Xinhua recently republished a report by China Securities Journal on an April 7 event in which the governments of Guangdong Province and Hong Kong signed a framework agreement of cooperation. The agreement focuses on improving Hong Kong’s status as an international financial center. It was made clear that the goal is to enhance Hong Kong’s leading position by integrating resources and services provided by Guangdong Province. The two sides agreed to jointly push the tests of cross-border RMB settlements with needed infrastructure. This is one step in exploring the path of the internationalization of the Chinese currency. Other important elements of the agreement are making the region a center for air travel, shipping, cargo distribution and human talent.

Source: Xinhua, April 8, 2010
http://cs.xinhuanet.com/xwzx/05/201004/t20100408_2387891.htm

The International Herald Leader, under Xinhua, published an article suggesting that a better looking face is needed for Chinese capital going abroad. The article identified the Chinese economy’s rapid growth as the primary reason for Chinese to invest in the outside world. However, a negative image of Chinese investments is being built in some countries because: (1) the competitors are spreading negative views; (2) Chinese investors are not acting properly; (3) the industries receiving investments are tough; (4) some western countries spread slander.

The author believes Chinese capital must have a better image. It relies on the self-discipline of Chinese investors as well as media reports. Unfortunately western media have a monopoly and they are often the origin of false accusations.

Source: Xinhua, April 15, 2010
http://news.xinhuanet.com/herald/2010-04/15/content_13358462.htm

According to Farmers Daily (www.farmer.com.cn) on April 9, 2010, more than 300 million people in rural areas do not have any clean drinking water. Over 60% of the substandard drinking water is the result of non-natural factors. The cancer mortality rate, which is closely related to environmental pollution, increases year by year in the rural population.

The causes of pollution in rural areas are 1) few waste and water treatment facilities; 2) chemical fertilizers and pesticides everywhere; 3) high pollution and high energy consumption industrial enterprises entering the rural areas.

Source: Farmers Daily, April 9, 2010
http://www.farmer.com.cn/gd/snwp/201004/t20100409_536442.htm

The Guidance on the Financial Support of Revitalization, Development, and Prosperity of Cultural Industries was issued on March 26 by nine central party and government agencies including the People’s Bank of China, the Propaganda Department of the Central Committee of Chinese Communist Party, the Ministry of Finance, Ministry of Culture, State Administration of Radio Film and Television, the General Administration of Press and Publications, the China Banking Regulatory Commission, the China Securities Regulatory Commission, and the China Insurance Regulatory Commission.