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China will gradually sell its planned 1.55 trillion yuan (3.6 billion) in special domestic bonds to finance its overseas investment agency, a senior central bank official was quoted on Monday as saying. The country's stock market has been hit by the bond issue plan, approved by China's parliament on Friday, as investors feared such a move would suck funds from the market. "The plan will be carried out gradually according to its monetary policy," Yi Gang, assistant governor of the People's Bank of China, told the Shanghai Securities News. Yi reiterated the Finance Ministry's view that the bond issue would have only a neutral impact on the domestic economy, the newspaper said. The Finance Ministry indicated on its Web site on Friday that it would issue the bonds directly to the central bank in exchange for part of the .2 trillion in foreign currency reserves under the central bank's control. No specific timetable was given for the sale of the bonds, but the increase in this year's debt ceiling suggests they will all be issued this year.

SHENZHEN: A student at an IT college in Zhuhai, South China's Guangdong Province, ran amok on Tuesday, stabbing six of his classmates, police said Wednesday.One of the victims suffered a deep gash to the neck, which required intensive care treatment, but he is said to be in a stable condition.The 21-year-old attacker, surnamed Chen, was later arrested and is now in custody. He is believed to be suffering from a mental illness, a spokeswoman for the Zhuhai public security bureau told China Daily yesterday.She refused to give any further information, however, as the case is still under investigation.According to a report by the Guangzhou-based Southern Metropolis Daily, the incident happened at about 10:40 am at the start of a new class.Witnesses said Chen pulled out a 15-cm-long fruit knife and "casually" stabbed the two people sitting next to him and in front of him."I saw blood gushing from one boy's throat and another had been stabbed in the right side of his neck," the newspaper quoted one witness, who asked not to be named, as saying.Chen then attacked four other classmates, as they and their teacher attempted to escape the room, the witness said.After the attack, Chen remained in the classroom.A teacher locked the door from the outside and called police, the Guangzhou Daily reported.Police arrived soon after and arrested him.The victims were taken to a nearby hospital. Three of them had been stabbed in the neck while the others had suffered wounds to their arms and wrists, a source from the hospital said.A spokeswoman for the school, surnamed Cui, said the school authorities will issue a formal statement once the police have concluded their investigation.Students and teachers were receiving counseling to help them deal with the incident, she told China Daily.According to the Guangzhou Daily, Chen, who lives in Zhuhai, attacked a classmate while he was at university in Wuhan, in Central China's Hubei Province. He was later expelled.

Chinese auditors said it found no embezzlement or misappropriation of construction fund in the ongoing Three Gorges project, however, they also detected some problems and flaws in the project management. The National Audit Office (NAO) said the overall quality control of the project was fine and total investment were kept under control. All 11 major projects were up to the standards, as were main materials such as steel and cement, said an audit report by the NAO. It said total inflation-adjusted investment, expected to be 78 billion yuan, could be more than 35 billion yuan less than planned in 1994. By the end of 2005, the country had spent 64.2 billion yuan on the project. The NAO, however, also detected extra construction costs of 488 million yuan, most of which was incurred by project construction contractors who exaggerated their expenditure. The office also found 20.4 hectares of land illegally used without governmental permission, while another 110 hectares approved for use had been left idle. "The problems are largely due to lack of laws and regulations and imperfection in internal control," said Pan Xiaojun, senior official with the NAO. The company said it had already corrected the use of 139 million yuan of fund involving violation of rules, and a total 17 measures had been adopted to improve management over the project. The office said 21 power station construction projects, most of which involved a single contract value of less than 10 million yuan were not put out to tender. A few construction companies were discovered to have subcontracted their projects against regulations and obtained illegal charge of 53.45 million yuan. About half of the 1,448 supervisors sampled were found to have no licenses for the work. The China Three Gorges Corporation said it had strengthened the implementation of public bidding to ensure the fairness of the results and avoid the influence of people, and it also added detailed terms about contracting in contracts to prevent illegal contracting. The unlicensed supervisors had been fired and supervision over the project supervisors were enhanced, according to the company. The report said that the project across the Yangtze River, the construction of which began in 1993, had played a "better-than-expected" role in flood prevention, power generation and shipping. "It's possible to put the project into full operation by 2009 as planned, and the project is running a bit ahead of schedule," it said. The fourteen generators in a power plant had been put into operation a year earlier than planned in 2005, the office said. Upon its completion, the Three Gorges dam will produce 85 billion kwh of electricity annually for supply to central and eastern China. The dam, which is 2,309 meters long and 185 meters high, will be installed with 26 turbo-generators, each with a generation capacity of 700,000 kilowatts. The audit, which took 150 auditors more than six months to complete, covered areas including fund raising, management and use, construction management as well as benefit of the project.

XI'AN -- A fire burnt up trees and shrubs on a mountain that shrouds one of the most famed imperial mausoleums in the ancient city of Xi'an in northwest China's Shaanxi Province, but no damage was caused to the cultural relics, local museum officials said on Sunday.The fire broke out around 2:00 p.m. Saturday on the western part of a mountain that encased the tombs of a powerful Chinese empress Wu Zetian and her husband Gaozong in the Tang Dynasty (618-907). The Qianling Mausoleum, as the tombs are called, reportedly houses the most precious possessions of the two rulers, including paintings, ceramics, calligraphy works and jewelry articles.The fire was fanned up by sandstorms which struck the area on Saturday, said Fan Yingfeng, curator of the Qianling Museum.More than 100 local villagers and 15 fire-fighters managed to put out the fire around 3:10 p.m. on Saturday. About 30 trees and a few shrubs were lost to the blaze.Initial investigation showed the fire was caused by a deserted cigarette end in the dry grasses."Although the fire didn't cause any major damage, it reflected an urgent need to educate residents in neighboring villages to guard against fire risks," Fan said.He said lessons should be learnt from the destruction of a 600-year-old Namdaemun gate in Seoul, one of the most treasured landmarks in the Republic of Korea. The two-tiered gate was set ablaze by a man upset over a land dispute.

Beijing has fined more than 50 people for spitting in the past week's holiday, a report said on Monday, as Beijing steps up a campaign to "civilize" the city before the 2008 Olympics. Officials also handed out more than 10,000 bags to tourists to try to keep them from littering as inspection teams fanned out across the city's tourist sites during the week-long Labor Day holiday, when hundreds of millions take to the roads. "The Olympics are coming, and we don't want to get disgraced," Xinhua news agency quoted travel guide Huang Xiaohui as saying. Guides had been instructed to remind tourists not to spit, litter or jump queues, and lead an "etiquette discussion" at the end of the tour, the report said, citing a circular issued by the China National Tourism Administration. China also has an official etiquette watchdog, the Spiritual Civilization Steering Committee of the Chinese Communist Party, which aims to curb uncivilized behavior. Chinese officials have expressed concern about rudeness and public spitting habits and launched campaigns to cultivate courtesy and civility, keen to ensure nothing mars Beijing's image during the Olympic Games. Among the initiatives, the 11th day of every month is now "voluntarily wait in line" day, designed to stamp out pushing and shoving in favor of orderly queues.