PATTAYA, Thailand, April 11 (Xinhua) -- Chinese
Premier Wen Jiabao, in an interview with Hong Kong and Macao reporters here
Saturday, said that the Chinese economy showed signs of better than expected
positive changes in the first quarter as a result of the economic stimulus
package adopted by China.
Firstly, the domestic demand rose on a sustainable
basis. Meanwhile, investment in fixed assets increased rapidly and consumer
demand grew steadily and relatively rapidly. Although lower from the same period
of last year, imports and exports grew on a month-on-month basis in the
three-month period, Wen said.
This indicates that some sectors and enterprises in
China are in a process of gradual recovery.
Secondly, industries above the designated size
registered month-on-month growth, with a year-on-year increase of 3.8 percent in
both January and February, and a year-on-year increase of 8.3 percent in March.
Thirdly, the purchase management index and the
entrepreneur confidence index of the manufacturing industry both rose,
indicating that the Chinese economy has begun to stabilize and recover in some
fields, according to Wen.
And fourthly, the market confidence went up and the
economy became more active over the first three months, with increases in both
the stock market and housing market transaction volumes.
The positive performances in economic fields suggest
that the policies adopted by the central government of China have been timely
and correct, and have led to successes, the premier noted.
The premier was here to attend the Association of
Southeast Asian Nations (ASEAN) related summits. The Chinese premier went back
home late Saturday ahead of schedule, after the Thai government postponed the
summits because of domestic political unrest.
The premier said we should see that China's economy
is still facing very serious hardships, which can be attributed to the shrink of
external demand and a relatively sharp fall in exports. This has negatively
impacted export enterprises, export-oriented industries and export-oriented
zones, and has resulted in decreases in business profit making, declines in
financial revenues and heavier pressure on employment, he said.
As the international financial crisis is deepening
and spreading, we should never lose vigilance, Wen warned.
As the crisis has not touched its bottom, we can
hardly say that the Chinese economy alone has got out of the crisis. China
cannot save the world, nor can it survive without the world, Wen said. What we
should do is to exert our utmost efforts to minimize the effect of the crisis,
he said.
When answering questions whether China will introduce
additional economic stimulus plans, Wen said the government should now step up
efforts to carry out the policies and measures of the existing stimulus package.
The earlier they are put into effect, the more beneficial and active they will
be, he said.
Firstly, it is imperative to release the additional
investment for stimulating the economy that has been included into the budget.
Secondly, specific rules for reforming and reviving a
total of ten key industries should be formulated as early as possible.
And thirdly, efforts should be made to speed up the
development of the social security system, Wen said, adding that the national
medical and health-care system reform launched in recent days, which has drawn
international attention, should be implemented as early as possible.
At the same time, it is essential to closely follow
up the changing economic situation at home and abroad, and hammer out new
response plans whenever necessary, said Wen.
Priority should be given to strengthening social
security, improving the people's livelihood and strengthening protection of the
ecological environment, he said.
In response to questions about the trial of
cross-border trade deals in the Chinese yuan, Wen said the central government
has decided to test the program in the city of Shanghai, as well as four cities
in south China's Guangdong province -- Guangzhou, Shenzhen, Dongguan and Zhuhai.
Hong Kong and Macao will be included in the pilot
program, and ASEAN members will become the first group of foreign countries to
benefit from the scheme, Wen said, adding the regulatory documents governing the
pilot program will be issued in a short time, Wen said.
The program will promote Hong Kong's trade
development, and will help its enterprises, including those in the Pearl River
Delta region and other areas in the Chinese mainland, to stave off the risks
from exchange rate fluctuations, he said.
This will invigorate Hong Kong's financial industry
and underpin its position as an international financial hub, he added.
Wen said that compared with developed countries,
China, as a developing country, has undergone only a short period of time in its
financial reform and development, lacking both experience and talented people,
and there is also room for improvement in its financial system.
At present, China allows the yuan to become
convertible under the current account and it will take a long time to realize
full capital account convertibility for the Chinese yuan, he said.
Answering a reporter's question on whether building
Shanghai into an international financial hub will rival Hong Kong's financial
status, Wen said the Chinese central government has always paid close attention
to the development of Hong Kong's financial sector.
"I noticed that most of the media in Hong Kong showed
support for the decision to build Shanghai into an international financial
center, but lingering worries still remain," he said.
Actually, the status of an international financial
center is established not by a government decision but through market
competition, he said.
"I have said years ago that Hong Kong's status as an
international financial center is irreplaceable due to its unique geographical
advantage, a long history of financial management, extensive channels of
financial operation, a full-fledged legal system and a rich pool of financial
expertise," Wen said.
However, Hong Kong's status as an international
financial hub also meets challenges, he said.
He added that what is imperative for the time being
is to enhance regulation, maintain the stable, healthy and sustainable
development of its financial sector, and to make due support for its economy.
While developing the financial sector, Hong Kong
should also spare no effort to tap the potential of its economic growth such as
logistics, tourism, the health sector, science and technology, education, and
high-tech industries, so as to lay a foundation forthe sustained economic
development, he said.
Responding to a question about the recent police
investigation into Hong Kong-listed conglomerate CITIC Pacific, Wen said the
issue should be addressed in accordance with the laws and financial supervision
regulations of the Hong Kong Special Administrative Region, and no interference
from the mainland or other parties will be allowed.
Earlier this month, Hong Kong police searched the
headquarters of the company, which reported huge losses from unauthorized
hedging against changes in the exchange rates of Australian dollar last year.
After all the facts are clarified, serious lessons
should be drawn from this incident, including the company's management and its
supervision, Wen said.
On Macao's economic growth, Premier Wen said it has a
unique economy powered mainly by its gambling industry.
As the region continues to develop its gambling
industry, efforts should be made to promote the region's economic diversity
based on its own reality, he said.
Macao's development is somewhat restrained due to its
tiny area, but the central government is currently working on a long-term
development plan of the Pearl River Delta to strengthen economic ties between
Guangdong Province and Macao in an effort to promote Macao's development, said
the premier.
Because of Thailand's domestic situation, the Thai
government on Saturday postponed the ASEAN related summits scheduled for April
11 and April 12.
Wen said his visit to Thailand was designed to
enhance the friendly cooperative relations between China and ASEAN and to make
joint efforts with its members to tackle the global financial crisis.
The Chinese premier said he had been aware of the
situation in Thailand before his departure for the country, and his insistence
on attending the summits indicated China's sincerity in this matter.
BEIJING, April 11 (Xinhua) -- China's foreign exchange reserves rose 16 percent year-on-year to 1.9537 trillion U.S. dollars by the end of March, said the People's Bank of China on Saturday.
It represents an increase of 7.7 billion dollars for the first quarter, but the increase was 146.2 billion dollars lower than the same period of last year. Full story
BEIJING, April 11 (Xinhua) -- Credit extended by China's banks in the first quarter hit 4.58 trillion yuan (670 billion U.S. dollars), the People's Bank of China (PBOC) said Saturday.
In March alone, new yuan-denominated loans increased 1.89 trillion yuan. It was the third straight month that new loans exceeded 1 trillion yuan. Full story
BEIJING, April 11(Xinhua) -- Most Chinese
entrepreneurs are cautiously optimistic about China's future economic trend, and
almost half of them believe the country's economy would revive before the end of
this year, a recent survey shows.
The survey, released by the Chinese Entrepreneur
Survey System (CESS) under the Development Research Center of the State Council,
found that 47 percent of the surveyed entrepreneurs thought China would see
economic recovery by 2009, and 43.1 percent of them thought it would be next
year. Full story
BEIJING, April 12 (Xinhua) -- Pacific Securities
announced Saturday that its net profit in the first quarter topped 112 million
yuan (16.4 million U.S. dollars) due to the first-quarter upbeat stock market
performance.
China's benchmark Shanghai Composite Index has gained
more than 32 percent from the beginning of this year. Full story
BEIJING, April 12 (Xinhua) -- Figures from the
General Administration of Customs showed that China imported 5.72 million tonnes
of coal in March, up 37.4 percent year on year.
The monthly amount also represented a 11.9 percent
rise from February. Full story
