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BEIJING, Nov. 26 (Xinhua) -- Chinese Premier Wen Jiabao on Thursday pledged to increase cooperation with the United Nations Development Programme (UNDP). Wen told visiting UNDP Administrator Helen Clark that the Chinese government applauded the UNDP's assistance and support. Hailing the UNDP's efforts in global development and poverty reduction, Wen spoke highly of the UNDP's positive role in the progress toward achieving the United Nations Millennium Development Goals (MDGs). Clark expressed her appreciation for China's achievements in its social and economic development, hoping to work with the country to expand cooperation to jointly cope with challenges. Clark was here on a visit at the invitation of the Ministry of Commerce of China.
BEIJING, Dec. 7 (Xinhua) -- The closing of China's Central Economic Work Conference on Monday, which coincided with the opening of the 15th United Nations Climate Change Conference in Copenhagen, left a message that China was determined to pursue a path of low-carbon development. The three-day conference, responsible for setting the tone for economic development in 2010, agreed that China would step up efforts to boost low-carbon sectors, as part of the strategy of promoting the transformation of economic development pattern. "This demonstrates a remarkable change in China's concept of development, and would greatly help upgrade economic growth pattern and adjust economic structure," said Jiang Xinmin, a researcher with the National Development and Reform Commission (NDRC). The conference agreed to strictly control the issuing of loans to sectors featuring high energy consumption and high carbon emissions, increase credit support to low-carbon industries, strictly reduce exports of high energy-consuming products and rollout low-carbon economic development pilot plans. Jiang said the government's policies would surely produce more breakthroughs in low-carbon technologies, thus providing new vigor for growth. "We can simply say that China has set foot on a low-carbon development road." The Chinese government's major task this year had been to maintain growth through its stimulus programs amid the global economic downturn, said Wang Xiaoguang, a researcher with the China National School of Administration. "As the economic recovery is gaining momentum, the country should shift its focus to the long-term development plan," Wang said. The conference has put much emphasis on "green" development as 2010 will be the last year of the country's 11th five year plan (2006-2010), a guideline for economic and social development, which set hard targets for reducing energy intensity and emissions. Under the plan, China would reduce energy consumption per unit of GDP by 20 percent and major pollutant emissions by 10 percent from the 2005 levels by 2010, and the country is still working for that goal. China announced ambitious plans in late November to cut its energy intensity per unit of GDP by as much as 45 percent by 2020 compared to the levels in 2005. "The country would be pressured to make more efforts to achieve these targets. It is a tough task we must fulfill. We need to change our growth pattern and find a way to sustainable development," Wang said. The great importance the government attached to emissions cutting suggested the low-carbon concept has gradually merged into the country's development plans, said Wang. However, it took more than government policies and enforcement to reach the goal, said Zhou Dadi, a researcher with the NDRC "A low-carbon development pattern also needs concerted efforts by the public to change their life styles," Zhou said.
BEIJING, Dec. 30 (Xinhua) -- China is making concrete steps in pushing forward with its low-carbon economy by curbing overcapacity on one hand and boosting strategic emerging industries on the other. CURBING OVERCAPACITY At a press conference held here on Wednesday, Li Ningning, a senior official from the National Development and Reform Commission (NDRC), the country's top economic planner, said the overcapacity problem in a few industrial sectors such as coal chemical industry and vitamin C must be tackled. China is the biggest producer of coal chemical industry. From January to November this year, China produced 314 million tons of coke, up 8.2 percent year on year, Li said. In 2009, production capacity of coke expanded by 30 million tons while the export down 96 percent from a year earlier to 480,000 tons. Utilization rate of the capacity was 80 percent in 2008, he said. "China is a country comparatively rich of coal while lack of oil and gas, the mature technology and low investment threshold in the coal chemical industry seems conducive to the investment," said Li. Restructuring of the coal chemical industry involves in eliminating outdated coal chemical production capacity, supporting technological innovations and strengthening policy guidance, according to Yuan Longhua, an official from the Ministry of Industry and Information Technology. Wang Jian, secretary general of China Society of Macroeconomics, had said in an article published by the Xinhua-run Outlook Weekly that 17 industries in China were faced with excessive capacity in 2008, rising from 11 in 2005. And the number of industries with excessive capacity is still rising, Wang added. Chinese Premier Wen Jiabao told Xinhua on Sunday that overcapacity was a result of the long-existing problem of an imbalanced economic structure in China. "To resolve the problem of overcapacity, the most important thing is to take economic, environmental, legal and, if necessary, administrative measures to eliminate backward capacity and, in particular, restrict the development of energy-consuming and polluting industries with excess capacity," Wen said. BOOSTING LOW-EMISSION INDUSTRIES Also at the press conference on Wednesday, Shi Lishan, another official with the NDRC, said the government needed to guide the development of high-tech industries such as wind and solar power equipment manufacturing as China rushed to build a low-carbon economy. Earlier this month, Premier Wen had listed seven high-tech emerging industries as new energy, energy-saving and environmental protection, electric vehicles, new materials, information industry, new medicine and pharmacology, as well as biological breeding. Development of emerging high-tech industries could not only bring about a low-carbon economy, but also help China tide over the financial crisis. "The key to conquer the global economic crisis lies in people's wisdom and the power of science and technology," Wen said. Boosting low-carbon technologies was crucial for the transformation of the nation's economy, Wen said. New energy, energy-saving, environmental protection and electric vehicles industries were on the government's priorities among the seven emerging industries that needed particular attention. By the end of 2008, China's energy-saving and environmental protection industries totalled 1.55 trillion yuan (227 billion U.S. dollars), accounting for 5.17 percent of the country's GDP, according to the NDRC. He Bingguang, another NDRC official, forecast at a forum on the low-carbon economy held in Beijing last week that due to government policies the two industries would account for 7 to 8 percent of China's gross domestic product (GDP) by 2015. In fact, financing of low-carbon industries has been part of the government's stimulus package. Liu Mingkang, chairman of the China Banking Regulatory Commission, said that Chinese banks would continue to play positive roles in energy conservation and environmental protection, as well as helping adjusting the economy's structure. "Banks should be part of the concerted efforts to make a low-carbon economy," he said at a financial forum here last week. Liu said to control risks, banks should create more low-carbon financial products to benefit the "green economy". Besides shutting down high emission enterprises, environmental experts have predicted increased investment on technological innovation, energy-saving and environmental protection, especially in the field of new energy. China would stand on its own feet to develop low-carbon technologies, predicted Jin Jiaman, head of the Global Environmental Institute. "China must develop in a low-carbon way not just to be part of the global trend but rather because it's an inevitable choice given the current economic conditions and future prospects," Jin said.
BEIJING, Nov. 2 (Xinhua) -- Stocks on ChiNext, the country's Nasdaq-style board for domestic start-up firms, rode on a roller coaster on the first two trading days: soaring at debut and taking a sudden turn on the second day. Twenty stocks out of the total 28 fell by the daily limit of 10percent at Monday close, compared with an average of 106.23 percent surge on Friday, the first trading day, driven by a speculative surge for quick profits. About 252,600 individual investors bought 423 million new shares at ChiNext on Friday, accounting for more than 97 percent of all new shares on the market. The average price-earnings ratio for the initial public offering prices was at around 55.70 times, and then was pushed up to around 111 times, much higher than 25.98 times and 37.80 times at main boards in Shanghai and Shenzhen bourses respectively. The bubbly opening led to warnings of risks posed by excessive speculation and inflated stock price. Jin Yanshi, chief economist with the Sinolink Securities, said the price-earnings ratio was too high driven by the irrational buying spree. He said the frenzy would gradually cool off, and he expected a 30 percent to 50 percent drop of share prices in three to six months. Analysts said it was typical in China that new shares would face speculation at debut and see large initial gains, followed by a continuous pullback. China State Construction Engineering Group shares soared more than 60 percent at debut in Shanghai on July 29 from a initial public offering price of 4.18 yuan and ended at 6.53 yuan, up 56.22 percent. On Monday, its close price stood at 4.79 yuan. It also reminded of the launch of board for small and medium-sized enterprises at Shenzhen Stock Exchange market on June25, 2004, when shares of eight new stocks rose more than 130 percent. The share prices fell by an accumulative 40 percent from the close prices on the first trading day three months later. China made plans to launch the Nasdaq-style board for trading of start-up shares in 1999 to boost development of small and medium-sized enterprises. The plan was postponed in 2001 when the Internet bubble burst in the United States. Since 1962, a total of 39 nations or regions have launched 75 such boards for start-up companies to raise funds. However, about half of them ended up closing due to weak market sentiment and regulatory inconsistencies, and 41 markets were operational as of the end of 2007. The Growth Enterprise Market, kicked in Hong Kong in 1999, was a luck luster as investors were scared away by the plunge in value of technology stocks in 2001. The index fell about 90 percent since then. By contrast, Nasdaq set up in the United States in 1971 has been a successful one, which attracted giants like Microsoft and Intel, and became the major market for overseas listing of Chinese enterprises. There are currently 116 Chinese companies listed on Nasdaq, including Baidu. Analysts attributed the main reasons for failure of some markets to blindly lowering threshold of market entry, poor supervision and inactive transaction. The wild fluctuation challenged the ability of regulators to control volatility in the new bourse and stirred concerns whether it would grow to be a second Nasdaq or the dazzling debut would be the last wild ride. Shang Fulin, chairman of the China Securities Regulatory Commission said on Oct. 23 that trading on the new board may have a probability of becoming "irrational" than on other bourses. "Preventing risk is our main task," he said. "We'll make sure risk is estimated, detected and controlled." The Shenzhen Stock Exchange issued special suspension rules to clamp down on speculation. Trading would be suspended for 30 minutes if share price rises or falls by 20 percent from its debut level. If a stock fluctuates again beyond 50 percent of its opening price, it will be suspended for 30 minutes. The stock can also suspend a stock until three minutes before the close of trading session on a rise or drop above 80 percent. Zuo Xiaolei, chief economist of the China Galaxy Securities, said the lesson from failure of other markets showed the key to the success of such start-up board was to strengthen supervision while completing rules, which would ward off excessive speculation and rule violations. The government should develop more policies to attract more firms with great potential growth to make the board bigger and stronger, but threshold for access to the market should not be lowered, analysts said.
BEIJING, Jan. 7 -- China's central bank Wednesday said it will manage inflation expectations and keep a close watch on the property market through its credit and money supply policies. In a statement on its website, the People's Bank of China (PBOC) said it would try to maintain ample liquidity in the financial system, and ask banks to lend more evenly, while strictly implementing credit policies in the property sector. The nation will also take steps to rein in fast-rising property prices and strengthen credit controls for the sector, according to Housing and Urban-Rural Development Minister Jiang Weixin. A customer checking out a model of a real estate project in Shenzhen, Guangdong province. Property prices in China's 70 major cities rose at the fastest pace in 16 months in November "We should scrap or adjust local property policies launched last year that no longer comply with the current macroeconomic goals," Jiang said. According to Dong Chen, director of the research institute of Southwest Securities, the government moves on real estate policies indicate that while policymakers are striving to cement the economic rebound, they are also serious in curbing the excessive liquidity in the financial system to allay fears of asset bubbles and inflation. Property prices in China's 70 major cities rose at the fastest pace in 16 months in November, fueling concern that record lending and inflows of capital from abroad are building up asset bubbles. "Credit policy is the key to curb the rising property prices, as it would have a direct impact on transaction volumes," said Su Xuejing, an analyst with Changjiang Securities. "We anticipate more policy tightening in the future like increasing the down payment and mortgage rates for second-home buyers," he said. Shanghai Securities News said on Tuesday that the government plans to expand trials of a real estate tax, citing an unidentified person close to the State Administration of Taxation. The anticipated policy changes have also affected the capital market performance of leading realtors. Shares of China Vanke Co, the country's largest listed property developer, have fallen more than 12 percent in the past month on concerns that the measures to cool the property market would impact earnings. Poly Real Estate Group Co, the second largest real estate firm, also saw its shares fall to a four-month low. Meanwhile, a report from UK real estate service provider Savills said that the tighter credit policies and soaring realty prices have spurred property sales by international investors. Many of the investors had acquired the properties several years back and have been able to get handsome returns now, it said. "Sales by foreign investors increased from 7 percent in 2008 to 20 percent in 2009," said the report.