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Donald Tsang wins in HK Chief election(Xinhua/Reuters)Updated: 2007-03-25 14:27 Hong Kong Chief Executive Donald Tsang and his wife Selina stand on a bus as they wave to thank local residents at a polling station after winning the election in Hong Kong March 25, 2007. [Reuters]Hong Kong Chief Executive Donald Tsang waves after winning the chief executive election, at the polling station in Hong Kong March 25, 2007. [Xinhua]

The second batch of quotas for qualified foreign institutional investors (QFII), a scheme for foreign players to invest in the A-share market, is likely to be about billion, an industry insider, who declined to be named, told China Daily on Friday. The source said that the second batch of QFII quotas was being discussed, and pending approval by the Chinese government, was likely to be about billion, not exceeding that of the last batch, which was billion. Hu Xiaolian, Deputy Governor of the central bank and Administrator of the State Administration of Foreign Exchange (SAFE), said earlier that related rules on the QFII scheme were being amended and the total QFII quota would certainly see an increase in 2007. However, she declined to give a specific sum. China has so far approved 52 overseas institutions as QFIIs to invest in the A-share market, of which 49 have got a combined investment quota of .995 billion from SAFE, near the upper limit of billion as stipulated previously. Industry insiders said the demand for QFII quotas was strong at present and more should be granted. "Despite the excessive liquidity in the A share market, the Chinese government should grant more quotas to QFIIs. Otherwise, they will find other ways, making it more difficult to supervise," She Minhua, an analyst with CITIC China Securities said. Meanwhile, the booming Chinese stock market is attracting more foreign financial firms to set up joint ventures in the investment sector. The Financial Times on Thursday reported that Nikko Asset Management, a QFII approved in 2003, has become the first Japanese fund firm to acquire a 20 per cent stake in a local firm, the Shenzhen-based Rongtong Fund Management Company. Nikko AM bought the stake from Shaanxi International Trust & Investment (SITI), for 3.8 yuan per share, valued at 475 million yuan, according to a statement by the Shenzhen-listed SITI.

BEIJING -- China may entirely switch to non-food materials such as cassva, sweet potato, sorgo and cellulose in producing ethanol fuel as a substitute for petroleum, said a government official. The country would approve no projects designed to produce ethanol fuel with food from now on, an official of the National Development and Reform Commission (NDRC) told a seminar on China's fuel ethanol development held in Beijing on Saturday. "Food-based ethanol fuel will not be the direction for China," said Xu Dingming, vice director of the Office of the National Energy Leading Group, who was also at the seminar. China has been trying to avoid occupation of arable land, consumption of large amount of grain and damages to the environment in developing the renewable energies. The current four enterprises engaged in producing corn-based ethanol would be asked to switch to non-food materials gradually, according to the NDRC official who declined to be named. The four enterprises in Jilin, Heilongjiang, Henan and Anhui have a combined production capacity of 1.02 million tons of corn-based ethanol per year. The country has become a big producer and consumer of ethanol fuel in the world after the United States, Brazil and European Union, according to the NDRC official. China Oil and Food Corporation (COFCO), the country's largest oil and food importer and exporter, would focus on sorgo in the production of non-food-based ethanol fuel, said Yu Xubo, president of COFCO at the seminar. COFCO, which owns the Heilongjiang enterprise and has a twenty-percent stake in the Anhui enterprise, aims to produce five million tons of ethanol fuel based on sorgo in the near future. COFCO is leading the way in developing cellulosic ethanol fuel under a cooperation agreement with Denmark-based Novozymes, which leads the world in researches into the key enzymes needed in large-scale production of cellulosic ethanol. The current cost for producing ethanol fuel from stalks of corn, which are discarded by farmers, is still too high. Novozymes is working on the commercialization of cellulosic ethanol both in the United States and China. "We are optimistic about China's prospect of making it work ahead of the US, as the cost of collecting the stalks of corn are much cheaper in China," said Steen Riisgaard, president and CEO of Novozymes. There is much opposition both in China and in the world to corn-based ethanol fuel, which is believed will lead to higher corn price.

WASHINGTON - The Bush administration is imposing further trade sanctions against China, South Korea and Indonesia in a dispute involving glossy paper. The decision, announced Wednesday by Commerce Secretary Carlos Gutierrez, came a week after US and Chinese officials met for a second round of high-level talks aimed at lowering trade tensions between the two nations. "This administration continues to aggressively and transparently enforce our trade laws to ensure a level playing field for American manufacturers, workers and farmer," Gutierrez said in a statement announcing the decision. In the new ruling, the government determined that imports from the three countries of glossy paper - used in art books, textbooks and high-end magazines - were being sold in the United States at less than fair value, a process known as dumping. The dumping penalties will be collected immediately although they will not become final until this fall after further investigations are conducted. The preliminary dumping penalty for the paper products from China ranged from 23.19 percent to 99.65 percent. The dumping penalty imposed on imports of glossy paper from Indonesia was 10.85 percent while the penalty on South Korean imports ranged as high as 30.86 percent. These dumping penalties will be imposed on top of economic sanctions levied in March after the administration found that paper companies from those three countries were receiving improper government subsidies that allowed them to undercut the price of American producers. The March decision reversed 23 years of US trade policy by treating China, which is classified as a nonmarket economy, in the same way other US trading partners are treated in disputes involving government subsidies. The paper case was brought by NewPage Corp., a Dayton, Ohio-based paper company which contended that its coated paper was facing unfair competition because of the government subsidies and sale of imports at unfairly low prices. The government trade sanctions have received the support of the United Steel Workers union, which represents about 90 percent of the workforce in the US coated paper industry. The glossy paper is produced at 22 paper mills in 13 states. The penalties in the case involving government subsidies are known as countervailing duties. In that case, the trade sanctions ranged as high as 20.35 percent for Chinese glossy paper imports, 1.76 percent for South Korean imports and 21.24 percent for Indonesia. Chinese officials denounced the decision in the government subsidies case saying that it went against the consensus of both countries to resolve disputes through dialogue rather than imposing trade sanctions. The second round of the Strategic Economic Dialogue, which was launched by Treasury Secretary Henry Paulson in December, was held in Washington last week. Paulson and Chinese Vice Premier Wu Yi announced a series of modest agreements including the boosting of airline flights between the two nations. But they failed to make progress in one of the biggest rade irritants, the value of China's currency, which American manufacturers contended is being kept artificially low against the dollar to give Chinese companies unfair advantages against US firms.

KHARTOUM: Chinese peacekeepers were on Wednesday awarded certificates of merit for their excellent performance during their eight-month term in Sudan, a Chinese officer said Thursday.Lieutenant General Jasbir Singh Lidder, commander of the UN Mission in Sudan (UNMIS), presented Unit Citations to the engineering, transportation and medical contingents of Chinese peacekeeping troops, and Force Commander Commendations to 22 Chinese troops.The two certificates of merit are the highest honor awarded to peacekeepers from various contributing countries in Sudan, said the Chinese officer.The awards ceremony was held at the base of the Chinese peacekeeping troops in Wau, capital of West Bahr al-Ghazal state in southern Sudan, two weeks before their departure from Sudan to rotate with another batch of Chinese peacekeeping troops.Lidder said it was a great honor for him to serve with the Chinese peacekeepers as they were ending "their very successful term" in Sudan."During the past months, the three contingents of the Chinese peacekeeping troops have done a significant job to be a role model for professionalism, commitment and conduct," Lidder said.The Chinese peacekeepers had also maintained excellent relations with the contingents of other countries as well as the local population, the UNMIS commander said.Li Chengwen, the Chinese Ambassador to Sudan, congratulated all the three contingents, the 22 Chinese peacekeepers as well as the other officers and soldiers. He highly praised their performance in Sudan, especially in the extremely difficult and complicated conditions.The 435-strong Chinese peacekeeping troops, the second batch of Chinese peacekeepers deployed in southern Sudan since China started taking part in UN peacekeeping operation there in May last year and arrived in Wau in January this year.