Chinese economic planner refutes rumor of yuan depreciation

Special Report:Global Financial Crisis

BEIJING, Feb. 18 (Xinhua) -- The National Development and Reform Commission
(NDRC) said in a statement Wednesday that the report of its officials'
estimating the depreciation of yuan to 7 against the U.S. dollar was "totally
fabricated".

China Briefing News on Tuesday quoted NDRC vice chairman Zhang Xiaoqiang as
saying that the RMB could weaken to around 6.9 to 7 against the U.S. dollar.

The website of the China Briefing News has released a correction.

China warns enterprises against fiscal risks after CITIC Pacific scandal

BEIJING, April 13 (Xinhua) -- China's Ministry of Finance (MOF) urged
Chinese enterprises to conduct better fiscal management Monday to fend off risks
amid the worsening global economic environment.

Chinese companies are facing higher investment risks, declining asset
quality and heavier fiscal burdens, according to a circular issued by the MOF.

The circular came after the Hong Kong-listed state-run conglomerate CITIC
Pacific announced a top-management reshuffle last week amid probes of its
reported huge losses from wrong bets on foreign exchanges last year.

Investment in financial derivatives such as hedging should be conducted
prudently and speculative acts are forbidden, said the MOF.

It told Chinese firms to carry forward with mergers and acquisitions in an
active and safe way and avoid unnecessary losses from blind expansion.

Enterprises were also required to strengthen cost control, ensure enough
cash liquidity and make efforts to reduce excessive inventories.

The MOF's circular echoed a February government announcement to launch a
special examination on major investment projects and mergers of
centrally-administered state-owned enterprises (SOEs) to prevent fiscal risks.

The 2008 profits of Chinese SOEs under direct central government control
recorded the first annual decline since 2002, falling more than 30 percent year
on year to 665.29 billion yuan (97.2 billion U.S. dollars).

While the global financial crisis took a toll on the SOE profits, loose
fiscal management also contributed to the profit slump, Meng Jianmin, deputy
chief of the State-owned Assets Supervision and Administration Commission
(SASAC), told a conference in February.

Management problems included too heavy debt burdens due to excessive
expansion and losses from speculative investment in derivatives, said Meng.

In a recent case in the spotlight, CITIC Pacific, a Hong Kong affiliate of
the Beijing-based centrally-owned CITIC Group, announced last Wednesday the
resignation of both the company's founding chairman Larry Yung Chi Kin and
managing director Henry Fan Hung Ling, amid an official probe into its currency
loss scandal.

The CITIC Pacific disclosed in October potential losses may exceed 15
billion HK dollars (1.9 billion U.S. dollars) from unauthorized hedging by
senior financial managers against changes in the exchange rates of foreign
currencies, notably the Australian dollar.

Germany lifts travel warnings against Zimbabwe

HARARE, April 21 (Xinhua) -- Germany has lifted travel warnings against Zimbabwe, becoming the third country to do so in recent weeks after Japan and the United States, New Ziana reported on Tuesday.

Deputy head of the Germany Embassy in Zimbabwe
Hubertus Klink told the local news agency on Tuesday that the decision to remove
the warnings was made last week.

"The decision was reached just before the Easter
holidays," he said. "We had never imposed travel restrictions on Zimbabwe but
advised our citizens to visit the country only for urgent business and not
tourism," he said, adding that the German government has now eased its
disposition on Zimbabwe.

He said German citizens had, despite the warning,
continued to visit Zimbabwe particularly the Victoria Falls.

"Though we advised our nationals to visit just for
urgent business we encouraged them to visit Victoria Falls which we deemed
safe," he said.

Klink admitted some sticking issues remain unsolved,
but said relations between Germany and Zimbabwe are slowly getting back to
normal.

Alleged new farm invasions and the cholera epidemic,
though on the decline, have to be immediately addressed as they produce negative
headlines, he said.

The diplomat stressed negative headlines would not
help in attracting more German tourists into the country, while positive reports
would increase the number of visitors as Germans were avid travelers.

A considerable number of Germans visited the majestic
Victoria Falls every year, *** up a large portion of high spenders who do not
shy away from a conflict free region.

Klink also said the country had unparalleled tourist
attractions that easily lure visitors. "A bigger chunk of German tourists is
made up of nature and outdoor lovers and Zimbabwe offer better national parks
and game reserves. The untouched nature is a big advantage," he added.

Tourism, due to its quick turnaround nature, is one of the key sectors that the Zimbabwe government is banking on for inflows to resuscitate the economy.