BEIJING, May 20 (Xinhua) -- The Chinese mainland was scheduled to organize three buying teams to visit Taiwan for business talks and purchase of products and materials, Yao Jian, spokesman of the Ministry of Commerce (MOC), said Wednesday.
The MOC, the State Council Taiwan Affairs Office and the Ministry of Industry and Information Technology were endeavoring to organize three economic and trade facilitation teams to visit Taiwan at the end of May, in mid-June and early July to deepen the mainland-Taiwan economic and trade ties, Yao said in a Web site statement.
Yao did not specify how many mainland businesses would visit Taiwan and how much they planned to spend, but he said they would mainly focus on purchasing folk handicraft, processed food, daily necessities, machinery equipment and raw materials.
Li Shuilin, head of the Association of Economy and Trade Across the Taiwan Straits, a non-governmental mainland institution, would head the first team to visit Taiwan, with business people from home appliance, light industry and food processing firms in the delegation. The delegation would also carry out business talks in Taiwan, according to the statement.
BEIJING, May 20 (Xinhua) -- Chinese shares fell 0.94 percent Wednesday on profit-taking, erasing Tuesday's gains. The decline also followed an overnight drop on Wall Street.
The Shanghai Composite Index fell 0.94 percent, or 25.27 points, to 2,651.41.
The Shenzhen Component Index slid 0.53 percent, or 55.22 points, to 10,369.14.
Combined turnover contracted to 214.60 billion yuan (31.56 billion U.S. dollars) from 227.97 billion yuan on the previous trading day.
New energy firms gained for much of the day on talk that the government would unveil a support plan for the sector Thursday.
Donghua Energy, the Zhangjiagang-based liquefied oil storage company, rose 6.06 percent to 8.75 yuan. Shenzhen Topray Solar, a major solar consumer products manufacturer, gained 2.62 percent to 28.57 yuan.
However, new energy stocks were dragged down by profit-taking just 15 minutes before the markets closed, dealers said.
Airlines were broadly lower as the wholesale price of jet fuel rose 460 yuan to 4,450 yuan per ton as of Tuesday led by continuously rising crude oil prices.
Air China, the country's largest carrier, fell 1.38 percent to 6.41 yuan. China Southern Airlines retreated 2.38 percent to 5.34 yuan.
The State Council (cabinet) said Tuesday that the government would increase subsidies for consumers who replaced old models of vehicles and home appliances with new ones, as part of the effort to spur domestic spending and curb pollution.
Jinbei Vehicle Manufacturing, a major light truck maker, rose by the daily limit of 10 percent to 4.09 yuan. Dongfeng Motor climbed 3.70 percent to 5.05 yuan.
Suning Appliance, a giant consumer appliance retailer, edged up 0.07 percent to 15.16 yuan.
Despite the declines, the market still had the fundamental conditions for gains as the government continued to announce new measures to boost consumption, Chengdu-based Beising Investment said in a report to clients.
BEIJING, May 19 (Xinhua) -- Petrobras, the national oil company of Brazil, announced Tuesday that it has concluded negotiations with China Development Bank (CDB) for a bilateral loan of 10 billion U.S. dollars.
The money will be used to finance Petrobras' investment plan, which includes the procurement of goods and services from China, the company said.
The interest rate of the loan will be below 6.5 percent, said Sergio Gabrielli, CEO of Petrobras, at a press conference held here Tuesday.
Without releasing details, the two sides agreed to increase actual crude oil exports from Brazil to China.
A long-term export agreement was also signed Tuesday between Petrobras and UNIPEC ASIA, a wholly-owned subsidiary of China Petroleum and Chemical Corporation (Sinopec), Asia's largest refiner by output.
It provides that Petrobras export 150,000 barrels of oil per day to China starting from 2009 and 200,000 barrels of oil per day from 2010 to 2019.
The price of oil exported to China will be decided based on the market, said Gabrielli.
Apart from the agreement, Petrobras and Sinopec signed a memorandum of understanding (MOU) under which the two sides would cooperate in several areas such as exploration, refining, petrochemicals and the supply of related goods and services, said Petrobras.
Sinopec announced in February that it has signed a contract with Petrobras to import 3 million to 5 million tonnes of crude oil from the latter from February 2009 to January 2010 at market price.
Also in February, Sinopec and CDB signed an MOU with Petrobras regarding cooperation in the fields of oil and finance.
According to the memorandum, the annual trade volume between Sinopec and Petrobras will be raised from 3 million tonnes in 2008to between 10 million to 12.5 million tonnes before the end of 2010. Their future oil trading volume will reach 30 million tonnes.
¡¤Government will raise subsidies for auto replacements to 5 billion yuan this year. ¡¤Government willallocate 2 billion yuan to encourage home appliance upgrades. ¡¤CBRC said consumers will get loans without collateral for buying durable goods.
BEIJING, May 19 (Xinhua) -- China will increase subsidies for consumers who sell their cars and home appliances in order to purchase new ones, in an effort to spur domestic consumption and curb pollution, according to a cabinet meeting held Tuesday.
The government will raise subsidies for auto replacements from 1 billion yuan to 5 billion yuan this year, and allocate 2 billion Yuan to encourage home appliance upgrades, an executive meeting of the State Council presided over by Premier Wen Jiabao said.
The move will further help stimulate domestic spending after the rebate program for auto and home appliance buyers in the rural areas greatly boosted rural consumption, said a statement from the meeting.
Consumers who trade-in their used mid- and small-sized truck and some types of mid-sized passenger cars for new ones will receive a subsidy.
Subsidies will also be given to consumers who sell automobiles that no longer meet the government's emission standard, but are still within life expectancy.
The subsidy will be no more than the purchase tax of the automobile.
A pilot program of home appliance replacement will start in Beijing, Shanghai, Tianjin, Fuzhou, Changsha and provinces of Jiangsu, Zhejiang, Shandong, Guangdong, said the statement. No specific date was given.
Buyers will receive a subsidy worth 10 percent of the prices on five kinds of new appliances, namely, TV sets, refrigerators, washing machines, air-conditioners and computers.
Retail sales kept solid growth in China as the world's third largest economy turned to domestic consumption for growth after exports tumbled.
Retail sales rose 14.8 percent in April year on year to 934.32 billion yuan (136.8 billion U.S. dollars), the National Bureau of Statistics (NBS) announced last Wednesday.
The growth rate was 0.1 percentage point higher than in March.
From January to April, retail sales totaled 3.87 trillion Yuan, up 15 percent over the same period last year.
More than 1.15 million vehicles were sold last month in China, up 25 percent year on year, according to China Association of Automobile Manufacturers on May 8.
Sales were boosted by government stimulus policies, Zhang Yunpeng, an analyst with Beijing-based Huarong securities told Xinhua last Wednesday. China in January halved the purchase tax on passenger cars to 5 percent for models with engine displacements of less than 1.6 liters.
As part of the government effort to boost consumption, China Banking Regulatory Commission (CBRC) said on May 12 that the consumers will get loans without collateral for buying durable goods, including appliances and electronic products, and other private consumption such as travel and education.
China to create 3 mln jobs in light industry
BEIJING, May 18 (Xinhua) -- The State Council, China's Cabinet, Monday announced that it would endeavor to create 3 million new jobs in light industry in the coming three years by boosting domestic demand.
The State Council in February unveiled initial plans to boost light industry in a bid to buoy the economy together with the 4-trillion-yuan (586 billion U.S. dollars) stimulus package presented in November and nine other specific industry stimulus plans including petrochemicals, textiles and other sectors. Full story
China's oil processing capacity to increase by 18% by 2011
BEIJING, May 18 (Xinhua) -- China plans to raise its annual crude oil processing capacity to 405 million tonnes by 2011, the State Council, or the Cabinet, said on Monday in its restructuring and stimulus plans for the petrochemical industry.
That would represent an increase of about 18.4 percent over its processing volume last year, which topped 342.1 million tonnes, according to the January figures from the National Bureau of Statistics. Full story
China will meet economic growth target of 8%: senior economic planner
HONG KONG, May 18 (Xinhua) -- China will definitely be able to meet the target of achieving eight percent economic growth in 2009, a senior official of the country's top economic planning body said here Monday.
"Judging from the indicators of the first four months, I do believe it is highly possible to achieve an eight percent growth for the full year. In fact, I believe the target will definitely be met," said Xulin, head of the Department of Fiscal and Financial Affairs of the National Development and Reform Commission. Full story
On bumpy road, Chinese exporters tap into home market
GUANGZHOU, May 17 (Xinhua) -- At a sales booth in a special trade fair here in southern China, Zhou was complaining how hard it was to sell her products.
"We sell them at factory-gate prices, but buyers still bargain. That makes me mad," said Zhou, a Taiwanese senior manager of Poly Dragon Industrial, which is based in the booming city of Dongguan neighboring Guangzhou, capital of China's manufacturing base Guangdong Province. Full story
China allows consumer financing companies to boost consumption
BEIJING, May 13 (Xinhua) -- China will allow non-deposit-taking institutions both home and overseas to offer consumer loans to its citizens, a new measure to stimulate domestic consumption.
China Banking Regulatory Commission (CBRC) issued, on its portal Web site Tuesday, management measures on the experiment of consumer financing companies to seek public opinions. Full story
BEIJING, May 19 -- The 2008 China Financial Market Development Report, issued by the People's Bank of China on May 4, pointed out that various stimulus packages launched by respective countries would influence supply and demand relation in international financial market. This may probably lead to a large scale withdrawal of capital from emerging markets. "If the inflowing offshore funds in China begin to outflow, it may probably result in a drastic adjustment in the stock market and bond market of China," said the report.
The warning of the Chinese central bank is based on the financial crises as it occurred in different countries as well as the appreciation of the US dollar since the later half of 2008. The dollar value moving up resulted from the flowback of large sums of money from international markets to the US after subprime mortgage crisis.
After the financial tsunami broke out in the US in 2008, it is not only the US financial institutions that brought back the capital invested overseas to make up the shortage of liquidity but capital in the global market also sought a safer place--the US market. Therefore, it is no surprise that foreign capital withdrew from emerging markets considering that capital from other parts of the world also flowed to the US.
Various recovery measures and economic stimulus packages, which are announced by the affected countries with the aim of saving a depressed economy, will also change the trend of capital flows in the international financial market.
On May 5, State Administration of Foreign Exchange (SAFE) in China solicited opinion from all social sectors on the issue of administration of domestic foreign exchange accounts of foreign institutions. SAFE stated that these accounts of some foreign institutions tend to be a hotbed of illegal practices because of the absence of unified regulations. SAFE will reinforce the management of these accounts in domestic non-offshore banking sectors.
I believe that there are several key points here. First, SAFE will regulate the opening and operation of foreign institutions' domestic foreign exchange accounts, in order to keep track of cross-border capital flows. Second, it wants to prevent these accounts from being used for money laundering. Third, it intends to prevent the large-scale illegal flow of cross-border capital in these accounts from adversely impacting China's financial market. Fourth, it wants to avoid these accounts becoming the main channel for the escape of international hot money.
In recent years, with the increasing opening up of China, more and more foreign institutions have opened foreign exchange accounts in domestic banks. The volume of business keeps increasing rapidly. According to incomplete statistics, such accounts opened by foreign institutions within China exceeded 100,000 at the end of 2008.
A few years ago, when RMB was appreciating fast and domestic asset prices increasing in leaps and bounds, a large number of foreign institutions frequently opened accounts in domestic banks. This made a huge a mount of international hot money rush into China. The total volume of international hot money in China at that time was estimated to be $500-600 billion equivalent to 5 trillion yuan. After the financial crisis broke out, due to the reflux of the US dollar and the depreciation of RMB, the net outflow of the balance of payments accounts in China is estimated to be between $20 billion to $200 billion in the fourth quarter of 2008.
The trend of RMB exchange rate and the development of Chinese economy in the future will determine the direction of international hot money flow. Considering the fact that China's economy will recover earlier than other countries, if RMB exchange rate can be kept stable or even allowed to rise slightly, there is little chance of a massive outflow of international hot money from China, no matter how turbulent international financial markets are. If the flow of international hot money can be limited to a controllable range, we don't need to worry about it too much.
However, if China doesn't accelerate the pace of economic reform for dealing with key problems, China's economy will face many difficulties when the US and European economies revive after the crisis. By that time if the RMB is depreciated because of a slowdown of China's economic growth rate, it is possible that there would be huge amounts of international hot money outflow from China.
China should tighten the administration of the cross-border flow of capital. But it is unnecessary to strictly control the outflow of oversea capitals. The key to this issue is whether China's economy can keep sustained and steady growth.
The author is a researcher with the Institute of Finance and Banking under the Chinese Academy of Social Science
HONG KONG, May 18 (Xinhua) -- Hang Seng China Enterprises Index on Hong Kong Stock Exchange went up Monday with 184.95 points, or 1.93 percent, to close the day's trading at 9,607.29.
The H-shares index, initiated in August 1994 and readjusted on Jan. 5, 2009, tracks the overall performance of 43 major Chinese mainland state-owned enterprises listed on the Hong Kong Stock Exchange.
Hang Seng China H-Financials Index moved up 264.55 points, or 2.12 percent, to close at 12,745.89.
The H-Financials Index, initiated on Nov. 27, 2006, readjusted on Sept. 10, 2007, tracks the performance of nine major banks and insurers of the Chinese mainland.
Hang Seng Mainland Composite Index went up 51.23 points, or 1.63 percent, to close at 3,194.10.
Introduced on Oct. 3, 2001 with the latest readjustment effective on March 9, 2009, Hang Seng Mainland Composite Index gauges the performance of 132 Hong Kong-listed companies with principal places of business in Hong Kong and the Chinese mainland.
Hang Seng China-Affiliated Corporations Index moved up 20.01 points, or 0.56 percent, to close at 3,567.48.
The index tracks the performance of 34 locally listed companies with a significant equity interest held by entities in the Chinese mainland.
HONG KONG, May 18 (Xinhua) -- Hong Kong stocks moved up 232.21 points, or 1.38 percent to close at 17,022.91 on Monday.
Turnover climbed to 66.38 billion HK dollars (8.57 billion U.S. dollars), from Friday's 58.06 billion HK dollars (7.50 billion U.S. dollars).
The index traded between 16,334.36 and 17,062.49.
The gain seen in the afternoon session was attributed to strength in property companies and Mainland's stock market, according to analysts who expected the blue-chip index to consolidate in the near term after the market's recent strong rally, though some said ample liquidity should lend the market support.
Property firms led Monday's gains on a positive outlook for the sector. New World Development advanced 6.9 percent to 12.76 HK dollars, Sino Land jumped 4.1 percent to 11.30 HK dollars, and Henderson Land was up 3.5 percent at 38.50 HK dollars.
JPMorgan Monday raised the Hang Seng Index 2009 year-end target to 19,800 from 16,600, and recommended investors to buy more property stocks.
However, Credit Suisse downgraded Hong Kong's property sector on Monday to Underweight from Market Weight, because a recent strong run up in property stocks has not been matched by fundamental improvements.
The benchmark Shanghai Composite Index, which tracks both A and B shares, ended up 0.3 percent at 2,652.78, rebounding from an early fall to 2,589.61, led by gains in coal and power companies, which supported the Hong Kong market.
Hong Kong's H-share index, which tracks the Hong Kong-listed shares of Mainland-registered firms, rose 1.9 percent to 9,792.24.
Hong Kong bourse operator Hong Kong Exchanges and Clearing rose 5.8 percent to 109.70 HK dollars on strong turnover.
BEIJING, May 18 (Xinhua) -- Chinese shares reversed an early decline to closely slightly higher Monday, with a strong performance by coal stocks.
The benchmark Shanghai Composite Index edged up 0.28 percent, or 7.52 points, to 2,652.78. The Shenzhen Component Index rose 0.4 percent, or 40.82 points, to 10,314.04.
Combined turnover increased to 180.19 billion yuan (26.50 billion U.S. dollars) from Friday's 169.5 billion yuan.
Shares in Shanghai tumbled below the 2,600 mark in the morning, as financial and real estate stocks led the decline.
A strong rebound in coal stocks reversed the trend as investors took the view that rising oil prices might push up demand for coal, analysts said.
China Shenhua, the nation's biggest coal producer, rose 3.16 percent to 28.05 yuan. Datong Coal Industry gained 9.84 percent to 37.73 yuan.
China Yangtze Power rose 4.11 percent to 14.94 yuan after it announced a 107.5-billion-yuan-purchase of generation units at the Three Gorges Dam, its parent company and the world's largest hydropower project.
The State Council, or cabinet, announced a support plan Monday for the petrochemical industry. The cabinet urged oil producers and refiners to improve their product mix. It also vowed to improve the pricing mechanism for oil products and establish an oil product consumption tax that would be favorable for petrochemical companies.
It also pledged to build 20 oil refining bases, each with a capacity of 10 million tonnes.
However, the news came out after the market closed, too late to have an impact on Monday's trading.
PetroChina, the country's largest oil producer, fell 1.52 percent to 12.97 yuan. Sinopec, Asia's biggest refiner, fell 1.23 percent to 10.46 yuan.
BEIJING, May 18 (Xinhua) -- Chinese shares opened slightly lower on Monday.
The benchmark Shanghai Composite Index dropped 0.48 percent to 2,632.57. The Shenzhen Component Index was down 0.61 percent to 10,211.02 at the opening.
BEIJING, May 16 (Xinhua) -- China has laid a solid ground to step up the development of the country's futures trading market, according to China Futures Association (CFA) here on Saturday.
The country has narrowed the gap with international futures market as its futures trading was less exposed to the impact of the global financial crisis, the CFA vice director Li Qiang said at a forum on the development of futures market.
China ranked second on international market in terms of commodity futures trading. "The futures prices of products such as copper, corn, soybean and wheat have seen a growing influence on the global price changes," Li said.
It was necessary for China to enhance futures trading development and use the market as a tool for risk management at a time of global economic downturn, according to Li, as futures prices often served as a barometer to indicate international commodity price changes.
At present, the country has 20 products on futures trading. Two products have been open for market trading since the year's beginning, including steel and early rice, with the launch of swine futures in expectation.
HONG KONG, May 15 (Xinhua) -- Hang Seng China Enterprises Index on Hong Kong Stock Exchange went up Friday with 158.76 points, or 1.68 percent higher, to close the day's trading at 9,607.29.
The H-shares index, initiated in August 1994 and readjusted on Jan. 5, 2009, tracks the overall performance of 43 major Chinese mainland state-owned enterprises listed on the Hong Kong Stock Exchange.
Hang Seng China H-Financials Index moved up 215.56 points, or 1.76 percent, to close at 12,481.34.
The H-Financials Index, initiated on Nov. 27, 2006, readjusted on Sept. 10, 2007, tracks the performance of nine major banks and insurers of the Chinese mainland.
Hang Seng Mainland Composite Index went up 45.61 points, or 1.47 percent, to close at 3,142.87.
Introduced on Oct. 3, 2001 with the latest readjustment effective on March 9, 2009, Hang Seng Mainland Composite Index gauges the performance of 132 Hong Kong-listed companies with principal places of business in Hong Kong and the Chinese mainland.
Hang Seng China-Affiliated Corporations Index moved up 13.82 points, or 0.39 percent, to close at 3,547.47.
The index tracks the performance of 34 locally listed companies with a significant equity interest held by entities in the Chinese mainland.
HONG KONG, May 15 (Xinhua) -- Hong Kong stocks advanced 249.01 points, or 1.51 percent to close at 16,790.7 on Friday.
Boosted by overnight rally on Wall Street, the benchmark Hang Seng Index opened higher in the morning and fluctuated in the positive territory throughout the trading.
The bounce of Hong Kong stocks was believed to have mitigated losses in previous sessions this week, when share prices tumbled after robust gains in seven consecutive days.
The day high was 16,953.41 and the day low stood at 16,736.18.
Turnover shriveled to 58.06 billion HK dollars (7.50 billion U.S. dollars), from Thursday's 63.65 billion HK dollars (8.22 billion U.S. dollars).
Index heavyweight HSBC outperformed by rising 3.1 percent to 64. 3 HK dollars and the sole market operator HKEx was up 1.7 percent to 103.7 HK dollars.
Hong Kong-listed Chinese financial companies all registered increase in share prices. The country's biggest lender ICBC surged3.6 percent to 4.65 HK dollars; China Construction Bank (CCB), which has been under close scrutinize among investors after the Bank of America sold large numbers of CCB shares, rose 1.9 percent to 4.79 HK dollars. Insurer Ping An advanced 1.6 percent to 49.35 HK dollars and its arch rival China Life was up 0.9 percent to 27.55 HK dollars.
Oil-related stocks were all higher, with Sinopec up 1.0 percent to 8.09 HK dollars, CNOOC up 2.0 percent to 9.98 HK dollars and ChinaPetrol up 1.7 percent to 6.1 HK dollars.
Local property stocks grabbed a fair share of Friday's market rally. Cheung Kong, the business conglomerate headed by Hong Kong's richest man Li Ka-shing, closed 1.4 percent higher at 83.15 HK dollars, while SHK Properties, the leading residential developer in Hong Kong, gained 1.3 percent to 81.6 HK dollars.
Despite price rise in most blue chips, market observers believe downward pressure still hangs over the market, citing falling investment figures in the Chinese mainland and sharp deterioration of GDP in the first quarter in Hong Kong.
China's Ministry of Commerce announced Friday that the amount of direct foreign direct investment into China fell 21 percent year on year in the first four months, signaling that a recovery isn't yet firmly in place in the world third largest economy.
The Hong Kong SAR government said it would downgrade annual growth estimation for 2009 as exports and unemployment continue to worsen in the Asian financial hub. (7.743 HK dollars = 1 U.S. dollar)
China's foreign direct investment (FDI) growth in the past one year. (Source: China Daily) Photo Gallery
BEIJING, May 15 -- The nation will remain one of the main recipients of foreign direct investment (FDI) this year despite a sharp year-on-year decline in April, analysts have said.
Last month's FDI was $5.89 billion, down 22.51 percent from a year earlier, Dow Jones reported Thursday. The Ministry of Commerce refused to confirm the report but experts said the figure would not be far off the mark.
Due largely to the global financial crisis, FDI has contracted for seventh months in a row, and the decline in April is markedly sharper than March, when it fell 9.5 percent.
Analysts said the April figure is not as bad as it appears if the high reference point a year ago is taken into consideration.
Most analysts remain optimistic about the outlook for inward capital flows, saying momentum will start to pick up later this year as the global economy recovers.
"We were worried about overheating earlier last year," said Lu Jinyong, a professor at University of International Business and Economics in Beijing. "But the business environment has changed quite dramatically since. Year-on-year comparisons do not make as much sense now."
In April 2008, actual FDI surged 70 percent from the same period the previous year to total $7.6 billion. Much of it, some experts argue, was so-called hot money trying to profit from the expected appreciation of the yuan against the US dollar.
"Given the high base last year, China should neither feel too surprised nor dejected by the recent FDI figures," said Dong Xian'an, macro-economic analyst with Southwest Securities, a major domestic securities brokerage. "There is other data showing that the economy is bottoming out. And that's the big picture.
"The economy's contraction is likely to relax in the second half of the year, and it is very likely that FDI inflows will recover and start to increase at the turn of the year," Dong said.
Su Chang, a macroeconomic analyst with China Economic Business Monitor, forecast that as the global situation becomes more stable, China's FDI performance will improve in the next few months.
Lu estimated that China's FDI will be around $80 billion, not too drastic a drop from last year's $92.4 billion.
Even with an expected FDI decrease, "China will be one of the few bright spots in the world," Lu said.
According to a white paper on American business in China released last month by the American Chamber of Commerce, 22 percent of American companies said China was their No 1 global investment destination. Between 75 and 78 percent ranked the country as one of their top three investment destinations every year since 2004.
BEIJING, May 15 (Xinhua) -- Chinese shares rose 0.2 percent Friday, lifted by an overnight rebound on Wall Street, which recovered from a loss of more than 2 percent the previous trading day.
The benchmark Shanghai Composite Index added 5.38 points to close at 2,645.26. The Shenzhen Component Index climbed 0.21 percent, or 21.08 points, to 10,273.23.
Combined turnover shrank to 169.5 billion yuan (24.85 U.S. dollars) from 191.2 billion yuan Thursday.
Gainers outnumbered losers by 448 to 321 in Shanghai and 410 to235 in Shenzhen.
The three plans unveiled by the State Council, or the Cabinet, this week to support industry growth helped hold market confidence. The plans are aimed at stimulating development of machinery manufacturing, nonferrous metals and bio-industry.
Medical-related stocks continued to rise for a second day on a 62.8-billion-yuan central plan to support the development of bio-industry aimed at achieving breakthroughs in key technologies, such as transgenic products and new drug development.
Shares for southwestern Chongqing-based Holley Pharmaceuticals rose by the 10 percent daily limit to 5.45 yuan. Shenzhen Neptunus Bioengineering closed at 7.48 yuan, up 10 percent.
The market was also backed by the rise in some heavyweights. Shares for PetroChina, the country's largest oil producer, edged up 0.46 percent to 13.17 percent. China Coal Energy was up 2.32 percent to 11.91 yuan.
SHANGHAI, May 15 (Xinhua) -- Zhou Xiaochuan, governor of the People's Bank of China (PBOC), Friday said China needs to modify market regulations to turn Shanghai into a global financial center.
"(We) should make clear and improve from time to time our rules of the game when developing a global financial center," Zhou told a financial forum in Shanghai.
He said the rules, including the legal system and those on accounting, corporate governance and initial public offering, should be modified for global acceptance.
China plans to make Shanghai a global financial center by 2020 that matches the country's economic strength and the international status of its currency, the State Council, or Cabinet, said on April 29.
To achieve the goal, the authorities should also improve infrastructure and information environment and modify rules on tax, market access and talent recruitment, Zhou said.
"The ratio could fall following government measures to boost domestic demand, but it will continue to be high globally for a long period of time," he said. "With the huge savings and the government encouragement for overseas investment, we have all the conditions to speed up the development of various investment funds."
He noted that the authorities will encourage the funds to take bigger risks as they are more risk averse compared with their overseas counterparts.
Shanghai can draw experience from Hong Kong and work with the major financial center in Asia to reach its target, Zhou told the second Lujiazui Forum.
The official said Shanghai, like major brands in the country, needs to stick to the principles of globalization in becoming a global financial center.
In 2006, China's voting power in the International Monetary Fund (IMF) was raised to 3.66 percent from about two percent. The United States has 16.77 percent of the voting power, giving it the veto power.
"There should be more clear adjustment in the next round of cash injection into the IMF before 2011," he said.
Many economists believed that China would be the first nation to recover from the global downturn, allowing the fast growing economy to play bigger role in the post-downturn world finance affairs.
Zhou said a bigger voice, however, comes with challenges. He said that there is yet no consensus among experts and officials.
"But one thing, I believe, is clear," he said. "With the development of China's economy and finance, we need an international financial center."
Wu Xiaoqiu, a professor of finance at the Renmin University of China, said in late April that the global financial crisis brought to China more opportunities than risks.
In the post-crisis period, Shanghai would join New York and London to be the world's three major financial centers, Wu said.
Zhou said that to some experts, the international financial centers, like New York and London, could be hard hit in the global financial crisis. But the centers, he added, could be very helpful for economic growth, resources optimization and financial innovation.
BEIJING, May 15 (Xinhua) -- China's central bank has asked lenders to ensure credit goes into the real economy, saying that risk control and credit expansion were equally important.
"We can't rule out the possibility that some money has flowed into the stock market, a situation that deserves close government monitoring," Guo Tianyong, professor at the Central University of Finance and Economics, said Friday.
He also said that at present, money velocity in China -- the rate at which money in circulation was used to buy goods and services -- was slow. He said this perhaps indicated that some of the money might not have gone into the real economy, but had instead flowed from the banking system directly into the stock market.
The request was posted in a notice on the People's Bank of China (PBOC) website Thursday. The country's credit boom this year reflected the relatively easy monetary policy and helped reduce deflationary expectations and boost confidence to ensure stable economic growth, according to a joint meeting of the PBOC and the China Banking Regulatory Commission held Wednesday.
The meeting also stressed banks should better scrutinize risk and ensure that money flowed into the real economy to meet the capital demand of industrial restructuring. Banks should continue to improve credit structure and capital adequacy.
Chinese banks lent 5.17 trillion yuan (760.29 billion U.S. dollars) in the first four months of the year, exceeding the 5 trillion yuan full-year target set early this year.
Liu Yuhui, an economist with the Chinese Academy of Social Sciences, told Xinhua Monday that new bank loans could reach about9 trillion yuan this year.
The PBOC said in its quarterly monetary report on May 6 that China's economy had done "better than expected" in the first quarter and pledged to maintain "ample" liquidity in the financial system to ensure economic recovery.
TIANJIN, May 14 (Xinhua) -- The U.S.-based Nasdaq OMX Group Thursday signed a memorandum of understanding with the government of Tianjin, the largest coastal city in northern China, on cooperation to help local Chinese businesses to go public abroad.
Under the accord, the American group will provide financing and information services -- in market research, corporate management and investment analysis in particular -- for listed companies from Tianjin.
Nasdaq pays great attention to the Chinese market, which promises wide development prospects, according to Robert H. McCooey, Jr., who is in charge of newly listed companies and capital market with the American group.
He said now there were 97 Chinese firms listed on Nasdaq. Among108 companies listed on the bourse last year, 22 came from China. China boasts the second largest number of Nasdaq-listed companies next only to the United States, he said.
As the world's largest stock exchange, Nasdaq OMX Group, with more than 3,800 companies listed, provides trading and related technical services for companies around the globe. It has set up representative offices in Beijing and Hong Kong.
People walk past an index board displayed in Hong Kong, China, May 14, 2009. Hong Kong stocks retreated 3.04 percent, or 517.93 points to close at 16,541.69 on Thursday.(Xinhua/Wong Pun Keung) Photo Gallery
HONG KONG, May 14 (Xinhua) -- Hong Kong stocks retreated 3.04 percent, or 517.93 points to close at 16,541.69 on Thursday, tracking U.S. market falls overnight prompted by declining retail sales.
The benchmark Hang Seng Index opened 2.52 percent lower in the morning and soon dived as much as 3 percent, led by falls of heavyweights including the HSBC and China Mobile.
The index touched the day high of 16,630.33 before shedding more points to the day low of 16,422.28.
Turnover was 63.65 billion HK dollars (8.22 billion U.S. dollars).
The Hong Kong market tumble came after U.S. stocks plunged overnight over a weak-than-expected retail sale released by the U.S. Commerce Department.
Analysts said the 0.4-percent drop in retail sales in April in the world largest economy, which indicated that a recovery may not be "just around the corner," further dented market confidence.
Among the 42 constituents of the Hang Seng Index, only two stocks registered growth. Tencent, China's leading instant message service provider, rose 9.8 percent to 79.9 HK dollars after it reported a 94-percent rise in first quarter profit. Tencent touched the record of 82 HK dollars earlier during Thursday's trading.
Another gainer is China Unicom, up 0.23 percent to 8.85 HK dollars.
HSBC contributed to market tumble by decreasing 4.2 percent to 62.35 HK dollars and ChinaMobile lost 4.2 percent to 73.15 HK dollars after resuming trading. The sole market operator HKEx plunged 7.1 percent to 102 HK dollars as more financial institutions turned downbeat about its earning prospects.
Profit-taking in oil-related stocks pushed the sector lower, with Sinopec down 4.6 percent to 8.01 HK dollars, PetrolChina down4.2 percent to 6 HK dollars and CNOOC shedding 4.3 percent to 9.78HK dollars.
Shares of Hong Kong-listed Chinese banks suffered loss of different degrees. China Construction Bank fell 1.9 percent to 4.7HK dollars, ICBC down 2.4 percent to 4.49 HK dollars and the Bank of China down 2.1 percent to 2.85 HK dollars. (7.742 HK dollars is equivalent to 1 U.S. dollar)
Investors chat at a securities exchange in Shanghai, China, May 14, 2009. China's benchmark Shanghai Composite Index on the Shanghai Stock Exchange closed at 2,639.89 points Thursday, down 23.88 points, or 0.9 percent, from the previous close. (Xinhua/Pei Xin) Photo Gallery
BEIJING, May 14 (Xinhua) -- Chinese shares dipped 0.9 percent Thursday, following a global market downfall triggered by unfavorable economic data in the United States.
The benchmark Shanghai Composite Index lost 23.88 points to close at 2,639.89. The Shenzhen Component Index edged down 0.41 percent, or 42.22 points, to 10,252.15.
Wall Street dropped sharply in early trading Wednesday after retail sales unexpectedly decreased in April for a second month.
Weak blue chips pulled down the market. PetroChina declined 1.35 percent to 13.11 yuan (1.93 U.S. dollars), and Sinopec lost 2.21 percent to 10.6 yuan.
Financial shares led the fall. China Merchants Bank slid 2.93 percent to 17.23 yuan, and China Ping An declined 2.75 percent to 40.37 yuan.
As China's government released a plan Wednesday to stimulate bio-industry, medical-related stocks bucked trend, with Zhangzhou Tian-Mu-Shan Pharmaceutical Enterprise Co. and Guilin Layn Natural Ingredients Corp. rising by the daily limit of 10 percent to 8.56 yuan and 24.08 yuan respectively.
According to the plan, China will support 11 national research programs with at least 62.8 billion yuan in 18 months to achieve breakthroughs in key technology development that included transgenic products, new drug development, and the treatment of major infectious diseases such as HIV/AIDS and viral hepatitis.
The information technology sector gained 1.34 percent, as the programs also included an advanced new-generation broadband wireless mobile communications network, and high-end central processing units and software.
Combined turnover shrank to 191.2 billion yuan (28.11 U.S. dollars) from 222.89 billion yuan (32.63 billion U.S. dollars) Tuesday.
Losers outnumbered gainers by 443 to 409 in Shanghai. Gainers outnumbered losers by 367 to 365 in Shenzhen.
An investor sits at a securities exchange in Shanghai, China, May 14, 2009. China's benchmark Shanghai Composite Index on the Shanghai Stock Exchange closed at 2,639.89 points Thursday, down 23.88 points, or 0.9 percent, from the previous close. (Xinhua/Pei Xin) Photo Gallery
HONG KONG, May 13 (Xinhua) -- Hong Kong Exchanges and Clearing saw a 49 percent year-on-year drop in the profit attributable to shareholders in the first quarter of this year, to 834.2 million HK dollars (107.75 million U.S. dollars), the only stock market operator in Hong Kong announced on Wednesday.
According to first quarter results, HKEx recorded income of 1.34 billion HK dollars (173.08 million U.S. dollars), down 41 percent on a year earlier, while operating expenses fell 7 percent to 354.4 million HK dollars (45.78 million U.S. dollars). The profit attributable to shareholders was 834.2 million HK dollars, with basic earnings per share at 78 cents.
The average daily turnover value on the Stock Exchange was 44.7 billion HK dollars, 55 percent lower than the same period last year. The average daily number of derivatives contracts traded on the Futures Exchange and stock options contracts traded on the Stock Exchange also dropped 5 percent and 27 percent to 195,499 and 194,279.
HKEx Chairman Ronald Arculli said the persistence of negative market sentiment had a significant impact on both the primary and secondary markets in the first quarter.
The plunge in global consumption was magnified by worsening unemployment and tighter credit conditions which caused aggressive business retrenchment in most economies.
"Despite the difficulties ahead, HKEx continues to work hard to ensure it operates a quality market built on a solid financial infrastructure with sound products and services to bolster confidence in our marketplace."
HONG KONG, May 13 (Xinhua) -- Hang Seng China Enterprises Index on Hong Kong Stock Exchange edged up 16.40 points on Wednesday, or0.17 percent higher, to close the day's trading at 9,738.62.
The H-shares index, initiated in August 1994 and readjusted on Jan. 5 this year, tracks the overall performance of 43 major Chinese mainland state-owned enterprises listed on the Hong Kong Stock Exchange.
Hang Seng China H-Financials Index moved down 96.57 points, or 0.76 percent, to close at 12,619.46.
The H-Financials Index, initiated on Nov. 27, 2006, readjusted on Sept. 10, 2007, tracks the performance of nine major banks and insurers of the Chinese mainland.
Hang Seng Mainland Composite Index went down 3.56 points, or 0.11 percent, to close at 3,159.78.
Introduced on Oct. 3, 2001 with the latest readjustment effective on March 9 this year. Hang Seng Mainland Composite Index gauges the performance of 132 Hong Kong-listed companies with principal places of business in Hong Kong and the Chinese mainland.
Hang Seng China-Affiliated Corporations Index moved down 1.91 points, or 0.05 percent, to close at 3,619.97.
The index tracks the performance of 34 locally-listed companies with a significant equity interest held by entities in the Chinese mainland.
BEIJING, May 13 (Xinhua) -- China's Ministry of Finance (MOF) said Wednesday it would issue 13.1 billion yuan (1.92 billion U.S. dollars) of three-year local government bonds from May 14 to 18 on behalf of three provinces at a fixed annual coupon rate of 1.71 percent.
The plan allocates 3.1 billion yuan for Hubei Province, 9 billion yuan for Sichuan Province and 1 billion yuan for Dalian city in Liaoning Province.
The three local bonds will begin trading on May 20.
The ministry would also issue a batch of book-entry T-bonds of 28.6 billion yuan, the eighth of its kind this year.
The one-year, short-term bonds have a fixed annual coupon interest of 0.89 percent, with the selling period lasting from May14 to 18. Trading begins on May 20.
BEIJING, May 13-- China is advancing its study of plans to allow foreign companies to list on the Shanghai Stock Exchange and may work out preliminary arrangements as early as this year, industry sources said yesterday.
The country is expected to step up communications with other nations in the coming months on the development of an international board in the city after concluding a deal with Britain on Monday for further stock-market reform, the sources said.
"China agrees to allow qualified foreign companies, including United Kingdom companies, to list on its stock exchange through issuing shares or depository receipts in accordance with relevant prudential regulations," the two countries said in a joint statement issued on Monday.
The agreement, reached by Chinese Vice Premier Wang Qishan and British Finance Minister Alistair Darling following a meeting in London, is set to pave the way for large British companies like HSBC to sell shares in Shanghai.
HSBC said in a statement yesterday that it "would like to be the first foreign bank to list in Shanghai if the authorities allow," and is working toward that goal. It did not give a specific timetable for a stock sale in the city.
Peter Wong, executive director of HSBC subsidiary Hongkong Shanghai Banking Corp, said earlier this month that a Shanghai listing would consolidate HSBC's brand influence and raise funds for expansion in the Chinese mainland market.
Two years ago, China started to consider permitting foreign companies to issue yuan shares to help boost the status of its fledgling stock market on the mainland. But the program has proceeded slowly as regulators worked to ease investor jitters over a stock glut.
Program revived
The project entered the spotlight again after China's State Council issued a guideline in late March allowing Shanghai to prepare for allowing overseas companies to sell yuan-denominated shares and bonds on the city's bourse.
Other companies including Hong Kong-based Hang Seng Bank and the Bank of East Asia have also publicly expressed an interest in listing shares in Shanghai.
"Apparently, the program was revived," said a Beijing-based brokerage executive close to the China Securities Regulatory Commission. "Preparatory work will be paced up, with the initial arrangement likely to be settled by year end."
Industry insiders said any public stock sale by an overseas company would not be likely to occur until at least late next year as there's a great deal of work to be done.
One key obstacle for foreign companies is that they will have difficulty switching the proceeds of their mainland listings into other currencies and repatriating the money as the yuan is not fully convertible.
Hu Xiaolian, head of China's foreign exchange regulator, indicated in London on Monday that the country won't likely move quickly to free up the yuan under the capital account.
BEIJING, May 13 (Xinhua) -- Chinese shares rose 1.74 percent Wednesday as investor confidence was boosted by April retail salesfigures, which analysts said indicated that government stimulus efforts were having a positive impact.
The benchmark Shanghai Composite Index rose 1.74 percent, or 45.59 points, to close at 2,663.77. The Shenzhen Component Index edged up 1.13 percent, or 115.22 points, to 10,294.37.
Gains outnumbered losses by 514 to 315 in Shanghai and 475 to 242 in Shenzhen.
Combined turnover climbed to 222.89 billion yuan (32.63 billion U.S. dollars) from 176.3 billion yuan on Tuesday.
Retail sales rose 14.8 percent in April year on year to 934.32 billion yuan, the National Bureau of Statistics (NBS) announced Wednesday.
The growth rate was 0.1 percentage point higher than in March.
Government stimulus policies, such as cuts in purchase taxes for small cars and subsidies for farmers to buy agricultural equipment, had played a big part in retail sales, said Yuan Gangming, an economic researcher at Tsinghua University in Beijing.
The April figures, including retail sales and fixed-asset investment, which were released Tuesday, had shown clearer signs of economic recovery and boosted investor confidence, said Yang Bo, analyst with Guotai Junan Securities.
PetroChina, one of the country's major state-owned oil producers, helped lift the market as the company announced a plan late Tuesday to raise 100 billion yuan through debt financing in 2009 to support its major strategic projects.
Its shares rose 6.07 percent, or 0.76 yuan, to 13.29 yuan, and led the oil and coal sector up by 2.67 percent.
Jinniu Energy Resources went up 8.38 percent to 35.42 yuan, and Pingdingshan Tianan Coal Mining climbed 7.36 percent to 31.67 yuan.
Industry support plans for the machinery and nonferrous metal sectors, released earlier in the week, were also helping maintain market growth, the analysts said.
Nonferrous metal stocks rose 2.19 percent, while Xiamen Tungsten rose by the daily limit of 10 percent to 16.27 yuan.
The machinery sector grew by 1.36 percent. Hailu Heavy Industry jumped by the daily limit of 10 percent to 26.5 yuan, and Hongcheng General Machinery gained 9.99 percent to 8.04 yuan.
HANOI, June 24 (Xinhua) -- The 6th International Precision Engineering, Machine Tools and Metalworking Exhibition and Conference 2009 (MTA VIETNAM) will take place in Vietnam from July 8 to 11, the local newspaper Vietnam Investment Review reported Wednesday.
The event, scheduled to take place in Saigon Exhibition and Convention Center of Ho Chi Minh City of Vietnam, will draw over 400 exhibiting companies from 25 countries and regions, said the exhibition's official website.
The exhibition is a chance for companies to seek the latest technology and application know-how in the world of machines and tools, said the website.
The exhibition has grown to become Vietnam's most comprehensive manufacturing solutions trade event since it was first launched in Ho Chi Minh City in 2005, said the website.
PARIS, June 23 (Xinhua) -- The rate of unemployment in the industrial world could reach 10 percent in 2010, the highest level since 1970s, Organization for Economic Cooperation and Development (OECD) warned on Tuesday.
Prime Minister of the Republic of Korea (ROK) Han Seung-soo addresses the opening ceremony of the Organization for Economic Cooperation and Development (OECD) Forum 2009 in Paris, capital of France, on June 23, 2009. (Xinhua/Zhang Yuwei) Photo Gallery
The Paris based organization estimated that 57 million people could lose their job in its 30 member countries by the end of 2010, while it was 37.2 million jobless at the end of 2008.
"Unemployment will continue to weigh on national economies for a long time to come," OECD Secretary General Angel Guria said in a statement. "Previous downturns have taught us that the jobs recovery will lag a long way behind the pickup in the economic growth."
The OECD said it was working closely with its member countries "to adapt their policies to help the unemployed and avoid high unemployment levels becoming persistent."
The organization suggested governments to ensure financial safety nets for low income families and the unemployed. It also urged countries to make greater efforts to provide training opportunities to the unemployed.
In April, the OECD expected the rate of unemployment came to 7.8 percent.
LAGOS, June 18 (Xinhua) -- The Royal Dutch Shell Thursday said its Trans Ramos Pipeline at Aghoro-2 community in southeast oil-rich Nigeria's Bayelsa State was attacked Wednesday night.
"SPDC Joint Venture can confirm the Trans Ramos Pipeline at Aghoro-2 community in Bayelsa State was attacked last night (June 17)," Tony Okonedo, manager corporate media relations with Shell Nigeria Exploration Production Company Limited said in a statement reaching here.
"Some oil production has been shut in to avoid potential environmental impact," he added. According to him, relevant government agencies have been informed, and a joint investigation visit is planned.
Nigeria's major militant group in the oil-rich Niger Delta region the Movement for the Emancipation of the Niger Delta (MEND) said Wednesday its fighter destroyed a major crude oil pipeline in southeast in Bayelsa state belonging to Royal Dutch Shell as it continues its campaign against foreign oil companies.
Nigerian militants claim destroying major Shell pipeline
LAGOS, June 18 (Xinhua) -- Nigeria's major militant group in the oil rich Niger Delta region the Movement for the Emancipation of the Niger Delta (MEND) said its fighter destroyed a major crude oil pipeline in southeast in Bayelsa state belonging to Royal Dutch Shell as it continues its campaign against foreign oil companies.
"At about 20:30 Hrs (2030 GMT) of Wednesday, June 17, 2009, fighters from MEND in furtherance of Hurricane Piper Alpha (our campaign to cripple the entire oil and gas export of the Federal Republic of Nigeria), destroyed with high explosives a major crude oil trunk line in Bayelsa state belonging to Shell," the group spokesman Jomo Gbomo said in a statement reaching here. Full story
ROME, June 12 (Xinhua) -- The Group of Eight (G8) development ministers agreed Friday on a series of commitments to increase efficiency in financial aid allocation to developing countries, particularly Africa, in an attempt to tackle the impact of the current economic downturn.
Closing a two-day meeting, the ministers said in a final document they shared the view that "innovative financing is a critical element in contributing, along with traditional ODA (official development aid), to raising the resources needed to tackle the challenge of the economic crisis so as to mitigate its impact on development.
"In this difficult context, a change of scale and speed in the implementation of innovative financing mechanisms for development is most needed," said the statement.
However, no concrete financial commitment to developing countries was made. The ministers simply reiterated what had previously been decided at London's G20 meeting in April and at Gleneagles summit in 2005 to reverse the negative economic impact and increase sustainable development in emerging countries.
According to the final statement, the development ministers stressed the need for "a strong, coherent and coordinated response to the economic crisis."
"The global economic slowdown, adding on the negative effects of energy and food crises, has severely disrupted economic growth worldwide", especially in developing countries, said the ministers.
"We must therefore act in a coordinated manner to prevent the economic crisis from turning into a deeper social crisis with all its possible consequences in terms of political instability and conflicts," they added.
Thus, the ministers agreed to increase "social protection mechanisms and safety nets to address vulnerable population groups who are hardest hit by the crisis" through a more efficient development strategy.
Over the two-day meeting on Thursday and Friday, discussion was focused on the impact of the economic crisis on developing countries and on measures to support low income economies to meet their challenges.
As developing countries have been hard hit by the global economic crisis, industrialized nations' efforts will focus on promoting foreign investments and international loans to increase sustainable development.
Among the commitments taken at the meeting, the G8 ministers stressed the need to "optimize the allocation of resources and maximize the impact of development assistance, investment, trade, debt relief, microfinance, small and medium enterprise financing."
In addition, it is essential to free financial flows from bureaucratic nets, promote public-private partnerships, stimulate the implementation of green technologies to combat climate change and advance in reform programs able to boost market forces and increase well-being in developing countries.
The ministers decided as well on the necessity to give emerging countries better representation at institutional organizations such as the International Monetary Fund and the World Bank.
"We have confirmed these commitments, they will be kept by the countries and the international organizations concerned," Italian Foreign Minister
Franco Frattini told reporters at the closing press conference.
"But that is not enough. We have to go beyond that and mobilize all available resources against the crisis in order to bring a response to the difficulties which developing countries are facing. A lot remains to be done, particularly for the weakest and most indebted countries," he added.
Discussion on Africa was at the center of the gathering. The ministers stressed the need to mobilize private capital to finance development of the continent's infrastructure and proposed to reduce by half the commission on remittances of immigrant workers.
Such a measure alone, proposed by current G8 presidency holder Italy, will free some 12 billion U.S. dollars to 15 billion U.S. dollars.
Frattini stressed the importance of Africa's role and the need of a "global partnership" with all developing countries.
Italy has put the issue of Africa on top of G8 agenda and Frattini promised that "Africa's voice will be heard" at L'Aquila summit in July.
The ministers also agreed that it was essential for donor countries to have greater effectiveness and more coordination.
Thus they decided to advance a cross-sector approach to sustainable development, based on the harmonization of cooperation initiatives in the various areas of development such as education, environment, health, food security and safety. The final goal is to optimize available resources and to increase potential economies' scale.
The meeting's final results will be presented to the G8 summit to be hosted by the Italian city of L'Aquila, which was partly destroyed by an earthquake on April 6.
The meeting was also attended by ministers from Brazil, China, India, Mexico, South Africa and Egypt, as well as deputies from the African Union and the New Partnership for Africa's Development.
Representatives from the UN Food and Agriculture Organization, the World Food Program, the World Health Organization and the World Bank also took part in the meeting.
The G8 development meeting opened amid strong protests. On Thursday, the anti-poverty group One led by Irish rock star "Bono" accused Italy and France of being so far behind on their aid pledges to Africa.
ROME, June 12 (Xinhua) -- Development ministers from the Group of Eight (G8) agreed Friday on a series of commitments to increase efficiency in financial aid allocation to developing countries, particularly Africa, in an attempt to tackle the impact of the economic crisis.
No concrete financial commitment to developing countries was made. The ministers simply reiterated what had previously been decided at London's G20 meeting in April and at Gleneagles summit in 2005 to reverse the negative economic impact and increase sustainable development in emerging countries.
According to the final communique, the development ministers stressed the need for "a strong, coherent and coordinated response to the economic crisis. The global economic slowdown, adding on the negative effects of energy and food crises, has severely disrupted economic growth worldwide," especially in developing countries.
"We must therefore act in a coordinated manner to prevent the economic crisis from turning into a deeper social crisis with all its possible consequences in terms of political instability and conflicts," the ministers said in the final document.
At the two-day meeting, the ministers agreed to increase "social protection mechanisms and safety nets to address vulnerable population groups who are hardest hit by the crisis" through a more efficient development strategy.
The meeting was attended by ministers from Italy, the current G8 presidency holder, Canada, Britain, France, Germany, Japan, Russia and the United States, as well as ministers from developing countries, namely China, India, Brazil, South Africa, Mexico and Egypt, and representatives from international organizations.
BEIJING, June 12 (Xinhuanet) -- Dramatic decline in net private capital flows to emerging markets will be seen in 2009, according tothe Institute of International Finance (IIF).
Ina report released Thursday at the Spring Membership Meeting,the IIF predicted that the volume of private capital flows to emerging markets this year will likely be 141 billion U.S. dollars, which is less than one-half of the 2008 total of 392 billion dollars and far below the record of 888 billion dollars seen in 2007.
Regional divergences are also highlighted in the IIF report. Most significantly, projections of flows to "Emerging Asia" and Latin America have been revised upwards while revising down the estimates of net flows to "Emerging Europe."
In Asia, the net private capital flows to emerging markets is projected 88 billion dollars this year ascompared to59 billionin 2008 and record 296 billionin 2007. Aggregate net repayment of private sector capital by "Emerging Europe," of 33 billion dollars, is now foreseen in 2009, after net inflows of 214 billion dollars in 2008.
Nevertheless, a modest revival of flows is now starting to become evident and the IIF projects that the 2010 volume of private capital flows to emerging markets will reach 373 billion dollars.
The IIF said that following a period of extreme weakness between October 2008 and March 2009, flows to emerging markets appear to have improved somewhat over the last two months, albeit to levels far below the early months of 2008.
William Rhodes, First Vice Chairman of the IIF's Board of Directors, Chairman and President, Citibank and Senior Vice Chairman, Citi, stressedthat moderate recovery in capital flows inemerging markets partly reflects a rise in investor confidence both in response to measures taken bygovernments in emerging markets, including China, to stimulate their economies and to the international support that emerging markets are now starting to receive.
In the report, IIF projected that net private capital inflows to China, which moderated from a peak of 153 billion dollars in 2007 to 88 billion dollars in 2008, are set to stabilize at around 60 billion dollars this year and next year.
Rhodes also noted, "The International Monetary Fund must deploy its expanded resources with skill to assist its member countries to achieve economic recovery. And, it is also important that every effort be made to increase the resources available to the World Bank Group, including the International Finance Corporation, and to the regional development banks, including the Asian Development Bank. These institutions have major roles to play at this time."
Marilou Jane (L2), sector director of the Africa Finance and Private Sector Development of World Bank, talks about the Africa Competitiveness Report 2009 in Cape Town, South Africa, June 10, 2009. The Africa Competitiveness Report 2009 released on Wednesday highlighted that financial development and trade were crucial to making Africa more competitive and riding out current crisis. (Xinhua/Xu Suhui) Photo Gallery
By Song Ying and Li Jianmin
CAPE TOWN, South Africa, June 10 (Xinhua) -- Co-chairs of the World Economic Forum (WEF) on Africa stressed on Wednesday the development opportunities of the continent on the opening plenary of the platform.
The meeting came as the global economic meltdown has sucked the growth strength of many African nations, making flagging the traditional economic drivers like foreign investment, demand for raw material and oversea remittance.
A journalist reads the Africa Competitiveness Report 2009 in Cape Town, South Africa, June 10, 2009. The Africa Competitiveness Report 2009 released on Wednesday highlighted that financial development and trade were crucial to making Africa more competitive and riding out current crisis. (Xinhua/Xu Suhui) Photo Gallery
At the plenary under the theme "Africa and the New Global Economy", the five co-chairs believed that African countries should use the crisis which has devastating effects on the world's major economies, as an opportunity to bring about new development in the continent.
Newly-elected South African President Jacob Zuma, also the host of the forum, said the continuation of the current crisis will mean increased starvation, poverty and child mortality."
However, he expressed belief that Africa can have its own way to deal with the crisis just like other parts of the world.
"We view the economic downturn as providing both challenges and opportunities for the continent and the developing world in general," said Zuma.
World Bank Managing Director Ngozi Okonjo-Iweala said the impacts of the crisis on Africa are not abstract.
She argued that the key issue is how to focus on the opportunity brought by the crisis to position Africa for long-term development.
Okonjo-Iweala also stressed the importance of having the voice of African countries on the table.
Jiang Jianqing, chairman of the board of the Industrial and Commercial Bank of China, told the participants at the opening plenary that the global crisis poses a challenge to African economy as the price of raw material, outside demand and foreign investment all drop.
"Africa will have more opportunities in the long run as the global economy will be in a more balanced pattern after the crisis. The relations between development and fairness will be better," said Jiang.
Another co-chair, Soud Ba'alawy, executive chairman of Dubai Group of the United Arab Emirates, said that there is a misconception that the investment to Africa will have high risks. People will begin to wonder which one has greater risk after the crisis started in the West.
The World Economic Forum on Africa has attracted over 800 participants from 50 countries. Five African leaders have taken part in the meetings. They are Kenyan Prime Minister Raila Amolo Odinga, Lesotho's Prime Minister Pakalitha Mosislili, Rwandan President Paul Kagame, South African President Zuma and Zambian President Rupiah Bwezani Banda.
Participants of the forum will try to seek practical solutions to foster better business practices and greater investment across the continent.
The closing plenary session of the platform scheduled for Friday afternoon will highlight the outcomes of the meeting and map out the future engagement of main stakeholders.
CAPE TOWN, June 10 (Xinhua) -- The 19th World Economic Forum on Africa started on Wednesday in the coastal city of Cape Town, South Africa, under the theme of "Implications of the Global Economic Crisis for Africa".
The meeting comes as the global economic meltdown has mounted pressure on major economies in Africa, sucking the strength of traditional economic drivers like foreign investment, demand for raw material and oversea remittance.
Jiang Jianqing, co-chair of the World Economic Forum on Africa and chairman of the board of the Industrial and Commercial Bank of China, said at the press conference that the Davos meetings of the World Economic Forum he attended have inspired him a lot.
"It was my first time to take part in the Africa meeting of the forum, " Jiang said, "I desire to learn the opinions and suggestions of all sides on how to cope with the challenges brought by the global crisis."
Jiang and Liu Guijin, special representative of African affairs of the Chinese Foreign Ministry, would attend parts of the sessions of the forum.
Prior to the meeting, Head of Africa of the World Economic Forum Katherine Tweedie highlighted the urgency of exploring how macroeconomic shifts are shaping the global agenda and how these trends are affecting Africa's diverse economies.
"Most importantly, the meeting will facilitate interaction and dialogue that will allow our key leaders to address the immediate challenges posed by the crisis and fully explore the unique opportunities that Africa has at its doorstep in this new global arena," Tweedie said.
The talks attract over 800 participants from 50 countries. Five African leaders have confirmed their attendance, including Kenyan Prime Minister Raila Amolo Odinga, Lesotho's Prime Minister Pakalitha Mosislili, Rwandan President Paul Kagame, newly-elected South African President Jacob Zuma and his Zambian counterpart Rupiah Bwezani Banda.
Participants of the forum will try to seek practical solutions to foster better business practices and greater investment across the continent.
The first event of the meeting would be a highly interactive session to engage over 350 leaders in a brainstorming exercise. Leaders will examine the changing global landscape and determine the major challenges for which African countries need to be most prepared in the coming year.
The discussions will be based on five general themes in the fields of politics, business and economics, namely, Global Shifts; Regional Effects; Drivers of the Economy; Change Leadership; Collaboration across Borders; and Growth through Innovation.
Among high-profile topics to be discussed are Macroeconomic Shifts in the Global Agenda, Economic Crisis and Impact on Africa.
Economic deliberations will be closely linked to important social and environmental issues including food security, climate change, health care and education.
The 2010 FIFA World Cup in South Africa also draws the attention of business leaders in the world. They will try to explore the economic and social impacts of the international football event in the forum.
The closing plenary session of the platform scheduled for Friday afternoon will highlight the outcomes of the meeting and map out the future engagement of main stakeholders.
The Africa meeting followed the international talks in Jordan sponsored by the World Economic Forum to map out the Middle East response to the world economic crisis.
LAGOS, June 9 (Xinhua) --The International Monetary Fund (IMF) has predicted that the next year may witness dramatic increase in credit borrowings by African countries to the tune of 2.5 billion U.S. dollars as a result of biting effects of global economic meltdown, the Lagos based This Day newspaper reported Tuesday.
The IMF Country Chief and Resident Representative to Nigeria, David Nellor, made the disclosure while on a courtesy visit to the Minister of Labor and Productivity, Adetokunbo Kayode, in Abuja on Monday.
He singled out Nigeria as one country that has so far escaped from the immediate impact of the world financial crisis due to the accrued benefits from the fiscal reforms.
Nellor particularly pointed to the oil savings from excess crude oil account as well as the banking reforms as major contributory factors in the measure of financial stability being enjoyed by Nigeria.
"The crisis is clearly a big issue globally and each country has its own challenges and for several countries in Africa, they need finance," he said.
"If they don't have that finance, it means they will grow more slowly, so we anticipate this year a lot of borrowing will take place at concessional interest rates," he added.
He said the interest rate on IMF money borrowing to some countries is half percent.
"That is a concessional rate and we anticipate an increase this year of maybe 2 billion dollars or 2.5 billion dollars of additional borrowing from Africa to help countries tied all over during this crisis period," Nellor added.
Earlier in his welcome address, the Nigerian labor minister said Nigeria' s economic problem is not caused by the global economic crisis, but is principally based on the fact that there are inherent structural problems within the country's economy.
Kayode said what Nigeria requires from IMF at the moment is very strong beneficial support.
According to him, the World Bank did a report on the last 10 years of economic activities in Nigeria and the conclusion is that even though Nigeria has an across-the-board economic growth of between 7 and 8 percent, there is no commensurate growth in the number of the employment created.
He said his ministry had taken up the issue of rising unemployment rates and had adopted a number of policy measures aimed at redressing the situation.
"I believe IMF and all other international partners must assist us to see how we can tackle the issue of unemployment," he added.
TEHRAN, June 8 (Xinhua) -- The largest gas injection project in Mideast was inaugurated on Monday in Iran's southwestern province of Khuzestan, the official IRNA news agency reported.
The inauguration ceremony, attended by Iranian Oil Minister Gholam-Hossein Nozaria and other Oil Ministry officials, was held in the Aghajari oilfield, situated some 125 km away from Khuzestan's capital city of Ahvaz, said the report.
The project aims at "injecting two billion cubic feet of natural gas per day in order to increase the production of Iran's crude oil by 130,000 barrels a day," which, according to Nozari, "would be one of the best ways to maximize the use of oil reserves."
According to Oil and Gas Journal, as of January 2009, Iran has an estimated proven oil reserves of 136.2 billion barrels, or roughly 10 percent of the world's total proven petroleum.
Iran is OPEC's second-largest exporter after Saudi Arabia, and the fourth-largest exporter of crude oil worldwide after Saudi Arabia, Russia and Norway.
KUALA LUMPUR, June 8 (Xinhua) -- Fuel bill, efficiency, cash reserves, capacity management, and partnerships were the risks and challenges of the present airline industry, according to the International Air Transport Association (IATA) on Monday.
The industry fuel bill for 2009 would account for 23 percent of its operating costs with an average price of oil at 56 U.S. dollars per barrel (Brent), the association said as its 65th Annual General Meeting officially kicked off here.
While, the fuel bill for 2008 was 165 billion dollars or 31 percent of operating costs at an average of 99 dollars per barrel.
"Greedy speculation of oil prices must not hold the global economy hostage. Failure to act by governments would be irresponsible," said IATA's Director General Giovanni Bisignani.
He predicted that the industry's fuel bill decline by 59 billion dollars to 106 billion dollars this year.
Bisignani also said the industry gained efficiency over the last decade. Its labor productivity improved by 71 percent, fuel efficiency increased by 20 percent and load factors rose by 7 percent.
"The dramatic downturn in demand could push the non-fuel unit costs higher, which cannot be cut in proportion," said Bisignani.
Bisignani further noted that the third challenge was cash reserves.
Global airlines were in a better cash position than when the industry was facing the challenges of September 11, he said.
Cash reserves of 70 billion dollars or 13 percent of revenues were stronger than the 9 percent reserves that airlines had in year 2000.
"But our pocket are not that deep. A long L-shaped recovery could drain the industry of cash," said Bisignani.
Also, Bisignani noted that airlines should be careful in capacity management since global load factors for the first quarter of 2009 were down about 3 percent compared to 2008.
"This is less than the falls experienced in some recent crises as a result of airlines better matching capacity to falling demand," said Bisignani.
He said that the 4,000 aircraft expected to enter commercial aviation fleet in the next three years would make the capacity management as an ongoing challenge.
Bisignani also noted that limitations on ownership continued to hinder broader partnership across borders among airlines.
KUALA LUMPUR, June 8 (Xinhua) -- The International Air Transport Association (IATA) announced on Monday that the world airline industry is committed to achieving carbon-free growth by 2020.
This was a major step forward by committing to a global gap on the industry's emissions in 2020, said Giovanni Bisignani, IATA's Director General as the 65th IATA Annual General Meeting and World Air Transport Summit formally opened here.
The airline industry was the first global industry to make such a bold commitment, Bisignani said.
There are three sequential goals to complete carbon-zero growth, including a 1.5 percent average annual improvement in fuel efficiency from 2009 to 2020, according to the IATA.
The goals also included efforts for a 50 percent absolute reduction in carbon emission by 2050.
All air transport industry players were united in their proactive approach to environment, with a cross industry four-pillar strategy on climate change, Bisignani said.
The strategy, which focused on improved technology, effective operation, efficient infrastructure and positive economic measures, was delivering results, he said.
In 2009, the carbon footprint of air transport was expected to shrink 7 percent -- 2 percent from IATA's four pillar strategy and5 percent due to the recession, said Basignani.
Basignani noted that the commitment needed to be matched by governments.
"ICAO (International Civil Aviation Organization) must set binding carbon emission standards on manufacturers for new aircraft," said Basignani, adding that a legal and fiscal framework to support the availability of sustainable biofuels must be established.
Basignani also said that governments must work with air navigation service providers to push forward major infrastructure projects to achieve the airlines' commitment on environment.
KUALA LUMPUR, June 8 (Xinhua) -- The International Air Transport Association (IATA) revised its global airline financial forecast for 2009 on Monday, nearly doubling the global loss to 9 billion U.S. dollars.
The increased loss prediction reflected "a rapidly deteriorating revenue environment", the IATA said as its 65th Annual General Meeting officially opened here.
In March this year, the IATA forecast the loss for 2009 at 4.7 billion U.S. dollars
The association also revised its loss estimate for 2008, raising the figure to 10.4 billion U.S. dollars from the previous estimate of 8.5 billion U.S. dollars.
The aviation industry has faced the most difficult situation due to the current economic meltdown, said Giovanni Bisignni, IATA's Director General and Chief Executive Officer (CEO), describing it as "unprecedented".
"The ground has shifted. Our industry has been shaken," he said, noting the recession was the most significant factor impacting the industry's bottom line.
The IATA also revised its revenues forecast for 2009 to 448 billion U.S. dollars, an unprecedented decline of 15 percent from 2008.
On air cargo, the IATA forecast global airlines would carry 33.3 million tonnes of freight, a decline of 17 percent from 2008.
Passenger demand is expected to contract to 2.06 billion travelers, down 8 percent compared with 2008, according to the association.
The global airline revenues from cargo transport are expected to drop 11 percent, while the revenues for passenger transport are expected to decrease by 7 percent, it said.
VICTORIA FALLS, Zimbabwe, June 7 (Xinhua) -- Africa's largest trading bloc COMESA officially announced the launch of its customs union on Sunday in the Zimbabwean resort town of Victoria Falls, another key milestone for the bloc's economic integration.
Backgrounder: Basic facts about COMESA
Backgrounder: Brief introduction about COMESA authority and chief
VICTORIA FALLS, Zimbabwe, June 7 (Xinhua) -- The 13th summit of Africa's largest trading group COMESA started in the Zimbabwean resort town of Victoria Falls on Sunday, with the long-anticipated official launch of a regional customs union topping the agenda.
It will be the second crucial step taken by the Common Market for Eastern and Southern Africa (COMESA) in its process of economic integration after the 19-member bloc established the first free trading area in Africa in 2000
The important move had been confirmed again by COMESA secretary general Sindiso Ngwenya before the summit. The COMESA chief announced that the customs union will be launched next Monday when the summit came to an end.
"The Common Tariff Nomenclature and the Common Customs Documentation (CCD) are in place and what remains is the COMESA Regional Policy still under negotiation," he had said.
At the opening ceremony of the summit, outgoing chairman of COMESA Authority, Kenyan President Mwai Kibaki gave a report on progress made since the last summit in Nairobi in 2007, including the movement towards harmonization of policies between COMESA and the other economic blocs of the Southern African Development Community and the East African Community towards an African Economic Community.
He said he was encouraged by the fact that intra-COMESA trade had 52 billion U.S. dollars in 2008, up from three billion dollars the previous year.
"As we collectively position ourselves to ushering the next milestone on our regional agenda, let us also remain fully aware of the broader agenda on the integration of the African continent. It is necessary that we focus on the bigger picture by strengthening our relations with other regional blocs," Kibaki said.
Ugandan President Yoweri Museveni thanked the Zimbabwean political leadership and people for coming up with an inclusive government and averting a potentially serious conflict. He also said COMESA should push for first world status and look at how it can take advantage of the current global economic crisis.
"We need to find how best we can survive and even how best we can take advantage of it," he said.
Vice Chairman of African Union Commission Erastus Mwencha decried the fact that although Africa was represented at the last G20 summit, it was still to remove a stimulus package as pledged there.
He stressed the need for Africa to consolidate its strategies with climate change, whose effects he said could affect the lives of its citizens.
The customs union aims to lift tariffs among member states while harmonizing barriers with third parties through the Common External Tariff, which the community's heads of state and government adopted in May 2007.
With the theme of "Consolidating Regional Integration through Value Addition, Trade and Food Security", the summit followed a meeting of the Council of Ministers from Tuesday to Thursday and talks of COMESA foreign ministers on Friday and Saturday.
The summit, which had originally been set for last year, has been postponed twice. The COMESA made a put-off decision first to allow the host country Zimbabwe to complete its electoral process which finally gave birth to the formation of an all inclusive government.
The meeting was later postponed again as organizers took into account the need to begin the process of implementing the decisions of the summit of three trading blocs held in Uganda last year regarding the harmonization of Free Trade Areas and common external tariffs.
COMESA, headquartered in the Zambian capital of Lusaka, was formed in 1994 to replace its forerunner, the Preferential Trade Area. It enjoys an aggregate population of about 400 million and combined GDP of over 360 billion U.S. dollars.
Backgrounder: Basic facts about COMESA
Backgrounder: Brief introduction about COMESA authority and chief
SUVA, June 5 (Xinhua) -- The economic impacts of the global economy on the Pacific may also be a driver for insecurity, and in some cases a catalyst for criminality, posing a threat to the stability and security of the Pacific region.
Secretary General of the Pacific Islands Forum, Tuiloma Neroni Slade, made the warning Thursday at the opening of the annual Forum Regional Security Committee meeting at the Forum Secretariat in Suva.
Slade said the region has become a target of new organized crime group entities attempting to exploit vulnerabilities in banking and financial sectors and also the illicit movement of drugs, weapons and people.
He added that the Pacific region continues to face complex law enforcement challenges and support to agencies responsible for law enforcement remains a high priority for all the countries in the region.
"It is clear from the variety of investigations undertaken in the last year that the region continues to be targeted by individuals and groups attempting to undertake a range of transnational criminal activity. These include the illicit movement of drugs, weapons and people. We are even beginning to witness incidences of new organized crime groups entities attempting to exploit vulnerabilities in our banking and financial sectors," the Fijilive website quoted Slade as saying.
The Forum members heard that the area of border security will be tested with the lack of response to commercial fraud.
The region has been urged to make a move toward traditional law enforcement and compliance priorities.
"No one country can feasibly manage alone in today's world, where the problems of one neighbor invariably affect the next. Peace and security in our region are inextricably linked to peace and stability in our respective member countries; and much depends on the mutuality of needed cooperation on issues of common concerns."
The two-day FRSC meeting was attended by representatives of Forum member countries as well as regional law enforcement and security stakeholders.
Fiji was not invited to the meeting after being suspended from the Forum last month for failing to meet the island body's demand to issue a 2009 general election date by May 1.
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