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HONG KONG, Sept. 28 (Xinhua) -- The launch of Renminbi sovereign bonds in Hong Kong on Monday shows China's efforts to boost the international use of the yuan step by step, officials and analysts said. The bond issue, worth only 6 billion yuan (878.5 million U.S. dollars), marked a key milestone in the internationalization of the RMB. Hong Kong was chosen for, and will benefit from, the milestone bond sale thanks to its unique position as the international financial center providing desired cushion against the potential risks when the program was launched, analysts said. BOOSTING INTERNATIONAL USE OF RMB The bond issue in Hong Kong came earlier than expected, said Hu Yifan, an economist with CITIC Securities. "The need for the RMB to go international and convertible has been growing along with the increasing importance and openness of the Chinese mainland economy and the risks arising from over- reliance on the United States dollar as the reserve currency," said Tse Kwok-leung, head of economic research of Bank of China ( Hong Kong) Limited. China has been launching pilot RMB programs over the years, but the pace has obviously quickened since the onset of the global financial crisis. Pilot RMB programs launched in Hong Kong over the past 12 months also included yuan-denominated cross-border trade settlement and trade financing, yuan bonds issued by policy banks, commercial lenders and the branches of foreign banks, and currency swaps. The sovereign bond issue would help "boost the international use of the RMB in a steady and orderly manner," the Chinese Ministry of Finance quoted Acting Chief Executive of the Hong Kong Special Administrative Region (HKSAR) Henry Tang as saying. The sovereign bond sale in Hong Kong serves the purpose of water testing to "see how it is received by international investors." Hong Kong has a unique strength in that it provides the desired cushion against potential risks when the pilot programs were launched, given that the mainland capital market was yet to open up, Tse said. BOOSTING NASCENT BOND MARKET IN HONG KONG The bond issue ahead of the Chinese National Day showed the central government's support for Hong Kong, Vice Minister of Finance Li Yong said. It will help Hong Kong build on its strength as an international financial center by boosting the nascent bond market in Hong Kong, Tse Kwok-leung said. "It calls for a banking system, a stock market and a bond market, all developed, to make a developed international financial center," Tse explained. Hong Kong has been aspiring to be the leading international financial center in the Asian time zone. Government statistics showed that the total assets of Hong Kong's banking system and the size of its stock market were both about six times its gross domestic product, compared with a bond market equivalent to 43 percent of its gross domestic product. Bonds issued in Hong Kong in 2008 totaled 424.4 billion HK dollars (54.4 billion U.S. dollars), with 67 percent issued by the Hong Kong Foreign Exchange Fund, which was established to defend the Hong Kong dollar peg to the U.S. dollar. The other 33 percent were accounted for by development banks from outside Hong Kong and corporate bonds issued by local players. There were no sovereign bonds. Tse said the bond issue will also help improve the liquidity of, and diversify, the local bond market. It will also improve the operation of the RMB bond market in Hong Kong by helping find the benchmark interest rate in the local market. Tse said the demand for sovereign bonds issued by an economy as strong as the Chinese mainland was huge, given the impact of the global financial crisis on the corporate bond market. Vice Minister of Finance Li Yong also said he believed the bonds will be well received. "I believe the RMB sovereign bonds will prove popular with investors looking for safe and prudent investments. I definitely think it will be successful," Li said.
BEIJING, Sept. 16 (Xinhua) -- Uygur farmer Hashim Dawut felt quite touched as he was guided into Premier Wen Jiabao's office at the Zhongnanhai leadership compound in downtown Beijing on Monday. The 57-year-old man had been looking forward to the moment for more than five years. Premier Wen met Hashim Dawut for the first time in his village in Bachu county of Xinjiang Uygur Autonomous Region on March 28, 2003, when Wen was inspecting and directing relief work after an earthquake measuring 6.8 jolted Bachu and Jiashi counties, killing268 people on Feb. 24 that year. Chinese Premier Wen Jiabao (L) hugs Dawut Haxim, a farmer of the Uygur ethnic group of Bachu County in northwest China's Xinjiang Uygur Autonomous Region, during their meeting in Beijing, capital of China, Sept. 14, 2009. Hashim Dawut lost five loved ones in the earthquake, but still worked hard to save his fellow villagers. On hearing his story, Premier Wen paid a special visit to him. Chinese Premier Wen Jiabao (L) meets with Dawut Haxim, a farmer of the Uygur ethnic group of Bachu County in northwest China's Xinjiang Uygur Autonomous Region, in Beijing, capital of China, Sept. 14, 2009"You lost your family members in the quake, and now you are a family member of all the people in China, including me." No sooner had the Premier's words ended than warm tears welled up in Hashim Dawut's eyes. Nearly a year later, early February in 2004, when Hashim Dawut went to Beijing to attend an awards ceremony honoring heroes who inspired the nation in 2003. He expressed his wish to meet Premier Wen, who gladly invited him to the Zhongnanhai compound. Chinese Premier Wen Jiabao (1st L) and Dawut Haxim, a farmer of the Uygur ethnic group of Bachu County in northwest China's Xinjiang Uygur Autonomous Region, wave to each other as Dawut Haxim leaves after their meeting in Beijing, capital of China, Sept. 14, 2009. Wen asked Hashim Dawut about the reconstruction of his village and asked him to come to the Zhongnanhai again. China on Monday paid tribute to 100 heroes and model citizens who made outstanding contributions to the founding of New China and 100 more who have inspired the nation during the past six decades. Hashim Dawut was one of the model citizens and was invited to the event in Beijing on Monday. Before he left for the capital, he wrote a letter to Premier Wen reading: "We have not seen each other for years, and as your younger brother, I miss you so much and want to take this opportunity to meet you again." And Hashim Dawut was invited into Zhongnanhai again. During their third meeting, they talked about the villagers' life, the growth of crops and a new rural medicare system for the farmers. They also talked about the July 5 riot taking place in the regional capital Urumqi which killed nearly 200 people, mostly ethnic Han. "The 'three forces' (separatism, terrorism and extremism) at home and abroad who incited the riots wanted to damage the brotherhood between the Uygurs and the Hans," said Wen. "And it was heartrending to see our people losing lives and properties in the riots." "All of us felt grieved, and the bad guys were not willing to see the fact that we are living a happy life," Hashim Dawut responded. "In Xinjiang, Uygurs and Hans are inseparable, and all the ethnic groups are inseparable, because we are a family," Wen said. "And we should cherish the stability and development which did not come easy," he added. "I will bring your words home," said Hashim Dawut.

BEIJING, Sept. 17 (Xinhua) -- The recent U.S. comments that China poses a military threat to itself is "totally groundless and irresponsible", Spokesman with China's Ministry of National Defense Hu Changming said Thursday. "China's military development is always a positive factor for both regional and global peace and stability," Hu said in a statement. The country has always pursued a national defense policy that is defensive in nature and unswervingly follows a road of peaceful development, he said. The 2009 National Intelligence Strategy document released by the United States listed China as a challenger of the U.S. interests and described China as "very aggressive in the cyberworld." A senior U.S. defense official also said on Wednesday that China's "investments in cyber and anti-satellite warfare, anti-air and anti-ship weaponry, and ballistic missiles could threaten America's primary way to project power and help allies in the Pacific -- in particular our forward air bases and carrier strike groups." "We demand the U.S. side to respect the fact, take measures to correct the wrong comments and stop doing things that undermine the military relations between the two countries," he said.
HOHHOT, Aug. 25 (Xinhua) -- The key to social harmony and stability in China is to strengthen and improve the leadership of the Communist Party of China (CPC), Xi Jinping, Vice President and member of the Standing Committee of the CPC Central Committee Political Bureau, said during a tour of Inner Mongolia Autonomous Region. Xi said issues concerning economic development and social stability were top priority in the country's minority areas during his tour from Aug. 22 to 25. He visited villages, customs posts, companies, communities and schools in Hulun Buir, Manzhouli, Baotou, Erdos, and Hohhot. Chinese Vice President Xi Jinping (2nd L) visits at the Carbon-to-Liquid plant of the Shenhua Group Corporation Limited in Ordos, north China's Inner Mongolia Autonomous Region, on Aug. 22, 2009Xi met with industry leaders, including leaders at coal and power giants Huaneng Group and Shenhua Group, and major dairy producer Meng Niu Group. He also inspected the well-known land port of Manzhouli, which links China with neighboring Mongolia. Xi also talked with ethnic Mongolian herdsmen to learn about their work and lives. In Hohhot, the regional capital, he urged officials to work hard to resolve problems regarding people's lives. "Let people of different ethnic groups share the achievements of reforms and development," he said. At the end of his study tour, Xi held a workshop that was attended by leading regional officials.
UNITED NATIONS, July 29 (Xinhua) -- UN Secretary-General Ban Ki-moon said here on Wednesday that he was pleased with what China is doing to contain climate change and what the Asian country will do in negotiations that will lead to an agreement at the Copenhagen summit on climate change in December. Ban told his monthly press conference that "I was pleased that (Chinese) President Hu Jintao and Premier Wen Jiabao assured me that China wants to seal a deal in Copenhagen in December and that China will play an active and constructive role in the negotiations to achieve this end." During his meeting with the Chinese leaders, "we also agreed on the importance of global leaders showing the way and discussed in detail the Climate Change Summit in New York on Sept. 22," Ban said. "I wanted to highlight the special responsibility of countries like China to lead the global fight against climate change, as well as highlight all that China is doing," he said. "Come September, we will be entering a crucial stage on climate change." "Climate change was the major focus of my trip to Asia," he said. "In particular, I helped to launch an ambitious program to promote energy saving lighting which could reduce China's energy consumption by 8 percent," he said. "This is a major step into the21st century." The overall goal for the Copenhagen Summit, slated for Dec. 7-18, is to establish an ambitious global climate agreement for the period 2012. In order to have "a robust agreement on adaptation in Copenhagen," he said, "I continue to press for achieving a fair, effective and scientifically ambitious deal in Copenhagen that can benefit all nations." "That's why I am convening the September climate change summit," Ban said. "We expect more than 100 heads of state and governments -- the largest gathering of leaders on climate change ever." "Two years ago, only a few leaders could speak to these issues," he said. "Today, leaders are walking the road to Copenhagen together." "But, we have less than five months to seal a deal," he said. "To keep up the momentum, I will travel to arctic polar ice rim later next month to get a first-hand look at conditions there -- in particular the melting sea ice." "I will then go on to the World Climate Conference in Geneva organized by the World Meteorological Organization," he said.
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