Yuan Near Highest Since Peg on Inflation Fight; Bonds Decline

June 26 (Bloomberg) -- The yuan traded near the highest level since a dollar peg was scrapped in 2005 on speculation China will seek a stronger currency to slow inflation. Government bonds declined....

The currency closed at 6.8657 per dollar in Shanghai as of 5:30 p.m., compared with 6.8653 yesterday, according to the China Foreign Exchange Trade System. It touched 6.8612, the highest since the dollar link was abandoned.....

``The hot money has been a headache for Chinese authorities,'' said Yang Shengkun, a currency analyst in Beijing at China Citic Bank Co., a unit of China's biggest state investment company. ``It's reduced the effectiveness of the central bank's tight monetary policy against inflation.''....

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aWlVIA6LBlK8

By Zhang Shidong
June 26 (Bloomberg) -- China's stocks rose, helping the benchmark index complete its longest winning streak in seven weeks, as some investors took advantage of an eight-month slump to buy stocks cheaply. ....(I am in as well after a short absence !!)

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aMxRRC6d0f_M

By James Peng and Chinmei Sung
June 26 (Bloomberg) -- Taiwan's central bank increased its interest rate to a seven-year high and ordered lenders to set aside more cash as reserves, saying its ``first priority'' is to contain inflation....

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aJTuOtFqhuKo

By Mark Lee and Kevin Hamlin
June 26 (Bloomberg) -- Hong Kong companies may shut 20,000 factories in the neighboring Chinese province of Guangdong this year due to increased costs from higher fuel prices and wages, an industry association said....

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aAjeTYvv7rfo

Tokyo: China overtook Japan as the world's second-largest crude oil importer in May, according to data yesterday that showed an 8 per cent rise in purchases by Japan, where power plants have been forced to burn more crude....

http://www.gulfnews.com/business/Oil_and_Gas/10223746.html

TOKYO: Joint gas field development by China and Japan is unlikely to slake the energy thirst of Asia's two largest economies but could lead to wider cooperation over vital resources, analysts said Wednesday. Japan and China agreed Wednesday to jointly develop one of several disputed gas field in the East China Sea, following a longstanding row between the Asian powers over lucrative drilling rights for natural gas. "The accord is...

http://economictimes.indiatimes.com/News/International_Business/%20Japan-China_gas_deal_wont_quench_energy_thirst_analysts/articleshow/3142216.cms

China's incursions into India's Sikkim state are becoming more frequent and more penetrating, the most recent one this month going a kilometer into Indian territory. Delhi fears it is all about Tibet: Beijing is laying claim to Indian territories in the name of their vital role to Tibetan Buddhist culture. - Sudha Ramachandran (Jun 26, '08)

http://www.atimes.com/atimes/South_Asia/JF27Df01.html

Jun 26, 2008

By Antoaneta Bezlova

DUJIANGYAN, Sichuan - China's deadly earthquake last month appears to have shifted more than just tectonic plates in the country's picturesque Sichuan province. The May 12 temblor has given a boost to China's green lobby, which has been calling for a review of Beijing's zealous dam-building program and may tilt the balance of public opinion in favor of such appeals.

When the quake struck, it came in an area famous for ancient hydrological works. Sichuan is the homeland of Da Yu, the legendary Chinese emperor who won his right to the throne in 21st century BCE (Before the Common, Christian Era)by controlling floods. Instead of building dikes as others did before him, Yu dredged out river channels to release the torrential....
http://www.atimes.com/atimes/China_Business/JF26Cb01.html

2008-6-27

THE yuan traded near the highest level yesterday since a dollar peg was scrapped in 2005 on speculation that China will seek a stronger currency to slow inflation.

The currency closed at 6.8657 per dollar in Shanghai at 5:30pm, compared with 6.8653 the day before, according to the China Foreign Exchange Trade System. It touched 6.8612, the highest since the dollar link was abandoned. The yuan has appreciated 2.2 percent against the dollar this quarter, the best among the 10 most-traded currencies in Asia outside Japan....

http://www.shanghaidaily.com/sp/article/2008/200806/20080627/article_364714.htm

2008-6-26

CHINA has surpassed France and now stands fifth around the world for its number of US dollar millionaires, said Merrill Lynch and the France-based Capgemini, the biggest European consulting firm.

China was reported to have about 415,000 people owning at least US$1 million in liquid assets last year, more than France's 394,000....

http://www.shanghaidaily.com/sp/article/2008/200806/20080626/article_364658.htm

By VOA News
26 June 2008

China denies it is failing to keep the Olympic Games and politics separate after a Communist party official criticized the Dalai Lama at a torch relay ceremony in Tibet.

The Chinese foreign ministry Thursday said the official's comments did not contradict China's opposition to politicizing the Olympics...

http://www.voanews.com/english/2008-06-26-voa39.cfm

The North Atlantic Treaty Organization's expansion to encircle Russia with
allies and bases is tempered by the Shanghai Cooperation Organization, which
embraces a quarter of the world's population. The Shanghai grouping, led by
Moscow and Beijing, has, however, yet to evolve into a political alliance. - Conn
Hallinan (Jun 24, '08)


http://www.atimes.com/atimes/Central_Asia/JF25Ag03.html

With its profound hindsight into its former performance in Afghanistan, it is
strange that Russia is again wading into its southern neighbor by agreeing to
supply weapons to the Afghan army in the fight against the Taliban. Moscow is
looking at the bigger picture, though. It has put the North Atlantic Treaty
Organization on the defensive and sidestepped United States-led (and Chinese)
efforts to undercut its influence in Central Asia. - M K Bhadrakumar
(Jun 24, '08)


http://www.atimes.com/atimes/Central_Asia/JF25Ag01.html

By Lu Jianxin
SHANGHAI, June 27 (Reuters) - The yuan hit a fresh post-revaluation high against the dollar in late trade on Friday but failed to breach the key 6.8600 mark, as a relentless succession of new highs made traders cautious about the prospects for further appreciation.....

The yuan hit an intraday high of 6.8608 to the dollar late on Friday, edging past Thursday's post-revaluation traded peak of 6.8612. It closed at 6.8622, up from Thursday's close of 6.8657....

http://www.reuters.com/article/marketsNews/idINSHA28403520080627?rpc=611
http://www.bloomberg.com/apps/news?pid=20601089&sid=aNhlU3pDdQHo&refer=china

June 26,2008





by Zhou Jiangong

China, following many Asian countries including India, has recently allowed domestic fuel and energy prices to rise in response to soaring oil costs. Now will it be overtaken by soaring inflation as, lately, has India?
India raised retail prices for gasoline by 11% and diesel by 9% on June 4. In the first week after the price rise, the wholesale price inflation rate for India increased from 8.75% to 11.05%, a record high in the past 13 years
In China, the rise in prices has been even higher....

http://www.chinastakes.com/story.aspx?id=465

June 20,2008





by CSC staff


It is increasingly clear that the Chinese foreign exchange reserve portfolio has two long-term goals: to help maintain a stable USD exchange rate, and diversify foreign exchange assets to obtain rich returns.



After increasing its holdings of US Treasury Bonds, the total value of Chinese held Dollar Treasury Bonds reached a new high. At the end of April, for the first time, the value of Chinese held US Treasury Bonds exceeded $500 billion, reaching $502 billion. However, the proportion of US Treasury bonds in China’s foreign exchange reserve is decreasing....



http://www.chinastakes.com/story.aspx?id=449

By Stephanie Ho


Beijing

27 June 2008

Chinese environmental activists are warning that
the August Olympics are putting pressure on and will further exacerbate
Beijing's already severe water shortage. They worked with the Canadian
public interest research group Probe International, and issued a report
Friday called "Beijing's Water Crisis." Stephanie Ho has more on the
story....

http://www.voanews.com/english/2008-06-27-voa10.cfm