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BEIJING, Feb. 13 -- Chinese banks issued 1.62 trillion yuan (7 billion) in new loans in January, up 101 percent year-on-year, prompting some economists to say the government might not cut interest rates for the time being to boost the economy. The massive jump in lending is equal to about one-third of the loans issued in the whole of 2008, a year that began on a generally tight credit line, the central bank said yesterday. M2, which includes cash and all types of deposits and indicates overall liquidity in the financial system, grew in January, too, by 18.8 percent year-on-year. It increased 17.8 percent in December. The massive growth in lending comes at a time when banks are rushing to cherry-pick the juiciest stimulus-package projects, especially major infrastructure ones that need long-term investment, the economists said. Chinese banks issued 1.62 trillion yuan (7 billion) in new loans in January, up 101 percent year-on-year The government announced a 6-billion package on November 9 to boost domestic demand and shore up investment. Though the central government will shoulder one-third of the cost, banks will play an important role in financing the construction of bridges, railways and highways. "The banks are fighting for the best projects in the government's stimulus package," said Ha Jiming, chief economist of China International Capital Corp. "It's not surprising to see that an array of the deals were sealed in the past month." "The massive lending growth minimizes the need to further cut interest rates heftily," said Lian Ping, chief economist with Bank of Communications. "The liquidity problem should ease with such a growth." The central bank has cut the benchmark lending rate by 2.16 percentage points in the past four months and reduced the deposit reserve requirement ratio in order to ensure there's enough liquidity in the market to boost the economy. The growth in lending could also prove to be a blessing for cash-strapped domestic enterprises trying to stay afloat amid shrinking overseas demand and waning consumer confidence. Central bank figures show bill financing, which supplies working capital, accounted for 39 percent of the new loans. Medium and long-term corporate loans made up 32 percent. "It (growth) reduces the default risks of domestic firms, which in turn eases worries over bank asset quality at least in the short term," said Sun Mingchun, an economist with Nomura International. The economists said the dramatic rise in lending could be partly attributed to pent-up demand for loans last year. The central bank had imposed a curb on lending till November last year to combat inflation and prevent the economy from overheating. That left "many firms, especially small- and medium-sized ones, facing a severe cash flow problem", Sun said. Policymakers lifted the curb in November and raised the target for M2 growth to 17 percent for 2009, up from 16 percent that had been in practice since 2006. The move is expected to ensure there's enough liquidity in the market to spur investment and boost the economy, whose growth dropped to a seven-year low of 6.8 percent in the fourth quarter last year. "Credit expansion in the first quarter of this year is expected to be very high because banks can maximize investment returns by front-loading new loans," said Jing Ulrich, managing director and chairwoman of China Equities at JP Morgan. But Ulrich cautioned against a possible rise in credit risk because the increase in liquidity could cause a sharp rise in banks' non-performing loans.
BEIJING, April 10 (Xinhua) -- Chinese Vice Premier Li Keqiang said here Friday that the basic health-care system should be provided as a public service to the people to ensure and improve people's livelihoods. Li made the remarks during a meeting on deepening the reform of the health-care system, stressing that the public health-care system should be conducted for public good and urging the gradual establishment of a basic health-care system to cover all Chinese citizens. Carrying out the health-care system reform is of great significance to improving people's livelihoods and promoting social harmony, as well as boosting domestic demand and keeping a sound and rapid economic development, Li said. The reform of the health-care system is a social systematic project, which is time-consuming, challenging and complicated, he said. By 2020, China should have a basic health-care system that covers urban and rural residents, Li pointed out. Health-care reform in the next three years should be focused on relieving people from expensive and hard-to-get medical care, he said. Li also said that reforms should be carried out in five areas, including providing universal access to basic health insurance, introducing an essential medicine system, improving primary healthcare facilities, offering equitable access to basic public health services and establishing pilot reform of state-run hospitals.

BEIJING, April 13 (Xinhua) -- China's Ministry of Finance (MOF) said Monday that fiscal revenue fell 0.3 percent from a year earlier to 440.22 billion yuan (64.43 billion U.S. dollars) in March. First-quarter fiscal revenue fell 8.3 percent to 1.46 trillion yuan, the ministry said on its website, while tax revenue shrank 10.3 percent to 1.3 trillion yuan. Fiscal revenue includes taxes as well as administrative fees and other government income, such as fines and income from government-owned assets. Business profits shrank as economic growth slowed, the MOF said, and tax cuts intended to spur the economy and the financial markets reduced government revenues. First-quarter business income tax revenue fell 16.7 percent. China halved the purchase tax on cars with engine displacements of less than 1.6 liters on Jan. 20, and revenue from that tax was down 7.6 percent in the first quarter. To shore up the stock market, the government cut the share trading stamp tax from 0.3 percent to 0.1 percent last April and scrapped the stamp tax on stock purchases in September. And even though the benchmark Shanghai Composite Index is up more than 35 percent so far this year, the tax cuts on share transactions meant a decline of 86.2 percent in revenue from that category in the first quarter. Actual revenue amounts in each category were not released. Customs tariff revenue fell 23.9 percent during the first quarter, the MOF said, without giving further details. Central government fiscal revenue fell 17.7 percent in the first quarter to 721.3 billion yuan, while local government fiscal revenue rose 3 percent to 742.9 billion yuan. First-quarter fiscal expenditures surged 34.8 percent to 1.28 trillion yuan, as both the central and local governments adopted a proactive fiscal stance to boost the economy and domestic demand. China unveiled a 4-trillion-yuan stimulus package in November to be spent over in next two years, with 1.18 trillion yuan from the central government. Fiscal revenue exceeded 6.13 trillion yuan in 2008, up 19.5 percent.
TAIPEI, April 20 (Xinhua) -- Taiwan authorities has temporarily raised the daily quota of mainland tourists from 3,000 to 7,200, to cope with the increasing number of travelers. Tse Lap-kong, a Taiwanese official, said the temporary adjustment was meant to cope with the surge of tourist numbers in the coming two weeks, a travel peak season for mainlanders. It is estimated that more than 30,000 mainland tourists could arrive in Taiwan in the coming week, with a daily average of 4,100. Daily mainland tourist arrivals were less than 3,000 in the first few months since Taiwan was opened to them as a destination last July, and the temporary change would use the unfulfilled quota from that period, Tse said. The daily quota would remain at 3,000 on a yearly average, he said. Taiwan authorities might also extend the allowed period for visiting mainland businessmen and professionals, with a final decision in late April, local media reported. Business trips would be extended from a maximum of two weeks to one month, and visiting businessmen and experts would be allowed an additional five days based on their travel schedule, according to the reports. Industrial and commercial organizations with an annual turnover of more than 30 million New Taiwan dollars (883,260 U.S. dollars) would have the number of invited mainlanders increased from 50 to 200, while the number for those below 30 million New Taiwan dollars would rise to 45 from 15, said the reports. Local authorities were also planning to shorten the approval time for applications of mainland businessmen from one month to two weeks. More than 174,000 Chinese mainland tourists visited Taiwan from July last year till early April, according to mainland statistics. The daily number of mainland visitors to the island on organized trips reached about 3,000 at the end of March, he said, adding that the number soared to more than 4,000 on April 7. The Chinese mainland and Taiwan agreed to allow mainland touri
GUANGZHOU, Feb. 6 (Xinhua) -- Millions of migrant workers from rural areas in China are expected to enjoy their golden years with pensions, like the urbanites do, as the country's top social security authority has planned to help them systematically gain access to the service. A document released Thursday by the Ministry of Human Resources and Social Security to solicit public opinions said migrant workers could move their pension accounts from one place to another when they move, a practice that is currently banned for lack of proper regulations. "With the new rule, I can get pensions like urban elders when I am old," said Liu Xinguo, a migrant worker who comes from central Hunan Province. He is now working in a property management company in Guangzhou, capital of Guangdong Province. The proposed rule stipulates migrant workers who have joined pension plans can continue their pension accounts as long as they get pension premium payment certificates in their previous working places. Currently, Liu himself puts 100 yuan per month into his pension account while his company contributes 180 yuan on his behalf. "If I withdraw my pension account, I will no longer get the company's input in my pension account," said Liu, who has been working in Guangzhou for more than a decade. In fact, many migrant workers who have had pension accounts, have chosen to withdraw their accounts before they leave the place where they work and plans to work in other places. They only get the fund they have paid and cannot get the company's part in the accounts. Tang Yun, who comes from Jiangxi Province and is now in Dongguan City, Guangdong, is an example. Four months ago, Tang joined the pension plan in Dongguan. But now he plans to go to Shenzhen to find a new job. He had to withdraw his pension account and only got some 600 yuan in cash from the account. "I had no choice but to withdraw as the pension account could not go to Shenzhen," said Tang, who has been working in Guangdong for 8 years. However, with the new regulation, migrant workers will no longer face the same problem again. "It is a breakthrough in the pension system for migrant workers," said Cui Chuanyi, a rural economy researcher of the Development Research Center under the State Council, or cabinet. The new method removes the fundamental hurdles for migrant workers to join pension plans and protects their rights and interests, said the researcher. According to figures with the Ministry of Human Resources and Social Security, China has some 230 million migrant workers. By the end of last year, only 24 million joined pension programs. In addition to the transfer ban, high pension premiums present a challenge to the small number of migrant workers who do carry pension plans. According to the country's current regulations, the pension premium for urban workers include the employer's payment of 20 percent of an employee's salary and the employee's payment of 8 percent of his or her salary. The new rule says employers will pay 12 percent of employees' salaries and the employee will pay 4 to 8 percent of their salaries to meet the pension premiums. "The new rule will reduce the burden of companies and migrant workers in pension premium payment," said Cui Chuanyi. "That will encourage more companies to support the establishment of pension plans for migrant workers." The new regulations will also make it is easier for migrant workers to accumulate the 15 years of pension premium maturity required for receiving pensions, as the pension premium terms will be added when they move from place to place. In the past, the maturity was reset each time they withdrew. Chen Xinmin, a professor at South China Normal University, said from the point of view of narrowing the rural-urban gap, the adjustment of the pension system for migrant workers would have a far-reaching impact. "Given the fact that migrant workers have become a major part of China's industrial workforce, the new rule means a significant step forward to eliminating urban-rural differentiations and improving farmers' welfare," said the scholar. The upcoming revision of the pension system for migrant workers will also accelerate the urbanization process in China, said Chen. An official with the Ministry of Human Resources and Social Security said Thursday the country was also planning to set up a national social security information consultation system starting with migrant workers. The system will use the identity card number of a citizen as his or her life-long social security card number.
来源:资阳报