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BEIJING, Nov. 10 (Xinhua) -- China's central bank moved a step further to tighten liquidity amid increasing inflation pressures as it ordered Chinese banks to set aside more reserves on Wednesday.The People' s Bank of China, or the central bank, announced it would raise the deposit reserve requirement ratio (RRR) for Chinese financial institutions that accept deposits by 50 basis points from Nov. 16, which was estimated to freeze more than 300 billion yuan (45.1 billion U.S. dollars).The order came on the eve of Thursday's release of China' s October consumer price index (CPI), which is projected, by some economists, to reach 4 percent.The RRR for the four big state-owned banks - the Industrial and Commercial Bank of China, China Construction Bank, Bank of China and Agricultural Bank of China - will stand at 18 percent once the rise takes effect.Further, Wednesday's move will raise the deposit reserve ratio for other large financial institutions to 17.5 percent and that for small-and medium-sized financial institutions to 15.5 percent.The adjustment is the fourth RRR increase the central bank has ordered for Chinese banks this year, and the first time it has done so since it hiked interest rates by 0.25 percentage points last month.Chinese experts believe combined concerns, ranging from the looming hot money inflows caused by the United State quantitative easing to the growing inflation risks and soaring assets bubbles, have caused the central bank to raise the RRR to rein in liquidity."The central bank announced interest rates hikes and the RRR rise within one month, as the U.S. 600 billion-US-dollar quantitative easing is likely to send more speculative capital flowing to the emerging markets, and domestic commodities prices continue to increase, " senior economist with the Asian Development Bank, Zhuang Jian said, adding that the RRR increase will trim the banks' credit capital, which will help curb market speculation inflows and stabilize commodities prices.China's central bank, on Oct. 20, announced a rise of its benchmark one-year lending and deposit rate by 0.25 percentage points, the first interest rates hike in three years, as the nation's CPI hit a 23-month high to 3.6 percent in September.October's CPI is due to be announced on Thursday, while economists anticipate the October year-on-year inflation is likely to rise to 4.1 percent.Further, prices of China' s edible farm produce have witnessed consecutive increases since mid-October, as prices of 18 types of vegetables in 36 large and medium-sized cities rose by 4.9 percent during the week that ended Nov. 7, according to data released Wednesday by the Ministry of Commerce.Zhang Ping, head of the National Development and Reform Commission, said Tuesday that the nation's CPI is expected to exceed the government' s annual target of 3 percent.Also, the nation's real estate prices continued the upward trend in October, though at a slower pace, with property prices in 70 major Chinese cities increasing by 8.6 percent year on year in October, down from the 9.1-percent increase in September, the National Bureau of Statistics showed Wednesday.Li Huaiding, analyst with the Guoxin Securities Co., said Wednesday's rise would contribute to scaling back liquidity, but pressures still exist in the upcoming months, and the central bank may again increase interest rates before the end of the year.Additionally, the central bank said in a report issued on Nov.2 that it would gradually normalize the monetary policy from its counter-crisis mode and tighten control over liquidity to maintain moderate credit growth in the coming months this year.
BEIJING, Dec. 31 (Xinhua) -- On the last trading day of 2010, the Chinese currency, the yuan, strengthened to a record high for a second consecutive day, at 6.6227 per U.S. dollar, after 11 consecutive days of gains.The central parity rate of the currency, also known as the renminbi (RMB), was set two basis points stronger than Thursday's 6.6229, according to the China Foreign Exchange Trading system.China's central bank announced on June 19 it would further reform the formation mechanism of the yuan exchange rate to improve its flexibility.

BEIJING, Jan. 4 (Xinhua) -- A senior Chinese military official has urged soldiers and officers to learn from the older generations' self-sacrifice and hardworking spirit in completing missions and ensuring the security of the country.Guo Boxiong, Vice Chairman of China's Central Military Commission, made the remarks Tuesday at a symposium to mark the 100th birthday of Yang Dezhi, former Vice Minister of Defense and Chief of the General Staff of the People's Liberation Army (PLA).Yang, born in 1911, participated in a series of wars and made great contributions to the liberty of the Chinese people and the founding of the new China. He died in 1994 at the age of 83.Hailing Yang's loyalty to the Party and his wisdom and bravery, Guo urged soldiers and officers to carry on the firm belief in the Communist undertaking and learn from Yang's various qualities in promoting the PLA construction and ensuring the security and development of the country.Chinese Vice President Xi Jinping and some 200 relatives and friends of Yang attended the symposium.
BANGKOK, Nov. 29 (Xinhua) -- The Chinese military will adopt a more open and cooperative attitude when developing friendly ties with Thailand's armed forces, a senior Chinese defense official said Monday.Ma Xiaotian, deputy chief of the General Staff of the People's Liberation Army of China, made the pledge at the 9th Defence and Security Consultations between the Chinese and Thai Defence Ministries.Complex and profound changes are taking place in regional situations, said Ma. It is the responsibility of governments and armed forces in the region to enhance international cooperation, jointly cope with challenges, safeguard regional peace and stability to create favorable security conditions for common development, Ma said.The Chinese military is willing to boost in-depth, wide-ranging and all-dimensional ties with Thailand, building upon past achievements, Ma said.General Kittipong Keskowit, permanent secretary for defence of Thailand, hailed the long-lasting friendly cooperation between Thailand and China.He also expressed Thailand's willingness to continue carrying out close military exchanges and cooperation with China so as to contribute to the eternal friendship between the two countries and to the peace and stability of the region.During the event, Ma, on behalf of the Chinese military, donated 20 transport speedboats to Thailand to support its fight against the current floods.Ma arrived in Thailand on Saturday for a three-day visit at the invitation of the Thai Defence Ministry.
BELGRADE, Nov. 23 (Xinhua) -- Celebrating 30 years of cooperation and fraternal relations between the capitals of Serbia and China, an art exhibit entitled "The Beauty of Beijing" was opened in the Old Palace in Belgrade on Tuesday.Belgrade Mayor Dragan Djilas extended a welcome to the visiting Beijing delegation, underscoring years of cooperation and cultural exchanges."For us the bridge we are going to build together is important, along with our cultural components which will complement our desire for Belgrade in 2020 to be the European 'cultural capital'," said Djilas, making reference to the 1,507-meter bridge over the Danube River to be constructed by Chinese firms. The total value of the contract is 170 million Euros and its completion date is 2013.The original cooperation agreement between Beijing and Belgrade was signed in October 1980, with the aim of boosting cooperation in the fields of economics, urban planning, utilities, health, education, culture, tourism and sport.Ma Zhipeng, senior advisor to the city of Beijing, said cooperation between the twin cities has been expanding over the last three decades.He said the art exhibit, with its 50 paintings divided into four thematic sections, would allow the citizens of Belgrade to become more familiar with the Chinese capital."On the occasion of the festive celebrations, in addition to the exhibition, the Belgrade Chamber of Commerce and Beijing signed an agreement on cooperation, which will provide a platform for economic cooperation between the two cities," said Ma.In addition to the art exhibit, the Orchestra "Huaxia" performed a collection of classic Chinese musical pieces with traditional instruments.
来源:资阳报