China Won’t Set Yuan Convertibility Timetable
China will let the market play a bigger role in determining the exchange rate of the yuan, and will eventually make the renminbi fully convertible, according to the central bank governor. "Supply and demand forces in the market will play a bigger role in setting the yuan's rate," said Zhou Xiaochuan, Governor of People's Bank of China. He added that free convertibility of the yuan under capital accounts will be eventually realized, but would not set a timetable for free convertibility.
First Coalbed Methane Pipeline Planned
China is planning to build its first cross-province coalbed methane
pipeline later this year, at a cost of RMB500m. Stretching for 120km,
the pipeline will link Duanshi County in Shanxi province with Bo'an
County in Henan province, and is expected to have a capacity of one
million cubic metres. The pipeline will ease the shortage of gas in
central China's Henan province. China plans to have a total of 10
coalbed methane pipelines by 2010.
China Sets New EU Export Barriers
Three Chinese trade associations - the China Chamber of Commerce for
Import and Export of Textiles, China National Textile and Apparel
Council and China Association of Enterprises with Foreign Investment -
have announced new entry barriers for Chinese textile manufacturers
seeking to export to Europe. From 2008, companies in eight categories
of textile products must demonstrate registered capital of RMB500,000
and textile exports to Europe of more than USD10,000 from the previous
year , as China seeks to control export growth in certain areas of the
economy.
Government Pledges Full Healthcare Coverage by 2020
China’s healthcare system reform proposals be presented to the people
for soliciting their opinions, a senior health official has said. "All
people in urban and rural areas will enjoy basic medical care and
health services by 2020," said Gao Qiang, Vice-Minister of Health. Gao
did not elaborate further, but said the new plan centres on the
"coordinated and parallel" reform of the medical services, insurance
and supplies systems and would increase " government responsibility and
spending,” and would also “encourage greater participation of private
capital from both home and abroad in the health sector," he said.
Eight organisations – the World Health Organization, McKinsey, the
World Bank, the Development Research Center of the State Council and
four Chinese universities – have submitted proposals and the final plan
is said to be a combination of the suggestions.
Countdown on for China Lunar Satellite Launch
China's first lunar satellite is set to blast off next week from the
Xichang Satellite Launch Center in Sichuan Province. Weather
forecasters predict that between 22-25 October would be the best period
for the launch. The Chang'e satellite, named after the legendary
Chinese goddess who flew to the moon, will orbit the Earth five to
seven times before heading to the moon within 12 days.
Banks To Increase Reserves
China’s Central Bank has raised the reserve deposit ratio for domestic
banks for the eight time this year. The latest increase, up 0.5 per
cent, means Chinese banks must, from 25 October, hold 13 per cent of
their yuan deposits at the central bank. The move is China’s latest
attempt to mop up excess liquidity in the economy and, in turn, to seek
to cool stock market and real estate market speculation, and curb
rising inflation.
Home Inns Targets 1,000 Hotels
Home Inns, a budget hotel brand for business and leisure travellers,
added 26 new hotels in China during the second quarter of 2007. All are
in located in second-tier markets, where land rents are cheaper and
competition is sparser than in the major commercial centres. The
company, which last month opened its 200th China hotel in the
northwestern city of Urumqi, also announced that it has dozens more new
hotels in the pipeline. Home Inns, which had just 10 hotels in 2003,
has a stated ambition to have 1,000 locations across China within four
years.
Last update : Sunday, 21 October 2007
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