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BEIJING, July 29 -- The securities watchdog is mulling further measures to plug the loopholes that showed up in the latest round of initial public offerings (IPO), according to Shang Fulin, chairman, China Securities Regulatory Commission (CSRC). The CSRC is generally satisfied with the results of the recent reforms, but also identified a number of areas that need to be improved. One of these areas is the lack of a provision to block institutional investors from taking advantage of the new allotment system by masquerading as personal investors in their IPO applications. "Some institutional investors were known to have circumvented the subscription limits on their accounts by making applications through personal investor accounts opened with borrowed ID cards," said Lu Junlong, analyst, China Finance Online. "Stockbrokers keen on earning commission fees usually turn a blind eye to such irregularities," he said. People watch the index screen at a stock market in Shanghai, China, July 1, 2009. The CSRC said it is planning to take steps to safeguard individual investors' interests. This has defeated, to some extent, the primary objective of the reform, of increasing the allotment of new shares to personal investors. In the past, the deluge of applications from well-financed institutional investors had largely crowded out applications from individual investors. Because of the loophole, the ratios of allocation of newly issued shares to personal investors in the past several IPOs were still deemed too low. For example, the ratio of allocation in the IPOs of Guilin Sanjin Pharmaceutical, one of the first companies to obtain a stock exchange listing after the lifting of the IPO suspension, was only 0.17 percent. The ratio of allocation in the Sichuan Expressway IPO was 0.26 percent, while it was 2.83 percent for China State Construction Engineering Corp's public float. "The ratio of allocation to subscription is at a low level, similar to the lottery system in the past," said Zhu Hongbin, an investor with over 10-year experience in the market. Considering the wide price gap between the primary and secondary markets, many institutional investors borrowed heavily from banks to subscribe for new shares. Easy credit and cheap money have given institutional investors a much greater edge over small investors in the fight for IPO allotments. "As long as the interbank seven-day repurchase rate stays below 3 to 4 percent, we can make profits by subscribing to new shares," a Shanghai-based fund manger said, who refused to be named. The investors' feverish penchant for newly listed stocks saw Sichuan Expressway Co soar 202 percent on debut. The bourse suspended trading in the scrip for two times to allow for a cooling off period on the first day. The company's issue price was 3.6 yuan, nearly 20 times the PE (price-to-earnings) ratio. After collective bidding, the opening price soared to 7.6 yuan and the shares finally closed at 10.9 yuan after touching a high of over 15 yuan. The high price was beyond the expectation of many analysts. According the reports from 23 securities firms, most analysts thought the reasonable price could be around 5 yuan. Guotai Junan Securities Co was the most optimistic, which estimated the shares could be worth around 7 yuan. The shares subsequently began to slump and closed at 9.81 yuan, with many individual investors burning their figures. According to the Shanghai Stock Exchange, individual investors were the main buyers for the new shares of Sichuan Expressway on its first trading day. Among the 74,000 accounts that bought shares on that date, about 99.9 percent was personal accounts. Institutional investors, including fund mangers, securities firms and insurance companies, did not join the speculation. According to CSRC Chairman Shang Fulin, the regulators are working on a plan to educate individual investors and also exploring effective mechanisms to protect investors' rights.
BEIJING, Oct. 9 (Xinhua) -- China's retail sales of consumer goods totaled 570 billion yuan (about 83.5 billion U.S. dollars) during the National Day holiday, with average daily sales up 18 percent compared with the same period of last year, the Ministry of Commerce said Friday. Sales of household appliances soared during the eight-day holiday which started from Oct. 1. Among them, high-definition flat screen TV sets, digital cameras, side-by-side refrigerators and 3G mobile phones are consumers' favorites. In the case of Kaiyuan Mall in Xi'an, capital of Northwest China's Shaanxi Province, sales of household appliances gained by 34.7 percent year on year. Customers are seen at a shopping mall in Shanghai, east China, Oct. 8, 2009 Jewelry and cars became hot sellers as well. The sales of jewelry of Caishikou Department Store in Beijing topped 100 million yuan, up 30 percent year on year. Car sales of major car-selling companies in Southwest China's Chongqing Municipality increased by 71.7 percent year on year. The selling boom in the home appliance and car sectors was partly stimulated by a policy approved by the State Council in June this year, aiming to spur domestic consumption by subsidizing buyers of cars and household appliances, according to the ministry. For example, consumers can first sell their old household appliances to recycling companies and obtain a certification card from the recyclers. Card holders then can purchase new appliances with a 10 percent cut in prices when showing retailers the card. Meanwhile, sales promotion in major cities also played an important role in the holiday consumption boom.

BEIJING, Aug. 17 (Xinhua) -- China on Monday urged more efforts to push forward the rejuvenation of the country's northeast and other traditional industrial bases. Great progress has been made in the regions since China launched the rejuvenation move more than five years ago, said attendees at a meeting of the leading group of the State Council, the Cabinet, for revitalizing the northeast and other old industrial bases. The rejuvenation strategy of old industrial bases mainly covers regions including Liaoning, Heilongjiang and Jilin provinces and the northeastern parts of Inner Mongolia Autonomous Region. Chinese Premier Wen Jiabao (L Back) presides over a meeting of the leading group of the State Council (Cabinet) for revitalizing the old industrial bases in northeast China and other regions, in Beijing, capital of China, Aug. 17, 2009. China on Monday called for more efforts to push forward the rejuvenation of the northeast and other traditional industrial bases The northeast is a major base of grain production, heavy industry and energy resources in China. Many cities in the regions face developing challenge as their energy resources are depleted and heavy industries face the burden of restructuring. The meeting, chaired by Premier Wen Jiabao, agreed more efforts should be spent in the regions to optimize economic structure, promote the development of modern industries, and speed up infrastructure construction, especially some major energy, transport and water conservation projects. Great importance should be attached to promoting innovation and technological progress in enterprises and work should be urged to develop modern agriculture as well as grain production, transportation and storage to secure the national grain reserve base. The meeting also called for efforts to tackle issues emerging from the transformation of resources-oriented cities, eco-environmental conservation, improvement of people's livelihood, regional economic cooperation and state-owned enterprise reform.
BEIJING, Aug. 5 -- Chinese steel mills would prefer to import more iron ore from Brazil rather than Australia after the detention of four Shanghai-based employees of multinational miner Rio Tinto on charges of commercial espionage, according to data specialist ASXMarine. Spot iron ore vessel bookings from Brazil to China surged to a record 39 in July, from 24 in the previous month, Reuters quoted the data from ASXMarine. Vessel bookings from Australia's main iron ore ports to China dropped to 31, down from 40 compared to the previous month and the lowest reading since February after the Rio Tinto scandal. Photo taken on July 9, 2009 shows the Rio Tinto Ltd. Office in Shanghai, east China. Chinese steelmakers have begun to hold their imports from Australian miners and are switching to Brazilian ore instead, domestic ports have witnessed. Zang Dongsheng, deputy general manger of Rizhao Port Group, China's largest iron ore port which accounts for a fifth of the country's iron ore deliveries, said some of his customers have reduced their orders from Australia and turned to Brazil. But the exact figures would be available only in September as shipments from Brazil and Australia would be delayed by one or two months. China's main ports received 56.5 million tons of iron ore in July, up 35 percent from the same period last year, the Ministry of Transport said yesterday. Iron ore imports rose 29.3 percent year on year, to 297 million tons, in the first half of this year, while traders imported 131 million tons, up 90.4 percent from last year. The China Iron and Steel Association (CISA) said last Friday that excess iron ore imports had distorted the demand-supply situation and hampered its position at negotiations with global miners on new long-term benchmark prices. It also said foreign iron ore suppliers promoted massive selling on the cash market, leading to huge stockpiles and urged to limit import licenses. However, the iron ore import figures in July reflected orders in May as it takes more than a month to deliver ore from Australia and Brazil, said Zang from Rizhao port. Chinese steel mills started to reduce orders ever since CISA rejected the 33-percent cut offered by miners in May and held out for more discount, he said. China News Service reported yesterday that CISA halted talks because iron ore spot prices have been "seriously distorted", citing a statement issued by the association. However, no such statement could be found on the association's website, and its official surnamed Wang said the report was not true and talks were ongoing.
BEIJING, July 27 (Xinhua) -- A senior Chinese official said Monday the government's policies on ethnic affairs are "on the right track" and have helped create conditions for equality, unity and common prosperity among the country's different ethnic groups. Jia Qinglin (R), chairman of the National Committee of the Chinese People's Political Consultative Conference, meets with Luis Alberto Vargas, the president of the International Union of Anthropological and Ethnological Sciences (IUAES), in Beijing, China, July 26, 2009. Jia Qinglin, chairman of the National Committee of the Chinese People's Political Consultative Conference (CPPCC), China's top political advisory body, made the remark in his meeting with Luis Alberto Vargas, the President of the International Union of Anthropological and Ethnological Sciences (IUAES), who is in China to attend The 16th IUAES World Congress held in China southwest province Yunnan. Jia said the living standards of the ethnic groups were rising steadily and their political, economic and cultural rights were well safeguarded. Jia Qinglin (C), chairman of the National Committee of the Chinese People's Political Consultative Conference, poses for a group photo prior to his meeting with Luis Alberto Vargas (5th R), the president of the International Union of Anthropological and Ethnological Sciences (IUAES), in Beijing, China, July 26, 2009. Jia said the Chinese government had attached great importance to the development of anthropological and ethnological sciences, and would actively promote theoretical studies, innovation and application. He praised the IUAES for its role in improving worldwide academic research, promoting the peaceful coexistence of different cultures and harmonious development between man and nature. The IUAES congress, held every five years, has drawn more than 2,000 scholars and experts from all over the world. It will feature 156 panel discussions to explore a broad range of issues, including cultural diversity, AIDS, child trafficking, global aging, ethnicity, urban development, religions and linguistic evolution. China is hosting the congress, which first met in London in 1934, for the first time. Yunnan is home to 26 Chinese nationalities.
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