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BEIJING, Dec. 9 (Xinhua) -- China's top economic planner said Thursday that prices for agricultural produce and materials continued to fall from Nov. 29 to Dec. 5, with some varieties seeing big drops. Food prices monitored in 36 major cities fell 0.2 percent from the previous week, said the National Development and Reform Commission (NDRC). Vegetable prices fell the most, with wholesale prices dropping for the fourth consecutive week and 16 out of 18 staple vegetables falling in price from early November, it said. Radish prices went down 32 percent, Chinese cabbage 28.6 percent, and rape 27.3 percent. Prices of lettuces, cucumbers, celery, cabbages and eggplants all dropped by more than 20 percent. Meanwhile, vegetable prices in 18 of the 36 cities were down by more than 15 percent on a monthly basis, said the NDRC. Prices in Lanzhou, capital of northwest China's Gansu Province, went down 35.8 percent, those in Xiamen, southeast China's Fujian Province, fell 31.9 percent, while in Haikou City, capital of Hainan Province in south China, prices dropped 27.2 percent. Also, prices in eight cities, including Shenyang, Shenzhen and Ningbo, were all down by more than 20 percent. Prices of production materials fell for a third consecutive week, according to the NDRC. Compared with the previous week, prices of major production materials fell 0.4 percent, up 0.3 percentage points. Urea prices moved down 1.5 percent week on week, while natural gas prices dropped 1.3 percent week on week. Prices of aluminum fell 0.8 percent, and those of rubber were down by 0.2 percent. Official figures showed that the country's grain output rose 2.9 percent year on year in 2010 to 546.41 million tonnes, marking the seventh consecutive year of growth for China's grain output. Food prices account for about a third of the weight of China's consumer price index (CPI), a major gauge of inflation, and the falling prices in farm produce and production materials are expected to ease some inflationary pressure. China's CPI rose to a 25-month high of 4.4 percent year on year in October and the hike was largely attributed to a 10.1 percent surge in food prices. The National Bureau of Statistics (NBS) said it would release the November CPI figures on Saturday. Enditem
BEIJING, Dec. 25 (Xinhua) - A robust domestic market, an increasingly competitive technological edge, a vibrant economic structure and a stable society will continue to provide strong support for China's growth in the next five years, a senior official said on Saturday.In the next five years, China will proceed with the development of its industrialization, information, urbanization and market economy while the global environment will be generally favorable to China's peaceful development, said Zhu Zhixin, vice director of the National Development and Reform commission, or China's top economic planning body.However, China is still challenged by problems in pursuing a balanced, coordinated and sustainable development, he said at a lecture attended by members of the Standing Committee of the National People's Congress (NPC), or the top legislature.The lecture, which was held in the Great Hall of the People, was presided over by Wu Bangguo, Chairman of the NPC Standing Committee.

NANJING, Dec. 31 (Xinhua) -- A court in east China's Jiangsu Province sentenced a man to death and another to life in prison Friday for illegally raising up to 4 billion yuan (606 million U.S. dollars) in a fraudulent investment scheme.Another 11 suspects were given jail terms ranging from two-and-a-half to 10 years for collusion in the fraud, which caused losses of 650 million yuan (98 million dollars) to 14,822 investors, the Intermediate People's Court in the provincial capital, Nanjing, said in a statement.According to the statement, Sun Haiyu and Hu Zhen jointly set up a company, Nanjing Runzai Biology Co., Ltd. in January 2004 and began soliciting investments from the public in the name of planting glossy ganoderma, or reishi mushrooms, which are widely used in traditional Chinese medicine.The judge said the company exaggerated its profits in planting glossy ganoderma and fraudulently claimed that the investment was risk free.The duo, together with 11 accomplices, raised more than 4 billion yuan from April 2004 to July 2008.Sun was sentenced to death for the crime of illegal fund-raising by fraudulent means, while Hu was sentenced to life imprisonment.
GUANGZHOU, Dec. 15 (Xinhua) -- China will increasingly promote the use of clean energy, since the country's energy needs are expected to increase by an equivalent of 2 billion tonnes of coal in the next decade, said Dai Yande, an official of the National Development and Reform Commission Tuesday during the 2010 Asia Energy Forum in Guangzhou City."China will use the lever of price to increase the demand for new energy," Dai said, "We will increase the share of non-fossil fuels in energy consumption to 15 percent by 2020.""We will increase the installed capacity of nuclear power to 80 million kilowatts and hydroelectric power to 400 million kilowatts by the end of 2020," Dai added.Further, China's major export hub Guangdong Province will invest 10 billion yuan (1.5 billion U. S. dollars) in green energy development in the next five years, said Li Chunhong, an official from the local government of Guangdong.By 2010, the capacity of nuclear power in Guangdong will reach 24 million kilowatts, and new energy will account for 30 percent of the total energy consumed, Li said.Opened on Dec. 13 in Guangzhou City, capitial of Guangdong Province in south China, the two-day forum provides a platform for experts and officials from around Asia to discuss regional cooperation in developing green energy.The first Asia Energy Forum was successfully held in Guangzhou in August 2009, and the forum is to be held annually in Guangzhou.
BEIJING, Dec. 25 (Xinhua) -- China 's central bank announced Saturday that it will raise the one-year lending and deposit interest rate for the second time this year, as the government continues its battle against surging prices.The People's Bank of China (PBOC) said in a statement posted on its website that it will hike the benchmark interest rate by 25 basis points beginning Sunday, which raised the one-year lending rate to 5.81 percent and one-year deposit rate to 2.75 percent.The PBOC increased the benchmark lending and deposit rates by 25 basis points on Oct. 20, which was the first increase in nearly three years.The rate hike came after the central bank vice governor, Hu Xiaolian, said Friday that China would bring its overall money supply to a normal level using various policy tools, as the government shifts monetary policy from "moderately loose" to "prudent" to rein in rising inflationary pressures and curb asset bubbles.Photo taken on Nov. 18, 2010 shows a teller counting the Renminbi at a bank in Qionghai City, south China's Hainan Province. China's central bank will raise the one-year lending and deposit interests rate by 25 basis points from Dec. 26, 2010, according to a statement posted on the website of the People's Bank of China Saturday.The country's consumer price index (CPI), a main gauge of inflation, accelerated to a 28-month high in November of 5.1 percent, while new loans reached 7.45 trillion yuan in the first 11 months of this year, compared to the government's full-year target of 7.5 trillion yuan.A recent PBOC survey also showed that the proportion of Chinese citizens satisfied with the current price level had sunk to an 11-year low, and only 17.3 percent of the consumers said they intended to consume more in the future.Rising prices have prompted the government to take measures to rein in the hikes, including boosting supplies and providing financial aid to the needy.Li Daokui, a member of the monetary policy committee with the PBOC, said the rate hike mainly aimed at managing inflationary expectations and reflected the policy shift, as tightening the money supply is the best way to curb inflation.The rate increase came "at the right time", as western countries are celebrating the Christmas holiday, to avoid overreaction from the global markets, Li added.Besides interest rate hikes, China had increased the bank reserve requirement ratio six times in 2010 to 18.5 percent and 19 percent for some large commercial banks."The decision was made in consideration of China's economic condition next year," said Lian Ping, chief economist with the Bank of Communications, the country's fifth largest lender, who described fighting inflation as the central bank's primary task at present.Lian expected inflation to continue to go up in the first quarter next year due to rises both in demand and cost, as well as other influences from the external market.His views were echoed by Zhuang Jian, chief economist with the Asian Development Bank, who also attributed rising inflation to holiday seasons and the extreme winter weather.Observers believe that further rate hikes are to be expected since solving inflation and liquidity pressure at the same time is considered a difficult task."You cannot expect one or two rate rises to have a significant impact on economic indicators," said Zuo Xiaolei, chief economist with Galaxy Securities.However, Lian said China only has room for two or three rate hikes, as higher interest rates would increase risks of "hot money" inflows due to a widening interest margin between China and the United States, which is likely to keep rates low.Li Daokui also attributed the timing of the rate increase to avoiding rapid capital inflows.But currently the factors that decides the direction of capital flows are currency exchange rates and assets prices, Lian added.UBS Securities economist Wang Tao said last month that she expected the central bank to raise the interest rate by 25 basis points before the end of the year and by another 75 basis points in 2011.China's economy grew 9.6 percent year on year in the third quarter this year, slowing from the 10.3 percent increase in the second quarter and 11.9 percent in the first quarter.The country targets about a 3 percent inflation rate in 2010.
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