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4,525 Officials convicted in five years

4,525 county-and-above-level government officials were convicted from 2003 to 2008, said by Wang Shengjun, the Supreme Court’s chief justice, in a report to the Standing Committee of National People’s Congress on October 26. The figure is 77.52% higher than five years before. The courts trialed 1.2 million criminal cases that seriously harm the social security, including crimes endangering national security, terrorist, gang crimes, murder, kidnap, robbery, and drug abuse. 1.6 million people were put in jail.

Source: Xinhua, October 26, 2008
http://news.xinhuanet.com/newscenter/2008-10/26/content_10254667.htm

Gansu Police Put Video Surveillance System in Place

Gansu provincial Pubic Security Division’s Visual Command & Coordination System (VCCS) was in operation on October 27. VCCS, composed of large screen monitor, visual command function, and phone recording facility, is mainly used as a central command system for major emergencies.

The current visual surveillance monitor covers 14 cities and a mining area with high resolution. In real time, the monitor can switch to and zoom in any geographic target inside the province, provided incorporated into the system. The VCCS allows a centralized control of daily dynamics of public security across the whole province. Gansu is the last province in the country to equip the provincial PSD with VCCS.

Source: Xinhua, October 28, 2008
http://news.xinhuanet.com/legal/2008-10/28/content_10265748.htm

Expanding the Navigation System; China to Launch Dozen Satellites in 2009

China is planning to launch 12 satellites in 2009 as part of Big Dipper Satellite Navigation & Position System (BDSNPS), aiming to provide basic services to domestic and neighboring regions, said Ran Chengqi, deputy head of National Center of Satellite Navigation Project (NCSNP), at a conference on October 28.

BDSNPS was born in 2000. The dozen new satellites, adding onto its current five, is a major step toward a final complete system of 30+ satellites. Ran claimed that the system aims to expand services around the globe.

According to Xinhua, China started its R&D on satellite navigation in 1994, following US, Russia, and Europe.

Source: Xinhua, October 28
http://news.xinhuanet.com/newscenter/2008-10/28/content_10267364.htm

Xinhua’s Reports about U.S. in the World News Headlines between October 24 and 27

American Army Helicopter in Iraq Crosses Border to Shoot and Kill Syria Civilians http://news.xinhuanet.com/world/2008-10/27/content_10257299.htm

U.S.Is Worried that Sarkozy Will Lead Europe to Oppose America http://news.xinhuanet.com/world/2008-10/26/content_10252817.htm

U.S. Election: Obama Maintains Leads over McCain in All Three Polls http://news.xinhuanet.com/world/2008-10/26/content_10253755.htm

U.S. Air Force Will Establish Global Striking Headquarter http://news.xinhuanet.com/world/2008-10/25/content_10248874.htm

Many States in U.S. Cast Votes for President in Advance; Obama Currently in Leading Position http://news.xinhuanet.com/world/2008-10/25/content_10248395.htm

American Retired Veteran: True Terrorists Are Ourselves http://news.xinhuanet.com/world/2008-10/25/content_10250201.htm

American Presidential Election: Avoid Having the Bad One Rather Than Choosing the Best http://news.xinhuanet.com/world/2008-10/24/content_10242749.htm

Wall Street Diary: Greenspan Finally Admits Mistakes http://news.xinhuanet.com/world/2008-10/24/content_10245208.htm


Lin Yifu: It’s Inappropriate for China to Bottom-fish U.S. Market

Lin Yifu, deputy director and executive economist of World Bank, warns that “developing countries will see dramatic decrease in exports due to the recession in developed countries’ economy, and will face shortage of investment money.” He does not agree with the suggestion that China should utilize the foreign reserve to bottom fish the U.S. market. He believes it’s not the right time to send money to the United States at the moment. He says China should use the foreign currency to acquire resource, or help China’s products enter the world market, and acquire new technology. Lin had the above comments while he went back to China for a conference on October 26.

Source: Xinhua, October 27, 2008
http://news.xinhuanet.com/fortune/2008-10/27/content_10257112.htm

The New Trend in Foreign Exchange Investments of China

On September 26, 2008, an article in The Economic Observers Network from China, in regards to the new trend in foreign exchange investments of China after the economic crisis in the U.S. The following is the translation of the Article. [1]

Bound for Europe!
The New Trend in Foreign Exchange Investments

 
In recent two weeks, many high-level executives, from a number of the European private equity investment firms, who frequently showed up in Beijing, revealed by insiders. Some of them were invited by the interrelated Chinese government authorities to teach the technical skills and methods of investing in Europe. Some came on their own to search for investment opportunities in Europe.
 
This is a sign of concern. The insider informed the Economic Observers that following the U.S. financial crisis, the Chinese government is expected to speed-up the diversification of its investment of foreign exchange reserves. “The Chinese foreign exchange reserves hold too much U.S. dollars, and exactly they need to be diversified,” outright said Fu Yong Hai, the CEO of Asia-Pacific region, the Wealth Management Research Department of Union Bank of Switzerland (UBS).

The Investments of the State Administration of Foreign Exchange (SAFE)

As a matter of fact, the pertinent Chinese institutions have previously made many attempts. It began in 2007, SAFE has already held small amount of equities from close to 50 British publicly listed companies.

Since the beginning of 2008, SAFE has been frequently appeared on the list of international companies. This has attracted the attention of the global financial organizations.

On April 15, 2008, a spokesperson, in charge of the global investors’ relations of the British Petroleum (BP), confirmed that a Hong Kong-registered Hua (SAFE Investment Company, Ltd.) a subsidiary company of SAFE, purchased a grand total nearly 1% of the BP stocks. In terms of BP’s market value of the day, the investment from SAFE was almost $2 billion.

Previously, SAFE purchased 1.6% stocks, from the Total Petroleum (TOTAL), a French oil company. The said investment became the hot topic news among the investors. It was stated the grand total investment in TOTAL was around $2.8 billion.

Subsequently, SAFE has become a stockholder of Prudential, the second-largest British insurance company, holding 1% of the equities of Prudential. (It is estimated according to the current market value of Prudential,) SAFE invested about 1.34 million British pounds. It was said that SAFE used a Nominee Account; that is, through a secondary market agent to complete the transactions. After purchasing the stocks, SAFE has become one of the top 25 stockholders of Prudential.

According to the latest news, SAFE holds a small amount of equity, approximately, in50 British public listed companies.

By the end of March 2008, the total foreign exchange reserves have reached $1.68 trillion. The current data showed that they have already risen to $1.81 trillion. SAFE is faced with the troublesome management know-how problems.

Actually, according to the State Council of PRC, “The Three-Fixed Policies,” is one of SAFE’s main responsibilities to manage the nation’s foreign exchange reserves in accordance with the provisions of the foreign exchange reserves management of China.

It was reported in the beginning of 2005, SAFE has been permitted to invest 5% of the foreign exchange reserves in the overseas equity investments. Based on the total amount of $1.5 trillion in the foreign exchange reserves by the end of 2007, the total amount could have been invested were no less than $75 billion. For the present, SAFE has acquired, at least, $6.7 billion of stocks from the U.K. stock market through its Hong Kong-registered Hua (SAFE Investment Company, Ltd.) In actuality, this type of small-scale investment is in line with the investment policy of SAFE, which is to invest for financial returns, rather than control the companies, or influence the stability of the financial market.

The stock holdings from the U.K. stock market, Hua controls less than 1% of the total stock capital values of the companies, the vast majority holdings belongs to 100 (FTSE100) index of stocks, and the rest are from FTSE250 index of stocks.

Lu Ting, the Economist of the Merrill Lynch (Asia-Pacific) Ltd., believed that was a good phenomenon. He pointed out that the mid- to long-term investment of China’s foreign exchange reserves
will move to the long-term, non-U.S. assets, and proceed to diversified investments.

The external environment is also helpful to the changes in investment of SAFE. In January 2008, during the Prime Minister Brown’s visit in China, he bid his welcome to the Chinese Sovereignty Funds to invest in the U.K., hoping the U.K. could become the most favorable overseas investment nation of China.

“Timing is very essential to any investment; furthermore, the evaluation of different asset categories of the investment is also necessary,” said Deng Dade, the Senior Advisor from TerraFirma Foundation. The British Prime Minister’s comments, at least, should be viewed as the British is welcoming the economic investment of China in a positive cue.

Speed-up the Process

At present, the investments, in Europe is similar to that of SAFE, could be expedited in the near future.

The Economic Observers was informed that SAFE is not the only foreign exchange reserves, there are many other forms of foreign exchanges will be investing in Europe, the relevant Chinese authorities are discussing the issues related to such investments. This is a start-up of the selection process.

Some of the European financiers warned China that the Chinese need to be more honest and open in its process of investing in Europe. In the past, the low-profile investments from SAFE and the China Investment Corp had become the target of the “attacks,” from the people outside of their organizations.

Deng Dade, in charge of the state-owned assets management in Sweden, specified, “There is no fundamental difference in the nature between the China Investment Corporation and SAFE in terms of a sovereign wealth fund investment.” “The sensible way is to consult other state-owned organization’s principles of management.” “There are three principles to abide by: To be independent of politics, own self-decision making rights, and the clear objectives that benefit all parties concerned.” “Openness and honesty are guaranteed, and the rules and regulations will lead you to success.” Deng emphasized repeatedly. 

His comments were not without reasons. The Western media, in general, believe that SAFE and the China Investment Company don’t disclose their investment contents to the public. In the past, they even denied the existences of their registered companies outside of China. Their investments are also very difficult to be away from the political ditch.

Kerry Brown, the senior research analyst of Asian Projects from The Royal Institute of International Studies (the Chatham House,) indicated that the people are suspicious of SAFE’s other investment projects. As SAFE is purchasing stocks from the well-known companies in some of the areas, for the aforementioned-facts, the politicians and businessmen in these areas are filled with apprehension.

The Auvitek Financial Consultation expressed, “The proposals to the government investment institutes and the sovereign wealth fund investors show concerns about other investors enjoying the same consultation services. First of all, focus on the specific investment, and the investments in the currency market to bear the risk; secondly, evaluate the assets allocation from a long-term perspective, especially, in the currency and assets types of diversification; thirdly, give full consideration to build up systematic internal control, management system and risk assessment system to ensure that the future investment decisions on the risk and return.

Endnote:
[1] The Economic Observers, September 26, 2008
http://www.eeo.com.cn/eeo/jjgcb/2008/09/29/115028.html

Over Ten Thousand Citizens Flared up in a Mass Conflicts with the Police

On October 20, a mass incident took place at Su Yu Middle School in Su Qian City of Jiangsu Province. It involved over ten thousand local citizens against one hundred policemen. The cause was on a student who committed suicide because he was frequently subjected to physical punishment by school teachers. The parents went to school to request a resolution. But the school called the police who then used the force to beat up the victim’s family members.

Over ten thousand citizens were at the scene. People were flared up over the beating and started to beat the policemen, turn over the police vehicles and eventually chase the police away. The news is tightly blocked by the City of Su Qian and no media is allowed at the scene.

The related internet postings were circulating widely among the websites in mainland and quickly picked by overseas Chinese websites. But most of the postings in mainland have been taken down since.

Source: Various Chinese websites in China and US, October 24

http://www.xici.net/b7000/bderror.asp?s=UnDeleted
http://sanqingzi.blogspot.com/2008/10/blog-post_26.html
http://news.boxun.com/forum/200810/boxun2008b/13379.shtml
http://www.gettao.com/bbs/viewthread.php?tid=10114
http://www.64tianwang.com/bencandy.php?fid=8&aid=3559

Breast Cancer Rated Number One Cancer Killer for Chinese Women

Breast cancer is rated the number one cancer killer for Chinese woman, according to the statistics released by the Cancer Hospital of Shanghai Fudan University. The statistics showed that between 1991 and 2000, the death rate for urban woman has grown over 39 percent and is still growing at 3.5 percent each year.  The experts attributed the rate increase to unhealthy diet and delay in child birth age as well as no breast feed chosen by certain women.

Source: China News, October 26, 2008
http://www.chinanews.com.cn/jk/kong/news/2008/10-26/1425434.shtml