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BEIJING, April 27 (Xinhua) -- China should still be alert to the credit crisis starting in the United States more than one year ago that has afflicted the Chinese financial sector and export, Ou Minggang, deputy editor-in-chief of Chinese Banker magazine, said on Saturday.     Ou told Xinhua during an interview that domestic banks and other financial institutions bear the brunt of the widespread U.S. subprime mortgage crisis, as those agencies' asset value and book earnings would dip to some extent.     "Currently the impact on domestic financial institutions is still limited," he said.     The Industrial and Commercial Bank of China, the country's largest lender, said at the end of last month its 2007 net profit rose 64.9 percent year-on-year to 82.3 billion yuan (11.7 billion U.S. dollars).     The Bank of China posted a 31.3 percent net profit rise in 2007 after booking 1.3 billion U.S. dollars as an impairment allowance for its 4.99 billion U.S. dollars in investment in securities linked to U.S. subprime mortgages by the end of last year.     However, the International Monetary Fund (IMF) said on April 8 that the recent financial turbulence triggered by the collapse of the U.S. subprime mortgage market could cost the global financial system to the tune of 945 billion U.S. dollars.     "The global financial system has undoubtedly come under increasing strains since October 2007, and risks to financial stability remain elevated," the IMF warned in its latest Global Financial Stability Report.     Ou said, "The crisis also made Chinese financial supervision regulators face up to the challenges of balancing financial innovation and risks, which requires them to push forward the reforms in the country's financial system in a more cautious manner."     Experts warned that financial risks know no national boundaries and some foreign capital has fled from the Chinese financial market as many banking titans including Citigroup and Merrill Lynch were in deep water in credit crisis.     China's benchmark Shanghai Composite Index, which covers both A and B shares, shrank nearly half from the peak of 6124.04 points of Oct. 16 last year to 3094.67 points on April 18.     The overnight announcement of a cut in share trading taxes drove Chinese stocks 9.29 percent higher in soaring turnover on Thursday, with the key Shanghai Composite Index up 304 points to 3,583.03, the largest gain since Oct. 23, 2001.     Chinese regulators announced curbs on the sale of non-tradable shares that come out of lock-up periods on April 20, another move to bolster the falling market.     However, market observers held that the credit crisis and the U.S. economic slowdown are still casting gloom over Chinese investors' confidence.     Experts said the crisis was spreading beyond the financial sector. Consumption confidence in the United States is dampened as the credit crisis unfolded, with Chinese exports also hurt.     From January to March, China's total exports rose 21 percent to206 billion U.S. dollars, 6.4 percentage points lower than a year earlier. The exports to the U.S. grew 5.4 percent to 53 billion yuan, 15 percentage points lower than the same period of last year, according to customs statistics.     In the trade hub of southern Guangdong Province, the growth of exports to the United States dwindled to 4.8 percent in the first quarter of this year from 15.5 percent in the same period of 2007,said Wu Gongquan, vice director-general with the province's department of foreign trade and economic cooperation.     Zhang Yansheng, director of the International Economic Research Institute under the National Development and Reform Commission, said China needs to shift its economic driving force from relying on exports to domestic consumption, technology upgrading and management innovation.     Ou added that the country should increase financial transfer payments to help low-income families to consume more and boost the consumption in the vast rural areas.     Experts suggested that Chinese exporters should upgrade their products mix and open new markets besides their traditional key markets in the United States and Europe.

HONG KONG, June 2 (Xinhua) -- Mainland-based telecommunications giants China Unicom and China Netcom, both listed on the Hong Kong stock exchange, announced Monday that each share of Netcom will be exchanged for 1.508 Unicom shares in a proposed merger. The rate was based on the price of China Netcom shares on the Hong Kong mainboard before their suspension from trading on May 23, with a 3 percent premium, said Tong Jilu, executive director and chief financial officer of China Unicom.     Chang Xiaobing, chairman and chief executive officer of China Unicom, also said each American depository share of China Netcom will be exchanged for 3.016 American depository shares of the new China Unicom, subject to shareholders' approval. (L-R) China Netcom CFO Li Fushen, China Netcom Chairman and CEO Zuo Xunsheng, China Unicom Chairman and CEO Chang Xiaobing and China Unicom CFO Tong Jilu join hands after announcing the merger of China Netcom and China Unicom in Hong Kong, South China, June 2, 2008. China Unicom also said it reached a framework agreement with China Telecom under which China Telecom will buy CDMA business and CDMA network from China Unicom Group.     The merger is expected to be completed in October this year after the shareholders' conferences in September if everything went ahead smoothly, Tong said.     The merged group, possibly bearing the name of China Unicom, will have an enlarged capital of 23.76 billion shares, worth a total of 439.17 billion yuan (63.28 billion U.S. dollars). It is expected to be a provider of integrated services including mobile and fixed-line telecommunications, broadband, data and value-added services.     "The merger is in line with the trend of convergence of fixed- line and mobile networks, and is expected to enable the merged group to set clear strategy," Chang said, referring to the direction for the company to pursue 3G strength.     China Unicom, currently one of the telecommunications giants in the Chinese mainland, is a far second to the largest mobile carrier China Mobile, while China Netcom is a provider of fixed line telecommunications and broadband services.     The merger was currently between the Hong Kong-listed China Unicom Limited and the China Netcom Group Corporation (Hong Kong) Limited, but not a merger between their mother companies, Chang told a press conference held in Hong Kong.     China Netcom will cease to exist as a listed firm after the merger, subject to approval from the shareholders at the company's annual conference, which is expected in September, said Zuo Xunsheng, chairman and chief executive officer of China Netcom.     Shares of both companies will resume trading on Hong Kong exchange on Tuesday.     The merger was part of a major regrouping in the Chinese telecom industry aimed at more competition by forming three providers of integrated services after regrouping.     State authorities issued an announcement on May 24, saying that they "encouraged" a regrouping of the telecom corporations to form three providers of integrated services to increase market competition. China Mobile has recently announced a proposal to buy fixed-line operator China Tietong, or Railway Telecommunications.     At a separate press conference in Hong Kong on Monday, the HongKong listed China Telecom announced that it has reached an agreement to buy the CDMA services of China Unicom, thus making it one of the three integrated services providers, too.     China Unicom also announced at the conference that it will sell its CDMA services at 43.8 billion yuan (6.31 billion U.S. dollars)and that its mother firm China Unicom Group will sell its CDMA network at 66.2 billion yuan (9.54 billion U.S. dollars) to China Telecommunications Corporation, the mother firm of China Telecom.     Speaking at a separate press conference in Hong Kong, Wang Xiaochu, chairman and chief executive officer of China Telecom, said that the deal is expected to be completed in October, subject to shareholder approval at annual conferences in September.     China Telecom will pay for the transaction in cash, Wang said, adding that he expected the CDMA part to contribute net profit as early as 2012, although the deal could impact the earnings record of the company in short term.     The regrouping will result in three separate providers of integrated services, with most of the analysts saying that they expected China Unicom to benefit the most from the regrouping whereas the strength of China Mobile could be reduced.     Others, however, said they expected China Mobile to remain the giant among the giants and retain most of its power in the mainland telecom industry.     Chang, head of China Unicom, also warned against "over optimism" about the increased strength of the merged company, saying it required long-term effort.

HARBIN, July 24 (Xinhua) -- A senior Chinese official has called for carrying on ideological emancipation, persisting in the reform and opening-up policy, pushing forward scientific development and making new breakthroughs in promoting social harmony, to promote rapid and sound economic and social development.     Li Changchun, a member of the Standing Committee of the Communist Party of China (CPC) Central Committee Political Bureau, made the call during an inspection tour in Heilongjiang Province from July 20-23, in the company of the provincial CPC chief Ji Bingxuan and governor Li Zhanshu. Li Changchun (L1), a member of the Standing Committee of the Communist Party of China (CPC) Central Committee Political Bureau, talks to staff at Donghu community during an inspection tour in Heilongjiang Province July 22, 2008He urged the northeastern province to seize the opportunity for industrial revival.     Li visited villages, communities, factories and cultural organizations in the cities of Mohe, Heihe, Daqing and Harbin.     In Mohe, the country's northeasternmost town, the official paid a visit to the Beiji (Polar) Village, where he learned that local villagers now have cable TV. He also visited Daqing, China's largest oil production base and Harbin, the provincial capital.     Local governments should build more public cultural facilities, he said.     He urged the province to deepen its cultural restructuring, support multi-talented professionals and develop cultural products with brand names that were recognized at home and abroad.     In Daqing, Li also visited the memorial to Iron Man Wang Jinxi, an oil worker who devoted his life to the development of the petroleum industry.     Daqing, a city built on the vast oil field, is known for the "Daqing Red Flag", a model set for all industries in the country by late leader Mao Zedong.

MIANYANG, Sichuan, May 22 (Xinhua) -- Ten days after the devastating earthquake in southwest China, six days after he returned to Beijing, Premier Wen Jiabao was back on the front lines of quake relief.     He flew to Mianyang in Sichuan Province, one of the worst hit cities, on Thursday afternoon. Upon arrival, he conducted a fly-over inspection by helicopter of a "quake lake," which is formed by landslides that block rivers.     People would have found him on the same tight schedule early this year as Wen visited the regions hit by the worst winter weather in 50 years four times in nine days.     The Hong Kong-based daily Ta Kung Pao said in a commentary: "Chinese premiers have developed an image of being caring and conscientious since late Zhou Enlai, the first premier of the People's Republic of China."     When a 6.8-magnitude earthquake rocked Xingtai, in the northern Hebei Province in 1966, Zhou rushed to the region and oversaw relief work, risking aftershocks, Du Xiuxian, a photographer of Zhou's era, recalled in his published photographic memoir "The Last Legends."     Wen has inherited that tradition of Chinese premiership. Chinese Premier Wen Jiabao (C) talks to local officials in Beichuan, southwest China's Sichuan Province, on May 22, 2008. Wen Jiabao made his second trip to the quake-battered zone on Thursday afternoon to oversee disaster relief work. Two hours after the quake rocked Wenchuan County in the northwestern mountainous region of Sichuan Province, he was in theair.     As a large part of the country felt the tremors and experienced great shock, Wen promised the country in front of China Central Television (CCTV) camera that the government would lead the people to win the battle against the earthquake.     "Confronted with the disaster, we need composure, confidence, courage and an effective command," he said with a sober and steadfast attitude.     During the next four days, Wen set foot in almost all of the worst-hit counties, walking over rocks and tiles, comforting weeping children and encouraging rescuers.     He made it very clear that the top task at the initial stage was to save lives, and he pressed officials and troops very hard to implement rescue work.     Back in Beijing on May 16, Wen did not relax but hosted several key meetings on rescue and relief work.     Observers found that he has presided over at least 13 high-level meetings since the quake.     At these meetings, the topics under discussion ranged from big issues such as the top priorities of the relief task force to tiny details like milk powder for infants.     He stressed prevention of epidemics and handling of victims' corpses, told an expert team to give scientific and technical support to rescue and relief work, and worked out solutions to homeless survivors' problems.     While guidelines were set for relief work, detailed orders were made as well, such as to send 6,000 temporary houses within two days and order rescue teams to reach all remote quake-hit villages within 24 hours. Chinese Premier Wen Jiabao (R) shakes hands with a soldier in Beichuan, southwest China's Sichuan Province, on May 22, 2008. Wen Jiabao made his second trip to the quake-battered zone on Thursday afternoon to oversee disaster relief work.Rehabilitation was also discussed and a directive was issued to fully consider the geological conditions and bearing capability of the local environment so as to balance cities and rural areas, industry and agriculture.     The focus has shifted from rescue to rehabilitation of quake survivors and their communities, he said Thursday while en route to Sichuan. The latter "will be a harder and long-term task," he said.     Chinese are captivated by what the premier has done.     Chen Hui, a middle-aged mother in Chongqing Municipality near Sichuan that was also affected by the quake, participated in a text message prayer campaign for Wen.     She sent a text message to her son in Beijing, saying: "The 66-year-old Premier Wen has worked really hard for quake relief. He has comforted and moved us. Pass this on your friends, pray for him."     Chen received the message from a friend. The campaign, whose organizer is unknown, aims to collect 1 million prayer text messages.     A compilation of scenes of Wen's visit to Sichuan is popular on-line and Netizens have created a forum called "Premier Wen, we love you."     "As one of China's senior leaders, the premier not only manages the government's daily work but also displays the ruling party's ideals and principles personally," Ta Kung Pao said. "A premier of China can not be copied elsewhere."

MIANYANG, Sichuan, May 22 (Xinhua) -- Ten days after the devastating earthquake in southwest China, six days after he returned to Beijing, Premier Wen Jiabao was back on the front lines of quake relief.     He flew to Mianyang in Sichuan Province, one of the worst hit cities, on Thursday afternoon. Upon arrival, he conducted a fly-over inspection by helicopter of a "quake lake," which is formed by landslides that block rivers.     People would have found him on the same tight schedule early this year as Wen visited the regions hit by the worst winter weather in 50 years four times in nine days.     The Hong Kong-based daily Ta Kung Pao said in a commentary: "Chinese premiers have developed an image of being caring and conscientious since late Zhou Enlai, the first premier of the People's Republic of China."     When a 6.8-magnitude earthquake rocked Xingtai, in the northern Hebei Province in 1966, Zhou rushed to the region and oversaw relief work, risking aftershocks, Du Xiuxian, a photographer of Zhou's era, recalled in his published photographic memoir "The Last Legends."     Wen has inherited that tradition of Chinese premiership. Chinese Premier Wen Jiabao (C) talks to local officials in Beichuan, southwest China's Sichuan Province, on May 22, 2008. Wen Jiabao made his second trip to the quake-battered zone on Thursday afternoon to oversee disaster relief work. Two hours after the quake rocked Wenchuan County in the northwestern mountainous region of Sichuan Province, he was in theair.     As a large part of the country felt the tremors and experienced great shock, Wen promised the country in front of China Central Television (CCTV) camera that the government would lead the people to win the battle against the earthquake.     "Confronted with the disaster, we need composure, confidence, courage and an effective command," he said with a sober and steadfast attitude.     During the next four days, Wen set foot in almost all of the worst-hit counties, walking over rocks and tiles, comforting weeping children and encouraging rescuers.     He made it very clear that the top task at the initial stage was to save lives, and he pressed officials and troops very hard to implement rescue work.     Back in Beijing on May 16, Wen did not relax but hosted several key meetings on rescue and relief work.     Observers found that he has presided over at least 13 high-level meetings since the quake.     At these meetings, the topics under discussion ranged from big issues such as the top priorities of the relief task force to tiny details like milk powder for infants.     He stressed prevention of epidemics and handling of victims' corpses, told an expert team to give scientific and technical support to rescue and relief work, and worked out solutions to homeless survivors' problems.     While guidelines were set for relief work, detailed orders were made as well, such as to send 6,000 temporary houses within two days and order rescue teams to reach all remote quake-hit villages within 24 hours. Chinese Premier Wen Jiabao (R) shakes hands with a soldier in Beichuan, southwest China's Sichuan Province, on May 22, 2008. Wen Jiabao made his second trip to the quake-battered zone on Thursday afternoon to oversee disaster relief work.Rehabilitation was also discussed and a directive was issued to fully consider the geological conditions and bearing capability of the local environment so as to balance cities and rural areas, industry and agriculture.     The focus has shifted from rescue to rehabilitation of quake survivors and their communities, he said Thursday while en route to Sichuan. The latter "will be a harder and long-term task," he said.     Chinese are captivated by what the premier has done.     Chen Hui, a middle-aged mother in Chongqing Municipality near Sichuan that was also affected by the quake, participated in a text message prayer campaign for Wen.     She sent a text message to her son in Beijing, saying: "The 66-year-old Premier Wen has worked really hard for quake relief. He has comforted and moved us. Pass this on your friends, pray for him."     Chen received the message from a friend. The campaign, whose organizer is unknown, aims to collect 1 million prayer text messages.     A compilation of scenes of Wen's visit to Sichuan is popular on-line and Netizens have created a forum called "Premier Wen, we love you."     "As one of China's senior leaders, the premier not only manages the government's daily work but also displays the ruling party's ideals and principles personally," Ta Kung Pao said. "A premier of China can not be copied elsewhere."

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