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BEIJING, June 18 (Xinhua) -- China's central bank said Friday more flexibility would be allowed to guide money policies based upon changing circumstances if inflationary pressures increase during the economic recovery along with rising market confidence.The risk of higher prices may grow stronger given that liquidity remains loose throughout the world and China has experienced much faster credit growth earlier, according to the Annual Report 2009 issued Friday by the central bank, the People's Bank of China (PBOC).China's financial institutions lent a record 9.6 trillion yuan (1.4 trillion U.S. dollars) in new yuan-denominated loans last year, almost double that of the previous year, to spur the economy during the ongoing global downturn, but it was accompanied by soaring property prices and rising expectations of possible inflation.China has targeted a total of 7.5 trillion yuan in new loans for 2010.But prices were still very likely to remain stable as China's grain harvest has been substantial for a number of years, and manufacturers of consumer goods have been seeing rising productivity, which ensured supply, the central bank said.China's Consumer Price Index, a main gauge of inflation, rose 3.1 percent in May, exceeding the government target to keep the nation's inflation rate under 3 percent for 2010.National Bureau of Statistics spokesman Sheng Laiyun earlier said the higher inflation in May was due to a low comparison basis from the same period last year, and inflationary pressure was easing given that China had the basics for keeping prices under control.However, the nation needed to safeguard the supply of sufficient agricultural products and curb soaring housing prices in some cities to manage inflationary expectations, according to the report.Relatively relaxed monetary policy to remainThe central bank report said China would maintain its moderately relaxed monetary policy in 2010, projecting for this year a 17 percent increase in broad money supply (M2), which covers cash in circulation and all deposits.Central bank vice governor Su Ning earlier said a 17 percent year on year increase in China's broad money supply, and a targeted 7.5 trillion yuan in new loans for this year, indicated a relatively relaxed monetary policy.Additionally, China's M2 had increased 21 percent year on year to 66.34 trillion yuan by the end of May, according to PBOC data.The central bank said in the report it would work to control the pace of credit growth, maintain the balance of credit, and avoid apparent fluctuations.The central bank also said a differentiated credit policy should be carried out to optimize the nation's credit structure.Specifically, more credit support should be made available for agriculture and small and medium-sized companies, which traditionally face difficulties in obtaining financing.Favorable credit policies should also be implemented to support underdeveloped sectors, employment, strategically important industries such as new energies, new materials, and energy savings, while strict credit controls should be imposed upon energy-consuming and pollutingindustries and those with overcapacities, according to the report.Steady Progress of RMB Exchange Rate ReformThe PBOC said China was to steadily continue market reforms of exchange rates and improve the RMB (Chinese currency) exchange rate formation mechanism.Further, principles of independent decision-making, controllability and graduality should be enacted in improving the mechanism, according to the report.The central bank would also work to make trade and investment moreconvenient by promoting the yuan settlement in cross-border trade.China previously signed a number of bilateral currency swap agreements with countries such as the Republic of Korea, Malaysia, Belarus, and Indonesia.

TANGSHAN, Hebei, July 28 (Xinhua) -- Tangshan, a Chinese city that lost 240,000 lives to a devastating earthquake 34 years ago, relived the pain and sorrow once again Wednesday on another anniversary.Not only Tangshan, the whole nation's memories of the catastrophe also came alive again as a film about the earthquake, "Aftershock", hit the big screen across the country.A 7.8-magnitude earthquake struck the industrial city in north China on July 28, 1976, which was believed to be one of the deadliest natural disasters of the 20th century.Thirty-four years later, exactly on the very same day of the quake, Wu Ze, 46, came to a black marble wall that bears the names of all victims of the earthquake, including her sister's."I was 12 and my sister was 16 (when the quake struck). She was the smartest kid in the family and the best in her class. She was just gone overnight, " Wu said, unable to stop weeping."Every year on July 28, I come here for her," she said.The Tangshan government built the 300-meter-long wall, widely known as the Chinese "wailing wall", two years ago for the public to mourn those they had lost, as most of the dead were hastily buried in mass graves.The Tangshan Earthquake Memorial Park, where the "wailing wall" is located, saw its busiest day of the year Wednesday as people streamed in to mourn for their beloved ones.An earthquake museum in the park also opened to the public Wednesday.Covering an area of 12,000 square meters, the museum displays more than 400 photographs and 600 pieces of articles about the 1976 earthquake.

WUXI, Jiangsu, June 20 (Xinhua) -- Yuan Longping, known as the "father of hybrid rice", said on Sunday that his team was working on a new version of high-yield hybrid rice and might complete it in 2012.Yuan, director of the National Hybrid Rice Engineering Technology Research Center and a faculty member of the Chinese Academy of Engineering, made the remarks at the World Expo's third theme forum, which opened on Sunday in Wuxi, in east China's Jiangsu Province.The new hybrid, the phase-III super hybrid rice, was expected to yield 13.5 tonnes of rice per hectare, Yuan said.The previous hybrid, the second-generation super hybrid, was released for commercial production in 2006, yielding 9 tonnes of rice per hectare, on averageRice is a major food crop that feeds more than half of the world's population, Yuan said.China is now planting 440 million mu (29 million hectares) of rice per year, with an average output capacity of 6.3 tonnes per hectare.Among the acreage, hybrid rice accounts for about 57 percent of the total, with an average output capacity of 7.2 tonnes per hectare."The average yield of hybrid rice is at least 20 percent more than that of inbred rice, feeding 70 million more people annually," Yuan said.China is faced with a challenging grain situation this summer because of strong rainfalls in the south during the summer harvest season. Other problems include droughts in northern grain production areas and lingering low temperatures in the south.According to the Ministry of Agriculture, China needs to maintain an annual grain output of 500 million tonnes to feed the nation's 1.3 billion people.China's summer grain output rose six years in a row to top 123.35 million tonnes in 2009, which was 2.6 million tonnes more than the previous year."Hybrid rice will play a key role in ensuring food security worldwide in the new century," Yuan said."If 50 percent of the world's rice paddies were planted with hybrids, rice production could be increased by another 150 million tonnes, and 400 to 500 million more people could be fed," he said.Yuan believes food security is "a war people can not afford to lose" ."The global economic downturn will always end, but food security is the problem we have to face every second," Yuan said.Statistics from the United Nations showed about 1 billion people were suffering from hunger and malnutrition and every six seconds saw a child dying of hunger or related diseases.With the theme "science & technology innovation and urban future", the two-day forum focuses on innovations in science and technology.The previous two theme forums of the World Expo centered on communications and cultural heritages.Yuan started working on hybrid rice in 1964."I often drive my car to go to rice paddies to do research," said the 80-year-old, "The only difference is that when I was young, I rode a bicycle or motorcycle ....you could attribute it to improving life."Hybrid rice has also been commercialized in other countries, including India, Vietnam, the Philippines, Bangladesh and the United States."For the benefits of the world' s people, we are well prepared to help other countries develop hybrid rice," he said.

SHENYANG, July 22 (Xinhua) -- China mobilized helicopters for the first time in a highway medical rescue drill in northeast China' s Liaoning Province, the provincial bureau of transport said Thursday.The rescue drill took place at 10 a.m. on the Shenyang-Dalian highway where a bridge collapse and traffic pile-up purportedly injuring dozens was simulated.Two helicopters, an S-76 from China' s Ministry of Transport and an Mi-17 from Shenyang Military Command, were dispatched to rescue those acting as wounded in the blocked section inaccessible to rescue vehicles.The rescue workers were airlifted to the crash site and successfully extricated two "trapped" bus passengers within three minutes before transporting them to nearby hospitals.More than 300 people participated in the drill organized by China' s Ministry of Transport and the provincial government of Liaoning.