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China is tightening its grip once more on foreign investors in Chinese real estate, banning them from borrowing offshore in the latest effort to tame property prices and cool the economy. The new rule, set out in a circular from the State Administration of Foreign Exchange , could squeeze foreign investors who take advantage of lower interest rates outside China. Some may find it especially difficult to fund projects as Beijing has told its banks to cut back on loans for the construction industry. The central bank ordered Chinese banks to stop lending for land purchases as far back as 2003. "The only alternative is to fund the entire equity," said Andrew McGinty, a partner at the law firm Lovells in Shanghai. "But that's not a very favoured method, because your internal return on investment goes down dramatically." Property funds operating in China tend to borrow to fund at least 50 percent of a project's value. The circular, which the currency regulator sent to its local branches in early July but has not yet published on its Web site, also increases red-tape for foreign property investors. Investors seeking to bring capital into China to set up a real estate company must now lodge documents with the Ministry of Commerce in Beijing -- not just with local branches of the ministry, according to the new circular with de facto effect from June 1. That process could take a month or more, said an official at the Ministry of Commerce, declining to be identified. "What we mean is very clear: First we are targeting foreign real estate firms that are illegally approved by local governments," a SAFE official said. McGinty said the new rule would reduce foreign investment in the real estate sector, but the real impact would depend on how it is enforced. UNCERTAIN IMPACT China has applied a raft of measures to rein in property investment, including interest rate rises and rules to discourage construction of luxury homes. Some steps have specifically targeted foreign investors, who account for less than 5 percent of total investment in the property sector. Foreign investors must now secure land purchases before setting up joint ventures or wholly owned foreign enterprises in China. However, funds such as those run by ING Real Estate, Morgan Stanley , Hong Kong's Sun Hung Kai Properties , Henderson Land Development and Singapore's CapitaLand Ltd. are pouring more money than ever into China to tap a middle class hunger for new homes and rising capital values. China's urban property inflation rose to 7.1 percent in June, compared with a year earlier, from 6.4 percent in May. McGinty said some foreign investors may eventually quit China for more interesting markets if an inability to employ leverage reduces their internal rate of return. However, others said they would stay on. "We are not too worried about it. Cooling measures won't stay forever," said Robert Lie, Asia chief executive for ING Real Estate, which has raised a 0 million fund to build housing in China. ING Real Estate borrows locally, partly to hedge its currency risk. Most other foreign investors in China do the same. Some foreign property firms that have been in China for many years have strong connections with local lenders -- Chinese banks as well as international banks incorporated in China. "There is still strong interest in China, although there will be some form of slowdown in the number of transactions," said Grey Hyland, head of investment at Jones Lang LaSalle in Shanghai. He said the new approval rules would further dampen the ability of foreigners to compete with local rivals. "It's still early to say how, because these rules are still very new and being tested," Hyland said. One consequence, he added, could be to drive foreign property investors inland to second- and third-tier cities that the authorities are eager to develop and where approval is therefore easier to obtain.

Fifty-two of the 57 speakers at a public forum Thursday opposed the development of a chemical plant in the city of Xiamen, Fujian Province.Provincial authorities had invited residents to share their views and give suggestions on the proposed development of the plant in Haicang district.A further 42 participants will get the chance to voice their views today.Some of those who opposed the scheme are believed to either own or have plans to buy an apartment in Haicang.They argued that Xiamen has long been known for its beautiful scenery and for being one of the most livable cities in China.Other representatives said the government should find a way to balance the economic development of the area with environmental concerns.The authorities put the paraxylene (PX) plant, which was to be built 16 km from the city center, on hold in May after coming under pressure from locals opposed the project.Paraxylene is a highly polluting, cancer-causing petrochemical used to make purified terephthalic acid, a raw material for producing polyester film, packaging resin and fabrics. Health experts have also said it can cause fetus abnormalities.The 10.8 billion yuan (.5 billion) plant for the Tenglong Aromatic PX (Xiamen) Co Ltd was expected to produce 800,000 tons of paraxylene and add about 80 billion yuan a year to the local economy.The authorities started soliciting opinions from the public following the publication last Wednesday of an environmental assessment report by experts from the Chinese Research Academy of Environmental Sciences (CRAES).It said public participation was an important step in the environmental assessment of urban planning.The CRAES report advised Xiamen's urban planners to choose between developing Haicang district into a sub-center of the city or creating an industrial zone focused on the chemical industry.It also indicated that creating an industrial zone would require demolishing a number of houses, relocating residents and conducting strict safety controls over the chemical plant.Participants in the forum were chosen by lottery on Tuesday, under the supervision of the Xiamen notary office, from the 624 people who registered online or by calling a hotline number.A further 100 people were selected as alternative representatives. More than 100 people were disqualified for providing invalid ID numbers, the local government website stated.

CHANGSHA -- Chinese media have blasted an attempt by a Chinese city in Hunan province to set a world record for the longest string of firecrackers, labeling it "ridiculous" and a waste of money.A 20-km string of firecrackers, stretching from Dayao Town to the downtown area of Liuyang City, home to China's largest firecracker production base, went up in smoke on Friday afternoon, exploding for 68 minutes and littering the ground with red debris, as organizers sought to gain publicity for the city and its local fireworks industry.The event, organized by several firecracker plants and partly sponsored by the local government, cost more than 800,000 yuan (about US7,000), including 580,000 yuan for the firecrackers themselves and the remainder to stage the event and ensure the fire service was on standby."The production of firecrackers is one of the city's main industries. We hope the success of making the longest firecracker will increase the confidence of the producers and make our city well-known across the country," said Xu Qiangguo, head of the Liuyang Firecrackers Bureau.But the event, billed by local media as a Guinness World Record attempt, was not attended by an official Guinness World Records representative after it ignored a request from the organizers to attend.Instead, a representative from the unofficial Shanghai Great World Guinness Book of Records turned up to present them with a certificate bestowing upon the city the honour of having only "the country's longest string of firecrackers"."I can only ensure you that it's the longest firecracker in China and I dare not say it's the world's longest," said the Shanghai office's representative Wang Yizhuo."Firecrackers were traditionally used to ward off evils but burning crackers is more of a token of celebrations and festivals nowadays. I think this longest string of crackers reflect the happy and peaceful life of the people," he said.A flood of opinion pieces from newspapers around the country waded in with their assessments."Such a record is ridiculous, just like to sharpen the two ends of a tree and apply for the record of the longest toothpick," a journalist with the Jinan Times said.The Beijing Times said, "Unless the firecrackers are supposed to be part of a cinematic scene of raging war, what benefits would accrue from setting off 20 kilometers of fireworks?"The newspaper went on to bemoan the country's lack of creativity. "We are no less than a manufacturing base for the world. We may continue to set records in a similar manner, but that will not add a jot to our overall competitiveness," the article said.The Liuyang authorities also came under fire from a writer from the Guangzhou Daily, who called the event a "real burden for the local economy"."It's high time to call off applications for the professed 'longest' or 'most' records, such as 10,000 people eating hotpot and 10,000 people washing their feet together. They lack social significance as well as scientific and technical skills," he wrote."Some local governments like to spend a fortune creating a record in order to attract attention. But after the sensation only some meaningless numbers are left."But the man behind the spectacle Xu Qiangguo remained defiant and said he was considering applying for the official world record next year."I don't think it's a waste of money because we have got what we wanted: extensive media coverage and more orders," he said. "If you call that too luxurious, how about the existence of so many five-star hotels? They are even more luxurious."Several onlookers in Liuyang agreed. "The firecracker industry is the pillar industry of the city and making such a long one will promote our firecrackers' fame and maybe even make them world renowned," one said.Meanwhile the controversy surrounding the legitimacy of the Shanghai Great World Guinness Book of Records, which was established in 1992 and comes under the authority of the Shanghai branch of the Communist Party Youth League, continues.Guinness' official branch in China is Liaoning Education Press, based in the northeastern province of the same name.According to an article on the website of Liaoning Education Press, it has been the real Guinness Book of Records representative in China since Shanghai Great World Guinness and the Guinness Book of Records split in 1996.In 2003, a Hebei businessman from Beijing sued the Shanghai office after paying them a 1,800-yuan registration fee so he could set a world record for the first bungee jump from a moving aircraft, believing the organization to be affiliated to the Guinness publishers.After completing the jump from a helicopter 80 meters above ground, He later read in a Beijing newspaper that the Shanghai Guinness office was not an authorized agent of the Guinness Book of World Records and had been misleading the public. He also discovered that a German man had jumped 1,100 meters from a helicopter in 1997.

SHANGHAI, May 3 (Xinhua) -- The gas supply to about 10,000 households in Shanghai was suspended for eight hours after a gas pipeline was broken by a grab at a construction site on Thursday. No casualty has been reported, according to the municipal government. The accident happened at around 8 a.m. at the crossing of the downtown Caoyang and Shunyi streets. Workers said gas burst out after the grab broke a gas pipeline with a diameter of 300 millimeters. Though they tried to plug the crack with bricks and mud, the leak was out of control till rescuers from the municipal gas supply company arrived. The company cut the gas supply later and fire fighters sprayed water around the pipeline to dilute the gas to avoid explosion. The pipeline was repaired at around 4 p.m. and the supply had resumed by 6 p.m., according to the gas supply company.

Poor planning not natural events was to blame for a spate of deadly accidents recently, safety chief Li Yizhong said.In the latest major incident, 172 miners are still trapped underground nearly three weeks after floodwater inundated the Huayuan mine in Xintai, East China's Shandong Province. Rescue work is ongoing.There have been 18 major accidents (with at least 10 people killed each) since July 18. Seven of these incidents have been triggered by natural events."The root is some local authorities and companies have failed to take sufficient action to tackle safety loopholes and build a sound early-warning mechanism," the chief of the State Administration of Work Safety said on Tuesday.Learning from these "bloody lessons" will prevent "accidents triggered by natural disasters," Li said.In a circular issued last Friday the State Council urged mines that risk being flooded to stop production when typhoons land or there is torrential rain.The circular also asked mine owners to identify hidden natural dangers and remove them."We feel it is urgent to improve emergency rescue mechanisms and carry out more training and drills," Li said.He cited two explosions at a natural gasfield in Kaixian County, Chongqing, which had very different outcomes.The first incident killed 243 people in 2003. But in 2006, nobody was killed when there was a similar incident because emergency plans were in place and there had been drills.The work safety situation in China is grim despite a decline in the death toll over the first eight months of this year, Li said.Statistics showed 61,919 people were killed in various work accidents nationwide between January and August. This was 13.9 percent lower than over the same period last year.The number of major accidents with 10 or more deaths during the same period has dropped by 14.7 percent year on year.In response to the high number of fatal accidents the State Council Work Safety Committee has sent about 300 people, in 24 teams, to carry out safety checkups across the country, starting August 27 and ending September 20.