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BOAO, Hainan, April 19 (Xinhua) -- Chinese officials and entrepreneurs said Sunday that China should have bigger say in setting commodity prices, as oil and iron ore prices saw roller-coaster-like fluctuations in the past two years. The drastic price changes are not reflecting real demand, but are propped up by financial speculators, said the senior executives of China's top energy enterprises at the Boao Forum for Asia (BFA) annual conference 2009, which concluded Sunday in the island resort of Boao in south China's Hainan Province. They said commodity prices should be pulled back to normal track to reflect real demand, otherwise the inflation woe will come back and make business expansion unsustainable. PRICE AND REAL DEMAND "Although we are the biggest commodity buyer in the world, our role in the price setting is limited," said Zhang Xiaoqiang, vice minister of the National Development and Reform Commission (NDRC), China's economic planning agency. China's steel makers have fallen into a prolonged bargain with the world's major iron ore producers, demanding a sharper price cut than the 20 percent-off deal plan offered by the Rio Tinto of Australia, as the world's No.1 iron ore importer has less demand amid the economic slowdown. Iron ore prices increased five fold in the five years before 2008. Xu Lejiang, boss of the Baosteel Group Corporation, China's largest steel maker, said at the forum that nothing is more important than the normalization of iron ore pricing, without elaborating how much more price cut he wants. The continuously rising iron ore prices partly reflected demand, but that's not the whole picture, said Xu. The prices tumbled by more than two thirds from a peak of 187 U.S. dollars per tonne last year. Speculative trading on iron ore shipping index helped fan the volatility, since shipping costs comprise a large share of the iron ore prices. The Baltic Dry Index (BDI), a main gauge of international shipping activities, has plummeted from a peak of 11,000 points to above 600 points, which is certainly what people are reluctant to see, Xu said. His view was echoed by Fu Chengyu, chief executive officer of the China National Offshore Oil Corporation (CNOOC), the largest offshore oil producer in China. He said the prices are bound to fall after irrational rise. He said the loose monetary policy in the United States should be blamed for the skyrocketing oil prices last year. "If no measures were taken, the world would see another round of inflation after we weather through the crisis," he said. He noted the pre-emptive measures should be put into place to avoid that, otherwise the next headache for the G20 leaders will be how to fight inflation. "We should prepare for tomorrow," Fu said. Zhang Xiaoqiang said international collaboration is essential to enhance the oversight of the financial speculation. ACTION BEFORE CRISIS The volatile external conditions forced many Chinese energy enterprises to seek their own way to offset the negative impacts of price fluctuations. Cost saving has always been important to CNOOC, said Fu. "We have cut the cost to 19.78 U.S. dollars per barrel, and that has allowed us to get through with ease when prices fall." "We step up investment with the current cheap prices, and that will help us flourish after the crisis," Fu said. To offset the negative impacts of price changes, many Chinese enterprises have been engaged in hedge trading and other derivative products investment, but many failed with mounting losses. "CNOOC has lost nothing, since we use hedge trading to preserve value, rather than make money," he said. "Hedge trading is not speculation," said Fu who has 30 years of experience in the oil industry. Fu called on Asian countries to negotiate with the world's major crude oil suppliers, as Asian nations have to pay 1 to 2 U. S. dollars more per barrel than other buyers. Zhang Xiaoqiang noted China will continue to liberalize domestic prices of energy products and resources, saying the recent reform of refined oil prices is a good start. "We should beef up our commodity reserve to ensure plenty supply in order to offset the negative impacts of big price changes," Zhang said. As the Chinese government has announced plans to build the second batch of national oil reserve bases, enterprises can try to have their commercial energy reserves in the future.
BEIJING, April 14 (Xinhua) -- Chinese President Hu Jintao on Tuesday met with Papua New Guinea's Prime Minister Michael Thomas Somare.In their meeting at the Great Hall of the People in downtown Beijing, Hu said bilateral relations have made significant progress since both countries forged diplomatic ties in 1976, citing frequent high-level visits, deep political trust and fruitful cooperation in all fields. Hu appreciated Papua New Guinea's unswerving adherence to the one-China policy and support on China's peaceful reunification. Chinese President Hu Jintao (R) shakes hands with Papua New Guinea's Prime Minister Michael Thomas Somare during their meeting in Beijing, capital of China, April 14, 2009. Hu said Papua New Guinea was an important Pacific island country and played a crucial role in regional affairs. Hu said his country regarded Papua New Guinea as a good friend and partner in pacific islands. On the economic front, Hu said both countries were complementary and had a broad prospect for cooperation. He proposed both countries step up mutually-beneficial cooperation in key areas such as trade, agriculture, forestry, fishery, transportation, resources and energy. Hu said the Chinese government encouraged and supported Chinese businesses to invest and operate in Papua New Guinea. Somare, who was here for an official visit, said Papua New Guinea cherished its relations with China, which was a sincere and reliable partner. Somare said his country respected China's sovereignty and territorial integrity and adhered to the one-China policy. He thanked China for offering generous assistance to his country for many years. He said his country would like to work more closely with China on trade, energy, resources and construction. Somare is to visit south China's Hainan Province for the 2009 meeting of the Bo'ao Forum for Asia (BFA) from April 17 to 19.

BEIJING, March 31 (Xinhua) -- Chinese President Hu Jintao has called for strengthened coordination among different nations on economic polices and joint efforts against trade and investment protectionism to help the world economy recover. The international community as a whole was severely challenged in the course of tackling the global financial crisis and resuming growth in the world economy, Hu told Xinhua on Tuesday ahead of the G20 summit scheduled to open in London on Thursday. With the impact of the global financial crisis on the real economy unfolding and deepening, priorities should be taken by various countries to adopt economic stimulus measures in line with their own situations and work hand in hand to promote growth and employment and improve the people's lives, according to Hu. Efforts should also be made as soon as possible to stabilize the global financial market and earnestly give play to the role of finance in spurring the real economy to restore confidence of the people and enterprises, Hu said. "The international financial system should undergo necessary reforms in an all-round, balanced, gradual and effective manner to prevent a similar crisis in the future," the president noted. China as a responsible country would work with all the other parties attending the summit to help it yield "positive" and "practical" results, Hu said. China pledged to give its own contribution to the recovery of world economy. The country would adhere to its fundamental national policy of opening up to the outside world and mutually beneficial and win-win strategies, Hu said. A vigorous and more open China would not only benefit its own steady, fast growth, but help the international community fight the financial crisis and contribute to the world's peace and development, Hu said. The country has set an 8 percent target for economic growth this year, still notably higher than the 1 percent world average estimated by the World Bank. China grew 9 percent in 2008, the slowest pace in seven years. The global financial crisis and economic slowdown have created many difficulties for China, Hu said, citing the slump of exports and imports, slower industrial production and unemployment. But a basket of governmental measures to stimulate domestic demand and promote economic growth have begun to take effect, he added. Beginning in late 2008, the Chinese government has issued a comprehensive economic stimulus package including a 4 trillion yuan (585 billion U.S. dollars) investment plan and support plans for ten key industries. The country's central bank has cut interest rates five times and lowered deposit reserve ratio four times in an effort to enhance capital fluidity. "We have confidence, conditions and capabilities to keep a steady and rapid growth," Hu Jintao said.
BEIJING, April 5 (Xinhua) -- China will strengthen oversight of listed securities companies by promoting information transparency. On Saturday, China Securities Regulatory Commission (CSRC) introduced a regulation which said securities companies should remind investors about potential risks when shareholders decide to launch a new business or introduce an innovative business. The annual report and half-year report by listed securities companies should include risk assessment conditions, as well as reasons for risk and probable effects. Photo taken on April 1, 2009 shows a woman smiles before a stock price electronic board in Beijing. China's benchmark composite stock index on the Shanghai Stock Exchange closed at 2408 points on Tuesday In addition to the annual operation report, companies were asked to deliver a supervision and monitoring annual report which includes audit and accounting information. If a company or high-rank official is involved with serious illegal activity, and that results in worsening financial condition, the company should inform all shareholders. The CSRC said the regulation, which was made on the basis of the Securities Law, took effect April 3.
BEIJING, April 2 (Xinhua) -- Chinese Vice Premier Zhang Dejiang Thursday warned the need to find jobs for college graduates was "crucial". "The employment situation of college graduates remains grave," he told a video conference held by the State Council, the Cabinet. More than 6 million college students were leaving school in just three months and the employment rate was generally lower than previous years, Zhang said without elaborating. China has 6.11 million college students due to graduate this year, and 1 million from last year are still looking for jobs, according to the Ministry of Human Resources and Social Security. Graduates are having a hard time finding jobs this year as posts are being axed due to the economic slowdown. Zhang urged government organs, government-sponsored institutions, and state-owned enterprises to hire as many people as last year, and small and medium-sized and private companies to employ college graduates. The State Council unveiled in February a series of measures to boost employment of college graduates, calling on them to be more flexible. The measures included encouraging graduates to work in rural areas, in grassroots urban communities, and in smaller enterprises, asking research institutions to recruit graduates, and stepping up support for graduates starting up their own businesses. Zhang asked local government departments to work out detailed and feasible measures and make efforts to publicize the measures this month. Government departments and higher learning institutions should provide comprehensive services to graduates by offering advice, giving aid to the poor, and maintaining a sound employment market, he said.
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