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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.

The late Chinese leader Deng Xiaoping pledged to keep Hong Kong's three capitalistic characteristics - horse racing, dancing and stock exchanges - intact for at least 50 years after its return. Horse racing remains popular in Hong Kong, as shown in this file photo.Edmond TangThis pledge is being upheld as the Special Administrative Region marks the 10th anniversary of its return to the motherland. Today, more Chinese mainland residents are playing the Hong Kong stock markets, attending its horse races and visiting Lan Kwai Fong, Hong Kong's top entertainment center. For over a century, horseracing has thrilled Hong Kong people. Race days are held on most Wednesdays and weekends from September to June. During the season, many can be seen burying their heads in newspapers at teahouses studying the form of horses. "After Hong Kong's return, horse racing has not only been retained, but has grown with the support of the central government and Hong Kong people," said Kim K.W. Mak, executive director of the corporate development department of the Hong Kong Jockey Club. Mak said the jockey club is now striving to provide its best facilities for the coming 2008 Beijing Olympic Games. It will host the equestrian events. The club manages two racecourses - Happy Valley and Sha Tin - attracting more than 2 million racegoers each racing season. The club's betting turnover, exceeds HK.3 billion every fiscal year. It contributes 1.3 percent to GDP, and 10 percent of the government's tax revenue. It is also one of the 10 biggest employers in Hong Kong, employing more than 5,000 full-time workers and 20,000 part-time staff on race days. Hong Kong youngsters wave flags, hailing Premier Wen Jiabao's arrival to sign the Closer Economic Partnership Arrangement in this file photo.Huo YanAs the largest charity organization in Hong Kong, the club was a major donor to the anti-SARS campaign in the spring of 2003. Today, the people of Hong Kong enjoy stability in every aspect of their lives. "We don't see any difference in our way of life after 1997," said Wong Yim-fat, a fishmonger in Hong Kong. "Though there have been hard times, we have come through it, believing things can only get better." Wong now plays the stock markets and has had some luck with the Hang Seng Index rising from 15,196 points in July 1997 to about 21,685 today. "Actually, as masters of our own society, we feel there is more freedom and opportunities following Hong Kong's return," Wong said. Wong said he is happy with his decision to remain in Hong Kong after its return and not seek to emigrate as some of his friends and relatives did. "Many of my friends who have emigrated have come back, after finding out that things have not changed," Wong said. Before 1997, many Hong Kong people were uncertain about its future and left for other countries. Official figures from Hong Kong Customs show that more than 300,000 people moved to America, Australia and Canada between 1990 and 1997. Ten years later, many returned because of Hong Kong's stability and prosperity. Renee Chu, an assistant computer officer at the Chinese University of Hong Kong, was one of those who left before 1997. Following her parent's wishes, Renee left for Australia in 1990 when she was still a middle school student. "At that time, they were concerned about Hong Kong's future and wanted us to receive a better education abroad," she told Xinhua News Agency in a recent interview. After graduating from university, Renee returned to Hong Kong in 2000 as it offered better job opportunities. Hong Kong was hit by an economic downturn and an outbreak of SARS after 1997, but that did not stop the Chu family from returning. "There are always good and bad times for a place," Renee said. "My parents return to Australia from time to time," Renee said, "but their stays have become shorter. They now spend more time in Hong Kong and the mainland." Most Hong Kong people were able to gain residency abroad because of their technological skills and investments. While Hong Kong has retained its attraction for locals, it has also lured more people to its shores. Official statistics show that the number of overseas people in Hong Kong - Indians, Filipinos and British - account for 71,000 out of a population of 6.9 million. The culture of tolerance can be seen in the busy streets. There are restaurants and shops from all nations. "Hong Kong is really a very tolerant and free-spirited city. The cultural tolerance and perfect mixture is reflected in the diversity of our international visitors," said B.C. Lo, vice-president of public affairs, Hong Kong Disneyland. Hong Kong, however, has undergone some subtle changes too. This is evident in the choice of passport. Ten years after Hong Kong's return to the motherland, many Hong Kong people have abandoned their British National (Overseas) or BNO passports in favor of the Hong Kong Special Administrative Region (HKSAR) passport. According to Hong Kong Immigration Department sources, in the past 10 years, as many as 4 million, or 60 percent of Hong Kong's population of permanent residents, have applied for HKSAR passports, and the number is growing. The HKSAR government has managed to obtain visa-free access to as many as 134 countries or regions. BNO passports enjoyed visa-free access to only 114 countries. The passports are still valid. The safety ensured by Chinese embassies and consulates as well as a sense of nationalism have also been key factors in the popularity of HKSAR passports. Wong Yim-fat is of those who think HKSAR passports are not only more convenient, but also offer consular or embassy protection from the Chinese government in times of distress. "While holding a BNO passport, you felt like a second-class citizen," Wong said. "But a HKSAR passport gives you all the privilege that a Chinese citizen enjoys." According to Lu Xinhua, commissioner of the Ministry of Foreign Affairs in the HKSAR, not only Hongkongers have enjoyed an uplift in their international status, but also the HKSAR government. During the past 10 years, the HKSAR government has joined more than 50 international, intra-government organizations and 200 international treaties with the proper identity of Hong Kong, China. "Under the Basic Law, we have tried our best to help exchanges between the HKSAR government and the international community, in order to forge its long-term prosperity and stability," Lu said.

SHENZHEN: Companies in the Pearl River Delta area, the country's manufacturing powerhouse, are raising wages to attract migrant workers amid fears of a worsening labor shortage, a survey has shown.The survey was conducted by the service center of Guangzhou human resources markets, which looked at 252 companies with at least 200 employees each.The poll found out that the average monthly salary offered to new staff was up 13 percent from last year at 1,160 yuan (2).The survey also showed that nearly 70 percent of the companies said they will hire new employees this year, up 20 percent from the same period of last year.Still, the number of job-hunters has decreased and are said to be more picky, the Guangzhou Daily reported.The first job fair in Guangzhou after the Spring Festival break on Friday reportedly offered about 7,000 vacancies, but attracted only 4,000 job-seekers.Figures from the Guangzhou labor authority showed that sectors such as the textile, toy-making, construction, catering, electronics and service industries were top of the list for workers.It was particularly difficult for the textile and toy-making industries to hire workers since such companies could offer an average monthly salary of just 960 yuan, far below what is available across the board, the labor authority said.The situation was said to be similar in other cities in the Pearl River Delta region, such as Shenzhen and Dongguan, which has seen industrial restructuring and experienced the impact of the new labor law, researchers said.However, research by the Asian Footwear Association showed that close to 1,000 shoemaking factories closed or moved out of the Pearl River Delta region last year, with 25 percent setting up in Southeast Asian countries, 50 percent in other mainland cities and about 25 percent adopting a wait-and-see approach."The industrial repositioning of the Pearl River Delta region has forced some of the companies in the region, especially those with less competitive edge in the market, to close or move out," Ding Li, a researcher with Guangdong Academy of Social Sciences, said."The flow of migrant labor has been a clear indication of that."The appreciation of the yuan, raw material price hikes and adjustment of export policies have also seen many private firms and companies funded by businesses from Hong Kong, Macao and Taiwan slowing down demand for migrant workers, the Guangdong labor authority said.

BEIJING, March 25 (Xinhua) -- China's upcoming growth enterprise board for small start-ups to raise funds is no threat to the main stock market, Yao Gang, new vice chairman of the China Securities Regulatory Commission (CSRC), said here Tuesday.     His comments followed continuous declines in China's bourses partly caused by fears of capital shortages after a series of restraining measures and huge refinancing.     "The market is not short of money but of better and more attractive investment products," said Yao in an online interview.     CSRC statistics showed the average market capitalization of the222 companies listed on the Shenzhen small and medium-sized enterprises (SMEs) board was only 300 million yuan.     The number would be even lower, ranging from 100 million to 200million yuan, on the growth enterprise board, he said.     Therefore the capitalization of listing 100 such enterprises would only match one major enterprise on the Shanghai Stock Exchange, he said.     The CSRC began to solicit opinions on the growth enterprise board on March 21. Shang Fulin, CSRC chairman, said in January the board would be opened on the Shenzhen Stock Exchange in the first half of 2008.     Lack of finance has been a problem for China's 42 million small and medium-sized enterprises, more than 95 percent of which are privately owned.     Less than 2 percent of the SMEs access funds directly from the financial market, according to statistics from the National Development and Reform Commission.

The late Chinese leader Deng Xiaoping pledged to keep Hong Kong's three capitalistic characteristics - horse racing, dancing and stock exchanges - intact for at least 50 years after its return. Horse racing remains popular in Hong Kong, as shown in this file photo.Edmond TangThis pledge is being upheld as the Special Administrative Region marks the 10th anniversary of its return to the motherland. Today, more Chinese mainland residents are playing the Hong Kong stock markets, attending its horse races and visiting Lan Kwai Fong, Hong Kong's top entertainment center. For over a century, horseracing has thrilled Hong Kong people. Race days are held on most Wednesdays and weekends from September to June. During the season, many can be seen burying their heads in newspapers at teahouses studying the form of horses. "After Hong Kong's return, horse racing has not only been retained, but has grown with the support of the central government and Hong Kong people," said Kim K.W. Mak, executive director of the corporate development department of the Hong Kong Jockey Club. Mak said the jockey club is now striving to provide its best facilities for the coming 2008 Beijing Olympic Games. It will host the equestrian events. The club manages two racecourses - Happy Valley and Sha Tin - attracting more than 2 million racegoers each racing season. The club's betting turnover, exceeds HK.3 billion every fiscal year. It contributes 1.3 percent to GDP, and 10 percent of the government's tax revenue. It is also one of the 10 biggest employers in Hong Kong, employing more than 5,000 full-time workers and 20,000 part-time staff on race days. Hong Kong youngsters wave flags, hailing Premier Wen Jiabao's arrival to sign the Closer Economic Partnership Arrangement in this file photo.Huo YanAs the largest charity organization in Hong Kong, the club was a major donor to the anti-SARS campaign in the spring of 2003. Today, the people of Hong Kong enjoy stability in every aspect of their lives. "We don't see any difference in our way of life after 1997," said Wong Yim-fat, a fishmonger in Hong Kong. "Though there have been hard times, we have come through it, believing things can only get better." Wong now plays the stock markets and has had some luck with the Hang Seng Index rising from 15,196 points in July 1997 to about 21,685 today. "Actually, as masters of our own society, we feel there is more freedom and opportunities following Hong Kong's return," Wong said. Wong said he is happy with his decision to remain in Hong Kong after its return and not seek to emigrate as some of his friends and relatives did. "Many of my friends who have emigrated have come back, after finding out that things have not changed," Wong said. Before 1997, many Hong Kong people were uncertain about its future and left for other countries. Official figures from Hong Kong Customs show that more than 300,000 people moved to America, Australia and Canada between 1990 and 1997. Ten years later, many returned because of Hong Kong's stability and prosperity. Renee Chu, an assistant computer officer at the Chinese University of Hong Kong, was one of those who left before 1997. Following her parent's wishes, Renee left for Australia in 1990 when she was still a middle school student. "At that time, they were concerned about Hong Kong's future and wanted us to receive a better education abroad," she told Xinhua News Agency in a recent interview. After graduating from university, Renee returned to Hong Kong in 2000 as it offered better job opportunities. Hong Kong was hit by an economic downturn and an outbreak of SARS after 1997, but that did not stop the Chu family from returning. "There are always good and bad times for a place," Renee said. "My parents return to Australia from time to time," Renee said, "but their stays have become shorter. They now spend more time in Hong Kong and the mainland." Most Hong Kong people were able to gain residency abroad because of their technological skills and investments. While Hong Kong has retained its attraction for locals, it has also lured more people to its shores. Official statistics show that the number of overseas people in Hong Kong - Indians, Filipinos and British - account for 71,000 out of a population of 6.9 million. The culture of tolerance can be seen in the busy streets. There are restaurants and shops from all nations. "Hong Kong is really a very tolerant and free-spirited city. The cultural tolerance and perfect mixture is reflected in the diversity of our international visitors," said B.C. Lo, vice-president of public affairs, Hong Kong Disneyland. Hong Kong, however, has undergone some subtle changes too. This is evident in the choice of passport. Ten years after Hong Kong's return to the motherland, many Hong Kong people have abandoned their British National (Overseas) or BNO passports in favor of the Hong Kong Special Administrative Region (HKSAR) passport. According to Hong Kong Immigration Department sources, in the past 10 years, as many as 4 million, or 60 percent of Hong Kong's population of permanent residents, have applied for HKSAR passports, and the number is growing. The HKSAR government has managed to obtain visa-free access to as many as 134 countries or regions. BNO passports enjoyed visa-free access to only 114 countries. The passports are still valid. The safety ensured by Chinese embassies and consulates as well as a sense of nationalism have also been key factors in the popularity of HKSAR passports. Wong Yim-fat is of those who think HKSAR passports are not only more convenient, but also offer consular or embassy protection from the Chinese government in times of distress. "While holding a BNO passport, you felt like a second-class citizen," Wong said. "But a HKSAR passport gives you all the privilege that a Chinese citizen enjoys." According to Lu Xinhua, commissioner of the Ministry of Foreign Affairs in the HKSAR, not only Hongkongers have enjoyed an uplift in their international status, but also the HKSAR government. During the past 10 years, the HKSAR government has joined more than 50 international, intra-government organizations and 200 international treaties with the proper identity of Hong Kong, China. "Under the Basic Law, we have tried our best to help exchanges between the HKSAR government and the international community, in order to forge its long-term prosperity and stability," Lu said.