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WUHAN, March 26 (Xinhua) -- China on Friday started building a canal from the middle section of the Yangtze River to a tributary that connects with China's South-North Water Diversion project.Costing more than six billion yuan (880 million U.S. dollars), the 67.23 km project will divert 3.1 billion cubic meters of water every year from Yangtze's Jingjiang section to the Hanjiang River, one of the major sources of water for north China once the diversion project is complete.China's South-North Water Diversion project is designed to divert water from the water-rich south to the dry north.The central part of the project will divert water from Danjiangkou Reservoir on the Hanjiang River to north China cities like Beijing and Tianjin.According to research by Hubei provincial environmental protection bureau, without water from the canal the Hanjiang River would only have one third of its average runoff once water is diverted, and the water level of middle and lower reaches of Hanjiang would drop by 0.5 meter.The canal, which will be completed in 2014, will prevent problems arising such as algae pollution if water levels were decreased dramatically, said Shen Xiaoli, an engineer with the Hubei Environmental Sciences Institute.The canal is expected to benefit about 8.9 million people and 43,000 hectares of farmland in the lower reaches of Hanjiang.Once completed the five to six meters deep canal could be used by ships weighing more than 1,000 tonnes, facilitating transportation of coal from the north to the south, said Xu Shaojun, head of the Hubei Provincial Investigation and Design Institute of Water Resources and Hydropower.

BEIJING, May 19 (Xinhua) -- Major indices of China's large ports mostly pointed to better performance in April with increasing cargo throughput and exports volume, the Ministry of Transport said Wednesday.According to latest figures posted on the ministry's website, China's large sea ports and river ports saw rapid throughput growth in cargo, exported goods volume and containers from January to April.Passenger throughput via large ports, however, fell 18.5 percent from a year earlier to 295 million in the first four months of 2010, the ministry said.Large ports are classified in China as sea ports with an annual cargo throughput above 15 million tonnes and river ports with an annual cargo throughput above 10 million tonnes.From January to April, cargo throughput in those large ports jumped 20.2 percent year on year to about 2.48 billion tonnes, the ministry said.About 206.5 million tonnes of goods were exported via the large ports during the January-April period, up 27.2 percent from a year ago.Container throughput rose 22.4 percent year on year to 436.81 million TEUs in the first four months, according to the ministry.

BEIJING, May 31 (Xinhua) -- The People's Bank of China (PBOC), China's central bank, issued a circular Monday requiring banks to curb lending to energy-intensive industries, a move echoing government energy-saving and pollution-reduction measures.Banks must strictly review loan applications from companies in energy-consuming industries, the circular said, adding that only bank headquarters can extend loans to finance capacity expansion projects in energy-guzzling sectors.It also banned new credit to any projects not complying with government energy-saving policies.According to the circular, banks should conduct an overall review of loans to energy-intensive industries and report the results to the central bank by the end of June.The State Council, China's Cabinet, urged in early May all government departments make efforts to cut emissions and conserve energy to meet the country's target set in the 11th Five-Year Plan (2006-2010), according to which China will cut its per unit GDP energy consumption by 20 percent compared with 2005 levels by the end of 2010.

BEIJING, April 2 (Xinhua) -- China needs to expand the Renminbi, or yuan, cross-border settlement efforts when conditions allow, the People's Bank of China (PBOC) said Friday."It is necessary for China to seek appropriate timing to expand the cross-border yuan settlement to more cities, enterprises and overseas pilot areas," said an international financial market report released on the central bank's website Friday.But the report did not detail the conditions for appropriate timing.The foreign trade volume settled in yuan is still small compared with China's total foreign trade volume, said the report, without specifying figures.Official figures from China's General Administration of Customs showed that the country's exports in 2009 stood at 1.2 trillion U.S. dollars, down 16 percent from 2008.China's State Council, or Cabinet, announced in April 2009 a pilot program to allow exporters and importers in five cities -- Shanghai, Guangzhou, Shenzhen, Zhuhai and Dongguan -- to settle cross-border trade deals in yuan.The latter four cities are all in south China's Guangdong Province.The Bank of China (BOC), China's largest foreign exchange bank, announced on July 6 last year that its Shanghai branch had received the first cross-border yuan trade settlement deal from the BOC (Hong Kong).The government is considering enlarging the scope of cross-border yuan settlement from commodity trade into service trade, said the report.Yuan settlement was in accordance with the market demand, said Cao Honghui, a researcher with the Chinese Academy of Social Sciences, but increasing the yuan's global acceptance would be decided by factors such as the country's economic development and the financial system development.

JINAN, May 3 (Xinhua) -- A pipeline owned by China Petroleum and Chemical Corporation (Sinopec) resumed operation Monday afternoon after it leaked 240 tonnes of oil in east China's Shandong Province.The company immediately shut down the cracked pipeline and blocked the leakage site after the leakage was spotted, said a spokesman with Sinopec.It recovered 220 tonnes of oil, which had leaked to nearby farmland and roads, the spokesman said.The leakage, which was discovered at 6:12 p.m. Sunday, occurred at a section of the Dongying-Huangdao pipeline near Jiulong Township in Jiaozhou City."The influence of the leakage on the farmland could be controlled within the minimum level," he said.Testing results from the local environmental protection authorities showed the leakage didn't contaminate the nearby water sources.An initial investigation showed the pipeline crack was caused by a digger driver who unauthorizedly excavated the earth above the pipeline to bury the waste at a construction site in Jiulong Township.Police are searching for the driver, who fled after the accident.