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HONG KONG, Aug. 27 (Xinhua) -- Bank of China (Hong Kong) said Thursday its half-year profit fell by 5.6 percent from a year earlier, dragged lower by falling interest income amid the deepening economic downturn. The bank's net profit for the six months ending June 30 amounted to 6.69 billion Hong Kong dollars, down from 7.09 billion Hong Kong dollars in the same period last year. However, the bank said it represented a major improvement against the net loss of 3.75 billion Hong Kong dollars in the second half of 2008, which can be attributed to the increase in operating income as well as the decrease in impairment charges on securities investments. Net interest income decreased by 11 percent to 8.93 billion Hong Kong dollars as net interest margin narrowed by 27 basis points to 1.76 percent. But the net fees and commission income grew by 1.7 percent year-on-year to 2.95 billion Hong Kong dollars driven by the rebound of the local stock market in the first half of this year. The bank's vice chairman and chief executive He Guangbei said the performance in the first half of this year reflected the progress the bank had made in regaining its growth momentum. As the turbulence and its knocks-on effects began to subside, the bank would pursue a prudent yet flexible development strategy in an environment of change and challenge. He also said BOC (HK) would actively expand the RMB-related banking business as the sole Clearing Bank for Renminbi business in Hong Kong.
BEIJING, Sept. 19 (Xinhua) -- Top Chinese leaders including President Hu Jintao on Saturday visited an exhibition showcasing the achievements New China has made in the past six decades. Former President Jiang Zemin, top legislator Wu Bangguo, Premier Wen Jiabao, top political advisor Jia Qinglin, and other senior leaders including Li Changchun, Xi Jinping, Li Keqiang, He Guoqiang and Zhou Yongkang also visited the show. Chinese Former President Jiang Zemin (R, front) visits an exhibition showcasing the achievements New China has made in the past six decades in Beijing, China, Sept. 19, 2009. The leaders said they were excited to see the achievements New China has made since its founding, after the adoption of the reform and opening-up policy in particular, which were displayed through various means including pictures and video clips. They agreed the exhibition vividly showed the historical process of the Communist Party of China (CPC) uniting and leading people of all ethnic groups across the country to blaze and develop the path of socialism with Chinese characteristics. Hu said after the visit that China was still a developing country and the road ahead was still full of difficulties both foreseeable and unforeseeable. He called on the people across the country to work with one heart and make unremitting endeavor for the rejuvenation of the Chinese nation. The exhibition, covering progresses in economic, political, cultural, social and Party constructions, will run till Oct. 20. Wu Bangguo (2nd R), chairman of the Standing Committee of China's National People's Congress, visits an exhibition showcasing the achievements New China has made in the past six decades in Beijing, China, Sept. 19, 2009

MOSCOW, July 28 (Xinhua) -- China and Russia have reached broad consensus on the proper handling of the sudden closure of the Cherkizovsky Market through friendly negotiations, said Chinese Vice Minister of Commerce Gao Hucheng here Saturday. Gao, who arrived here Wednesday, heads a Chinese delegation for talks on the impact of the June 29 closing of the market, where tens of thousands of Chinese vendors had been operating. Local analysts said the shutdown has marked an inevitable transformation of the nongovernmental trade between China and Russia and necessitated a change in mindset and operation mode among Chinese businessmen in Russia. REASONS BEHIND THE ABRUPT SHUTDOWN Cherkizovsky is Russia's biggest wholesale market. Police abruptly shut down the nearly 300-hectare market in northeastern Moscow on June 29 after disclosure by .Russian Federal Supervision Service for Consumer Rights Protection and People Welfare of various illegal and irregular operation in the markets Russian Prosecutor General's Office said the shutdown was due to bad sanitary and fire control conditions, but local media believe many factors have prompted the closure. A June report tendered by Minister of Industry and Trade Victor Khristenko stated that contraband goods not only cost the government great loss in taxation, but also undermine the development of the country's light industry. The report suggested promoting legal, standardized chainstores and cracking down on terminal markets notorious for the sales of counterfeited and shoddy products and goods entered the country through "grey customs clearance". Russian Federal Supervision Service for Consumer Rights Protection and People Welfare, Prosecutor General's Office, Federal Migration Service , Moscow municipal government and other government agencies even proposed shutting down the market for good. The latest poll conducted by research group Levada Center also showed that among 94 percent of Moscow citizens who know about the closure, 67 percent support the move. Another online poll conducted by newspaper Izvestia also showed that over 80 percent of netizens are in favor of the shutdown. "GREY CUSTOMS CLEARANCE" HAMPERS SINO-RUSSIAN TRADE Over the past 20 years, the people-to-people trade between China and Russia has undoubtedly made great contribution to bilateral economic and trade cooperation, said Gao Xiyun, Economic Minister Counselor of Chinese Embassy in Russia. However, it is also an undeniable fact that problems such as "grey customs clearance" had seriously hampered the health development the bilateral people-to-people trade, he said. The so-called "grey customs clearance" is a long-standing practice that involves intermediaries handling customs clearance for bulk commodities loaded in planes or containers trucks. After paying the so-called "customs clearance companies," the consignors of the goods do not have to deal with Russian customs authorities in person. Consequently they receive no official customs declaration documents. In recent years, the Russian government has strived to rectify its domestic market order. For a time, goods that entered the country through "grey customs clearance" were regarded as contraband, and their owners would face penalties, including fines or even outright confiscation. Prior to the market closure, on Sep. 11, 2008, the Investigation Committee at the Russian Prosecutor General's Office sealed up a large part of Chinese merchants' container storehouse in the Cherkizovsky market. CHINESE BUSINESSMEN NEED TO CHANGE MODES OF OPERATION Some 60,000 Chinese are doing business in Cherkizovsky Market, making the market the biggest Chinese business community in Moscow and even the whole Russia, according to figures from the Chinese Chamber of Commerce in Russia. The abrupt closure of the market, in addition to the closedown of the container storehouse, has caused great economic loss to Chinese merchants and their domestic enterprises. Gennady Gudkov, Deputy Chairman of the Security Committee of the Russian State Duma said though the closure of the market is justified, the vendors there should be given advance notice of the closure. Gao Hucheng said China has no objections to Russia's crackdown on smuggling, but the Russian side should protect the personal and property safety of the Chinese citizens without hurting their dignity. While enforcing the law, the Russian side should try its best to keep the economic losses of the Chinese business people to the minimum. Some Chinese analysts noted that Russia's cracking down on smuggling and rectifying domestic markets would help regulate trade channels, improve trade environment, therefore conducive to sustained and sound development of bilateral trade in the long run. Li Huilai, Charge d'Affaires of the Chinese Embassy in Russia, said the only way out for Chinese merchants is to transform their operation mode and do their business in accordance with law and regulations. JOINT EFFORTS URGED TO EXPAND NORMAL TRADE CHANNELS In recent years, China has strengthened export supervision and instructed Chinese enterprises and businessmen in Russia to operate honestly and abide by the laws and regulations there. China and Russia share a common goal in creating a trade environment that is standardized, transparent and convenient. In June, China and Russia established a customs cooperation committee and set up a long-term mechanism to normalize bilateral trade order in a bid to raise the level of customs clearance facilitation and create favorable conditions for the crackdown and eventual eradication of the "grey customs clearance." Gao's delegation, comprising officials from the ministries of commerce and foreign affairs, the General Administration of Customs and trade officials from Zhejiang, Fujian and Hebei provinces reached three consensus with the Russian side on the closure issue. The two sides agreed to further develop the Sino-Russian strategic cooperative partnership, deepen bilateral trade cooperation and properly settle the closure issue through friendly negotiations. The governments of China and Russia attached great importance to their strategic cooperative partnership and had agreed that the sudden closure of the market should not hurt their friendly cooperation, Gao said. The two sides should promptly initiate a customs cooperation mechanism, and develop a work plan to stop illegal activities including "grey customs clearance," regulate customs declaration channels and raise customs clearance efficiency. Analysts believe that with the constant improvement and development of Sino-Russian trade and economic cooperation, the issue of "grey customs clearance" could be fully resolved.
Changchun, Sept. 1 (Xinhua) -- China's macro-economic policy would remain "consistent" and "stable" to consolidate a base for economic recovery, vice premier Li Keqiang said Tuesday. Although positive factors are accumulating and momentum apparently growing, China's economy still faces many difficulties and challenges as the international financial crisis is still not over, said Li at the opening ceremony of the 5th China Jilin Northeast Asia Investment and Trade Expo, in the northeastern city of Changchun, the capital city of Jilin Province. Chinese Vice Premier Li Keqiang addresses the opening ceremony of a High Level Forum on the Northeast Asia Economic and Trade Cooperation held in Changchun, capital of northeast China's Jilin Province, Sept. 1, 2009He said the government would continue to stimulate consumer spending, push forward economic restructuring and facilitate foreign investment to energize enterprises and maintain persistent and steady economic expansion. The revitalization of northeast China, which is known as the country's old industrial base, would play a key role in coordinating regional economic expansion and spurring domestic demand. Chinese Vice Premier Li Keqiang (2nd R, front) visits the exhibit venue after the opening ceremony of the Northeast Asia Investment and Trade Expo held in Changchun, capital of northeast China's Jilin Province, Sept. 1, 2009Northeast Asian nations are highly complementary in economic development. Strengthening economic and trade cooperation in this region would play a positive role in boosting regional development and the world economy, Li said. China is willing to enhance cooperation with countries in the region with more open and positive attitudes to realize win-win results, he said. The six-day exposition, which started on Tuesday, focuses on opportunities and challenges in coping with the global financial crisis. Chinese Vice Premier Li Keqiang (R, front) visits the exhibit venue after the opening ceremony of the Northeast Asia Investment and Trade Expo held in Changchun, capital of northeast China's Jilin Province, Sept. 1, 2009
LONDON, Sept. 4 (Xinhua) -- Chinese Finance Minister Xie Xuren said on Friday that the current economic stimulus measures should be maintained to ensure economic recovery and growth worldwide. After a BRIC-country meeting held in London, Xie told a news conference that the four countries are now at a key stage of economic recovery, and should strengthen their coordination of economic policy. The finance ministers and central bank governors of Brazil, Russia, India and China, the so-called BRIC countries, gathered in London on Friday to discuss the current situation of the world economy, as well as their governments' fiscal and monetary policy responses. Xie stressed that promoting the reform of international financial institutions is a common consensus reached at the G20 summit held in London in April, adding that "we must put it into practice in accordance with the timetable." The Chinese minister also called on the international community to attach great importance to the imbalance between the North and the South, and to further help developing countries realize common development, so as to achieve a fundamental balance and sustainable growth of the global economy. Alexey Kudrin (2nd L), Xie Xuren (4th L), Guido Mantega (4th R) and Pranab Mukherjee (2nd R), finance ministers from Russia, China, Brazil and India, have a group photo taken with other attendees prior to their meeting in London, capital of the U.K., Sept. 4, 2009. Officials from Brazil, Russia and India echoed Xie's opinion, saying that they hoped the G20 countries would not abandon their fiscal stimulus packages too early. They vowed to make more efforts to maintain world trade growth and sustainable economic growth, and looked forward to strengthening the role of the new emerging countries in the international financial institutions. During the meeting, held on the sidelines of the G20 Finance Ministers and Central Bank Governors meeting to be held this weekend, the BRIC officials "noted the key role that the G20 has played as the focal point in the coordination of international responses to the global crisis and exchanged views on the reform of international financial institutions." The officials agreed that emerging market economies have shown resilience and helped the world economy absorb the impact of the deterioration of trade, credit flows and demand. In many of them, growth is already back on track after a few quarters of recession or slowdown. Chinese Finance Minister Xie Xuren (2nd R) speaks at a press conference after meeting with his counterparts from Rissa, Brazil and India in London, capital of the U.K., Sept. 4, 2009. Despite these positive signs, it is too early to declare the end of the crisis. The global economy still face great uncertainty, and significant risks remain to economic and financial stability, they said. The BRIC countries called on the G20 countries to continue to implement countercyclical fiscal and monetary policies in a sustainable and internationally-coordinated manner, and take effective measures to guard against potential economic risks while respecting the particular conditions of each country.
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