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BEIJING, Oct. 4 (Xinhua) -- The ongoing global financial turbulence will have a limited impact on China's banks and financial system in the short run, according to officials and experts. "We feel China's financial system and its banks are, to the chaos developed in the U.S. and other parts of the world, relatively shielded from those problems," said senior economist Louis Kuijs at the World Bank Beijing Office. He told Xinhua one reason was that Chinese banks were less involved in the highly sophisticated financial transactions and products. "They were lucky not to be so-called developed, because this (financial crisis) is very much a developed market crisis." Farmers harvest rice in 850 farm in Northeast China's Heilongjiang Province on Sept. 26, 2008. A few Chinese lenders were subject to losses from investing in foreign assets involved in the Wall Street crisis, but the scope and scale were small and the banks had been prepared for possible risks, Liu Fushou, deputy director of the Banking Supervision Department I of the China Banking Regulatory Commission, told China Central Television (CCTV). Chinese banks had only invested 3.7 percent of their total wealth in overseas assets that were prone to international tumult, CCTV reported. The ratio of provisions to possible losses had exceeded 110 percent at large, state owned listed lenders, 120 percent at joint stock commercial banks and 200 percent at foreign banks. Kuijs noted most of the banks resided in China where capital control made it more difficult to move money in and out. Besides, the country's large foreign reserves prevented the financial system from a lack of liquidity, which was troubling the strained international markets. "At times like this, one cannot rule out anything," he said. "But still we believe the economic development and economic fundamentals in China are such that it's not easy to foresee a significant direct impact on the financial system." However, he expected an impact on China's banks coming via the country's real economy, as exports, investment and plans of companies would be affected by the troubled world economy and in turn increase pressure on bad loans. Wang Xiaoguang, a Beijing-based macro-economist, said the growing risks on global markets would render a negative effect on China in the short term but provided an opportunity for the country to fuel its growth more on domestic demand than on external needs. He urged while China, the world's fastest expanding economy, should be more cautious of fully opening up its capital account, the government should continue its market reforms on the domestic financial industry without being intimidated. Chinese banks had strengthened the management of their investments in overseas liquid assets and taken a more prudent strategy in foreign currency-denominated investment products since the U.S.-born financial crisis broke out, CCTV reported.
BEIJING, Aug. 18 (Xinhua) -- Wu Bangguo, chairman of the Standing Committee of the National People's Congress (NPC), met on Monday with some foreign leaders here to watch the Beijing Olympic Games. In his meeting with Ranko Krivokapic, the Republic of Montenegro parliament speaker, Wu said China advocated all nations, big or small, rich or poor, as equal members of the international community. Wu Bangguo (1st R), chairman of the Standing Committee of the National People's Congress (NPC), meets with Ranko Krivokapic (1st L), the Republic of Montenegro parliament speaker, in Beijing, China, Aug. 18, 2008. Ranko Krivokapic is here to watch the Beijing Olympic GamesChina valued its ties with Montenegro and would develop a long-term, stable and all-round relationship, as well as sound legislative cooperation with the Balkan country, he said. Krivokapic said the Montenegro parliament would enhance its cooperation with the NPC and adhere to the one-China policy. Wu Bangguo (R), chairman of the Standing Committee of the National People's Congress (NPC), meets with Abdelaziz Ziari, speaker of the Algerian parliament, in Beijing, China, Aug. 18, 2008. Abdelaziz Ziari is here to watch the Beijing Olympic Games. When meeting with Abdelaziz (Abdul-Aziz) Ziari, speaker of the Algerian parliament, Wu said the Olympics was going on smoothly, and China would honor its commitment to hold an unique and high-standard Games with distinctive features. He pledged to take the opportunity of the 50th anniversary of China-Algeria ties in the coming year to push forward the cooperation of mutual benefit. Ziari said the well-organized Olympic Games impressed him and demonstrated what China had achieved in its reform and opening-up drive. The Algerian parliament would further exchanges with the NPC. Wu Bangguo (R), chairman of the Standing Committee of the National People's Congress (NPC), meets with Kono Yohei, speaker of the House of Representatives of Japan's Diet, in Beijing, China, Aug. 18, 2008. Kono Yohei is here to watch the Beijing Olympic Games.When meeting with Kono Yohei, speaker of the House of Representatives of Japan's Diet, Wu said Sino-Japanese relations were at a new start in history and had great potential for further development. He recalled the Japanese trip by Chinese leader Hu Jintao in May which outlined the future development of the bilateral ties. He said the NPC would promote cooperation with the Japanese house of representatives through the regular exchange mechanism to push forward the strategic and reciprocal relations between the two countries. Wu expressed gratitude for Japan's support to the Beijing Games. Kono said the Japanese house would play a positive role in upgrading the relationship between the two countries.

LANZHOU, July 10 (Xinhua) -- Local governments should promote the spirit of quake relief to carry out reconstruction work and economic and social development, said a senior Chinese official. Jia Qinglin, chairman of the National Committee of the Chinese People's Political Consultative Conference (CPPCC), said this during his inspection tour to quake-affected Shaanxi and Gansu provinces from Sunday to Thursday that there have been heavy tasks for local governments in terms of relocating quake survivors and rebuilding damaged or destroyed facilities. Jia Qinglin (2nd L), chairman of the National Committee of the Chinese People's Political Consultative Conference (CPPCC), receives Tibetan scroll painting Tangka and Hada, a long piece of silk used as a traditional greeting gift, offered by a living Buddha of the Labrang Lamasery during his visit to the Lamasery in Xiahe County, Gannan Tibetan Autonomous Prefecture, northwest China's Gansu Province, July 9, 2008.He went into tents to ask local people about quake relief supplies and their living conditions, praised soldiers and workers on rebuilding sites, and encouraged students to keep up their studies in temporary classrooms. He told officials to ensure food, water, clothes and bedding continue to get to survivors, focus on solving housing problems and make scientific plans for reconstruction. Jia, also a member of the Standing Committee of the Political Bureau of the Communist Party of China (CPC) Central Committee, also visited several high-tech enterprises in Gansu. "Although we have gone through the most severe challenge, the country's economy continues to develop in a steady, relatively fast way in general," he said, adding: "We should transfer the spirit of quake relief into the driving force of economic development." He also stressed maintaining social stability in Tibetan-inhabited regions
GUANGZHOU, April 18 (Xinhua) -- Exhibitors at China's largest trade fair may have one more question to ask when their paper-thin profits are further squeezed by a fast-rising yuan. "Are you willing to pay by euro?" Lu Jia, a sales manager from a local leather manufacturer at the Canton fair, ventured the final but most crucial question to her Turkish client after introducing her products. "Honestly, starting clearing of euro transactions rather than the U.S. dollar is not easy for my company, but it is still worth a try given a faster yuan rise this year," the 23 year-old Lu said at the trade-promotion event in Guangzhou, capital of the southern Guangdong Province. The Chinese currency, the yuan, breached the 7-yuan mark for the first time on April 10, gaining 4.47 percent this year and 18.27 percent since the government unpegged it from the dollar in 2005. "The yuan appreciation far outpaced our business growth. Its weekly increases were even beyond our anticipation," said Cao Xiaojian, the Jiangsu Shuntian Co., Ltd vice chairman. Like most other Chinese exporters, Cao earns dollar-denominated profits, which are on the decline as the dollar becomes cheaper. He said that a 1 percent rise in the yuan would result in a sales profit decrease of 2 percent to 6 percent and things were even worse for the garment industry. "Profit margins for home electrical appliances are between 3 percent and 5 percent and the rising exchange rate has eaten them away," said Zhang Yujing, China Chamber of Commerce for Import and Export of Machinery and Electronic Products vice chairman. Most exhibitors at the fair had to raise their offers due to higher costs in raw materials, energy and transport. Yet, they were afraid too high prices might scare away orders faced with sagging demand due to a global slowdown. "A small rise in offers is acceptable," said Khaldoun Kalbouneh, general manager of the Furniture World, a trading company headquartered in Palestine. "But if the prices are too high, I may consider other markets." Zhang said export-oriented sectors should improve their product mix, add more value and use financial tools to evade risks by the yuan rise. As China's largest listed textile manufacturer, the Jiangsu Shuntian has pulled investment from textile into other industries like chemical, finance and securities, mines and high-tech, among others. But many other companies prefer price increases. Chinese leading home appliance maker Qingdao Haier said it would re-set its prices with overseas sellers once the yuan gained more than 3 percent. The new price would be determined by the specific foreign exchange rate. Feng Bin, Suzhou Chunlan Air Conditioner Co., Ltd general manager, said he hoped to transact via the euro. "The offer will expire in three months if the client sticks to the dollar. The exchange rate changes too quickly." Experts say the change of currency clearing system is still not feasible for most exporters as it involves adjustment of export markets and bargain with foreign buyers. Besides, such services in domestic banks are too complicated, they say. Therefore, some companies are considering financial derivatives as a way out. Shen Zhiming, Zhejiang Cathaya International Co., Ltd manager, said his company had bought currency futures for two years. "It is a real learning process for Chinese enterprises, a process for internationalization." The China Import and Export Fair has two phases, from April 15 to 20 and April 25 to 30. The first phase features textiles, garments, health products, household appliances, tools, small vehicles and hardware. Food, tea, kitchenware, decorations, toys, sporting goods and office supplies highlights the second phase.
BEIJING, Aug. 7 (Xinhua) -- Efforts should be made to increase power production and guarantee supply for both the Olympic Games and stable economic operation, said Vice Premier Li Keqiang on Thursday. With the summer energy consumption peak and the Games, power supply is a heavy task for relevant organizations, Li, also a member of the Standing Committee of the Political Bureau of the Communist Party of China Central Committee, said while inspecting Datang Group, a major power supplier in Beijing.Li Keqiang (C), Chinese Vice Premier and member of the Standing Committee of the Political Bureau of the Communist Party of China (CPC) Central Committee, inspects Datang Corporation in Beijing, capital of China, Aug. 7, 2008.He said that to ensure safe, stable power supply and generation, enterprises should pay special attention to production safety and improve the management and maintenance of power facilities. He also urged all organizations to use energy-saving technologies and products and promote education on energy-saving among the public to reduce energy waste.
来源:资阳报