Chinese shares edges up 0.2% on Wall Street rally

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.

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Report: Global Financial Crisis

IATA: World Airline industry faces risks and challenges

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.

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Airline industry targets carbon-free growth by 2020

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.

International diamond watchdog due in Zimbabwe

HARARE, May 27 (Xinhua) -- A team from the Kimberley Process, an international diamond trade watchdog, is due in Zimbabwe shortly to audit operations of the local industry, officials said on Wednesday.

Zimbabwe's diamond industry has come under international spotlight in recent years, in particular over suspected illegal mining and smuggling of the precious gems at Chiadzwa in Marange, according to local media New Ziana.

There were also suspicions and allegations that security forces deployed in Marange to secure the diamond deposits had killed scores of illegal panners, heightening calls for an international probing into the local industry.

Government critics joined the fray, and tried to prod the Kimberley Process to order a ban on Zimbabwe diamond trade. Officials said it was against this background that the team from the Kimberley Process, drawn from countries such as Canada, Namibia, South Africa and the United States, was visiting Zimbabwe.

But earlier claims of diamond smuggling at River Ranch Mine inBeitbridge were dismissed by another Kimberley Process team in 2007.

The new team, which is expected in Zimbabwe either later this week or next week, was expected to visit all the country's three diamond mines - River Ranch, Murowa and Chiadzwa to inspect their operations.

"We are ready for them. This will put all the speculation to rest," an official, who declined to be named on account of the sensitivity of the issue, was quoted as saying.

Zimbabwean diamond industry has in recent years become a major component of the local mining sector, with experts predicting thatthe precious mineral and platinum will become the top foreign currency earners for the country in the near future.

The Chiadzwa deposits, for example, are the largest concentrated reserves in the world. The reserves remain largely unexploited, and the area around Chiadzwa is still to be fully explored to ascertain the extent of the deposits.

Industry sources said more diamond deposits have been found elsewhere in the country, sparking intense jostling for mining rights among local and international players.

China issues plan to support nonferrous metal industry

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Global Financial Crisis

BEIJING, May 11 (Xinhua) -- China released a detailed three-year plan to
stimulate its nonferrous metal industry focused on industrial restructuring and
technology innovation, the State Council, or the country's Cabinet, said here on
Monday.

The nonferrous metal sector should keep a steady operation in 2009, and
achieve a sustainable development by 2011, according to the plan.

The country would encourage regrouping among nonferrous metal companies to
sharpen the competitive edge of the whole industry, the plan said.

Three-to-five nonferrous metal corporation would be formed out of
industrial reconstructing by 2011 with advanced production capacity and
technology innovation capability.

Combined copper output of top 10 domestic producers should take up 90
percent of the country's total by 2011, aluminum output 70 percent, lead 60
percent, and zinc 60 percent, according to the State Council.

The government would also encourage the exploitation of nonferrous metals
both at home and abroad, supporting companies to invest in mines overseas --
either on their own or with foreign parties.

The country would help with capital injection and foreign reserve
application concerning overseas projects.

The export rebate policy would be a "proper" and "flexible" one to
encourage nonferrous products with high technology and high added values,
according to the plan.

The State Council also laid out guidelines to eliminate obsolete capacity
and digest over capacity. No new project to develop electrolytic aluminum will
be allowed in the next three years, the plan said.

The country would put strict control on the production of copper, lead,
zinc, titanium and magnesium.

At the same time, China aims to save 1.7 million tonnes of coal and 6
billion KWh of electricity per year, as well as reduce sulfur dioxide by 850,000
tonnes annually as part of industrial upgrading for the nonferrous metallurgy
sector.

China was the largest producer and consumer of nonferrous metals with total
output of ten major nonferrous metals reaching 25.2 million tonnes and total
consumption at 25.17 million tonnes in 2008.

The country's nonferrous metal industry received a severe blow from the
global economic downturn after keeping high-speed growth for nearly a decade.

Statistics released by the China Nonferrous Metals Industry Association
showed aggregate profit of China's nonferrous metal producers fell 45 percent
last year to 80 billion yuan (11.73 billion U.S. dollars).

Along with the support plan for the nonferrous metal sector, the State
Council has unveiled stimulus packages for 10 industries since January, such as
machinery-manufacturing, electronics and information industries, the light
industry and petrochemical sectors.

China announces stimulus plans for
nonferrous metals, logistics

BEIJING, Feb. 25 (Xinhua) -- China's State Council on
Wednesday announced support plans for the country's nonferrous metals and
logistics sectors.

Presided over by Premier Wen Jiabao, Cabinet members
agreed to promote company restructuring and will offer subsidized loans to
support technical innovations within the nonferrous metals sector. Full story

China unveils stimulus package for
light industry, petrochemical sector

BEIJING, Feb. 19 (Xinhua) -- The State Council, or China's
Cabinet, announced plans to boost the country's light industry and petrochemical
sectors in a bid to stimulate the economy.

The country will lift processing trade restrictions
on some labor-intensive, technology-intensive, energy-efficient, and
environment-friendly products, according to an executive meeting of the State
Council on Thursday. Full story

China approves support plan for
electronics and information industry

BEIJING, Feb. 18 (Xinhua) -- China approved Wednesday a
support plan for the country's electronics and information industry. The
government will boost innovation, increase financial input and promote the use
of information technologies in various fields in the next three years, according
to an executive meeting of the State Council, or the Cabinet. The meeting was
chaired by Premier Wen Jiabao. Full story

China approves stimulus plan for ship
building industry

BEIJING, Feb. 11 (Xinhua) -- China's State Council, or
Cabinet, adopted a stimulus plan Wednesday for the shipbuilding industry at an
executive meeting chaired by Premier Wen Jiabao.The meeting said
shipbuilding is a modern, comprehensive industry that provides technical
equipment for transportation, maritime development and national defense.
Supporting shipbuilders would also help other sectors, including steel,
chemicals, textiles, light industry, equipment manufacturing and information
technology, it said. Full story

China unveils support package to auto,
steel industries

BEIJING, Jan. 14 (Xinhua) -- China's State Council
unveiled a long-awaited support package for the auto and steel sectors Wednesday
to boost the two "pillar industries".Under the plan, the government will
lower the purchase tax on cars under 1.6 liters from 10 percent to 5 percent
from Jan. 20 to Dec. 31 in a bid to stimulate sales. Full story

China's parliamentary sessions to focus on economic
downturn

BEIJING, Feb. 23 (Xinhua) -- As the global downturn
continues to take its toll on China's economy, responses to the turmoil will be
high on the agenda of lawmakers and political advisors who are scheduled to
gather here early next month for their annual full sessions. Full story

Special Report: China unveils stimulus package for 10
sectors