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BEIJING, Sept. 11 -- Inflation eased to its lowest level in August since June last year, giving the government more policy leeway to prevent an economic slowdown. The consumer price index (CPI), the main gauge of inflation, rose 4.9 percent year-on-year, compared to 6.3 percent in July, the National Bureau of Statistics (NBS) said yesterday. The CPI has been sliding since May, but still many economists were caught by surprise by last month's drop because they had forecast it to be above 5 percent. The month-on-month fall was only 0.1 percent. But last month's producer price index (PPI), a gauge of factory gate inflation, rose a record 10.1 percent year-on-year, after jumping 10 percent in July. Nevertheless, the low CPI figure gives the government "more policy room to sustain growth," Citigroup economist Ken Peng said. He suggested the authorities consider further policy changes favoring growth, which could shift to full gear next month. Economic growth has been slowing since the second quarter of last year, when the government adopted monetary and credit measures to rein in inflation and prevent the economy from overheating further. Yet economists began warning of a recession since the beginning of this year, especially because the country's export sector, a key growth engine, started losing steam on weaker foreign demand. The government responded it would strive to maintain a stable economic growth this year, leading to speculation that it would soon ease the tightening measures. But any step to stimulate the economy, such as lower interest rates or faster loan growth, risks spurring demand and stoking inflation again. "Unless there's an abrupt slowdown, there's no need for a major change in the marco-control measures," said Lian Ping, an economist with the Bank of Communications. "The current 10 percent GDP growth is largely seen as acceptable." The CPI rise is likely to stabilize around 5 percent during the rest of the year, he said, because food prices may continue to drop. Inflation fell last month mainly because of a drop in food prices, which make up one-third of the inflation basket. Food prices slid 0.4 percent from July. A falling inflation rate gives the government a good chance to lift its price control on products such as fuel, water, and electricity further, Lehman Brothers economist Sun Mingchun said. In the past year, policymakers have managed to freeze the prices of public utilities, and fuel and power tariff. They introduced temporary price curbs on some other goods, too, to rein in inflation. Yet soaring labor and raw material costs, reflected in the rising PPI figure, have eaten into the profit of local enterprises because price control and fierce competition prevented them from passing the inflationary pressure on to consumers. Such price liberalization could make the CPI rise again in the next few months, Sun said. "But if implemented in a gradual and orderly way, inflation should remain below 6 percent year-on-year during the rest of the year."
BEIJING, Sept.1 (Xinhua) -- China's securities watchdog on Monday required fund companies to make their information release more transparent and rolled out a draft regulation on brokers, its latest moves to boost the healthy development of the country's stock market. The information of stock-oriented funds, such as their periodic results, would be regularly publicized on the website of the China Securities Regulatory Commission, according to a standard format in the eXtensible Business Reporting Language (XBRL), starting from Jan. 1 next year, the CSRC said in a statement on Monday night. "The move was to further improve the quality of information release by fund companies," said the CSRC. The new rule was expected to help third-party agencies to appraise and supervise the management of fund companies. Previously it was difficult for a third party to collect and analyze the first-hand information of funds, which was not available to all. Meanwhile, the CSRC said a new regulation on securities brokers would prohibit them from surpassing their authority by manipulating customers' accounts or providing investment counseling. The dealers would also be forbidden to "offer or spread false, misleading information", or "tempt customers to make unnecessary deals," said the CSRC. Nor could they make agreements on sharing investment proceeds with customers, or promise gains or compensation for losses. "It was aimed at protecting the legal interests of fund investors and ward off risks caused by ill regulation of securities dealers," said the CSRC in a separate statement. The watchdog's actions were part of China's recent efforts to straighten out the stock market order and lay a sound foundation for a long-term development. The CSRC announced earlier this month it would raise the refinancing threshold for listed companies, saying the dividend they pay to shareholders in the recent three years should be no less than 30 percent of its distributed profits, compared with the previous set line of 20 percent. Refinancing plans of listed companies had led to share price declines and complaints in China as liquidity concerns loomed over the stock market. Investors also blamed their losses on insider trading and opacity of fund companies. Last week, a draft amendment to the Criminal Law was submitted to China's top legislature, stating that employees of financial institutes will face criminal prosecution for insider trading. Currently there were no relevant provisions in the Criminal Law. China's benchmark Shanghai Composite Index has shed more than 60 percent from its peak in mid October last year. In the first half, 364 funds in the country incurred a record loss of 1.08 trillion yuan (about 154 billion U.S. dollars), more than 90 percent coming from stock-oriented or hybrid funds, according to statistics from the TX Investment Consulting Co..
KUNMING, April 8 (Xinhua) -- China Eastern Airlines (CEA) will offer compensation of up to 400 yuan (57 U.S. dollars) to passengers affected in flights where pilots deliberately turned their aircraft around. Passengers whose flights were canceled will get 400 yuan compensation. Those delayed within two hours of departure and without accommodation would get 100 yuan. Those delayed within eight hours of departure would get 200 yuan, said an official with the Yunnan branch of the carrier on Tuesday. The compensation was set according to a guideline notice released by the general Administration of Civil Aviation, the official said. From March 31 to April 1, 21 flights returned to their departure points in Yunnan Province, in southwestern China, leaving more than 1,000 passengers stranded at Kunming Airport, the capital of Yunnan. "The time and energy we have wasted could never be compensated by 400 yuan," said Yu Xiaoyan, a tourist from the northern Inner Mongolia Autonomous Region. Yu planned to take the MU5793 flight at 9:50 a.m. on March 31 from Kunming to Xishuangbanna. The plane never came after waiting for seven hours at the airport. She was offered a ticket change at 4 p.m. on April 1 and received 400 yuan compensation. CEA finally admitted on Monday that some pilots on the 21 flights deliberately turned their aircraft around while in flight. It originally said the incidents were due to poor weather. However flights with other airlines flying the same routes landed on schedule during the same period. The airline has suspended the pilots. Further probing is underway, said an announcement on the company's website.
GUANGZHOU, July 20 (Xinhua) -- Chinese Premier Wen Jiabao has said unswerving confidence and arduous work are needed to achieve the goals of a steady and relatively fast economic development and control of soaring consumer prices in the country. Wen visited Guangdong Province - the country's reform and opening-up forerunner, on Saturday and Sunday, for research on current domestic economic situation. Chinese Premier Wen Jiabao (2nd L) looks at a specimen of a shoe during his visit in a company in Dongguan, south China’s Guangdong Province, July 19, 2008. Wen Jiabao paid an inspection tour to Guangdong on Saturday to investigate and research the province's economic situation.The premier visited steel, shoes, digital machinery and high-tech enterprises in Guangzhou, Dongguan and Shenzhen to know their production, sales and products development. More efforts should be made in the research and development and improvement of technological levels to create home-made brands and increase competitiveness, he said. Just as with the whole nation, Guangdong has a good social and economic situation, but also faces many new difficulties and problems, Wen said. Some exports-oriented small and medium-sized enterprises in the Pearl River Delta area have felt the increasing impact of the world's economic growth slowdown and shrinking foreign demands, he noted. The fundamental way to deal with the challenges is to deepen reform and opening up and promote development in a scientific way, said the premier. During the visit, Wen talked with staff and managers of enterprises and urged them to attach importance to innovation. The key to the development of a country, a nationality and an enterprise is innovation, Wen said. Only continuous innovations can enable the Chinese nation stand up in the world and enterprises become leaders of their industries, he said. Guangdong has made great achievements in economic and social development in the past 30 years, realized a historic jump and contributed a lot to the country's reform and opening up and modernization construction, Wen said. The province should continue to take the lead in the country's reform and opening up, he added.
BEIJING, Aug. 11 (Xinhua) -- Chinese President Hu Jintao on Monday met separately with several foreign leaders in the Great Hall of the People in central Beijing. The foreign leaders, including Cambodian King Norodom Sihamoni, President of Cyprus Demetris Christofias, Slovak President Ivan Gashparovic and Latvian President Valdis Zatlers, had come to the Chinese capital to attend the opening ceremony of the Beijing Olympic Games on Aug. 8 and other activities relating to the Games.Chinese President Hu Jintao (R) shakes hands with King of Cambodia Norodom Sihamoni during their meeting in Beijing, China, Aug. 11, 2008. Norodom Sihamoni attended the opening ceremony of the Beijing Olympic Games on Aug. 8.Hu extended a warm welcome to the guests, and said the Beijing Olympics, with the theme of "One World, One Dream," is an international sports gala that belongs to people of all countries in the world. The foreign leaders spoke highly of the Games' opening ceremony and China's preparations for the Games, and expressed the belief that the Beijing Olympics will be a great success. Hu also had a broad exchange of views with the leaders on bilateral relations and other major regional and international issues of common concern. In his meeting with King Sihamoni, Hu said that China and Cambodia are not only good neighbors that coexist in peace and harmony, but also good friends with mutual trust, good brothers sharing happiness and woe, and good partners working together for a win-win end. "The friendly relationship between China and Cambodia is exemplary for countries of different social systems which want to treat each other equally and carry out sincere cooperation," Hu said. The Chinese government and people are ready to work with their Cambodian counterparts to enhance friendly exchanges, expand mutually-beneficial cooperation, and promote common development, said Hu, adding that China highly appreciates the Cambodian Royal Family's "outstanding contribution" to the development of Sino-Cambodian relations. King Sihamoni responded that the Cambodia-China friendship was forged and developed through the efforts of several generations of leaders of both countries. He said the Cambodian Royal Family, government and people appreciate the long-time support and assistance from China and are dedicated to the development of good-neighborly friendship and cooperation with China.Chinese President Hu Jintao (R) shakes hands with President of Cyprus Demetris Christofias during their meeting in Beijing, China, Aug. 11, 2008. Demetris Christofias attended the opening ceremony of the Beijing Olympic Games on Aug. 8. While meeting President Christofias, Hu pointed out that China and Cyprus enjoy all-weather friendship and partnership. "China is willing to work with Cyprus to enhance high-level exchanges, expand cooperation in diverse fields and cement coordination within the frameworks of the United Nations and Asia Europe Meeting and in multilateral affairs," he said. President Hu stressed China's persistent stand that the independence, sovereignty and territorial integrity of Cyprus should be duly respected, and the Cyprus issue should be settled in a fair and reasonable manner on the basis of relevant UN resolutions. Christofias thanked the Chinese side for the support of Cyprus unity, and hoped the two countries enhance cooperation in trade and economic sectors. Cyprus will continue with its efforts to promote Europe-China relations, he added.Chinese President Hu Jintao (R) meets with his Slovakian counterpart Ivan Gashparovic in Beijing, China, Aug. 11, 2008. Gashparovic was here to attend the opening ceremony of the Beijing Olympic Games on Aug. 8 and other events. Meeting with his Slovak counterpart, Hu said that bilateral ties have been going along quite well in recent years and the two countries have enhanced high-level exchanges, built mutual political trust, maintained practical and fruitful cooperation in diverse fields, and cemented coordination in international affairs. Slovakia is considered as a trustworthy friend and partner of China, Hu said. "Next year will mark the 60th anniversary of the establishment of China-Slovakia diplomatic relations. We're willing to work with Slovakia to promote bilateral friendly cooperation to a new height." President Gashparovic said his country thinks highly of China's influence in international affairs, and hopes to deepen cooperation with China to further promote bilateral relations.Chinese President Hu Jintao (R) shakes hands with President of Latvia Valdis Zatlers during their meeting in Beijing, China, Aug. 11, 2008. Valdis Zatlers attended the opening ceremony of the Beijing Olympic Games on Aug. 8. In his discussions with the Latvian president, Hu said that China's relations with Latvia have forged ahead smoothly since the two countries clinched diplomatic ties 17 years ago. China values such relations and is ready to work with Latvia in promoting all-round development of bilateral ties by maintaining exchanges at all levels, enhancing contacts between the governments, legislatures and political parties, expanding channels for trade and economic cooperation, broadening exchanges and cooperation in diverse fields including science and technology, culture and education, and maintaining good coordination in international affairs, Hu said. President Zatlers echoed Hu's views on bilateral ties, saying his country is ready to work with China to expand cooperation in economic and trade fields and boost exchanges in education and cultural sectors. During the Monday meetings, Hu also thanked the foreign leaders for their countries' assistance to China after the devastating May 12 earthquake that rocked Sichuan Province and neighboring regions.