3.6 percent to 25.40 HK dollars. 

    Chinese banks edged lower after Credit Suisse Group said in a research report investors were worried about banks' earnings next year as the cost of credit rises. 

    Industrial and Commercial Bank of China fell 4 percent to 5.01 HK dollars, China Construction Bank dropped 4.9 percent to 5.84 HK dollars. (7.8 HK dollars = 1 U.S. dollar)

Source: Xinhua
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<title>Chinese shares up 1.95% on bargain hunting </title>
<NEWS_ID>6441603</NEWS_ID>
<link>http://english.people.com.cn/90001/90776/6441603.html</link>
<pubDate>Thu, 03 Jul 2008 18:36:05 +0800</pubDate>
<description><![CDATA[Chinese shares closed higher on Thursday as bargain hunters took advantage of a fall in the key index at the beginning of the morning session. 

    The benchmark Shanghai Composite Index, which covers both A and B shares, gained 51.8 poi ...]]></description>
<full-text><![CDATA[Chinese shares closed higher on Thursday as bargain hunters took advantage of a fall in the key index at the beginning of the morning session. 

    The benchmark Shanghai Composite Index, which covers both A and B shares, gained 51.8 points, or 1.95 percent, to close at 2,703.53. 

    The Shenzhen Component Index rose 236.03 points or 2.58 percent to stand at 9,398.17. 

    The market lost nearly 3.2 percent to hit a 15-month low of 2,566.53 shortly after the opening, dragged down by heavyweights, as investors reacted warily to a weak close on Wall Street overnight. The Dow Jones Industrial Average fell 166.75, or 1.46 percent, to 11,215.51 on Wednesday, as oil prices hit a new record. 

    However, Chinese shares snapped back as investors took advantage of low valuations to add to their holdings. 

    The renewed buying interest was evident in combined turnover, which zoomed to 114 billion yuan (16 billion U.S. dollars) from 65.4 billion yuan on Wednesday. 

    Agricultural, forestry, medical, and environmental protection shares led the rise. Environmental protection shares gained again in reaction to a move by the State Council, the Cabinet, which on Tuesday urged government departments to strengthen energy-saving and emission-reducing work. 

    Fujian-based environmental protection company Longking rose 1.33 yuan or 10.01 percent to close at 14.62 yuan. 

    Yunnan Copper Co. advanced by the daily limit of 10 percent after copper prices climbed in London futures trading overnight. 

    Ping An Insurance, the nation's second-largest life insurer, extended losses after plunging 10 percent on Wednesday and lost 5.79 percent, or 2.49 yuan, to close at 40.98 yuan on Thursday. Earlier in the day, Ping An denied market talk of a government investigation into tax evasion. 

Source: Xinhua]]></full-text>
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