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BEIJING, June 29 -- Chinese listed banks, which have lent record high amounts in the first half, are likely to report lower profit growth in the period due to narrowing interest spreads and higher provisioning requirements, industry analysts said. "We are expecting a 7 to 8 percent year-on-year profit fall among the 14 listed banks in the first half-year," said Wang Liwen, banking analyst with Shanghai-based Guotai Junan Securities Co, citing stretched interest spreads as the major reason. In 2008, the net interest rate spread for banks ranged from 2.45 percentage points to 3.62 percentage points, with the average figure hovering around 3 percentage points. This year, as the government cut interest rates several times to spur economic growth amid the global financial crisis, the net interest rate spread is expected to be lower, at around 2.36 percentage points. Clients walk into the Suzhou branch of Bank of Ningbo in Suzhou, east China's Jiangsu Province, March 27, 2009.The bank, the first listed lender to file a mid-term report, said its first-half profits would drop nearly 5 percent from a year earlier "A drop of 0.7 percentage points in the average net interest rate spread could mean some 7-billion-yuan decrease in the interest yield for each trillion yuan of new loans," said Wang. Chinese banks extended a record 7.37 trillion yuan of new loans in the first half, triple the amount offered in the same period a year earlier and 47 percent more than the government's full-year target, after lending restrictions were eased in November to stem an economic slowdown. However, most securities firms' reports said the country's 14 listed banks might post an average profit decrease ranging from 6 percent to 10 percent year-on-year in the first six months. According to Wind Info, a financial data provider, the 14 listed banks reported a net profit of 232.7 billion yuan in the first half of 2008, an increase of 73 percent year-on-year. But this year, the net profit could probably stand at 210 billion yuan, down 10 percent on a yearly basis. Bank of Ningbo, for instance, on July 14 announced no more than a 5-percent decease in net profit in its pre-released semi-annual report to the Shenzhen bourse. It is the first Chinese listed bank to report a profit fall in the first half. Wang Yifeng, an analyst at TX Investment Consulting, said the improved provision coverage ratio requirement might also cripple profits at listed banks. To prevent potential risks arising from the lending spree, China Banking Regulatory Commission raised the minimum provision coverage ratio requirement to 150 percent from 130 percent earlier this year. "The increase will mainly eat into the profits of several large State-controlled banks as they are still not up to the new requirements," said Wang. But as the squeezed spreads bottom out in the second half, most analysts said listed banks would still post positive growth for the whole year. "Thanks to the widened interest rate spreads and lower loan cost in the following months, we are expecting a 10-percent growth in profits overall this year," said Liu Yinghua, an analyst with Shenzhen-based Ping An Securities.
URUMQI, Aug. 10 (Xinhua) -- Diplomatic envoys from 26 countries and regions in China began a five-day visit to northwestern Xinjiang Uygur Autonomous Region Monday, about a month after the deadly riot in the regional capital of Urumqi. At the invitation of the autonomous regional government, they are expected to -- through the visit -- acquire a better understanding of Xinjiang's development over the past several decades in various respects, including its politics, economy, ethnic and religious policies, preservation of cultural relics and the livelihood of local residents. Nur Bekri (L), chairman of Xinjiang Uygur Autonomous Region government, shakes hands with Bangladeshi Ambassador to China Munshi Faiz Ahmad in Urumqi, northwest China's Xinjiang Uygur Autonomous Region, on Aug. 10, 2009The diplomatic envoys came from Kuwait, Egypt, Saudi Arabia, Pakistan, Syria, Turkey, Afghanistan, Sweden, Australia, the United States and other countries and regions. "This visit gives us an opportunity to express our support and goodwill to Xinjiang people after the incident and also our expression over Xinjiang's handling of the incident," said Nolama Ta Ama, ambassador of Togo, during a meeting with Nur Berkri, chairman of the Xinjiang autonomous regional government. Nur Bekri, chairman of Xinjiang Uygur Autonomous Region government, holds a meeting with diplomatic envoys in Urumqi, northwest China's Xinjiang Uygur Autonomous Region, on Aug. 10, 2009.The Chinese central government and the local government of Xinjiang exercised great restraint during the incident and took effective measures to stop the violence, said Ama, also head of the diplomatic delegation. He said that violence can only escalate conflicts but cannot solve any problem. "No government in the world will tolerate the 'three evil forces' and the adherence to 'one China' policy is in the interests of all nations," he said. "We hope we can learn more about the truth of the incident through the visit," he added. Nur Berkri briefed the guests about the development of Xinjiang over the past several decades and stressed that the region's rapid development came from the great support of the central government. He said that the July 5 riot, which left 197 people dead and more than 1,600 others injured, involved very few violent rioters and they cannot represent the Xinjiang people and the Muslims. "Not a single person in the religious circle participated in the violence," he said. "Violence is not allowed in any sovereignty and law-ruled nation."

LANZHOU, Sept. 21 (Xinhua) -- Chinese President Hu Jintao has written a congratulatory letter to mark the 100th anniversary of the founding of Lanzhou University in northwest China's Gansu Province. The university has been sticking to its motto of making constant efforts to become stronger and fostering its own features, and has developed glorious patriotic and academic traditions, Hu said in the letter. After the founding of New China and particularly the country's reform and opening up, Lanzhou University has shared the fate of the nation and kept pace with the times, and made important contribution to the economic and social development in the western regions, the president said. He expected the university to contribute more to supporting the national program of developing the western regions, building an innovation-oriented country and a moderately prosperous society in all aspects, and stepping up the socialist modernization drive. A grand gathering was held Saturday to commemorate the centenary of the university. State Councilor Liu Yandong read President Hu's congratulatory letter at the conference, noting that talented people and education are the foundation of building a strong and modern country. She hoped that the university plays a better role in cultivating innovation-oriented talents, and bolstering advanced thinking and science and technological achievements.
BEIJING, Sept. 29 (Xinhua) -- The Chinese people have made unremitting efforts in the past six decades for the modernization drive and achieved great success, top political advisor Jia Qinglin said Tuesday. Jia, chairman of the National Committee of the Chinese People's Political Consultative Conference (CPPCC), addressed a reception for the 60th National Day, which falls on Thursday. Photo taken on Sept. 29, 2009 shows a reception for the 60th anniversary of the founding of the People's Republic of China, held by the General Office of the Chinese People's Political Consultative Conference (CPPCC) National Committee, the United Front Work Department of the Central Committee of the Communist Party of China (CPC), Taiwan Affairs Office of the State Council, Hong Kong And Macao Affairs Office of the State Council and Overseas Chinese Affairs Office of the State Council in Beijing, capital of China. Jia Qinglin, chairman of the National Committee of the CPPCC, Chinese Vice President Xi Jinping, and Chinese Vice Premier Li Keqiang attended the receptionThe reception was jointly held by the General Office of the CPPCC National Committee, the United Front Work Department of the Communist Party of China Central Committee, the Overseas Chinese Affairs Office of the State Council, the Hong Kong and Macao Affairs Office of the State Council, and the Taiwan Affairs Office of the State Council. Jia said the central government would continue to unswervingly support the development of Hong Kong and Macao special administrative regions. Photo taken on Sept. 29, 2009 shows a reception for the 60th anniversary of the founding of the People's Republic of China, held by the General Office of the Chinese People's Political Consultative Conference (CPPCC) National Committee, the United Front Work Department of the Central Committee of the Communist Party of China (CPC), Taiwan Affairs Office of the State Council, Hong Kong And Macao Affairs Office of the State Council and Overseas Chinese Affairs Office of the State Council in Beijing, capital of China. Jia Qinglin, chairman of the National Committee of the CPPCC, Chinese Vice President Xi Jinping, and Chinese Vice Premier Li Keqiang attended the reception.He said earnest efforts would be made to promote peace across the Taiwan Strait, seek welfare for Taiwan compatriots and achieve the revitalization of the Chinese nation. Vice President Xi Jinping and Vice Premier Li Keqiang, together with other senior officials and more than 4,000 people from home and abroad, attended the reception.
SHANGHAI, Sept. 28 (Xinhua) -- China, Japan and the Republic of Korea (ROK) on Monday agreed to deepen their all-round cooperative partnership. The agreement came at the end of a day-long foreign ministers' meeting in Shanghai, involving Chinese Foreign Minister Yang Jiechi, Japanese Foreign Minister Katsuya Okada and ROK Foreign Affairs and Trade Minister Yu Myung Hwan. The three countries will build stronger strategic mutual trust, deepen and upgrade cooperation, carry out people-to-people exchanges and promote east Asia cooperation and regional peace and development, said a statement issued after the meeting. Chinese Foreign Minister Yang Jiechi (C), Japanese Foreign Minister Katsuya Okada (R) and Foreign Affairs and Trade Minister of the Republic of Korea (ROK) Yu Myung Hwan attend a press conference after their meeting in east China's Shanghai, Sept. 28, 2009. The third trilateral meeting joined by foreign ministers of China, Japan and ROK was held in Shanghai on Monday. The meeting coincided with the 10th anniversary of the launch of a trilateral cooperative mechanism between China, Japan and the ROK. The ministers reviewed and summarized the progress of trilateral cooperation, and exchanged views on commemorative events to mark the 10th anniversary and future cooperation as well as regional and international issues of common concern, according to the statement. Chinese Foreign Minister Yang Jiechi (C), Japanese Foreign Minister Katsuya Okada (1st L) and Foreign Affairs and Trade Minister of the Republic of Korea (ROK) Yu Myung Hwan (1st R) arrive for a press conference after their meeting in east China's Shanghai, Sept. 28, 2009. The third trilateral meeting joined by foreign ministers of China, Japan and ROK was held in Shanghai on MondayThey said they were "satisfied with the trilateral cooperation progress." For the last decade, trilateral cooperation had taken on a good momentum of development, the statement said. The three countries put their good-neighborly friendship at the key position of their own foreign relations, the statement said, citing high-level exchanges, increased political trust and efforts to implement their cooperative action plan. Chinese Foreign Minister Yang Jiechi, Japanese Foreign Minister Katsuya Okada and Foreign Affairs and Trade Minister of the Republic of Korea (ROK) Yu Myung Hwan attend the trilateral meeting in east China's Shanghai, Sept. 28, 2009. The third trilateral meeting joined by foreign ministers of China, Japan and ROK was held in Shanghai on MondayThe countries had implemented more than 30 cooperative projects, covering politics, economics, environmental protection, science and technology, society, culture and international affairs, said the statement. The foreign ministers also exchanged views on the second trilateral leaders' summit scheduled for Oct. 10 in Beijing. "At a critical juncture to deal with the global economic downturn, promote recovery and boost growth, the leaders' summit will be significant to enhance political mutual trust, advance reciprocal cooperation, and promote Asian stability and development," the statement said. The three ministers agreed to keep close communication in preparation for the leaders' summit. The first summit between China, Japan and the ROK was held in Fukuoka, Japan, on Dec. 13, 2008. The foreign ministers' meeting also covered the world economy and finance, northeast Asian issues, east Asian cooperation, climate change, reform of the United Nations, arms control, disarmament, and anti-proliferation. They agreed to hold the fourth trilateral foreign ministers' meeting in the ROK next year.
来源:资阳报