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HONG KONG, Sept. 28 (Xinhua) -- The launch of Renminbi sovereign bonds in Hong Kong on Monday shows China's efforts to boost the international use of the yuan step by step, officials and analysts said. The bond issue, worth only 6 billion yuan (878.5 million U.S. dollars), marked a key milestone in the internationalization of the RMB. Hong Kong was chosen for, and will benefit from, the milestone bond sale thanks to its unique position as the international financial center providing desired cushion against the potential risks when the program was launched, analysts said. BOOSTING INTERNATIONAL USE OF RMB The bond issue in Hong Kong came earlier than expected, said Hu Yifan, an economist with CITIC Securities. "The need for the RMB to go international and convertible has been growing along with the increasing importance and openness of the Chinese mainland economy and the risks arising from over- reliance on the United States dollar as the reserve currency," said Tse Kwok-leung, head of economic research of Bank of China ( Hong Kong) Limited. China has been launching pilot RMB programs over the years, but the pace has obviously quickened since the onset of the global financial crisis. Pilot RMB programs launched in Hong Kong over the past 12 months also included yuan-denominated cross-border trade settlement and trade financing, yuan bonds issued by policy banks, commercial lenders and the branches of foreign banks, and currency swaps. The sovereign bond issue would help "boost the international use of the RMB in a steady and orderly manner," the Chinese Ministry of Finance quoted Acting Chief Executive of the Hong Kong Special Administrative Region (HKSAR) Henry Tang as saying. The sovereign bond sale in Hong Kong serves the purpose of water testing to "see how it is received by international investors." Hong Kong has a unique strength in that it provides the desired cushion against potential risks when the pilot programs were launched, given that the mainland capital market was yet to open up, Tse said. BOOSTING NASCENT BOND MARKET IN HONG KONG The bond issue ahead of the Chinese National Day showed the central government's support for Hong Kong, Vice Minister of Finance Li Yong said. It will help Hong Kong build on its strength as an international financial center by boosting the nascent bond market in Hong Kong, Tse Kwok-leung said. "It calls for a banking system, a stock market and a bond market, all developed, to make a developed international financial center," Tse explained. Hong Kong has been aspiring to be the leading international financial center in the Asian time zone. Government statistics showed that the total assets of Hong Kong's banking system and the size of its stock market were both about six times its gross domestic product, compared with a bond market equivalent to 43 percent of its gross domestic product. Bonds issued in Hong Kong in 2008 totaled 424.4 billion HK dollars (54.4 billion U.S. dollars), with 67 percent issued by the Hong Kong Foreign Exchange Fund, which was established to defend the Hong Kong dollar peg to the U.S. dollar. The other 33 percent were accounted for by development banks from outside Hong Kong and corporate bonds issued by local players. There were no sovereign bonds. Tse said the bond issue will also help improve the liquidity of, and diversify, the local bond market. It will also improve the operation of the RMB bond market in Hong Kong by helping find the benchmark interest rate in the local market. Tse said the demand for sovereign bonds issued by an economy as strong as the Chinese mainland was huge, given the impact of the global financial crisis on the corporate bond market. Vice Minister of Finance Li Yong also said he believed the bonds will be well received. "I believe the RMB sovereign bonds will prove popular with investors looking for safe and prudent investments. I definitely think it will be successful," Li said.
BEIJING, Sept. 21 (Xinhua) -- China's Defense Minister Liang Guanglie stressed on Monday that the absolute control under the Communist Party of China (CPC) has guaranteed the country's armed forces have achieved landmark progress in the past six decades. Liang, a State Councilor and also member of the Central Military Commission (CMC) as a full general, made the remark during an exclusive interview with Xinhua less than ten days leading to a grand military parade scheduled on China's National Day. The minister said a solid ideological and political leadership by the CPC is the greatest difference between the People's Liberation Army (PLA) and the armed forces of Western countries, by which the Party's troops have endured various tests and shown loyalty, bravery and services to the people. The PLA has achieved leaping upgrades in its defensive combat abilities to realize that the armed forces could effectively safeguard the country's sovereignty and territorial integrity, Gen. Liang said. Liang emphasized that the PLA could not make the achievements without several rounds of disarmament and its internal reforms to optimize the military resources and command systems since the People's Republic of China was founded in 1949. The PLA once had 6,000,000 uniformed members. The most high-profile cut was conducted by late CMC Chairman Deng Xiaoping who made a surprising decision in 1985 to reduce ranks by 1,000,000, mostly from the army and military schools. After the latest cut in 2005, the PLA now has 2.3 million servicemen, although it remains the world's most populous armed force. Gen. Liang said that after consistent efforts by scientists and researchers as well as China's improving industrial capacities, the PLA's arsenal has been equipped with all major weapon systems on the land, in the sea and air just like other major military powers. "We now have military satellites, advanced jets, new main battle tanks, sophisticated warships and subs," Liang said, adding that some of the weaponry have caught up with world-leading standards. After nearly 60 years of construction and development, China has set a strategic target to realize basic defense and military modernization, he said. Achieving this objective, the Army's mobility level will be upgraded to give greater regional capabilities, and the Navy will be capable of both a strong coastal defense and certain measures for blue water combat, Liang said. The Air Force will be transformed from a fleet that could only provide homeland air defense to an aerial power capable of a combination of offensive and defensive operations, and the Second Artillery Corps, China's strategic missile troops, will become a truly efficient force with both nuclear and conventional striking power, he said. The military parade on Chang'an Avenue in front of the Tian'anmen Square on Oct. 1 will probably be the best footnote to Liang's remarks. According to Lt. Gen. Fang Fenghui, general director of the parade, 52 types of new weapon systems developed with China's own technologies will be showcased to celebrate the 60th anniversary of the founding of the PRC. China will unveil for the first time the PLA's airborne early warning and control (AEWC) aircraft, unmanned aerial vehicles (UAV) and other novel military hardware which have seen active service. With a distinctive theme of "Made in China" to be showcased by the military parade, the Defense Minister said the Chinese defense industry has been also upgraded from copying Russian made weapons in 1950s and 1960s to a self-reliance on designing and manufacturing from the 1970s onwards. Another progress is the improved heritage of national defense mobilization which has played a unique role and advantage in the PLA's service in peace time and in missions to help civilians in emergencies, Liang said. The two events that impressed the 68-year-old minister most were the PLA's engagement in fighting a severe flood disaster in 1998 and the devastating earthquake in Sichuan Province last year. "The troops and even many veterans were quickly mobilized and gathered to fight the flood at the front line in spite of danger to life," Liang said. "I also witnessed very moving moments during the earthquake relief work when quake survivors saved by the PLA soldiers expressed their sincere appreciations," he said.

TAIPEI, Aug.15 (Xinhua) -- Typhoon Morakot has killed at least 124 people and left 56 missing in Taiwan as of 10 p.m. Saturday, according to local disaster response authorities. Another 45 people were injured after the typhoon, the worst on the island in nearly five decades, wreaked havoc across central and southern regions. Sixty-six people died in Kaohsiung, 25 in Tainan, 16 in Pingdong, six in Chiayi, seven in Nantou, three in Changhua and one in Yunlin. Nearly 23,700 people have been evacuated, and almost 5,000 are taking refuge in 170 sheltering camps. Morakot has caused more than 12 billion New Taiwan Dollars (365million U.S. dollars) in damages to agriculture and forestry. Among the worst-hit regions are Pingdong, Kaohsiung and Tainan. People from a wide range of social sectors in Taiwan have donated cash and materials worth millions of New Taiwan Dollars to support the disaster-relief work. Photo taken on Aug. 14, 2009 shows a house buried by debris flow in Kaohsiung, southeast China's Taiwan Province.Charities and enterprises on the mainland also offered relief-assistance to the island. On Saturday, an official with the Taiwan Work Office of the Communist Party of China (CPC) Central Committee, said the mainland will provide any necessary relief materials needed by Taiwan compatriots affected by the typhoon. The office has requested factories to manufacture portable shelters day and night, and the first batch is expected to arrive in Taiwan Monday at the soonest. Villagers search for lost belongings in a damaged village in Kaohsiung, southeast China's Taiwan Province, Aug. 14, 2009
URUMQI, Sept. 4 (Xinhua) -- The city of Urumqi, capital of northwest China's Xinjiang Uygur Autonomous Region, quieted down late Thursday night after tens of thousands of people took to streets to protest against syringe attacks. There were few pedestrians on the Youhao, Karamay, Altay and Beijing Roads. Police were persuading about 100 people to leave the Nanhu Square in front of the municipal government. Passage in areas including Youhao Road, Guangming Road and Renmin Square was prohibited for vehicle as a traffic control in place on major roads in downtown areas took effect at 9:00 p.m.. Li Zhi (1st R, on the car), secretary of the Communist Party of China Urumqi City Committee, speaks to crowds in Urumqi, capital city of Xinjiang Uygur Autonomous Region, Sep. 3, 2009. Crowds gathered at a number of sites in Urumqi Thursday morning demanding security guarantees from authorities following hypodermic syringe attacks in the capital city of Xinjiang Uygur Autonomous Region. Tension was relieved after the communication of local officials with the crowd. The daytime protest, attended by tens of thousands of people, crippled city traffic and forced shops in major commercial streets to shut. Police said Thursday's protest started at 10:50 a.m. when more than 1,000 people gathered in the residential quarter of Xiaoximen. Another crowd of protestors gathered at the Beiyuanchun farmers' produce wholesale market at 10:30 when a man was caught after allegedly stabbing a five-year-old girl. The demonstration spread to major streets including Guangming Road, Xinmin Road and Youhao Road. People also turned out in big crowds in front of the Renmin Cinema and at the Renmin Square. Protestors held the national flag and the flag of the Communist Party of China and shouted "Severely punish the mob." Members of the Uygur ethnic minority were among the protesting crowds. Wang Lequan, secretary of Xinjiang Uygur Autonomous Regional Committee of the Communist Party of China (CPC), and Li Zhi, secretary of the CPC Urumqi City Committee, called on the crowds, on two separate occasions, to stay calm and show restraint. Wang and five representatives of the public held talks in the office building of the regional committee during the afternoon, but no details were available. Stabbing attacks occurred during the protests and an attacker was caught at the scene. The police stopped the crowd who were about to beat her. Police said that attacks with syringes against innocent people have been carried out in Urumqi since Aug. 17. The regional health department said 476 people have sought treatment for stabbing, of whom 89 were showing obvious signs of needle sites. As of Wednesday, there had been no deaths reported and no symptoms have been found of infectious disease viruses or toxic chemicals. Parents are worried about the safety of their children as the Fall semester has started. Zhu Hailun, head of the political and legal affairs commission of the CPC committee in Xinjiang, said members of nine ethnic groups including Han, Uygur, Hui, Kazak and Mongolian had reported stabbing incidents to the police in recent days. Local police had seized 21 suspects, of whom six are in police custody and four arrested for criminal prosecution, said the regional information office in a mobile phone text messages to the public on Thursday. It also said that the court would hand down severe punishments to those found guilty according to the law. The attacks came less than two months after the July 5 Urumqi riot when 197 people, mostly from the Han ethnic group, were killed, and 1,600 others injured. Authorities have issued arrest warrants to 196 suspects and prosecuted 51 for involvement in the riot, the regional government information office said in a statement Thursday. The police have further requested the procuratorate to approve the arrest of another 239 suspects thought to be involved in 140 crimes. Another 825 are being held in criminal detention, the regional information office said.
BEIJING, Aug. 23 (Xinhua) -- China's insurance capital investments hit 2.45 trillion yuan (358 billion U.S. dollars) in the first seven months of this year, according to the country's insurance regulator. In July alone, the investments from insurance funds stood at 120.4 billion yuan, China Insurance Regulatory Commission (CIRC) said in a report on its website. Of the total insurance investment value, about 332 billion yuan, or 9.8 percent, went to the stock markets by the end of the second quarter of this year. During the same period, mutual funds investments suck 228.45 billion yuan, or 6.8 percent from the insurance capital. A booming equities market and an optimistic attitude towards the country's stock markets had led to an increasing investments, said the CIRC. Comparatively, in the first seven months, bank deposit of China's insurance capital decreased to 1.03 trillion yuan, 15.23 billion yuan less than in the first six months. The CIRC's statistics also reflected a slowdown increasing rate in premium income in the first seven months. Premium income was 678.64 billion yuan, representing a small increase of 80 billion yuan than the June figure.
来源:资阳报