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BEIJING, May 6 (Xinhua) -- China's central bank said Wednesday the economy is doing "better than expected" in the first quarter, and pledged to maintain "ample" liquidity in the financial system for economic recovery.     China would stick to its moderately easy monetary policy and ensure "ample" liquidity at banks, the People's Bank of China (PBoC) said in its quarterly monetary policy report posted on its website.     The country has pumped 4.58 trillion yuan (670 billion U.S. dollars) of new loans into the economy in the first quarter to stimulate growth.     The figure is already nearing 5 trillion yuan of new loans targeted for the whole year. In March alone, new loans increased by a record 1.89 trillion yuan.     The country's financial institutions and enterprises would digest the huge amount of new loans in the following months, the report said.     Industry insiders have said credit extended by China's banks in April may have dropped to above 600 billion yuan after staying at above 1 trillion yuan for three straight months.     The central bank said new lending from commercial banks focused on government-backed projects. It encourages more bank loans to be channeled to small and medium-sized enterprises as they play an important role in the national economy and in increasing employment.     The central bank said in the first-quarter monetary policy report it would continue to instruct financial institutions to extend new loans, despite the earlier surge.     The pick-up in bank lending is conducive to stabilize the financial market and boosting market confidence, PBoC said. Meanwhile, the bank urged lenders to improve credit quality to avoid a possible rebound in bad loans.     There have been "positive changes" in the economy in the first quarter, the bank said, echoing remarks made by Premier Wen Jiabao last month.     The quarter-on-quarter growth is improving, compared to the fourth quarter of last year, it said, without giving specific figures.     China's economy expanded 6.1 percent in the first quarter, the lowest pace in 10 years and down from 9 percent in the fourth quarter last year.     The central bank also said foundations for the recovery are not solid, as uncertainties in external economies still exist and private investment is yet to become active with new lending concentrated on government projects.     In listing uncertainties ahead, the bank said the country still has to battle against the financial crisis that is unfolding and a collapse in external demand that is hurting exports.     The country is also under great pressure to create enough jobs and from a slower growth in residents' income, which would suppress future consumption, it said.     The bank also warned overcapacity and insufficient demand may drive prices lower in the country with the world economy in a downturn.     But it also said continued falls in prices may become less likely along with the world recovery, a turnaround in the national economy and fast credit growth.     "Prices of primary products and assets may rebound quickly once investor confidence is restored, as the global credit is relatively loose thanks to injection of liquidity and stimulus packages across the world," the bank said.     The central bank also said it was concerned that the extraordinary monetary policy adopted by other major economies would result in inflation risks.     It referred to the quantitative easing policy adopted by the U.S., Japan, Britain and Switzerland to pump cash into their economies.     The quantitative easing policy meant increasing currency supply through purchasing mid- and long-term treasury bonds after central banks cut interests rates to near zero.     The extraordinary monetary policy harbored huge risks for international financial markets and the global economy, said the central bank.     It would increase the risk of global inflation, said the central bank, suggesting it would create new assets bubbles and inflation if central banks of major economies failed to mop up thehuge liquidity when the global economy recovered.     "A policy mistake made by some major central banks would put the whole world in risk of inflation," it said.     The quantitative easing policy would also make exchange rates of major currencies more volatile, according to the report.     The central bank cited the U.S. move to purchase treasury bond in March as an example, saying although the dollar had appreciated against other major currencies, it fell after the purchase.     PBoC said the policy would leave the bond markets subject to fluctuations.     It said massive purchase of mid- and long-term treasury bonds may keep yield at a low level. But in the long run, as the financial markets returned to stability and the economy recovered, inflation expectations would grow, interest rates would rise, and bond prices would adjust sharply, according to the report.

SHIJIAZHUANG, May 12 (Xinhua) -- The brand of Sanlu Group, the dairy company embroiled in China's tainted-milk scandal, was sold at an auction Tuesday for 7.3 million yuan (1.07 million U.S. dollars), court officials said.     An unidentified individual entrepreneur from south China won the bid at an auction in the Shijiazhuang Intermediate People's Court in northern Hebei Province. No further information about the bidder was released.     The auction started at 7 million yuan and drew three bids from only two bidders.     The "Sanlu" brand was worth 14.9 billion yuan in 2006, according to the China Brand Asset Evaluation Center.     Sanlu Group, which was based in Shijiazhuang, had been China's leading seller of milk powder for 15 years until the melamine adulteration scandal broke last September. The group's revenue hit 10 billion yuan in 2007.     The company's tainted baby milk powder was found to have caused the deaths of at least six children and sickened more than 300,000others.     Beijing-based dairy producer Sanyuan bought the core assets of Sanlu, which went bankrupt in February, for 616.5 million yuan at an auction on March 4.     Also Tuesday, Sanlu sold 51-percent stakes in three dairy companies for 22.8 million yuan. The purchasers' identities were not immediately known.     But it failed to sell 51 percent stakes in another two dairy firms and withdrew 12 patent techniques from auction.     The bankruptcy trustee is to announce plans to dispose of Sanlu's last remaining assets, which include a 51-percent stake in a third dairy firm in Hebei's Baoding City

BEIJING, May 14 (Xinhua) -- Two revised rules involving a planned Nasdaq-style stock market, the Growth Enterprise Market (GEM), will take effect on June 14, according to the China Securities Regulatory Commission (CSRC) Thursday.     The two rules involve establishing an independent committee to approve listings for the GEM and the management of sponsors of IPOs.     The two rules are taken as a key step closer toward introducing the much-anticipated GEM, a board intended to nurture innovation-driven start-ups as the government tries to help smaller companies get financing and encourage technological advances.     The rules are the same as the drafts issued on April 17 to solicit public opinions, said the CSRC.     Under the rules, the new panel will have 35 members. Five will come from the CSRC and the others from the accounting, law and other sectors. The panel won't include members of the review panel for IPO application on the main board.     Under the rules, the sponsors of IPOs on the GEM are required to monitor the companies' performance for three years, up from two for companies on the main board.

BEIJING, May 31 (Xinhua) -- The Beijing mansion of former Chinese Honorary President Soong Ching-ling reopened to the public on Sunday after a two-year renovation and restoration project.     Rebuilt as a museum and memorial, Soong Ching-ling's former residence will have on display more historical artifacts used by Soong and her husband Sun Yat-sen, the pioneering Chinese revolutionary and political leader. Jia Qinglin (R Front), chairman of the National Committee of the Chinese People's Political Consultative Conference, visits the former residence of Soong Ching Ling in Beijing, capital of China, May 31, 2009Top political advisor Jia Qinglin Sunday paid his respects at Soong's statue at the former residence.     Soong (1893-1981) married Sun Yat-sen in 1915 and fought for China's independence and liberty. She devoted herself to education and health affairs for children and women after the People's Republic of China was founded in 1949. Jia Qinglin (C Front), chairman of the National Committee of the Chinese People's Political Consultative Conference, poses with guests for a group photo ahead of the re-opening ceremony of the former residence and life exhibition of Soong Ching Ling in Beijing, capital of China, May 31, 2009Du Qinglin, head of the United Front Work Department of the Communist Party of China Central Committee, said Sunday at Soong's former Beijing residence that the China Soong Ching Ling Foundation should continue to promote China's social progress and cooperation across the Taiwan Strait.Jia Qinglin (L), chairman of the National Committee of the Chinese People's Political Consultative Conference, talks with guests ahead of the re-opening ceremony of the former residence and life exhibition of Soong Ching Ling in Beijing, capital of China, May 31, 2009.

DAMASCUS, April 26 (Xinhua) -- During his Middle East tour, Chinese Foreign Minister Yang Jiechi on Sunday put out a five-point proposal to push forward the Middle East peace process and common development.     Yang, who has visited Egypt, the Palestinian territories, Israel and Syria, said in an exclusive interview with Xinhua that China has been closely following the situation in the Middle East and he has made in-depth exchanges of views with concerned parties on various issues of the region during his Middle East visit. Syrian Foreign Minister Walid al-Moallem (R) and Chinese Foreign Minister Yang Jiechi hold a joint press conference after their meeting in Damascus, April 26, 2009. The Israeli attacks on the Gaza Strip at the end of 2008 has brought heavy casualties and instability to the region, which shows once again that if the Middle East issue is not been fundamentally solved, there will be no peace and security in this region, he said.     Currently, Israel has formed a new government and the two main Palestinian factions have been holding talks under the mediation of Egypt. Under such circumstances, Yang put the five-point proposal, which includes:     First, the concerned parties should adhere to the peace talks, and firmly promote the peace process on the basis of relevant UN resolutions, the "land for peace" principle, the "Road Map" plan, and the Arab peace initiative, Yang said.     Second, the parties should take positive measures to restore stability and accumulate mutual trust, so as to create conditions for the development of peace process.     Third, China believes the two-state solution should be maintained and calls for an early establishment of an independent Palestinian state and the two countries of Palestine and Israeli live in harmony.     "This is the ultimate way out for the Palestinian issue, which can give guarantee to the Middle East peace and security," Yang said.     Fourth, the international community should continue to pay due attention to the Middle East issue, and deliver its supports to the peace talks, the inner-Palestinian unity and economic growth.     Fifth, the peace negotiations between Palestine and Israel, Syria and Israel, Lebanon and Israel should advance in a coordinated way in order to achieve comprehensive peace across the Middle East region, Yang said.     "As a permanent member of the UN Security Council, China will continue to maintain close communication and coordination with parties concerned to play a constructive role in pushing for a comprehensive, just and lasting solution to the Middle East issue," Yang added.     He said he has enunciated China's position on current Middle East issues during the trip. He hoped relevant parties could stick to the peaceful negotiation and accumulate mutual trust in a bid to advance the Middle East peace process.     He said he believes his visits to the four Middle East nations will contribute to the peace process.     Yang left the Syrian capital Damascus on Sunday after meeting with Syrian President Bashar al-Assad and Syrian Foreign Minister Walid Mualem.