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BEIJING, Oct. 29 (Xinhua) -- China's central bank, the People's Bank of China (PBOC), announced on Wednesday it would cut benchmark interest rates by 0.27 percent to spur economic growth as of Oct. 30. The benchmark one-year deposit rate would drop to 3.60 percent from 3.87 percent, while the benchmark one-year lending rate would fall from 6.93 percent to 6.66 percent. This is the second such move in less than one month, highlighted the government's rising concern over the slowing economy and slumping capital market. The previous was on Oct. 8, when the PBOC announced to cut deposit and lending rates was lowered by 0.27 percentage points and decided to cut the reserve-requirement ratio by 0.5 percentage points from Oct. 15. "It reflects that the government is worried about a cooling down economy and other domestic problems, amid a deepening U.S.-originated world credit crisis, " said Tang Min, China Development Research Foundation deputy secretary. China's gross domestic product (GDP) grew to 20.16 trillion yuan (2.96 trillion U.S. dollars) in the first three quarters of this year, up 9.9 percent from the same period of last year. The growth rate was 2.3 percentage points lower than the same period of last year, and half a percentage point lower than the first half. "This was also a timely response to the rate cuts by other central banks worldwide and part of a coordinated effort to stem the global financial crisis, " said Tang. The recent intensification of the financial crisis has augmented the downside risks to growth and thus has diminished further the upside risks to price stability, experts say. Tang added, the easing in inflation has given room for the authorities to loosen monetary policy. Inflation is no longer a threat with the declining commodities prices. China's consumer price index (CPI), the main gauge of inflation, rose 4.6 percent in September over the same period last year, off from the 12-year high of 8.7 percent in February. "A lower interest rate will help domestic enterprises to cut business costs, and boost economic development. This is in line with the country's expectation," Tang noted. Zhuang Jian, senior economist with Asia Development Bank echoed with Tang, saying a relaxed credit and financing environment is a key factor to enlarging domestic demand and boost consumption. "Maintaining a fast and sound economic development is the government's top priority currently," Zhuang added. However, Zhuang noted, monetary policy alone was not enough to boost domestic economy in the long term. Other fiscal policies were also very important. Guo Tianyong, director of banking research center with Central University of Finance and Economics said, this move was also contribute to rebuilding people's confidence over the poorly-performing domestic stock market and real estate market. China's stock market dropped more than 66 percent from its peak last October, while real estate prices continue to fall in recent months. Last week, China announced an array of policies, including tax exemption and mortgage deposits reduction, to boost the falling real estate sector amid the global economic slowdown. The interest rates on a mortgage for first time home buyers was cut by 0.27 percentage points as of Oct. 27. The floor for interest rates would be lowered to 70 percent of the central bank's benchmark rate, the central bank said.
BEIJING, Feb. 1 (Xinhua) -- Attracted by the real estate plunge on the other side of the globe, Chinese homebuyers are gearing up for visits to the United States in February to buy cheap homes, the English language newspaper China Daily reported in its weekend issue. A pioneering house-buying team of 20 to 30 people, organized by Soufun.com, one of the largest real estate portals in China, is scheduled to leave for the United States on Feb. 12, according to an article on Soufun.com. It is said more than 300 Chinese have registered so far on the website for a 10-day house-buying trip. The U.S. mortgage crisis and the downturn in the global economy have presented people with a golden opportunity, said Liu Jian, an official of the Beijing-based real estate portal. The trip, which costs up to 25,000 yuan (3,500 U.S. dollars) per person, will focus on cities with huge ethnic Chinese populations including San Francisco, Los Angeles, Las Vegas and New York, Liu said. The prices of houses targeted by Chinese buyers are between 3 million to 5 million yuan (400,000 to 700,000 U.S. dollars), he said. The applicants include real estate professionals who want to investigate in the U.S. real estate market, and parents who want to buy houses for their children studying or to study in the United States.

BEIJING, Jan. 6 (Xinhua) -- Chinese Vice President Xi Jinping urged officials with the Communist Party of China (CPC) to play more important roles when dealing with the international financial crisis. Xi, also a member of the Standing Committee of the Political Bureau of the CPC Central Committee, made the remark during a conference Tuesday. Xi asked officials to make public promises that they would better implement their duties to Party members and non-party people. The official also urged Party officials to carry out the central government's policies designed to keep steady economic growth and improve the people's lives using practical measures.
BRUSSELS, Jan. 30 (Xinhua) -- China and the European Union (EU) on Friday agreed to strengthen practical cooperation in jointly addressing the current global financial crisis. The agreement came after talks between visiting Chinese Premier Wen Jiabao, who arrived here on Thursday for a visit to the EU headquarters, and European Commission President Jose Manuel Barroso. Wen told Barroso that China, in its foreign relations, lays a strategic emphasis on developing the comprehensive strategic partnership with the EU, and promoting cooperation to jointly tide over the current difficulties should be a key task for both sides under current circumstances. To this end, both sides need to trust and respect each other, treat each other equally and aim for mutual benefit, Wen said. In particular, China and the EU should address each other's major concerns and try to stave off disputes, he added. Barroso said the EU and China have seen close, deep and fruitful relations, and, as two major forces in the world, many global issues cannot be solved without EU-China cooperation. The EU is ready to promote dialogue and cooperation with China to elevate the comprehensive strategic partnership to a higher level, he said. To jointly tackle the global financial crisis, China and the EU agreed to expand information exchanges between financial institutions, the central banks and financial supervisory and regulatory bodies. Both sides pledged to promote trade and investment. China will continue to steadily expand market access and increase import from the EU, while the EU recognized China's achievement in promoting market economy. Both sides agreed to support cooperation between small- and medium-sized businesses and to deepen cooperation in technological innovation in such areas as energy conservation, greenhouse gas emission reduction and health care. China and the EU vowed to work together in mitigating and adapting to climate change, agreeing to boost cooperation in developing new energies, new energy conservation technology and a low-carbon economy. The two sides also reached consensus on close coordination in macroeconomic policies and opposition to trade protectionism. China and the EU on Friday signed cooperation agreements on aviation, work safety, clean energy and intellectual property rights protection.
BEIJING, Nov. 21 (Xinhua) -- The Communist Party of China's (CPC) top anti-corruption official on Friday urged tighter supervision and inspection to ensure the implementation of the central government's economic policies. He Guoqiang, secretary of the CPC Central Commission for Discipline Inspection (CCDI), made these comments at a conference held before inspection groups headed for local governments. The central government has announced steps to spur domestic demand and boost economic development in the face of the global economic slowdown. A supervision work leading group, composed of the CCDI, the Ministry of Supervision, the National Development and Reform Commission, the Ministry of Finance and the National Audit Office, has been set up to supervise the projects invested in by the central government and the implementation of economic policies. Twenty-four groups will go to 31 provinces, municipalities and autonomous regions to carry out inspections. He asked inspectors to examine project plans, as well as approval and construction procedures, to ensure they were in compliance with laws and regulations. Supervision over the management and use of money, as well as project quality, should be tightened, He said. He, who is also a member of the Standing Committee of the CPC Central Committee Political Bureau, added that officials found taking bribes or embezzling funds should be severely punished.
来源:资阳报