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BEIJING, June 29 -- Chinese listed banks, which have lent record high amounts in the first half, are likely to report lower profit growth in the period due to narrowing interest spreads and higher provisioning requirements, industry analysts said. "We are expecting a 7 to 8 percent year-on-year profit fall among the 14 listed banks in the first half-year," said Wang Liwen, banking analyst with Shanghai-based Guotai Junan Securities Co, citing stretched interest spreads as the major reason. In 2008, the net interest rate spread for banks ranged from 2.45 percentage points to 3.62 percentage points, with the average figure hovering around 3 percentage points. This year, as the government cut interest rates several times to spur economic growth amid the global financial crisis, the net interest rate spread is expected to be lower, at around 2.36 percentage points. Clients walk into the Suzhou branch of Bank of Ningbo in Suzhou, east China's Jiangsu Province, March 27, 2009.The bank, the first listed lender to file a mid-term report, said its first-half profits would drop nearly 5 percent from a year earlier "A drop of 0.7 percentage points in the average net interest rate spread could mean some 7-billion-yuan decrease in the interest yield for each trillion yuan of new loans," said Wang. Chinese banks extended a record 7.37 trillion yuan of new loans in the first half, triple the amount offered in the same period a year earlier and 47 percent more than the government's full-year target, after lending restrictions were eased in November to stem an economic slowdown. However, most securities firms' reports said the country's 14 listed banks might post an average profit decrease ranging from 6 percent to 10 percent year-on-year in the first six months. According to Wind Info, a financial data provider, the 14 listed banks reported a net profit of 232.7 billion yuan in the first half of 2008, an increase of 73 percent year-on-year. But this year, the net profit could probably stand at 210 billion yuan, down 10 percent on a yearly basis. Bank of Ningbo, for instance, on July 14 announced no more than a 5-percent decease in net profit in its pre-released semi-annual report to the Shenzhen bourse. It is the first Chinese listed bank to report a profit fall in the first half. Wang Yifeng, an analyst at TX Investment Consulting, said the improved provision coverage ratio requirement might also cripple profits at listed banks. To prevent potential risks arising from the lending spree, China Banking Regulatory Commission raised the minimum provision coverage ratio requirement to 150 percent from 130 percent earlier this year. "The increase will mainly eat into the profits of several large State-controlled banks as they are still not up to the new requirements," said Wang. But as the squeezed spreads bottom out in the second half, most analysts said listed banks would still post positive growth for the whole year. "Thanks to the widened interest rate spreads and lower loan cost in the following months, we are expecting a 10-percent growth in profits overall this year," said Liu Yinghua, an analyst with Shenzhen-based Ping An Securities.
BEIJING, Aug. 31 (Xinhua) -- The Chinese Ministry of Commerce said Monday it would extend anti-dumping duties on phthalic anhydride imported from the Republic of Korea, Japan and India for another five years after review investigation. Phthalic anhydride is an important industrial chemical mainly used in the mass production of plasticizers for plastics The imported phthalic anhydride would cause damage to Chinese industries should anti-dumping duties be lifted, said the ministry. The duties took effect Monday. On Jan. 7, China imposed anti-dumping measures on phthalic anhydride to offset negative impact on domestic producers.

BEIJING, Aug. 1 (Xinhua) -- Several hundred former generals, famous military artists, and soldiers gathered at the foot of the Great Wall Saturday to celebrate the 82nd anniversary of the founding of the Chinese People's Liberation Army (PLA), which falls on August 1. At the ceremony organized by the China Great Wall Society (CGWS), veterans recited a poem telling their love and wishes for the country and the people. Lieutenant General Shao Huaze, vice chairman of the CGWS, said the peom was written based on the wishes collected from the veterans. The CGWS also held an exhibition of more than 500 calligraphy and painting works by former generals.
PYONGYANG, Oct. 5 (Xinhua) -- Chinese Premier Wen Jiabao and Kim Jong Il, top leader of the Democratic People's Republic of Korea (DPRK), on Monday attended a grand celebration marking the 60th anniversary of the establishment of the diplomatic relations and the closing ceremony of the China-DPRK Friendship Year. In a speech delivered at the May Day Stadium in Pyongyang, Premier Wen said China and the DPRK have understood, supported and helped each other during the past 60 years despite changes in the international situation. The ruling parties and peoples of China and the DPRK have steadily promoted the development of the bilateral ties, contributing to regional peace and stability, Wen said. This year marks the China-DPRK Friendship Year, featuring a variety of celebrations and events of exchanges, which have enhanced the friendship between the two countries, strengthened cooperation in various fields and injected new vitality into the bilateral ties, Wen said. Currently, China-DPRK relations have arrived at a new historic point, he said. China is ready to join hands with the DPRK to further consolidate and develop the traditional friendship, expand friendly exchanges and cooperation to better serve the well-being of both peoples, and make greater contribution to regional peace and stability, he noted. DPRK Premier Kim Yong Il, who also attended the event, said the establishment of DPRK-China relations 60 years ago was an epoch-making event and the DPRK is firmly determined to consolidate and develop the DPRK-China friendship. The events marking the China-DPRK Friendship Year have effectively promoted the friendship and trust between the two peoples, he said. The DPRK is ready to make joint efforts with China to further the friendly, cooperative relations, he said. During the celebration, the leaders watched the grand gymnastic and artistic performance "Arirang" presented by DPRK artists.
NANJING, Aug. 15 (Xinhua) -- An antiwar cartoon exhibition displaying works by 110 Japanese artists opened in the eastern Chinese city of Nanjing Saturday to mark the 64th anniversary of Japan's surrender in World War II. The exhibition, jointly organized by the Memorial Hall of the Victims of the Nanjing Massacre and the Japanese non-governmental association of "My Aug. 15," will last three moths. About 160 cartoon works will be displayed, the first time the exhibition is held outside Japan, the organizers said. Most of the authors of the cartoons were born before Aug. 15, 1945 and had deep memories about the war. In addition, many of them lived in different parts of China with their parents at that time and learned of the news of Japan's surrender in China. Many years later, they produced a group of works with the theme of "My Aug. 15," conveying their condemnation about the war atrocities and reflection on the militaristic brutality. The exhibition was divided into four parts according to the authors' ages when Japan surrendered, "above 16," "8-15," "5-7" and "below four." Nine prestigious Japanese cartoonists, along with about 100 people from several Japanese NGOs, attended the opening ceremony of the exhibition Saturday. "It tells a true story," said 70-year-old artist Kenji Morita, pointing to his own work "Thanks to Adoptive Chinese Parents." "Although Japan was an invader, many Chinese parents still helped raise Japanese children orphaned by the war," he said. Leading Japanese manga artist Tetsuya Chiba also recalled the war past he experienced in China. "I was in Shenyang (capital of northeast China's Liaoning Province) the day when Japan's surrender in World War II was announced by the late Emperor Hirohito over radio. I was only six then, and I couldn't really understand what happened," Chiba told Xinhua. "I didn't manage to return to Japan immediately, so I spent a very hard year in China after Japan's surrender. But I met a very nice Chinese couple, they gave me food even when they didn't have enough to eat. When we separated, they gave me a blanket. I kept the blanket for years until I met their offspring," he said. "Aug. 15 is a meaningful day for both China and Japan, whether to mark the victory or to introspect the war. The day reminds us to be against wars," he added.
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