Quick Commute

Guangzhou, capital of Guangdong Province, has completed the construction of its Third Line Subway, which can reach a maximum speed of 120km/h, making it the fastest subway train in the country

Prudent Fiscal Policies For 2007

China will continue the prudent fiscal policies that it has taken since 2005, according to sources with the Ministry of Finance (MOF).

Zhang Tong, Spokesman of the MOF, told Xinhua before the holding of the MOF work conference, prudent fiscal policies are more moderate and are generally taken when the total supply and demand are balanced. Despite this there are some structural imbalances.

The prudent fiscal policies of the Chinese government focus on controlling deficit, improving economic structure, promoting reform, increasing revenue and decreasing expenditure, he said.

The Chinese Government began to change the direction of its fiscal policies by adjusting the scale of the long-term treasury bonds for development and optimizing use of treasury bonds in investing projects.

Banks Go Rural

Six of China's provincial areas are to experiment with easier market access for banks in rural areas, the China Banking Regulatory Commission (CBRC) has announced.

The CBRC published its proposals to ease market access for financial institutions in rural areas on December 22, in a move to promote the development of rural areas, which are struggling to attract investment.

The proposals allow banking capital from both home and abroad, as well as industrial and private capital, to be invested in, or used to purchase or establish banking institutions in rural areas.

The proposals encourage the establishment of village banks to provide financial services to farmers, to purchase shares, acquire or reorganize rural financial institutions, and to reform qualified rural credit cooperative agencies into banking institutions.

Global Warming Affects China

Global warming could have a major effect on the health of the Chinese people and the country's agriculture, according to a National Assessment Report on Climate Change.

The report, China's first authoritative and comprehensive review, is compiled by multiple departments and experts over four years. It is a study of global warming and its influence, and recommendations on the protection of society and the economy.

According to the report, the rise in temperatures would worsen the water shortage problem in North China, which already is serious.

It warned heavy rainfall in the upper reaches of the Yangtze River could trigger landslides or mudflows in the area of Three Gorges Dam. The change could also affect with an increase in heart and blood diseases, malaria and dengue fever.

World's Largest DC Converter Station

Work on a direct current converter station began recently in Gaoling Town, Huludao City, Liaoning Province, aimed at ensuring power supplies to Beijing during the Olympic Games in 2008.

With a budget of 2.23 billion yuan ($279 million), the station will have four changers with a combined converting capacity of 3 million kw, the biggest of its kind in the world, according to Zheng Baosen, Deputy General Manager of the State Power Grid Corp.

The four changers will play a role in avoiding risks and hidden dangers once the power grids operate abnormally.

Liu Guoqiang, Deputy Governor of Liaoning, said the new station was one of the infrastructures designed to rejuvenate the rust belt in northeast China and would produce an active and profound influence on economic and social development in Liaoning.

CDB Funds Chinese Automaker

The China Development Bank (CDB), China's policy bank, has granted a line of credit totaling 5.8 billion yuan to Chinese carmaker Chery for research and development of new auto models during the 2006-10 period.

The CDB and the Chery Automobile Co. Ltd., based in China's Anhui Province, signed an agreement on the line of credit at the Anhui provincial capital Hefei on December 25.

With the loan, Chery is expected to improve its capabilities in independent research and development of new models and expand its production capacity.

To date, the CDB has loaned Chery 11.2 billion yuan to support the carmaker's development of vehicle marques.