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BEIJING, March 10 -- Tianjin's mayor assured investors Sunday that the city's pilot program, allowing mainlanders to invest in Hong Kong-listed shares, is on track. "There's a lot of preparation involved. Risk assessment and research is under way to open the door for mainlanders to invest in the Hong Kong stock market," Huang Xingguo, mayor of Tianjin, said Sunday. "The project's going smoothly, but timing depends on central government approval. I can assure you that Tianjin's status as a pilot city (for financial reform) will not change," he said. The scheme is in line with the nation's economic development and investor demand and will be an effective way to bring in conversion of the renminbi via capital accounts, Guo Qingping, chief of Bank of China's (BOC) Tianjin branch, said on the sidelines of yesterday's NPC session. But authorities are cautious about rushing the program through, due to its complexity and risk. "One risk is hot money flowing into and out of the mainland," Guo said. BOC was originally expected to be the only financial institution providing the program, but Guo said the details are still being ironed out. The trial scheme was announced in August last year as a way to diversify mainland investor channels. But it's been put on hold amid the unfolding US subprime crisis and global stock market uncertainty. Preparation for the program includes payment systems, renminbi conversion, regulation changes as well as extensive risk assessment, Huang said. Liu Mingkang, chairman of the China Banking Regulatory Commission, told China Daily earlier that no timetable has been set for the pilot scheme, which will allow mainlanders to invest directly in Hong Kong-listed shares. The regulator stressed that more research into the system is needed. Meanwhile, a timetable is not yet available for Tianjin's new offshore financial center, which is also subject to further research, according to Guo from BOC.
BEIJING, March 24 (Xinhua) -- Chinese commercial banks will be allowed to trade gold futures in the domestic market, according to a notice released on the regulator's official website here on Monday. China gold futures trading was launched in January, but domestic banks were barred from trading by the China Banking Regulatory Commission. According to the notice, domestic banks that meet certain requirements, such as having capital adequacy ratio of more than 8percent, can apply for a trading permit. "That's great news for the gold futures market, which is not operating that well," said Hu Yuyue, an expert with Beijing Technology and Business University. "Commercial banks can provide more liquidity and stability to the market, after all, they hold huge capital," said Hu. "Gold futures trading can also help domestic banks to improve competitiveness against overseas banks as financial derivatives are supposed to be the largest revenue sources for leading banks," he said. Non-interest income usually accounts for at least 50 percent of bank revenues in developed countries and the proportion can reach 80 percent for some banks. However, Chinese banks depend heavily on the margins between deposits and loans.

Foreign trade in east China's Shanghai port rose 20.3 percent year-on-year to 91.06 billion U.S. dollars in the first two months of 2008, official statistics show. The figure accounted for 24.9 percent of the country's total trade value of 365.93 billion U.S. dollars from January to February. Exports climbed 17.2 percent, 20.7 percentage points lower than the period from a year earlier, to 58.59 billion U.S. dollars. Mechanical and electronics products accounted for around 60 percent of total exports. Imports jumped 26.3 percent, 10.8 percentage points higher from the same period last year, to 32.47 billion U.S. dollars, the Shanghai Customs said. The surplus rose 7.6 percent to 26.12 billion U.S. dollars. The rate was 66.1 percentage points lower from a year ago. Export growth slowed as the Spring Festival holiday and the strongest winter blizzards in five decades closed factories and disrupted transport. The government policies introduced last year to reduce surging surplus also contributed to the slower pace, as shown in the steel and garment sectors. Imports, however, accelerated their pace as China bought more commodities and farm produce at higher prices. Through the Shanghai port 549,000 tons of agricultural products were imported in the two months, an annual increase of nearly 30 percent. Their average price was up 24.7 percent from a year earlier.
China's natural gas output would at least double the present volume in the coming decade to reach 150 billion to 200 billion cubic meters, PetroChina Vice President Jia Chengzao said on Tuesday. PetroChina, the country's leading natural gas producer, alone has reported an annual output rise of 10 billion cubic meters for two consecutive years, he said. "We will strive to keep the same growth rate this year," said Jia, a member of the 11th National Committee of the Chinese People's Political Consultative Conference, who is attending the annual political advisory session. His company produces about 75 percent of China's total natural gas output. Recent discoveries of new gas fields, including Jidong Nanpu Oil Field in north China's Bohai Bay, which contains 1.18 billion tons of oil and gas reserves, would boost China's natural gas sector and optimize its energy structure, said Jia. "China National Petroleum Corporation (CNPC) will probably announce the proven reserves of the Longgang gasfield in the southwestern Sichuan Province around the end of this year," he said. Industry insiders believe the Longgang gasfield contains at least 700 billion cubic meters of estimated reserves. China's natural gas output reached 69.31 billion cubic meters last year, up 23.1 percent year-on-year, according to China Petroleum and Chemical Industry Association. Listed in Hong Kong and New York, PetroChina Company Limited is the listing arm of China National Petroleum Corporation (CNPC), the largest oil producer of China.
来源:资阳报