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BEIJING, Nov. 17 -- Chinese banks should be alert to the risks of growing bad loans and narrowing profit margins amid a worsening global financial crisis and domestic interest rate cuts, a senior banking regulator has warned. China Banking Regulatory Commission Vice Chairman Jiang Dingzhi told a financial forum in Beijing on Saturday that China's banking system, despite being generally healthy, faces growing risks. "Our judgment is that losses at overseas financial institutions will widen further, and capital shortfalls will become more serious," Jiang said "The financial crisis won't end in the near term. So we should not turn a blind eye to the risks " Jiang said, warning that the first risk China may face in the coming years is "exported inflation" from developed economies. He said many developed economies have taken quick action to inject huge liquidity and credit into their banks to stabilize financial systems and it is likely that the banks will export capital to developing countries such as China (through direct investment or loans). "That may cause high inflation (for us) and we should keep a close eye on cross-border capital flows," said Jiang. Jiang also warned that bad loans, especially in the real estate sector, are the second risk that China's banks are confronted with. "Bad loans are already showing an upward trend, especially in the property market where the mortgage default risk is growing at an accelerating pace," Jiang said, without elaborating. Jiang also said Chinese banks may encounter growing losses from their overseas investment as the global financial crisis remains "far from over". The government said earlier that Chinese banks suffered "very limited losses" overseas as their exposure to bankrupt global financial companies was not much. Jiang said Chinese banks also face narrowing profit margins as the central bank cuts interest rates to boost the slowing economy. Banks are encouraged to lend after the government announced a 4 trillion yuan (586 billion U.S. dollars) stimulus plan a week ago. The People's Bank of China has cut interest rates thrice this year after economic growth cooled to 9 percent in the third quarter, the slowest rate in five years. He said the banks will see declining profits next year as lower interest rates shrink margins and loan defaults may increase. However, Jin Liqun, chairman of the supervisory board of China Investment Corp, said Chinese banks should continue market-oriented reforms despite the risks. "All these risks cannot be used as excuses to defer further reform in the banking system," said Jin at the forum. "Only with market-oriented reforms can our banks further build up their capabilities in profit-making and risk-prevention." Jiang said China's banking system remains "in good health" with all major indicators at their best levels ever. Banks' total assets, 59.3 trillion yuan at the end of September, were five times the level of 10 years ago when the Asian financial crisis erupted, he added. And banks reduced their average bad-loan ratio to 5.49 percent at the end of September, from 6.3 percent at the end of March. "These sound indicators are the basis of our confidence to battle financial crisis," Jiang said.

BEIJING, Dec. 24 (Xinhua) -- Jia Qinglin, chairman of the National Committee of the Chinese People's Political Consultative Conference (CPPCC), stressed the importance of strengthening national unity under the new situation Wednesday at a national conference on ethnic work. Jia urged participants to seriously study and implement the recent instructions of Hu Jintao, state president and general secretary of the Communist Party of China (CPC) Central Committee. "Firmly hold to the main theme of a common unity and progress for all ethnic groups and closely center on task of promoting national unity and achieving a common progress for all ethnic groups," said the CPPCC chairman, who is also a member of the Standing Committee of the CPC Central Committee Political Bureau. In his speech, the top political advisor called for persisting in upholding socialism with China's own characteristics and firmly taking the road toward resolving ethnic problems with China's own characteristics; persisting in implementing a scientific concept of development and making efforts to promote a sound and fast economic and social development for ethnic groups and minority areas; persisting in and perfecting ethnic regional autonomy and make substantial efforts to protect the legal rights of ethnic minorities; and persisting in the fundamental demand for promoting social harmony and ceaselessly consolidating and developing an equal, united, mutually-supporting, and harmonious socialist national relations. Strengthening national unity depends on the strengthening and improving of the Party leadership on the ethnic work, Jia stressed. Vice Premier Hui Liangyu also addressed the conference. Different areas and departments should unify their thinking and action to Hu's instructions as well as the major decisions and arrangements made by the Central Authorities, said the official, who is a member of the Political Bureau of the CPC Central Committee. The meeting was presided over by Du Qinglin, vice chairman of the CPPCC National Committee and director of the United Front Department of the CPC Central Committee. Present at the meeting were heads of provincial level United Front departments and ethnic work commissions from across the country.
BEIJING, Nov. 25 (Xinhua) -- An artistic performance was staged in Beijing on Monday night to mark the 110th anniversary of the birth of late Chinese leader Liu Shaoqi. Li Changchun and Vice President Xi Jinping, who are members of the Standing Committee of the Political Bureau of the Communist Party of China (CPC) Central Committee, watched the performance together with more than 2,000 people of various walks of life in the National Center for the Performing Arts. The performance was composed of five parts to show Liu's dedication and contribution to the cause of the Party and the people in different revolution and construction periods. Liu was born on Nov. 24, 1898, in Ningxiang County of Hunan Province, central China. He was one of the earliest members of the CPC, joining the Party in 1921, shortly after its founding. In the following years, he served at many important positions in the Party. Liu was elected vice chairman of the central people's government in September 1949, just before the founding of New China. Later he was elected chairman of the Standing Committee of the National People's Congress. In April 1959, he was elected chairman of the People's Republic of China. Severely persecuted during the Cultural Revolution (1966-1977), Liu died of illness in Kaifeng of Henan Province on Nov. 12, 1969. An artistic performance was staged in Beijing on Monday night to mark the 110th anniversary of the birth of late Chinese leader Liu Shaoqi.The performance was composed of five parts to show Liu's dedication and contribution to the cause of the Party and the people in different revolution and construction periods.
BEIJING, Nov. 27 (Xinhua) -- China's Party discipline watchdog Thursday vowed to put government-funded projects under scrutiny when the country is investing 4 trillion yuan to stimulate the economy. "We would try to prevent corruption, when a project is tabled for review and approval, when the land is allocated to it, when a public bidding is held for contractors," said He Yong, deputy secretary of the Communist Party of China Central Commission for Discipline Inspection (CCDI), at a meeting here Thursday. Besides government-funded ones, other projects with state investment would also be the top priority, he said. The CCDI would issue a set of rules to regulate business activities and officials' work as soon as possible, he said. For instance, it would push local governments to publicize urban planning documents, which listed infrastructure projects to be implemented, and issue detailed rules to protect fair play in public bidding. To curb graft in this field, discipline officers would also target commercial bribery, which has implicated officials. They will establish a database specially for commercial bribery cases. A company involved in such cases would be excluded from any business, He said. On Monday, the CCDI also issued a statement jointly with the National Development and Reform Commission (NDRC), the Ministry of Supervision, the Ministry of Finance and the National Audit Office to ensure close supervision on the stimulus package. The statement said two dozen inspection teams will be sent to follow projects funded by the package.
来源:资阳报