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Investors monitor the movement of stock prices at a brokerage firm in Guangzhou, South China's Guangdong Province May 9, 2007. [newsphoto]China's main stock index hit a fresh all-time high after breaking a key barrier of 4,000 points due to the soaring blue chip stocks as investors shrugged off official warnings of a possible market bubble amid soaring corporate profits. The benchmark Shanghai Composite Index, the most widely watched indicator of the mainland's stock market, gained 1.60 percent to end at 4,013.08 points, breaching the psychologically important mark of 4,000 for the first time. That marks a gain of 50 percent so far this year on top of a 130 percent rally in 2006. Blue chip stocks showed strong performances. China Unicom, the nation's second largest wireless operator, jumped its daily limit of 10 percent to close at 6.35 yuan per share. Bank of China rose 7.77 percent to 6.10 yuan, while Industrial and Commercial Bank of China was up 5.47 percent to 5.78 yuan. The surge came after the Shanghai Composite Index was pushed to a new high in the previous session as new investor cash flooded in after the week-long May Day market recess and China's yuan broke the barrier of 7.70 against the US dollar. The consistent hitting of new highs since January was partly driven by the wave of money brought in by new investors. Some 4.787 million new A-share trading accounts were opened in April, more than the combined number of the previous two years, statistics from China Securities Depository and Clearing Corporation. The figures for the new accounts are considered a rough indicator for the number of new individual investors entering the market. Analysts said the market may undergo drastic fluctation after the index breaks the 4,000 point mark, as worries about stock overvaluations build up. The stocks in the Shanghai and Shenzhen markets are trading at more than 40 times earnings per share on average, much higher than developed markets overseas. The growing bubble in the country's stock market is a concern, said central bank governor Zhou Xiaochuan last week, adding he would closely monitor asset prices, the consumer price index and producer price index. Zhou's remarks added to speculation there could be an interest rate hike as early as next month. Xie Guozhong, former chief China economist for Morgan Stanley, suggested regulators should come up with certain policies to put the brakes on the surging stock market for the good of long-term economic development and social stability. "China's equity market is starting to show signs of getting out of control," said Zuo Xiaolei, chief economist of China Galaxy Securities in China Securities Journal on Wednesday The market rose even after the interest rate was hiked in March, and the bank reserve ratio was raised in April, said Zuo. "The neglect of policy and blindly pushing up the equity market fosters a big market risk," he claimed.
SHANGHAI, March 5 (Xinhua) -- A traditional commodity fair in east China, conventionally regarded as a barometer of the nation's foreign trade, reported less demands from American businessmen than expected, indicating a possible slowdown of Sino-U.S. trade. The 18th East China Commodity Fair, an event held at the beginning of every year, reported around 1,600 American businessmen, far less than expected. "The number of the American businessmen to the fair was only two thirds of those from the European Union, showing the deficient domestic demands of the United States," said Wang Qingjiang, an official with the fair. "The subprime crisis in the United States has shown its influence on China's exports," he added. The 5-day fair registered total business deals worth 583 million U.S. dollars between Chinese companies and the U.S. businessmen, a 1.5 percent dip from last year. Deals worth more than 3.67 billion U.S. dollars were signed at the fair, a 3.52 percent growth from 2007. Deals between Chinese companies and the European Union businessmen added up to 879 million U.S. dollars, a 9.5 percent growth compared with the last fair. Chinese companies and the Japanese businessmen made deals worth906 million U.S. dollars, almost the same amount compared with last year. The fair attracted more than 19,000 businessmen from 145 countries and regions around the world, with more than 60 percent from Asia. According to experts, the fair could indicate the trend in China's foreign trade in 2008.

BEIJING - The number of commercial bribe cases dealt with by Chinese courts rose to 4,406 in the first seven months, an increase of 8.2 percent over the same period of last year, according to the Supreme People's Court (SPC) on Saturday.Xiong Xuanguo, vice-president of the SPC, said the number of cases featuring corporate wrong-doings rose 37.3 percent and cases relating to individual employees of companies jumped by 52.1 percent.Of the 3,748 commercial bribery cases that have been closed this year, 94.1 percent involved civil servants, Xiong said.A total of 31,119 commercial bribery cases were dealt with in China in the past two years before August 2007, with 7.079 billion yuan (US2.51 million) involved, said Li Yufu, deputy director of the leading group on anti-commercial bribery under the Central Committee of the Communist Party of China.
China has sent rescue ships to search for a cargo vessel missing in the East China Sea with 17 Russian crew on board.The China Maritime Search and Rescue Center said on Friday it launched a search and rescue emergency plan soon after a rescue center in Russia's far east informed it of the missing boat on Thursday.The Cambodia-registered ship went missing on its way from Japan to Hong Kong.The vessel failed to arrive in Hong Kong on Thursday as scheduled, and the last radio contact was made with the ship on Sunday, when it was 212 sea miles (391 km) east of Shanghai.Russian rescue officials then informed rescue centers in China, Japan and South Korea of the Captain Uskov's disappearance."Our rescue ships have started searching," Zhai Jiugang, a senior official with China's search and rescue center, said.Vessels sailing in the East China Sea have also been informed by the center's branches in Shandong and Shanghai of the disappearance of the ship, and were asked to assist in the search, he said.The center is also using maritime satellites to help search for the vessel. But by Friday afternoon, there was "no clue about the missing boat, and we will continue to search", he said.The boat, with a cargo capacity of 5,200 metric tons, was built in Japan in 1982. It flew a Soviet flag and was later sold to a private shipping company and registered in Cambodia.
BEIJING - China said Monday it will use global positioning satellites to ensure food safety at the Beijing Olympics as it steps up efforts to blacklist manufacturers who violate safety regulations. Wang Wei, an executive vice president of the Beijing Olympic Committee, said the high-tech system will monitor food production, processing factories and food hygiene during the games to make sure healthy food is delivered to the 10,500 athletes residing in the Olympic Village. Food products will be affixed with an "Olympic food safety logistics code" and transportation vehicles will be tracked using global positioning satellites, Wang said. He did not provide further details of either plan. "The whole process will be monitored from the start of production through transportation to the end users," Wang said. "We are very confident about ensuring food safety in Beijing." Wang said extra measures would also be taken to ensure food safety for the general public. "During the games some special monitoring mechanisms will also be applied to monitor restaurants and public food sellers to let people know how they can buy safe food," he said. In a separate announcement, Beijing-based Qianxihe Food Group, an Olympic sponsor, said it had begun selling a hormone-free line of pork for the games, a company official said. The company's pigs have been fed food without hormones and are part of the "Olympics Special Supply Pork" range, which will be consumed by athletes and can be bought in supermarkets by ordinary citizens, said the official, who would give only her surname Tong. Wang's comments came after Vice Commerce Minister Gao Hucheng announced that 429 exporters have been blacklisted and punished for producing dangerously substandard products
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