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BEIJING, June 7 (Xinhua) -- China's central bank on Saturday ordered lenders to set aside more money as reserve, the fifth such move this year. It was the latest effort to enhance liquidity management in the banking sector. The reserve-requirement ratio would be raised by 0.5 percentage points on June 15, and another 0.5 percentage points on June 25, the People's Bank of China (PBOC) said on its website. This will bring the ratio to a record high of 17.5 percent. The PBOC also said that corporate financial institutions in the worst quake-hit areas including Chengdu and Mianyang, would postpone carrying out the regulation. But it didn't say how long the delayed period would be. "The rise, a further materialization of the tight monetary policy, is aimed at strengthening liquidity management in the banking system," the statement said. "The government adopted differential monetary policies to support reconstruction in the quake-hit areas," said Peng Xingyun, a senior expert with the Chinese Academy of Social Sciences (CASS). Zhou Xiaochuan, the central bank governor said earlier that the PBOC was to take flexible monetary policy to aid after-quake reconstruction. The 8.0-magnitude earthquake centered on Sichuan's Wenchuan County has so far caused 206.53 billion yuan of economic losses to the industrial and mining enterprises in the quake regions. The PBOC had raised the ratio four times previously this year. The latest was on May 12 when it lifted the ratio to a new high of16.5 percent. Yin Jianfeng, director of the Institute of Finance and Banking with the CASS, said the move would help the country reduce inflationary pressure and to control excessive investment. "But the move will not be as effective as the government expected because inflation nationwide mainly resulted from surging production material and food prices," he said. "A simple monetary policy will not help." The consumer price index (CPI), the main inflation gauge, was up 8.5 percent in April from a year earlier. This was nearly equal to February's 8.7-percent rise, the most since May 1996. Some market experts said that after-quake restoration and reconstruction would beef up fixed assets investment, and add more inflation pressure to the nation's sizzling economy. Soaring demand for cement, steel, copper, zinc, and a luminium were expected to push up the prices of basic building materials, according to the experts. Zuo Xiaolei, Galaxy Securities chief economist, said huge foreign exchange reserves and economy unrest in neighbouring countries had posed great pressure to China's economy. This had forced the government to adjust its economic policy before it could reach a balance. "A great deal of hot money swarmed into China's capital market, and the PBOC aims to hedging excessive monetary liquidity," said Wu Xiaoqiu, head of the Financial and Securities Research Institute of the China Renmin University. Wu said the government was likely to carry out more monetary policies to curb inflation and liquidity in the near future. China adopted the tight monetary policy late last year to prevent the economy from overheating. It was also to guard against a shift from structural price rises to evident inflation. The country adhered to the policy despite a global slowdown hit by the international credit crunch. The country's economic growth slowed in the first quarter but still reported double-digit growth. It expanded 10.6 percent, compared with 11.7 percent in the same period a year ago.
SHIJIAZHUANG, Sept. 23 (Xinhua) -- Babies were sick, hospitals crowded, consumers puzzled, senior officials sacked, farmers could not sell their milk, dairy firm employees had fears for future -- milk scandal affected the life of many Chinese but they were struggling through it. Ten-month-old Wang Tianhao left hospital after six days of treatment. His mother relieved from scary and worry. "I was so scared that I couldn't help crying on the first day he was taken into hospital," said the mother Jiang Aihua. The boy had drunk powdered milk containing banned chemical melamine made by Sanlu Group since he was born. Doctors found a stone of about 5mm in diameter in his kidney. "He is getting better," said Lou Yan, a doctor in charge. "It will take some time to wash the stone out of his body. But he does not need to take any more drugs, just needs to drink a lot of water." She asked Jiang to take her son back home and have an examination next month. In northern Hebei Province, center of the scandal, about 480 infant patients recovered and left for home by Monday noon while around 1,200 were still in hospital for observation. REBUILDING TRUST Another mother named Wang Lifang was at a loss on what to feed her baby daughter. Besides Sanlu, 22 other dairy firms were also found to produced tainted milk power later, including several domestic dairy giants. Some mothers turned to foreign brands for they lost trust on domestic firms. But Wang could not afford it with an annual family income of around 6,000 yuan (882 U.S. dollars). The price of foreign-made baby formula is three to four times of that for domestic products. Parents tried many substitutes such as fresh milk, soy milk or even rice soup for their babies. Some even stopped feeding any food with milk for their children. "I don't know what to do. I hope the government can give us a list of safe milk," she said. To set up trust among customers, many dairy firms involved in the scandal jointly signed a statement promising to produce safe milk and never let this happen again. Police arrested four suspects and had other 22 in custody while Tian Wenhua, former board chairwoman and general manager of Sanlu, was arrested as well. Several senior officials were dismissed from their posts including Wu Xianguo, the Communist Party chief of Shijiazhuang City, where Sanlu was based. On Monday, China's chief quality supervisor Li Changjiang resigned over milk scandal. SEARCHING BUYERS FOR SPLIT MILK On the wall of a milk station at Nantongye village, a slogan read, "Want to become rich? Raise fewer kids but more cows." But villager Li Jufeng was planning to sell all the 13 cows his father raised. "My dad was hit in a traffic accident two days ago. We need money to pay for his medical cost," said the 32-year-old. "If we keep the cattle, we can sell the milk to nobody and we have to feed them." Dairy farmers at Nantongye village have long been suppliers of Sanlu, the biggest dairy producer in Hebei and nationwide. The company built five stations in the village to collect fresh milk. Since last Sunday it has stopped buying any milk from farmers as its plants were suspended from production. Villager Li Zhidong's 18 cows produce about 160 kg of milk a day. In the past week, she had a loss of 330 yuan (48.5 U.S. dollars) per day. It is now a good news for her that four dairy firms in Hebei have signed agreements with the provincial government to buy 2,500to 3,000 tonnes of milk formerly supplied of Sanlu, a government source told Xinhua. The local government is also negotiating with Beijing-based Sanyuan Group and Shanghai-based Bright Dairy for milk purchase. STAND TOGETHER THROUGH CRISIS Sanlu elected its new board chairman and general manager Zhang Zhenling on Sept. 18. He has apologized to the public on behalf of the company and promised to deal with the incident properly and lead the group through the crisis. Employees at the lowest level like Tian, a lady in her mid-thirties, were worried about their uncertain futures. "I have no idea what will happen," she said. She had worked for Sanlu for 12 years and it was her first job. "What if the company shuts down and I lose this job? I am not young and it will be hard to find a new one. I have aged parents to support and a son in primary school," she said. But most employees have stood with the company. Tian worked at the company from morning till night including weekends, helping set up booths, hand out notices and answer questions from customers. "What I can do now is to do my best," she said. "I hope Sanlu could pull through it. "

JIUQUAN, Gansu, Sept. 25 (Xinhua) -- Chinese President Hu Jintao congratulated the country's space scientists and taikonauts on the successful launch of the manned spacecraft Shenzhou-7 at the Jiuquan Satellite Launch Center on Thursday. "The successful launch marked the first victory of the Shenzhou-7 mission," Hu told Chinese experts and other work staff at the center after officials declared the spacecraft entered the preset orbit. "On behalf of the (Communist) Party Central Committee, the State Council and the Central Military Commission, I'd like to extend warm congratulations to all work staff and army forces participating in the mission," said Hu. Chinese President Hu Jintao (front R) shakes hands with the ground crew members after he viewed the launching of the Shenzhou-7 spaceship at the Jiuquan Satellite Launch Center in the northwestern Gansu Province on Sept. 25, 2008. "The Shenzhou-7 mission is the most representative and influential scientific and research practice of our country this year," said Hu. "It's another feat on the Chinese people's journey to ascend the peak of science and technology." He noted the country's first attempt of extra-vehicular activity entailed greater technical difficulty and urged the staff to continue their efforts. "I hope you carry on your work unremittingly and focus on the following jobs to achieve a full-scale triumph," said Hu. The Shenzhou-7 blasted off on a Long March II-F carrier rocket from the launch center in the northwestern Gansu Province at 9:10 p.m..
BEIJING, July 4 (Xinhua) -- China's State Council published on Friday guidelines on post-quake reconstruction, emphasizing house repair and building work. The State Council, China's Cabinet, stressed priority for repairing and building houses for people whose homes were destroyed during the May 12 tremor. "Check for repairable buildings and fix them as soon as possible; scientifically choose sites, economically use land and set down reasonable quake-resistant levels for building new houses," the guidelines said. Areas suitable for living must be marked off based on scientific standards and evaluations on geology and natural resources. Meanwhile, the government will see to the reasonable distribution regarding population, industry and productivity, according to the guidelines. A local man builds house at ruins at Yuzixi Village, Yingxiu Township, Wenchuan County in Southwest China's Sichuan Province, June 9, 2008. Residents in quake-hit Yingxiu Township are now reconstructing their hometown The reconstruction of buildings should take local advice into account, and be based on governmental subsidies, social support and local resources. All the measures were aimed to let quake-hit people live in "safe and comfortable houses as soon as possible", said the guidelines. Resources should be optimized to upgrade quake resistance standards and improve the quality of construction, the guidelines said. Priority should be given to the reconstruction of public facilities, including schools and hospitals, and these buildings should be the "safest, most solid and trustworthy". The guidelines required high schools and vocational schools be located in county seats, middle school in townships while primary school sites be relatively concentrated. The guidelines also underscored the importance of protecting the ethnic and cultural relics affected by the major quake. Earthquake sites and memorial halls would be erected, and the reconstruction of government buildings should be "frugal" and "practical." The restoration of infrastructure should be adjusted to local conditions and planning, the guidelines added.
来源:资阳报