China's Premier Wen Jiabao is scheduled to attend the high-level meetings of the U.N Millennium Development Goals and the general debate of the 63rd session of the U.N General Assembly convened in New York next week. It will be his debut appearance on the U.N stage, and second trip to the U.S, in his tenure as Premier, following his four-day official visit in 2003.
Itineraries of Premier's U.N trip have yet to be publicized so far, but it was learned that the MDGs meetings are to be convened by the U.N Secretary-General Ban Ki-moon and the incoming President of the 63rd U.N General assembly, Fr. Miguel Brockmann on September 25, and the 63rd plenary of the U.N General Assembly will formally open on September 23 with the presentation of a report by Ban Ki-moon to kick start the assembly's general debate.
A gathering of world leaders will speak from September 23 to October 1 at the U.N headquarters in a program that will attract more than 90 heads of state or government and other international figures, covering a spate of issues like poverty and famine, education and health, and environmental sustainability. Bilateral and multilateral talks for world leaders and prominent personalities are also expected to be held on the sidelines of the U.N General Assembly.
It is three years ago that China's voice was last heard when President Hu Jintao participated in the U.N Summit commemorating the 60th Anniversary of the Founding of the United Nations. At the largest-scale ever U.N Summit, President Hu for the first time put forward the concept of 'social harmony,' and clearly elaborated on the dialectical relationship between social harmony and world peace, winning a universal approval of the international community.
The MDGs meetings and the 63rd U.N General Assembly are to be convened in a sensitive time, as the world situation is getting increasingly volatile with the global economy slowing down and new problems arising in the hot regional issues. It is obvious that Premier Wen will capture the world attention by voicing his views at the U.N podium on the development of China and the world.
China, as a standing member of the U.N Security Council and the world's most populous country, will be further stating its views on the agricultural issues and programs to aid Africa at the meetings, according to observers. China has been for all these years striving to be a responsible country in seeking to achieve the goals benefiting the entire mankind and sought after by the international community.
The MDGs are actually eight goals to be achieved by 2015 that respond to the world's main development challenges. The MDGs are drawn from the actions and targets contained in the Millennium Declaration that was adopted by 189 nations, and signed by 147 heads of state and governments during the U.N Millennium Summit in September 2000. The eight MDGs break down into 21 quantifiable targets that are measured by 60 indicators.
China has in recent years constantly streamlined its policies to solve the problems of people's livelihood, and scored remarkable achievements in poverty reduction and elimination, which is regarded an inalienable part in achieving the U.N Millennium Goals. Meanwhile, with the increasing enhancement of China's comprehensive national strength, the international community will exert more and higher expectations on China in wide arrays of issues like climate change and open market, and China is expected to assume more responsibilities and pressure in the years to come.
Premier Wen Jiabao, as a popular premier with a large circle of 'fans' within and outside of China, will face a new challenge making his first international positions at the U.N podium. But it is convincing that the Chinese Premier's typically sincere, easy-going and amiable style will impress the world and deliver a message to the international community that China remains a peace-loving developing country.
By People's Daily Online
Wednesday, September 17, 2008
4th Beijing-Tokyo Forum in session in Tokyo
The fourth Beijing-Tokyo Forum, co-sponsored by China Daily, the sole English newspaper in China, and the non-profit Japanese organization Genron NPO, is now in session in Tokyo.
In a message of congratulations to the forum, Chinese State Councillor Dai Bingguo spoke highly of the Beijing-Tokyo Forum in session for its crucial, important role in exchanges between the two countries. Sino-Japanese ties have reached a "new historic starting point", based on the "strategic relationship of mutual benefit" after having undergone the "ice-breaking", "ice-melting", "spring-greeting" and "spring-warming" visits to each other's country by leaders of both nations.
Noting that the year of 2008 marks the 30th anniversary of the China-Japan Peace & Friendship Treaty, he said, China is willing to go on making concerted efforts with the Japanese side to step up an all-round implementation of vital consensuses reached by their leaders and together push the Sino-Japanese strategic and mutually-beneficial relations to advance continuously and make fresh contributions in maintaining the world peace and promoting the common development.
"The Beijing-Tokyo Forum, which has offered a very good communication platform for the media, academic circles and non-governmental organizations, is of great significance to the two sides to recognize the past, grasp the present and think about the future," Dai said in the message.
China and Japan will push forward their relationship despite obstacles, outgoing Japanese Prime Minister Yasuo Fukuda said in a message to the forum.
"During President Hu Jintao's visit in May, the two countries signed a joint statement on promoting a strategic relationship of mutual benefit, which clearly shows the direction of bilateral relations," Fukuda said in his message to the Fourth Beijing-Tokyo Forum, which opened on September 16.
"Our future will not necessarily be smooth sailing, and could see many tests. I believe Japan and China will adhere to the joint statement and overcome difficulties, and move forward with full courage," Yasuo Fukuda said.
Sino-Japanese cooperation may well set a good example for countries with different social systems, said Wang Chen, director of the State Council Information office of China, at the fourth Beijing-Tokyo Forum.
In a keynote speech at the plenary meeting, Wang said that there are important bases and favorable environments for the long-term development of bilateral friendly relations. For China-Japan friendship, he noted, geographical proximity is the natural link, political mutual trust serves as an important basis, mutual beneficial cooperation the economic basis and long-term people-to-people exchanges the important bridge, and, in the arena of international affairs, pose an active force to promote world peace and stable development.
Meanwhile, Chinese Ambassador to Japan Cui Tiankai and Japanese foreign Minister Masahiko Komura, on behalf of their respective governments, advocated joint efforts to push forward the Sino-Japanese relations and conveyed good wishes for their further advance.
In his address at the plenary meeting of the Fourth Beijing-Tokyo Forum, Ambassador Cui Tiankai referred in particular to three "30th anniversaries", namely, the 30th anniversary of the signing of the "China-Japan Peace & Friendship Treaty, the 30th anniversary of the launch of China's reform and opening-up, and the 30th anniversary of late senior Chinese leader Deng Xiaopint's visit to Japan. Evidences of the last three decades have given an eloquent proof that evolution and development in Sino-Japanese relations are closely linked to the destinies of the two respective nations, Cui acknowledged, the long-term, healthy and stable growth of Sino-Japanese ties poses an essential condition for both nations to maintain prosperity and development in the complex, volatile international environment.
At the plenary meeting of the Fourth Beijing-Tokyo Forum, Japanese Foreign Minister Masahiko Komura said the Japanese government attaches great importance to its ties with China and it is his conviction that this general trend will not be reversed.
"Because of the current change in Japan's political situation many people are highly concerned over Japan's policy toward China," Foreign Minister Komura said, referring to the uncertainty created by Fukuda's resignation. "But I'm certain there will not be any change in promoting our relationship. The path of Japan-China ties will not be swayed by either the international climate or domestic affairs," he added.
Delivering a speech on behalf of the hosting Chinese side at the forum, Zhu Ling, editor-in-chief of "China Daily", said the current forum is themed on Asia's future and the role of China and Japan. Representatives of both China and Japan would conduct a candid, rational exploration and exchange in numerous realms, such as in politics, economic cooperation, security and natural disaster relief effort, the environment, cereals and food security and mass media. And the political dialogue sub-forum is held in prestigious Tokyo University, at which some honorable Chinese and Japanese guests would be invited for a direct dialogue with Japanese college students.
The ongoing forum，which has drawn increasing high attention of both China and Japan, is highlighted by the presence of Chinese elite panel with scores of ranking government officials, including Wang Chen; former Chinese Foreign Minister Li Zhaoxing; Zhao Qizhen, chairman of the Foreign Affairs Commission of the National Committee of the Chinese People's Political Consultative Conference ; Chen Haosu, president of the Chinese People's Association with Foreign Countries; and Ambassador Cui Tiankai; as well as business leaders, media moguls and noted scholars.
On the part of Japan, Foreign Minister Masahiko Komura, Minister for Internaal Affairs Hiroya Masuda, Defense Minister Yoshimasa Hayashi, Minister of the Environment Tetsuo Saito, and Land, Infrastructure and Transport Minister Sadakazu Tanigaki, among others, attended and addressed the forum. The current forum has exceeded any previous forum in term of its scale and the total number of participants at the forum.
The annual forum, co-sponsored by "China Daily" and the non-profit Japanese organization Genron NPO, is held alternately in Beijing and Tokyo with a purport or goal to advance people-to-people, friendly exchanges between the two countries and provide an open space of discussion for the political, economical, academic and culture elite of the two countries. The first Tokyo-Beijing forum took place in Beijing in August 2005.
By People's Daily Online, and its co-authors are PD resident reporters in Japan Wu Changsheng and Yu Qing
By People's Daily Online
In a message of congratulations to the forum, Chinese State Councillor Dai Bingguo spoke highly of the Beijing-Tokyo Forum in session for its crucial, important role in exchanges between the two countries. Sino-Japanese ties have reached a "new historic starting point", based on the "strategic relationship of mutual benefit" after having undergone the "ice-breaking", "ice-melting", "spring-greeting" and "spring-warming" visits to each other's country by leaders of both nations.
Noting that the year of 2008 marks the 30th anniversary of the China-Japan Peace & Friendship Treaty, he said, China is willing to go on making concerted efforts with the Japanese side to step up an all-round implementation of vital consensuses reached by their leaders and together push the Sino-Japanese strategic and mutually-beneficial relations to advance continuously and make fresh contributions in maintaining the world peace and promoting the common development.
"The Beijing-Tokyo Forum, which has offered a very good communication platform for the media, academic circles and non-governmental organizations, is of great significance to the two sides to recognize the past, grasp the present and think about the future," Dai said in the message.
China and Japan will push forward their relationship despite obstacles, outgoing Japanese Prime Minister Yasuo Fukuda said in a message to the forum.
"During President Hu Jintao's visit in May, the two countries signed a joint statement on promoting a strategic relationship of mutual benefit, which clearly shows the direction of bilateral relations," Fukuda said in his message to the Fourth Beijing-Tokyo Forum, which opened on September 16.
"Our future will not necessarily be smooth sailing, and could see many tests. I believe Japan and China will adhere to the joint statement and overcome difficulties, and move forward with full courage," Yasuo Fukuda said.
Sino-Japanese cooperation may well set a good example for countries with different social systems, said Wang Chen, director of the State Council Information office of China, at the fourth Beijing-Tokyo Forum.
In a keynote speech at the plenary meeting, Wang said that there are important bases and favorable environments for the long-term development of bilateral friendly relations. For China-Japan friendship, he noted, geographical proximity is the natural link, political mutual trust serves as an important basis, mutual beneficial cooperation the economic basis and long-term people-to-people exchanges the important bridge, and, in the arena of international affairs, pose an active force to promote world peace and stable development.
Meanwhile, Chinese Ambassador to Japan Cui Tiankai and Japanese foreign Minister Masahiko Komura, on behalf of their respective governments, advocated joint efforts to push forward the Sino-Japanese relations and conveyed good wishes for their further advance.
In his address at the plenary meeting of the Fourth Beijing-Tokyo Forum, Ambassador Cui Tiankai referred in particular to three "30th anniversaries", namely, the 30th anniversary of the signing of the "China-Japan Peace & Friendship Treaty, the 30th anniversary of the launch of China's reform and opening-up, and the 30th anniversary of late senior Chinese leader Deng Xiaopint's visit to Japan. Evidences of the last three decades have given an eloquent proof that evolution and development in Sino-Japanese relations are closely linked to the destinies of the two respective nations, Cui acknowledged, the long-term, healthy and stable growth of Sino-Japanese ties poses an essential condition for both nations to maintain prosperity and development in the complex, volatile international environment.
At the plenary meeting of the Fourth Beijing-Tokyo Forum, Japanese Foreign Minister Masahiko Komura said the Japanese government attaches great importance to its ties with China and it is his conviction that this general trend will not be reversed.
"Because of the current change in Japan's political situation many people are highly concerned over Japan's policy toward China," Foreign Minister Komura said, referring to the uncertainty created by Fukuda's resignation. "But I'm certain there will not be any change in promoting our relationship. The path of Japan-China ties will not be swayed by either the international climate or domestic affairs," he added.
Delivering a speech on behalf of the hosting Chinese side at the forum, Zhu Ling, editor-in-chief of "China Daily", said the current forum is themed on Asia's future and the role of China and Japan. Representatives of both China and Japan would conduct a candid, rational exploration and exchange in numerous realms, such as in politics, economic cooperation, security and natural disaster relief effort, the environment, cereals and food security and mass media. And the political dialogue sub-forum is held in prestigious Tokyo University, at which some honorable Chinese and Japanese guests would be invited for a direct dialogue with Japanese college students.
The ongoing forum，which has drawn increasing high attention of both China and Japan, is highlighted by the presence of Chinese elite panel with scores of ranking government officials, including Wang Chen; former Chinese Foreign Minister Li Zhaoxing; Zhao Qizhen, chairman of the Foreign Affairs Commission of the National Committee of the Chinese People's Political Consultative Conference ; Chen Haosu, president of the Chinese People's Association with Foreign Countries; and Ambassador Cui Tiankai; as well as business leaders, media moguls and noted scholars.
On the part of Japan, Foreign Minister Masahiko Komura, Minister for Internaal Affairs Hiroya Masuda, Defense Minister Yoshimasa Hayashi, Minister of the Environment Tetsuo Saito, and Land, Infrastructure and Transport Minister Sadakazu Tanigaki, among others, attended and addressed the forum. The current forum has exceeded any previous forum in term of its scale and the total number of participants at the forum.
The annual forum, co-sponsored by "China Daily" and the non-profit Japanese organization Genron NPO, is held alternately in Beijing and Tokyo with a purport or goal to advance people-to-people, friendly exchanges between the two countries and provide an open space of discussion for the political, economical, academic and culture elite of the two countries. The first Tokyo-Beijing forum took place in Beijing in August 2005.
By People's Daily Online, and its co-authors are PD resident reporters in Japan Wu Changsheng and Yu Qing
By People's Daily Online
Chinese ambassador to the UK: Bringing out the best in us
A question often raised after the Beijing Olympics is this: in what way has it changed China - and where is the country heading now? One of the most important effects has been on the world's perception of China, and vice versa. The Olympics brought the international community into China and made the Chinese people feel closer to it. They understand better the diversity of the world, and are more relaxed about different opinions about their homeland. They are more confident in expressing their feelings and thoughts to the world.
The Olympics also opened up China more directly to the world, thanks to the presence of 30,000 international journalists. Much of their reporting helped to unroll a panoramic view of the dynamic, diverse, modern China, which is not free of challenges. After this encounter, hopefully, there will be fewer cases of using old footage, photos or stereotypes to present today's stories.
For the Chinese people, hosting the Olympics is a century-old dream come true. For 16 days the whole country was immersed in excitement brought by the magic of sport as well as the close encounter with the world. About half a million people watched the games in Beijing and other cities every day, in addition to the hundreds of millions of television viewers.
The Olympics brought out the best in the Chinese people. They cheered enthusiastically for athletes, both Chinese and international, and for all endeavours, successful or otherwise. Most noticeable of all were the smiling volunteers who appeared everywhere, eager to help. The Paralympics will be another opportunity to celebrate our common humanity.
The success of the Olympics was not an overnight effort. Only we in China know how hard the journey has been. It was the culmination of seven years of painstaking preparations and 30 years of persistent reform, during which a planned economy was incrementally replaced by a market economy, semi-seclusion gave way to growing openness, and human rights gradually improved. The success of the Olympics has strengthened our commitment to continue these reforms.
Of course, the games have not altered the underlying realities. China remains a developing country with a per capita GDP that is one twentieth of Britain's. It still has a long way to go in meeting the challenges of development and building a harmonious society for all its people.
Over the past three decades we have been through a vast amount of change, more than many countries. We have learned a lot from the west. As ambassador, I receive a continuous flow of delegations from China to study Britain's governmental and social management, legal structure and technologies. But China should not be expected to become a carbon copy of a western society. It will develop democracy and prosperity in line with its own culture and social conditions.
Our continued growth will be achieved only through closer integration and cooperation with the rest of world. A relationship between China and the west based on mutual understanding, respect and cooperation is what we desire.
Britain certainly made its name at our games, not only thanks to the thrilling performance of its athletes, but also with the dazzling eight-minute show that followed the flag handover. People have already started to compare Beijing with London, but I believe that each Olympics, while building on previous efforts is unique. I am sure that London will do well in 2012.
By Fu Ying, the Chinese ambassador to the United Kingdom
The Olympics also opened up China more directly to the world, thanks to the presence of 30,000 international journalists. Much of their reporting helped to unroll a panoramic view of the dynamic, diverse, modern China, which is not free of challenges. After this encounter, hopefully, there will be fewer cases of using old footage, photos or stereotypes to present today's stories.
For the Chinese people, hosting the Olympics is a century-old dream come true. For 16 days the whole country was immersed in excitement brought by the magic of sport as well as the close encounter with the world. About half a million people watched the games in Beijing and other cities every day, in addition to the hundreds of millions of television viewers.
The Olympics brought out the best in the Chinese people. They cheered enthusiastically for athletes, both Chinese and international, and for all endeavours, successful or otherwise. Most noticeable of all were the smiling volunteers who appeared everywhere, eager to help. The Paralympics will be another opportunity to celebrate our common humanity.
The success of the Olympics was not an overnight effort. Only we in China know how hard the journey has been. It was the culmination of seven years of painstaking preparations and 30 years of persistent reform, during which a planned economy was incrementally replaced by a market economy, semi-seclusion gave way to growing openness, and human rights gradually improved. The success of the Olympics has strengthened our commitment to continue these reforms.
Of course, the games have not altered the underlying realities. China remains a developing country with a per capita GDP that is one twentieth of Britain's. It still has a long way to go in meeting the challenges of development and building a harmonious society for all its people.
Over the past three decades we have been through a vast amount of change, more than many countries. We have learned a lot from the west. As ambassador, I receive a continuous flow of delegations from China to study Britain's governmental and social management, legal structure and technologies. But China should not be expected to become a carbon copy of a western society. It will develop democracy and prosperity in line with its own culture and social conditions.
Our continued growth will be achieved only through closer integration and cooperation with the rest of world. A relationship between China and the west based on mutual understanding, respect and cooperation is what we desire.
Britain certainly made its name at our games, not only thanks to the thrilling performance of its athletes, but also with the dazzling eight-minute show that followed the flag handover. People have already started to compare Beijing with London, but I believe that each Olympics, while building on previous efforts is unique. I am sure that London will do well in 2012.
By Fu Ying, the Chinese ambassador to the United Kingdom
Shanghai Wal-Mart signs group contract with trade union
According to Xinhua Net, the Shanghai branch of the US retail giant Wal-Mart and its subordinate supermarkets have signed a breakthrough group contract with their employees, marking the formal establishment of collective negotiation system between employers and employees, said the Shanghai Federation of Trade Unions.
Covering nearly 1000 workers in Shanghai, the group contract includes some substantive provisions about core issues concerning employee's interest, such as remuneration, work hours, vacation, insurance and welfare. Details include the establishment of salary negotiation system, under which in each December trade union and the company negotiate the next year's general growth rate of employees' wages. It specifies an average salary increase of 8% in 2008 and 2009. Besides, another 1% increase will be provided for promotion and other special problems. The company's minimum wage is apparently higher than that of Shanghai municipal. Employees who work for more than three years have the right to sign a labor contract which enables employees to stay in the company without a fixed deadline.
Shanghai will gradually promote employer-and-employee negotiation system in more of the local branches of top-500 companies, said Mao Ronghua, vice director of the Shanghai Federation of Trade Unions.
By People's Daily Online
Covering nearly 1000 workers in Shanghai, the group contract includes some substantive provisions about core issues concerning employee's interest, such as remuneration, work hours, vacation, insurance and welfare. Details include the establishment of salary negotiation system, under which in each December trade union and the company negotiate the next year's general growth rate of employees' wages. It specifies an average salary increase of 8% in 2008 and 2009. Besides, another 1% increase will be provided for promotion and other special problems. The company's minimum wage is apparently higher than that of Shanghai municipal. Employees who work for more than three years have the right to sign a labor contract which enables employees to stay in the company without a fixed deadline.
Shanghai will gradually promote employer-and-employee negotiation system in more of the local branches of top-500 companies, said Mao Ronghua, vice director of the Shanghai Federation of Trade Unions.
By People's Daily Online
Fitch: limited impact on Asia-Pacific banks from Lehman bankruptcy
Fitch Ratings, one of the leading international rating agencies, announced on Sept. 16 that preliminary findings from its investigation of exposure to Lehman Brothers held by banks in the Asia Pacific Region suggest that, for the most part, net exposures are small and the direct impact on banks will be limited.
The largest exposures are held by banks in Japan. For all the banks the exposures are small in relation to equity capital but provisions could adversely affect earnings - this is at a time when banks are already absorbing other losses arising from the credit crisis.
Australian banks have not released comprehensive information but Commonwealth Bank of Australia has stated that its exposure is less than AUD150m. Australia & New Zealand Banking Group has stated that its total exposure is USD120m. The filing also shows that both ANZ and National Australia Bank had small exposures in the form of letters of credit.
Korea's financial sector regulators have disclosed that the whole system has exposure of USD720m. The direct risk to Korean banks appears small. The risk of Korea's securities firms may be more significant.
Preliminary data disclosed by Taiwan Financial Supervisory Committee indicates that the Taiwanese financial system as a whole has USD2.5bn exposures related to Lehman credits.
Among Chinese banks, only Bank of China was listed as a significant unsecured lender with USD50m but potential losses are not material for a bank of BOC's size.
Thai banks have generally limited exposure, with Bangkok Bank Public Company Limited the highest at THB3.5bn accounting for only 2% of its equity. Among Indian banks, ICICI Bank Ltd. has disclosed exposure of a modest EUR57m. The three Singapore banks have indicated that their direct exposure is not material. Data from banks in Hong Kong is not yet complete, but among the banks that have provided information none so far have acknowledged a material exposure to Lehman.
However, the agency will continue to investigate the full extent of these banks' on-and-off-balance sheet exposures and take account of potential losses that will add to the existing burden of writedowns stemming from the credit crisis.
By People's Daily Online
The largest exposures are held by banks in Japan. For all the banks the exposures are small in relation to equity capital but provisions could adversely affect earnings - this is at a time when banks are already absorbing other losses arising from the credit crisis.
Australian banks have not released comprehensive information but Commonwealth Bank of Australia has stated that its exposure is less than AUD150m. Australia & New Zealand Banking Group has stated that its total exposure is USD120m. The filing also shows that both ANZ and National Australia Bank had small exposures in the form of letters of credit.
Korea's financial sector regulators have disclosed that the whole system has exposure of USD720m. The direct risk to Korean banks appears small. The risk of Korea's securities firms may be more significant.
Preliminary data disclosed by Taiwan Financial Supervisory Committee indicates that the Taiwanese financial system as a whole has USD2.5bn exposures related to Lehman credits.
Among Chinese banks, only Bank of China was listed as a significant unsecured lender with USD50m but potential losses are not material for a bank of BOC's size.
Thai banks have generally limited exposure, with Bangkok Bank Public Company Limited the highest at THB3.5bn accounting for only 2% of its equity. Among Indian banks, ICICI Bank Ltd. has disclosed exposure of a modest EUR57m. The three Singapore banks have indicated that their direct exposure is not material. Data from banks in Hong Kong is not yet complete, but among the banks that have provided information none so far have acknowledged a material exposure to Lehman.
However, the agency will continue to investigate the full extent of these banks' on-and-off-balance sheet exposures and take account of potential losses that will add to the existing burden of writedowns stemming from the credit crisis.
By People's Daily Online
Backgrounder: American International Group, Inc.
American International Group, Inc. , as the country's biggest insurer, provides insurance, financial and investment products and services to both businesses and individuals in more than 130 countries and jurisdictions through its subsidiaries.
AIG's major product and service groupings are General Insurance, Life Insurance & Retirement Services, Financial Services and Asset Management.
The company is based at the American International Building in New York City. Its UK headquarters is located on Fenchurch Street in London, UK. Continental Europe operations are based in La Defense, Paris and its Asian headquarter is in Hong Kong.
AIG was originally a small insurance agency established by Cornelius Vander Starr in Shanghai in 1919. As the first westerner in Shanghai to sell insurance to the Chinese, Starr was very successful with the business in Asia, then he expanded it to other markets, including Latin America, Europe, and the Middle East.
In 1962, Maurice R. "Hank" Greenberg, took over the company's management, and shifted the company's U.S. focus from personal insurance to high-margin corporate. In 1968, Greenberg was named Starr's successor.
The company went public in 1969. It became a component of the Dow Jones Industrial Average on April 8, 2004, and was the 18th-largest company in the world, according to the 2008 Forbes Global 2000 list.
Greenberg resigned as the company's CEO in February 2005 and was succeeded by Martin Sullivan, who began his career at AIG as a clerk in its London office in 1970.
In September 2007, AIG announced that it completed the merger of a wholly owned subsidiary of AIG with 21st Century Insurance Group.
On Sept. 17, 2008, the U.S. Federal Reserve announced that the Federal Reserve Bank of New York will lend an 85 billion-U.S. dollar-bridge-loan to AIG to save it from bankruptcy.
In return, the U.S. government will receive a 79.9 percent equity interest in AIG and has the right to veto payment of dividends to common preferred shareholders in the deal.
Source:Xinhua/Agencies
AIG's major product and service groupings are General Insurance, Life Insurance & Retirement Services, Financial Services and Asset Management.
The company is based at the American International Building in New York City. Its UK headquarters is located on Fenchurch Street in London, UK. Continental Europe operations are based in La Defense, Paris and its Asian headquarter is in Hong Kong.
AIG was originally a small insurance agency established by Cornelius Vander Starr in Shanghai in 1919. As the first westerner in Shanghai to sell insurance to the Chinese, Starr was very successful with the business in Asia, then he expanded it to other markets, including Latin America, Europe, and the Middle East.
In 1962, Maurice R. "Hank" Greenberg, took over the company's management, and shifted the company's U.S. focus from personal insurance to high-margin corporate. In 1968, Greenberg was named Starr's successor.
The company went public in 1969. It became a component of the Dow Jones Industrial Average on April 8, 2004, and was the 18th-largest company in the world, according to the 2008 Forbes Global 2000 list.
Greenberg resigned as the company's CEO in February 2005 and was succeeded by Martin Sullivan, who began his career at AIG as a clerk in its London office in 1970.
In September 2007, AIG announced that it completed the merger of a wholly owned subsidiary of AIG with 21st Century Insurance Group.
On Sept. 17, 2008, the U.S. Federal Reserve announced that the Federal Reserve Bank of New York will lend an 85 billion-U.S. dollar-bridge-loan to AIG to save it from bankruptcy.
In return, the U.S. government will receive a 79.9 percent equity interest in AIG and has the right to veto payment of dividends to common preferred shareholders in the deal.
Source:Xinhua/Agencies
Hang Seng Index finish off 18,000 support line at midday
Hong Kong stocks fell 339.41 points, or 1.85 percent, off the key support line of 18,000, to finish Wednesday's morning session at 17,961.20.
Hong Kong's benchmark Hang Seng Index once fell 342.40 points, or 1.87 percent to 17,958.21, during Wednesday's morning session.
Hong Kong stocks rose 390.69 points, or 2.13 percent, to open Wednesday's morning session at 18,691.30, following the U.S. Federal Reserve announced an unprecedented deal to rescue insurance giant American International Group overnight.
The U.S. Federal Reserve announced on Tuesday an unprecedented 85 billion U.S. dollar rescue loan to save insurance giant American International Group from bankruptcy amid fears of a catastrophic effect on financial markets.
Barclays announced in a statement Wednesday that it had reached an agreement to acquire Lehman Brothers North American investment banking and capital markets businesses.
Hong Kong's benchmark Hang Seng Index on Tuesday plunged 1,052.29 points, or 5.44 percent, to close at 18,300.61, the lowest close in nearly 23 months, amid worries of a global financial turmoil after investment bank Lehman Brothers filed for bankruptcy protection.
Source:Xinhua
Hong Kong's benchmark Hang Seng Index once fell 342.40 points, or 1.87 percent to 17,958.21, during Wednesday's morning session.
Hong Kong stocks rose 390.69 points, or 2.13 percent, to open Wednesday's morning session at 18,691.30, following the U.S. Federal Reserve announced an unprecedented deal to rescue insurance giant American International Group overnight.
The U.S. Federal Reserve announced on Tuesday an unprecedented 85 billion U.S. dollar rescue loan to save insurance giant American International Group from bankruptcy amid fears of a catastrophic effect on financial markets.
Barclays announced in a statement Wednesday that it had reached an agreement to acquire Lehman Brothers North American investment banking and capital markets businesses.
Hong Kong's benchmark Hang Seng Index on Tuesday plunged 1,052.29 points, or 5.44 percent, to close at 18,300.61, the lowest close in nearly 23 months, amid worries of a global financial turmoil after investment bank Lehman Brothers filed for bankruptcy protection.
Source:Xinhua
Lehman collapse causes Hong Kong hangover
Hong Kong's shares tumbled 5.4 percent to a near two-year low yesterday after Lehman Brothers sought bankruptcy protection and fears about the US financial system knocked equity markets down across the world.
Financial plays tumbled after Lehman failed to find a rescuer, insurer AIG struggled for survival and Merrill Lynch was snapped up by Bank of America, all of which unleashed a wave of global stock selling on Monday, when Hong Kong markets were closed for a holiday.
Analysts said fears over the US financial system would carry on plaguing the market and drag it yet lower as long as investors remain unsure whether US markets have hit bottom.
"There's a lot of issues investors need to deal with over the next few weeks - first of all, what's going to happen to AIG?" said Alex Tang, research director at Core Pacific-Yamaichi International.
AIG, thrown a $20 billion lifeline by New York state, came under renewed pressure as ratings agencies downgraded its debt.
"We are not expecting a major comeback. But major players and fund managers might start accumulating shares on any major dips because the valuations are good," Tang said.
Tang added that investors are keenly waiting for more decisions from the US Federal Reserve, which held a one day interest rate meeting on yesterday.
The benchmark Hang Seng Index ended down 1,052.29 points at 18,300.61, dragged down by steep losses in finance, energy, and telecom plays. It was the largest single-day percentage drop since January.
Shares in Chinese insurer PICC Property and Casualty - 9.9 percent owned by AIG - plummeted 20.2 percent to a near-two year low.
Heavyweight China Mobile fell nearly 6.1 percent.
The Chinese Enterprises Index of mainland companies listed in Hong Kong ended down 7.4 percent at 9,236.58, less than half of last year's high of 20,609.10, and its lowest level in 18 months.
Mainboard turnover climbed to roughly HK$88.4 billion, compared to Friday's HK$57.8 billion.
Joseph Yam, chief executive of the Hong Kong Monetary Authority , said Lehman Brothers' bankruptcy filing will have a negative impact on Hong Kong markets but the city's central bank will provide liquidity if needed.
"Although the US stock market had a sharp fall on Monday, no panic selling," Yam said.
Source:China Daily/Agencies
Financial plays tumbled after Lehman failed to find a rescuer, insurer AIG struggled for survival and Merrill Lynch was snapped up by Bank of America, all of which unleashed a wave of global stock selling on Monday, when Hong Kong markets were closed for a holiday.
Analysts said fears over the US financial system would carry on plaguing the market and drag it yet lower as long as investors remain unsure whether US markets have hit bottom.
"There's a lot of issues investors need to deal with over the next few weeks - first of all, what's going to happen to AIG?" said Alex Tang, research director at Core Pacific-Yamaichi International.
AIG, thrown a $20 billion lifeline by New York state, came under renewed pressure as ratings agencies downgraded its debt.
"We are not expecting a major comeback. But major players and fund managers might start accumulating shares on any major dips because the valuations are good," Tang said.
Tang added that investors are keenly waiting for more decisions from the US Federal Reserve, which held a one day interest rate meeting on yesterday.
The benchmark Hang Seng Index ended down 1,052.29 points at 18,300.61, dragged down by steep losses in finance, energy, and telecom plays. It was the largest single-day percentage drop since January.
Shares in Chinese insurer PICC Property and Casualty - 9.9 percent owned by AIG - plummeted 20.2 percent to a near-two year low.
Heavyweight China Mobile fell nearly 6.1 percent.
The Chinese Enterprises Index of mainland companies listed in Hong Kong ended down 7.4 percent at 9,236.58, less than half of last year's high of 20,609.10, and its lowest level in 18 months.
Mainboard turnover climbed to roughly HK$88.4 billion, compared to Friday's HK$57.8 billion.
Joseph Yam, chief executive of the Hong Kong Monetary Authority , said Lehman Brothers' bankruptcy filing will have a negative impact on Hong Kong markets but the city's central bank will provide liquidity if needed.
"Although the US stock market had a sharp fall on Monday, no panic selling," Yam said.
Source:China Daily/Agencies
Cuts to benefit SMEs
The government's latest move to cut both the benchmark lending rate and the reserve requirement ratio for smaller banks is widely seen as a bid to help SMEs hit hard by a tighter credit regime.
The People's Bank of China on Monday announced a 27-basis-point cut to the commercial banks' benchmark lending rate from yesterday. The deposit rate will remain unchanged. It was the first time the central bank has cut the benchmark lending rate since February 2002.
Meanwhile, the central bank has lowered the reserve ratio for medium and small financial institutions by 100 basis points from Sept 25. Economists and analysts said the selective reduction of the reserve ratio indicated additional efforts to make available more credit to the many cash-strapped SMEs, which formed the main client base of the smaller banks.
"This is meant to make more funds available for lending, since many of these smaller banks were already hard pressed to meet these reserve requirements with their limited deposit base compared to large loan portfolios," Stephen Green, head of research at Standard Chartered Ltd, said.
As the lowered reserve ratio will free up more funds for smaller banks to lend, "it may also be spun as a way of increasing lending to SMEs, than to the large State-owned enterprise clients of large State banks, though it is unclear how well this will work in practice", Green said.
Frank FX Gong, chief economist at JPMorgan Securities , said: "Today's move, in our view, is the beginning of monetary easing and fiscal stimulus, as policymakers strive to maintain a steady and fast growth, against the backdrop of a further downshift in external demand and continuing global financial market turmoil."
The selective reduction of the reserve ratio was seen as another targeted relief measure for SMEs, which have become increasingly important in creating new job opportunities in China.
In early August, the central bank raised the annual loan quota of local commercial banks by 10 percent - 5 percentage points more than the increase for national commercial banks. That was seen as a move to help local SMEs, most of which are customers of smaller local banks.
Economists and investment institutions expected the government would consider further interest rate cuts in the coming month, in conjunction with a more proactive fiscal policy for the rest of the year.
"In the coming months, we are likely to see targeted relief measures for the export sector, reconstruction spending and high levels of infrastructure investment," Jing Ulrich, chairwoman of China equities at JPMorgan Securities, said.
Source:China Daily
The People's Bank of China on Monday announced a 27-basis-point cut to the commercial banks' benchmark lending rate from yesterday. The deposit rate will remain unchanged. It was the first time the central bank has cut the benchmark lending rate since February 2002.
Meanwhile, the central bank has lowered the reserve ratio for medium and small financial institutions by 100 basis points from Sept 25. Economists and analysts said the selective reduction of the reserve ratio indicated additional efforts to make available more credit to the many cash-strapped SMEs, which formed the main client base of the smaller banks.
"This is meant to make more funds available for lending, since many of these smaller banks were already hard pressed to meet these reserve requirements with their limited deposit base compared to large loan portfolios," Stephen Green, head of research at Standard Chartered Ltd, said.
As the lowered reserve ratio will free up more funds for smaller banks to lend, "it may also be spun as a way of increasing lending to SMEs, than to the large State-owned enterprise clients of large State banks, though it is unclear how well this will work in practice", Green said.
Frank FX Gong, chief economist at JPMorgan Securities , said: "Today's move, in our view, is the beginning of monetary easing and fiscal stimulus, as policymakers strive to maintain a steady and fast growth, against the backdrop of a further downshift in external demand and continuing global financial market turmoil."
The selective reduction of the reserve ratio was seen as another targeted relief measure for SMEs, which have become increasingly important in creating new job opportunities in China.
In early August, the central bank raised the annual loan quota of local commercial banks by 10 percent - 5 percentage points more than the increase for national commercial banks. That was seen as a move to help local SMEs, most of which are customers of smaller local banks.
Economists and investment institutions expected the government would consider further interest rate cuts in the coming month, in conjunction with a more proactive fiscal policy for the rest of the year.
"In the coming months, we are likely to see targeted relief measures for the export sector, reconstruction spending and high levels of infrastructure investment," Jing Ulrich, chairwoman of China equities at JPMorgan Securities, said.
Source:China Daily
Reduction likely to boost property
A lower lending rate might not bring more wealth to property developers, but it will boost industry confidence, analysts said.
The central bank cut the benchmark lending rate by 0.27 of a percentage point to 7.2 percent from yesterday, the first time it has reduced the rate since 2002.
"The policy is not likely to deliver a material impact on property developers, as most banks still take a restrained approach on loans to real estate firms," Chris Brooke, president and CEO of CB Richard Ellis , said.
Models of a real estate project at an exhibition in Shenyang, Liaoning province.
"But the rate change is sending a positive sign, showing the government's efforts to maintain the rapid growth of the economy. In that sense, it is good for the property sector," he said.
Jeffrey Lin, general manager of BA Consulting, a Beijing-based real estate service provider, agreed.
"I can't see any direct benefit to property developers but the move will help to boost consumer confidence," Lin said.
Economist Yi Xianrong said the lower rate could have a limited influence on the property sector, as short-term lenders will be the biggest beneficiaries.
Loans due to mature within six months will be reduced by 0.36 percent, but three- to five-year loans and above will be cut by 0.18 and 0.09 percent respectively.
Property developers' loans typically range from three to five years, while homebuyers usually take out mortgages for longer periods.
But some developers have welcomed the rate change as the market undergoes a correction and many are strapped for cash.
Zhang Weike, general manager of Beijing Xinji Investment Co Ltd, said the lower lending rate will reduce operating costs for property developers and ease cash-flow pressure.
"We're actually considering taking on some new projects soon," he said.
Property prices in 70 major Chinese cities rose 5.3 percent year-on-year in August, compared with 7 percent in July, the National Development and Reform Commission said yesterday. The growth rate has dropped for eight months in a row this year, showing signs of nationwide decline after a two-year surge.
New residential property prices rose 6.2 percent year-on-year in August, the NDRC said.
Cities where property price growth exceeded 10 percent year-on-year last month included Haikou, Yinchuan and Beijing, with growth rates of 16.5 percent, 12.4 percent and 11.7 percent, respectively.
Prices of homes for resale rose 3.9 percent year-on-year in August, 2.1 percentage points below the July rate. Non-residential property prices grew 4 percent last month, down 0.9 percentage points from July.
Source:China Daily
The central bank cut the benchmark lending rate by 0.27 of a percentage point to 7.2 percent from yesterday, the first time it has reduced the rate since 2002.
"The policy is not likely to deliver a material impact on property developers, as most banks still take a restrained approach on loans to real estate firms," Chris Brooke, president and CEO of CB Richard Ellis , said.
Models of a real estate project at an exhibition in Shenyang, Liaoning province.
"But the rate change is sending a positive sign, showing the government's efforts to maintain the rapid growth of the economy. In that sense, it is good for the property sector," he said.
Jeffrey Lin, general manager of BA Consulting, a Beijing-based real estate service provider, agreed.
"I can't see any direct benefit to property developers but the move will help to boost consumer confidence," Lin said.
Economist Yi Xianrong said the lower rate could have a limited influence on the property sector, as short-term lenders will be the biggest beneficiaries.
Loans due to mature within six months will be reduced by 0.36 percent, but three- to five-year loans and above will be cut by 0.18 and 0.09 percent respectively.
Property developers' loans typically range from three to five years, while homebuyers usually take out mortgages for longer periods.
But some developers have welcomed the rate change as the market undergoes a correction and many are strapped for cash.
Zhang Weike, general manager of Beijing Xinji Investment Co Ltd, said the lower lending rate will reduce operating costs for property developers and ease cash-flow pressure.
"We're actually considering taking on some new projects soon," he said.
Property prices in 70 major Chinese cities rose 5.3 percent year-on-year in August, compared with 7 percent in July, the National Development and Reform Commission said yesterday. The growth rate has dropped for eight months in a row this year, showing signs of nationwide decline after a two-year surge.
New residential property prices rose 6.2 percent year-on-year in August, the NDRC said.
Cities where property price growth exceeded 10 percent year-on-year last month included Haikou, Yinchuan and Beijing, with growth rates of 16.5 percent, 12.4 percent and 11.7 percent, respectively.
Prices of homes for resale rose 3.9 percent year-on-year in August, 2.1 percentage points below the July rate. Non-residential property prices grew 4 percent last month, down 0.9 percentage points from July.
Source:China Daily
Parity rate climbs
The central parity rate for the yuan against the US dollar rose to 6.8203 yesterday, the largest daily rise in seven weeks.
The daily mid-point, set by the central bank before trading, climbed 0.37 percent from Friday's 6.8458. But the yuan then weakened to 6.857 a dollar at 5:30 pm in Beijing yesterday, according to China's Foreign Exchange Trade System.
"The higher mid-point, which in theory contradicts the interest rate cut, implies the central bank wants to stabilize the yuan's exchange rate," Liu Dongyuan, a Shenzhen-based foreign exchange analyst with China Merchants Bank, said. "A drastic depreciation may lead to a capital outflow."
The central bank lowered the one-year lending rate to 7.2 percent from yesterday.
The yuan has gained against the US dollar by about 20 percent since China decided to scrap its peg to the US dollar in 2005. Over the past three years, there have been constant worries that the appreciation has attracted an influx of hot money, which has contributed to bubbles in China's stock and property markets.
But now, analysts warn there is a risk of rapid capital outflow, as the yuan's appreciation appears to be coming to an end and local real estate and share market prices decline.
Also yesterday, the one-year dollar/yuan NDFs hit a fresh year-high of 6.8210 from Friday's close of 6.7500. The NDFs' latest level implies the yuan will depreciate against the dollar by 0.01 percent over the next 12 months from yesterday's spot mid-point of 6.8203. It was the first time that one-year NDFs have implied yuan depreciation since September 2003.
Source:China Daily
The daily mid-point, set by the central bank before trading, climbed 0.37 percent from Friday's 6.8458. But the yuan then weakened to 6.857 a dollar at 5:30 pm in Beijing yesterday, according to China's Foreign Exchange Trade System.
"The higher mid-point, which in theory contradicts the interest rate cut, implies the central bank wants to stabilize the yuan's exchange rate," Liu Dongyuan, a Shenzhen-based foreign exchange analyst with China Merchants Bank, said. "A drastic depreciation may lead to a capital outflow."
The central bank lowered the one-year lending rate to 7.2 percent from yesterday.
The yuan has gained against the US dollar by about 20 percent since China decided to scrap its peg to the US dollar in 2005. Over the past three years, there have been constant worries that the appreciation has attracted an influx of hot money, which has contributed to bubbles in China's stock and property markets.
But now, analysts warn there is a risk of rapid capital outflow, as the yuan's appreciation appears to be coming to an end and local real estate and share market prices decline.
Also yesterday, the one-year dollar/yuan NDFs hit a fresh year-high of 6.8210 from Friday's close of 6.7500. The NDFs' latest level implies the yuan will depreciate against the dollar by 0.01 percent over the next 12 months from yesterday's spot mid-point of 6.8203. It was the first time that one-year NDFs have implied yuan depreciation since September 2003.
Source:China Daily
Stocks slump 4.47% in global battering
SHANGHAI: Hit by the latest ripple effect of the US financial crisis, the benchmark index tumbled 4.47 percent to 1986.64, dipping below 2000 points for the first time in 22 months.
The Shanghai Composite Index plunged 93.04 points, and the smaller Shenzhen Component Index dropped 61.46 points, or 0.89 percent, to end at 6873.61.
Turnover on the two bourses was 47.3 billion yuan, up 42.5 percent from last Friday. Total market capitalization shrank 3.7 percent to 12.9 trillion yuan yesterday.
The index was dragged under the 2000-point barrier by a sharp fall in bank shares.
Analysts said fallout from the failure of Lehman Brothers and the fire sale of Merrill Lynch has unnerved investors, who began dumping bank shares at the opening bell.
"The US stock market turmoil overnight dampened Chinese investor confidence and knocked the emerging financial markets," Zhu Haibin, an analyst at Essence Securities, said.
On Monday, the major global stock indexes, in response to Lehman's demise, suffered their worst plunge since 9/11. The Dow Jones slid 504.48 points, or 4.42 percent, to end at 10917.51. The S&P 500 index sank 4.71 percent, to close at 1192.7. The NASDAQ composite index fell 3.6 percent, to 2179.91.
Lehman Brothers, the fourth largest investment bank in the United States, announced its bankruptcy on Monday after failed rescue talks with Barclays Plc and Bank of America.
Bank of America will instead buy into Merrill Lynch with $50 billion, while insurer AIG also needs to raise $40 billion to survive the credit storm.
Monday's lending rate cut by the central bank also contributed to the bank stocks' slide, analysts said.
The People's Bank of China cut the one-year lending rate by 0.27 of a percentage point to 7.3 percent, but the deposit rates stay unchanged.
"Large banks were negatively affected by this news because a lending rate cut with an unchanged deposit rate will squeeze the banks' net interest profits, and therefore restrain their profit growth," Wei Daoke, an analyst at Shenyin & Wanguo Securities Co Ltd, said.
The central bank also lowered the reserve requirement ratio for small banks by 1 percentage point to 16.5 percent from Sept 25.
That reduction "for small and medium-sized banks is a more meaningful liquidity easing, as the elevated level of RRR has been constraining their business operation", Frank FX Gong, chief economist at JPMorgan Securities , said.
All 14 bank shares declined yesterday, with nine down to their daily limits, led by Bank of Beijing and Shenzhen Development Bank, both of which slid 10.01 percent.
Shares in Bank of China plummeted 9.17 percent to 3.17 yuan. Industrial and Commercial Bank of China slid 9.95 percent to 3.80 yuan.
Source:China Daily
The Shanghai Composite Index plunged 93.04 points, and the smaller Shenzhen Component Index dropped 61.46 points, or 0.89 percent, to end at 6873.61.
Turnover on the two bourses was 47.3 billion yuan, up 42.5 percent from last Friday. Total market capitalization shrank 3.7 percent to 12.9 trillion yuan yesterday.
The index was dragged under the 2000-point barrier by a sharp fall in bank shares.
Analysts said fallout from the failure of Lehman Brothers and the fire sale of Merrill Lynch has unnerved investors, who began dumping bank shares at the opening bell.
"The US stock market turmoil overnight dampened Chinese investor confidence and knocked the emerging financial markets," Zhu Haibin, an analyst at Essence Securities, said.
On Monday, the major global stock indexes, in response to Lehman's demise, suffered their worst plunge since 9/11. The Dow Jones slid 504.48 points, or 4.42 percent, to end at 10917.51. The S&P 500 index sank 4.71 percent, to close at 1192.7. The NASDAQ composite index fell 3.6 percent, to 2179.91.
Lehman Brothers, the fourth largest investment bank in the United States, announced its bankruptcy on Monday after failed rescue talks with Barclays Plc and Bank of America.
Bank of America will instead buy into Merrill Lynch with $50 billion, while insurer AIG also needs to raise $40 billion to survive the credit storm.
Monday's lending rate cut by the central bank also contributed to the bank stocks' slide, analysts said.
The People's Bank of China cut the one-year lending rate by 0.27 of a percentage point to 7.3 percent, but the deposit rates stay unchanged.
"Large banks were negatively affected by this news because a lending rate cut with an unchanged deposit rate will squeeze the banks' net interest profits, and therefore restrain their profit growth," Wei Daoke, an analyst at Shenyin & Wanguo Securities Co Ltd, said.
The central bank also lowered the reserve requirement ratio for small banks by 1 percentage point to 16.5 percent from Sept 25.
That reduction "for small and medium-sized banks is a more meaningful liquidity easing, as the elevated level of RRR has been constraining their business operation", Frank FX Gong, chief economist at JPMorgan Securities , said.
All 14 bank shares declined yesterday, with nine down to their daily limits, led by Bank of Beijing and Shenzhen Development Bank, both of which slid 10.01 percent.
Shares in Bank of China plummeted 9.17 percent to 3.17 yuan. Industrial and Commercial Bank of China slid 9.95 percent to 3.80 yuan.
Source:China Daily
ADB trims growth expectations for '09
The Asian Development Bank yesterday cut China's economic growth forecast to 9.5 percent from 9.8 percent for 2009, due to the expected reduced trade surplus and weakening domestic investment, but maintained its previous forecast of 10 percent growth for this year.
It also warned that inflation could reach 7 percent this year, much higher than the 4.8 percent target set by the government. The high inflation is mainly due to the exceptionally high rate in the first half of this year, the bank said. China's consumer inflation dropped to 4.9 percent in August from February's peak of 8.7 percent.
Given the signs of recent monetary policy relaxation, Zhuang Jian, a senior economist with the ADB in Beijing, said China's economic growth in the third and fourth quarters could stand at around 9.5 percent despite the global economic slowdown, which led many economists to forecast growth of less than 9 percent in the two quarters.
The central bank cut the cost of bank loans and reduced the reserve requirement ratio for smaller financial institutions on Monday. "This marks the start of a more relaxed policy, although the central bank remains cautious ," Zhuang said. "Policymakers are tilted a bit toward maintaining economic growth."
In the coming months, controls over the loan quota may be further eased, he said, which will help bolster economic growth.
Rising domestic production costs and the continually weakening global economy, which reduces demand for Chinese products, would further slow China's exports next year, said Zhuang.
China's exports rose 22.4 percent year-on-year in the first eight months of 2008, down from 27.7 percent in the same period last year.
Growth in fixed-asset investment is also expected to fall, further reducing overall economic growth next year, he said at yesterday's release of the Asian Development Outlook report.
As US financial market turbulence further worsens, the Manila-based bank said Asia will be hit badly by the current financial crisis.
"The turmoil of the last eight days points to the clear and present danger that growth in the US could slip very, very sharply," ADB Chief Economist Ifzal Ali said.
For Asia, "the biggest risk was that the US financial crisis would affect the G3 economies indefinitely, hurting Asian exports and financial markets", he said. "If the impact goes beyond 2009 that will be very, very negative for Asia."
Economic growth in Asia this year is expected to stand at 7.5 percent and 7.2 percent next year, according to the report. In April, the bank forecast that growth would be 7.6 percent this year.
"If the subprime crisis worsens significantly, Asia is bound to suffer much more serious financial effects, including an abrupt reversal of the capital inflows that have held up well so far," the bank said in its report.
Source:China Daily
It also warned that inflation could reach 7 percent this year, much higher than the 4.8 percent target set by the government. The high inflation is mainly due to the exceptionally high rate in the first half of this year, the bank said. China's consumer inflation dropped to 4.9 percent in August from February's peak of 8.7 percent.
Given the signs of recent monetary policy relaxation, Zhuang Jian, a senior economist with the ADB in Beijing, said China's economic growth in the third and fourth quarters could stand at around 9.5 percent despite the global economic slowdown, which led many economists to forecast growth of less than 9 percent in the two quarters.
The central bank cut the cost of bank loans and reduced the reserve requirement ratio for smaller financial institutions on Monday. "This marks the start of a more relaxed policy, although the central bank remains cautious ," Zhuang said. "Policymakers are tilted a bit toward maintaining economic growth."
In the coming months, controls over the loan quota may be further eased, he said, which will help bolster economic growth.
Rising domestic production costs and the continually weakening global economy, which reduces demand for Chinese products, would further slow China's exports next year, said Zhuang.
China's exports rose 22.4 percent year-on-year in the first eight months of 2008, down from 27.7 percent in the same period last year.
Growth in fixed-asset investment is also expected to fall, further reducing overall economic growth next year, he said at yesterday's release of the Asian Development Outlook report.
As US financial market turbulence further worsens, the Manila-based bank said Asia will be hit badly by the current financial crisis.
"The turmoil of the last eight days points to the clear and present danger that growth in the US could slip very, very sharply," ADB Chief Economist Ifzal Ali said.
For Asia, "the biggest risk was that the US financial crisis would affect the G3 economies indefinitely, hurting Asian exports and financial markets", he said. "If the impact goes beyond 2009 that will be very, very negative for Asia."
Economic growth in Asia this year is expected to stand at 7.5 percent and 7.2 percent next year, according to the report. In April, the bank forecast that growth would be 7.6 percent this year.
"If the subprime crisis worsens significantly, Asia is bound to suffer much more serious financial effects, including an abrupt reversal of the capital inflows that have held up well so far," the bank said in its report.
Source:China Daily
Asia-Pacific stocks slide on U.S. financial woes
Asia's main stock markets plummeted Tuesday, with Hong Kong, Tokyo, Shanghai and Taipei stocks down around 5 percent, as part of the reaction to the latest U.S. financial crisis triggered by the collapse of investment bank Lehman Brothers.
After Lehman Brothers filed for bankruptcy and Merrill Lynch agreed to be taken over by Bank of America, the Dow Jones Industrial Average tumbled 4.42 percent, the steepest drop since the Sept. 11, 2001 attacks.
Tokyo stocks nosedived 605.04 points on Tuesday, or 4.95 percent, to 11,609.72 points, its lowest closing level in more than three years.
Japan's central bank injected 2.5 trillion yen on Tuesday into money markets to ease the impact of the failure of the Lehman Brothers.
But Japan's Finance Minister Bunmei Ibuki reassured investors that the Lehman bankruptcy will not seriously damage the Japanese financial system.
"Considering the conditions of each financial institution's self-owned capital, we do not have to worry about the Japanese financial system," Ibuki said at a press conference.
Hong Kong's blue-chip Hang Seng Index also shed 5.4 percent to 18,300.61 on Tuesday, its lowest point in nearly two years.
Turnover rose to 88.42 billion HK dollars from last Friday's 57.77 billion HK dollars .
"Today was a bloodbath," said Alex Tang, head of research at Core Pacific-Yamaichi, who noted that trading volume was its highest in months. "This was panic selling ... they just want to liquidate their positions."
Phillip Capital Management strategist Y.K. Chan said 18,000 is the key support line for Hang Seng Index in the near term. But he added "we're in the middle of a crisis, so valuation offers little comfort."
Taiwan's stock market tumbled 4.89 percent, falling below the key 6,000 level for the first time since November 2005. The situation is similar in Shanghai's stock markets where the benchmark Shanghai Composite Index lost 93.03 points, or 4.47 percent, sinking below the 2,000-point mark to close at 1,986.64.
Qin Xiaobin, an analyst with the Beijing-based Yinhe Securities, also attributed the plunge to the lending interest rate cut announced by the Chinese central bank and investors' lingering concern over the country's economy.
On Monday, the People's Bank of China's announced the benchmark interest rate for one-year yuan-denominated loans would be lowered 0.27 percentage point on Tuesday, its first cut since October 2004.
The benchmark Korea Composite Stock Price Index slashed90.17 points, or 6.1 percent, at an 18-month low of 1,387.75 on Tuesday.
"We are closely monitoring the financial markets and will take appropriate steps to stabilize markets if necessary. We will study measures to ease excessive volatility in the foreign exchange rates." South Korea's Vice Financial Minister Kim Dong-Soo told reporters on Tuesday.
Other Asian-Pacific stock markets also experienced severe plunges as the fallout from U.S. financial market turmoil continued.
Philippine shares plunged more than 4 percent for the second straight day. The Philippine Stock Exchange's 30-share composite index lost 114.44 points, or 4.51 per cent, to close at 2,421.72 from Monday's finish of 2,536.16.
The benchmark S&P/ASX200 index in Australia was down 66.9 points, or 1.39 percent at 4750.8, while the broader All Ordinaries lost 75.2 points, or 1.54 percent to 4799.8.
The shares prices in Singapore ended lower on Tuesday with the benchmark Straits Times Index down 25.12 points or 1.01 percent to 2,461.43 points.
The Stock Exchange of Thailand index moved down 17.83 points, or 2.78 percent, to close at 624.56 points on Tuesday.
Source:Xinhua
After Lehman Brothers filed for bankruptcy and Merrill Lynch agreed to be taken over by Bank of America, the Dow Jones Industrial Average tumbled 4.42 percent, the steepest drop since the Sept. 11, 2001 attacks.
Tokyo stocks nosedived 605.04 points on Tuesday, or 4.95 percent, to 11,609.72 points, its lowest closing level in more than three years.
Japan's central bank injected 2.5 trillion yen on Tuesday into money markets to ease the impact of the failure of the Lehman Brothers.
But Japan's Finance Minister Bunmei Ibuki reassured investors that the Lehman bankruptcy will not seriously damage the Japanese financial system.
"Considering the conditions of each financial institution's self-owned capital, we do not have to worry about the Japanese financial system," Ibuki said at a press conference.
Hong Kong's blue-chip Hang Seng Index also shed 5.4 percent to 18,300.61 on Tuesday, its lowest point in nearly two years.
Turnover rose to 88.42 billion HK dollars from last Friday's 57.77 billion HK dollars .
"Today was a bloodbath," said Alex Tang, head of research at Core Pacific-Yamaichi, who noted that trading volume was its highest in months. "This was panic selling ... they just want to liquidate their positions."
Phillip Capital Management strategist Y.K. Chan said 18,000 is the key support line for Hang Seng Index in the near term. But he added "we're in the middle of a crisis, so valuation offers little comfort."
Taiwan's stock market tumbled 4.89 percent, falling below the key 6,000 level for the first time since November 2005. The situation is similar in Shanghai's stock markets where the benchmark Shanghai Composite Index lost 93.03 points, or 4.47 percent, sinking below the 2,000-point mark to close at 1,986.64.
Qin Xiaobin, an analyst with the Beijing-based Yinhe Securities, also attributed the plunge to the lending interest rate cut announced by the Chinese central bank and investors' lingering concern over the country's economy.
On Monday, the People's Bank of China's announced the benchmark interest rate for one-year yuan-denominated loans would be lowered 0.27 percentage point on Tuesday, its first cut since October 2004.
The benchmark Korea Composite Stock Price Index slashed90.17 points, or 6.1 percent, at an 18-month low of 1,387.75 on Tuesday.
"We are closely monitoring the financial markets and will take appropriate steps to stabilize markets if necessary. We will study measures to ease excessive volatility in the foreign exchange rates." South Korea's Vice Financial Minister Kim Dong-Soo told reporters on Tuesday.
Other Asian-Pacific stock markets also experienced severe plunges as the fallout from U.S. financial market turmoil continued.
Philippine shares plunged more than 4 percent for the second straight day. The Philippine Stock Exchange's 30-share composite index lost 114.44 points, or 4.51 per cent, to close at 2,421.72 from Monday's finish of 2,536.16.
The benchmark S&P/ASX200 index in Australia was down 66.9 points, or 1.39 percent at 4750.8, while the broader All Ordinaries lost 75.2 points, or 1.54 percent to 4799.8.
The shares prices in Singapore ended lower on Tuesday with the benchmark Straits Times Index down 25.12 points or 1.01 percent to 2,461.43 points.
The Stock Exchange of Thailand index moved down 17.83 points, or 2.78 percent, to close at 624.56 points on Tuesday.
Source:Xinhua
ICBC New York branch granted business license
The New York branch of Industrial and Commercial Bank of China Ltd. , the world's largest bank by market capitalization, was officially granted business license Tuesday.
"It is an exciting moment for our bank, since it marks an important milestone for our international business development," said Wu Bin, chief representative of the ICBC New York Representative Office, at the signing ceremony held in the New York State Banking Department.
In accordance with the business license, ICBC New York branch will engage in wholesale deposits, loans, trade finance, U.S. dollar clearing, treasury and other banking businesses.
"We will make all our efforts to provide quality financial services to both Chinese and American clients," Wu said. The opening of ICBC's New York branch will provide one more bridge between China and the United States, and will contribute to the Sino-U.S. commercial and financial exchanges, Wu added.
During his address at the ceremony, New York State Banking Superintendent Richard H. Neiman thanked ICBC for its confidence in the U.S. economy and in New York City as the world financial center.
Neiman called the signing of the license "historic" given the financial turmoil the Wall Street is experiencing. He said this turbulent time actually also means opportunities for foreign banks, which the New York State Banking Department has always attached great importance to. He hoped the collaboration between his department and ICBC will stay strong and profitable in the years to come.
ICBC filed application to open branch in New York in April, 2007, and obtained official approval by the U.S. Federal Reserve on Aug. 5 this year. The ICBC New York branch is scheduled to start operation in October.
"It is an exciting moment for our bank, since it marks an important milestone for our international business development," said Wu Bin, chief representative of the ICBC New York Representative Office, at the signing ceremony held in the New York State Banking Department.
In accordance with the business license, ICBC New York branch will engage in wholesale deposits, loans, trade finance, U.S. dollar clearing, treasury and other banking businesses.
"We will make all our efforts to provide quality financial services to both Chinese and American clients," Wu said. The opening of ICBC's New York branch will provide one more bridge between China and the United States, and will contribute to the Sino-U.S. commercial and financial exchanges, Wu added.
During his address at the ceremony, New York State Banking Superintendent Richard H. Neiman thanked ICBC for its confidence in the U.S. economy and in New York City as the world financial center.
Neiman called the signing of the license "historic" given the financial turmoil the Wall Street is experiencing. He said this turbulent time actually also means opportunities for foreign banks, which the New York State Banking Department has always attached great importance to. He hoped the collaboration between his department and ICBC will stay strong and profitable in the years to come.
ICBC filed application to open branch in New York in April, 2007, and obtained official approval by the U.S. Federal Reserve on Aug. 5 this year. The ICBC New York branch is scheduled to start operation in October.
China discipline watchdogs call for tighter quake reconstruction supervision
China's top disciplinary authorities have called for tighter supervision of reconstruction projects offered by some local governments to the quake-hit areas.
In total, 19 provinces and municipalities have promised help inthe reconstruction of 24 cities and counties seriously hit by the May 12 earthquake that centered on Wenchuan County of Sichuan Province.
The provinces and municipalities, including Shanghai, Tianjin and Zhejiang Province, are expected to help build houses, schools, hospitals and infrastructure in the quake-struck areas of Sichuan, Gansu and Shaanxi provinces.
Local disciplinary authorities were asked to closely follow thebuilding, including the design, raw material purchase and construction of the projects, according to a release from a meeting held by the CPC Central Commission for Discipline Inspection and the Ministry of Supervision.
Donations and materials offered by the 19 local governments should also be closely monitored, the release said.
It was feared that once the fate of all those listed missing inthe magnitude-8.0 quake on May 12 was clarified, the death toll would top 87,000.
The losses from the quake were estimated at 845.1 billion yuan . The national government had set up aquake rehabilitation fund and allocated 70 billion yuan for use this year.
An early report said 186 people had incurred Party disciplinary measures or administrative penalties as of Aug. 29 for violations in the relief work.
Source: Xinhua
In total, 19 provinces and municipalities have promised help inthe reconstruction of 24 cities and counties seriously hit by the May 12 earthquake that centered on Wenchuan County of Sichuan Province.
The provinces and municipalities, including Shanghai, Tianjin and Zhejiang Province, are expected to help build houses, schools, hospitals and infrastructure in the quake-struck areas of Sichuan, Gansu and Shaanxi provinces.
Local disciplinary authorities were asked to closely follow thebuilding, including the design, raw material purchase and construction of the projects, according to a release from a meeting held by the CPC Central Commission for Discipline Inspection and the Ministry of Supervision.
Donations and materials offered by the 19 local governments should also be closely monitored, the release said.
It was feared that once the fate of all those listed missing inthe magnitude-8.0 quake on May 12 was clarified, the death toll would top 87,000.
The losses from the quake were estimated at 845.1 billion yuan . The national government had set up aquake rehabilitation fund and allocated 70 billion yuan for use this year.
An early report said 186 people had incurred Party disciplinary measures or administrative penalties as of Aug. 29 for violations in the relief work.
Source: Xinhua
Two more suspects arrested in China baby milk powder scandal
The number of arrests connected to China's tainted baby milk powder scandal has risen tosix with the apprehension of two more suspects in the northern city of Shijiazhuang.
Two villagers were charged with selling the chemical melamine and adding it to milk sold to the Sanlu Group based in the Hebei provincial capital Shijiazhuang.
The dairy giant was the first company exposed in the tainted milk scandal that had sickened more than 6,200 infants to date, including three fatally, Shi Guizhong, a Hebei Provincial Public Security Department spokesman said at a press conference here on Wednesday.
The men arrested were identified as a 52-year-old resident surnamed Hu from Yangjiazhai Village, Beizheng Township in Shijiazhuang's Yuanshi County, and a 58-year-old surnamed Bian from Chengdongqiaoxi Village, Dahe Township in Shijiazhuang's Luquan City, he said.
The sickened infants had developed kidney stones after drinking Sanlu's tainted baby formula. Melamine was added to the milk as itwas believed to have helped to increase protein content, Health Minister Chen Zhu told reporters on Wednesday.
Source: Xinhua
Two villagers were charged with selling the chemical melamine and adding it to milk sold to the Sanlu Group based in the Hebei provincial capital Shijiazhuang.
The dairy giant was the first company exposed in the tainted milk scandal that had sickened more than 6,200 infants to date, including three fatally, Shi Guizhong, a Hebei Provincial Public Security Department spokesman said at a press conference here on Wednesday.
The men arrested were identified as a 52-year-old resident surnamed Hu from Yangjiazhai Village, Beizheng Township in Shijiazhuang's Yuanshi County, and a 58-year-old surnamed Bian from Chengdongqiaoxi Village, Dahe Township in Shijiazhuang's Luquan City, he said.
The sickened infants had developed kidney stones after drinking Sanlu's tainted baby formula. Melamine was added to the milk as itwas believed to have helped to increase protein content, Health Minister Chen Zhu told reporters on Wednesday.
Source: Xinhua
China court upholds suspended death sentence of former brokerage executive
The Higher People's Court in south China's Hainan Province upheld the suspended death sentence against a former executive of a trust and investment company who pocketed a large amount of money from public funds, a court spokesman said on Wednesday.
Shi Xue, 45, former head of the Hainan Huayin International Trust and Investment Corp. and board chairman of the defunct Dalian Securities Co., was sentenced to death with a two-year reprieve for embezzling 260 million yuan and swindling 2.4 billion yuan by selling fake public debts, the provincial higher people's court heard.
He also tried to defraud the People's Bank of China, the country's central bank, of 1.4 billion yuan by fake financial certificates, according to the court investigation.
The intermediate people's court in Haikou City, capital of Hainan, charged Shi with embezzlement, stealing state funds, fraudwith fake financial certificates and illegally raising funds. His accomplice Liang Yong was charged with corruption and embezzlement.
The intermediate court handed down a suspended death sentence to Shi and a life sentence to Liang in January. The prosecutors appealed the initial verdict, considering the sentences were "too" light. The two defendants also appealed.
The higher court heard the appeals in July and upheld the original sentence on Friday.
Sources said the amount of embezzled money in this case was oneof the largest in China since 1949.
Source: Xinhua
Shi Xue, 45, former head of the Hainan Huayin International Trust and Investment Corp. and board chairman of the defunct Dalian Securities Co., was sentenced to death with a two-year reprieve for embezzling 260 million yuan and swindling 2.4 billion yuan by selling fake public debts, the provincial higher people's court heard.
He also tried to defraud the People's Bank of China, the country's central bank, of 1.4 billion yuan by fake financial certificates, according to the court investigation.
The intermediate people's court in Haikou City, capital of Hainan, charged Shi with embezzlement, stealing state funds, fraudwith fake financial certificates and illegally raising funds. His accomplice Liang Yong was charged with corruption and embezzlement.
The intermediate court handed down a suspended death sentence to Shi and a life sentence to Liang in January. The prosecutors appealed the initial verdict, considering the sentences were "too" light. The two defendants also appealed.
The higher court heard the appeals in July and upheld the original sentence on Friday.
Sources said the amount of embezzled money in this case was oneof the largest in China since 1949.
Source: Xinhua
Macao SAR's Gov't Headquarters to be open to public
The century-old Government Headquarters of the Macao Special Administration Region willonce again be open to the public, from Sept. 20 to 21, the SAR government announced on Wednesday.
This will be the eighth time Macao residents and visitors alike could tour the palatial structure since the opening was made an annual event in 2001, according to a press statement from the SAR government.
Located on the city's Avenida Praia Grande street, the Macao SAR Government Headquarters covers an area of 7,700 square meters and comprises three buildings with a total floor area of 10,000 square meters.
After its construction, it was bought by the then Portuguese-Macao government and used as the official residence and offices for Portuguese governors who had served in Macao.
Following the establishment of the Macao SAR Government on Dec.20, 1999, the mansion was renovated, with its original architectural style and features retained.
For the time being, the front block of the Headquarters houses the Office of the SAR's Chief Executive, conference room for the Executive Council, the Lotus Room, a multi-purpose conference room and a pressroom, as well as the Green Room, the Yellow Room and the Blue Room, which are usually used for meetings and banquets.
The government also said that local Police Band and the Macao Orchestra will perform there during the open day, and the Macao Government Tourist Office will also offer visitors mementos at a booth which would be set up there.
Source: Xinhua
This will be the eighth time Macao residents and visitors alike could tour the palatial structure since the opening was made an annual event in 2001, according to a press statement from the SAR government.
Located on the city's Avenida Praia Grande street, the Macao SAR Government Headquarters covers an area of 7,700 square meters and comprises three buildings with a total floor area of 10,000 square meters.
After its construction, it was bought by the then Portuguese-Macao government and used as the official residence and offices for Portuguese governors who had served in Macao.
Following the establishment of the Macao SAR Government on Dec.20, 1999, the mansion was renovated, with its original architectural style and features retained.
For the time being, the front block of the Headquarters houses the Office of the SAR's Chief Executive, conference room for the Executive Council, the Lotus Room, a multi-purpose conference room and a pressroom, as well as the Green Room, the Yellow Room and the Blue Room, which are usually used for meetings and banquets.
The government also said that local Police Band and the Macao Orchestra will perform there during the open day, and the Macao Government Tourist Office will also offer visitors mementos at a booth which would be set up there.
Source: Xinhua
China's cabinet orders inspections, reform of dairy industry
An executive meeting of the State Council , presided over by Premier Wen Jiabao, on Wednesday decided to launch national comprehensive tests of dairy products and reform the dairy industry.
According to the meeting, the incident involving the tainted Sanlu milk powder reflected chaotic industry conditions, as well as loopholes in the supervision and management of the industry.
It is necessary to learn lessons, properly deal with the incident, improve the inspection and supervision system and strengthen the management of the dairy industry, the meeting said.
The meeting also reached six other decisions and ordered governments at all levels to implement them. These decisions include:
-- providing the best and free medical care to those sickened by melamine-contaminated milk powder,
-- confiscating and destroying all sub-standard products,
-- strictly supervising the production of dairy companies with on-site inspectors,
-- revising regulations on the supervision and management of the industry,
-- subsidizing dairy farmers and encouraging more production by those enterprises with higher-quality products and,
-- finding the cause of the incident and punishing those responsible.
The Sanlu Group, a leading Chinese dairy producer based in the northern Hebei Province, admitted last week that it had found some of its baby milk powder products were contaminated with melamine, a chemical raw material. It issued an immediate recall of milk formula made before Aug. 6.
Three infants have died so far. There are at least 6,244 infant victims of the contaminated milk powder, of whom 158, or 2.5 percent, have acute kidney failure, the Ministry of Health said on Wednesday.
Source: Xinhua
According to the meeting, the incident involving the tainted Sanlu milk powder reflected chaotic industry conditions, as well as loopholes in the supervision and management of the industry.
It is necessary to learn lessons, properly deal with the incident, improve the inspection and supervision system and strengthen the management of the dairy industry, the meeting said.
The meeting also reached six other decisions and ordered governments at all levels to implement them. These decisions include:
-- providing the best and free medical care to those sickened by melamine-contaminated milk powder,
-- confiscating and destroying all sub-standard products,
-- strictly supervising the production of dairy companies with on-site inspectors,
-- revising regulations on the supervision and management of the industry,
-- subsidizing dairy farmers and encouraging more production by those enterprises with higher-quality products and,
-- finding the cause of the incident and punishing those responsible.
The Sanlu Group, a leading Chinese dairy producer based in the northern Hebei Province, admitted last week that it had found some of its baby milk powder products were contaminated with melamine, a chemical raw material. It issued an immediate recall of milk formula made before Aug. 6.
Three infants have died so far. There are at least 6,244 infant victims of the contaminated milk powder, of whom 158, or 2.5 percent, have acute kidney failure, the Ministry of Health said on Wednesday.
Source: Xinhua
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