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BEIJING, Feb. 11 (Xinhua) -- China's foreign exchange regulator said Friday it did not suffer any losses from its investment in Fannie Mae and Freddie Mac bonds, adding that media reports of up to 450 billion U.S. dollars of losses were "groundless.""Up until now, the capital and interest repayments of Fannie Mae and Freddie Mac bonds is normal, and no losses have incurred," The State Administration of Foreign Exchange (SAFE) said on its website.Annual yields of the bonds were around 6 percent between 2008 and 2010, the SAFE said.The regulator, which oversees China's more than 2 trillion U.S. dollars of foreign exchange reserve, also clarifies it had not bought any stocks of the two troubled mortgage companies.UPI reported on Friday that the Obama Administration will propose phasing out the two mortgage giants after rescuing them, which is part of a U.S. Treasury Department white paper to Congress that lays out three ways of cutting government support to the 10.6 trillion U.S. dollars mortgage market.

HAIKOU, Jan. 28 (Xinhua) -- China's aviation authorities on Friday started to allow helicopters to fly in low-altitude airspace over the tourist island of Hainan on a trial basis for the first time. The aim is to eventually open a part of the country's tightly-controlled airspace to private aircraft.Four helicopters were manned by eight pilots from Shanghai-based Zhengyang Investment Group, a leading domestic firm in the general aviation industry. They are expected to conduct test flights in the sky, 1,000 meters above the ground in Hainan in the next two months.The flight test will collect data for low-altitude flying and test the ground control system's response to emergencies, said Zou Jianming, chairman of Zhengyang Investment Group.Hainan is the first place in China to conduct test flights of private aircraft in low-altitude airspace, said Jiang Sixian, deputy governor of the province. Domestic and foreign firms are both welcome to invest in Hainan's general aviation sector to develop world-class tourism here.China's low-altitude airspace is controlled by the Air Force and the Civil Aviation Administration of China (CAAC). Every private aircraft flight needs approval, and the procedure can take from one day up to a week.But last November, the State Council and the Central Military Commission said that part of the low-altitude airspace would be opened to promote the country's general aviation sector, including the purchase and use of private planes.General aviation refers to the part of the aviation industry that excludes flights for military, law enforcement and public transport. China has only 900 aircraft, 80 airports and fewer than 10,000 pilots in the general aviation segment.The market for general aviation in China is valued at only 13 billion yuan (1.98 billion U.S. dollars) but is expected to grow by 15 percent annually until 2020, Hainan aviation officials said.

XI'AN, Feb. 21 (Xinhua) -- Nearly 100 children were sickened by food poisoning Monday noon at a kindergarten in northwest China's Shaanxi Province.The accident occurred at Zhaocun Beibeile Kindergarten at Weiyang District of the provincial capital Xi'an City, where the children suffered from nausea and diarrhea after lunch, said a spokesman from the Weiyang District Government.The sickened children were rushed to five local hospitals for treatment, and their conditions were reported as not life threatening, the spokesman said.An initial inspection showed that their sickness was caused by nitrite intoxication, and the exact cause is under investigation.

BEIJING, Feb. 15 (Xinhua) -- China's consumer inflation accelerated in January on surging food prices, adding pressure for the government to tackle escalating inflation amid the nation's spreading winter drought.The consumer price index (CPI), a main gauge of inflation, rose 4.9 percent in January year on year, the National Bureau of Statistics (NBS) announced Tuesday.The figure is 0.3 percentage points higher than that of December.Food prices soared 10.3 percent year on year.