April 9, 2009
The State Council announced a pilot policy allowing cross-border trades in five cites to be settled in yuan, instead of foreign currencies as previously required, reported the Daily Sunshine The program will be implemented in Shanghai and four cities in Guangdong Province: Guangzhou, Shenzhen, Zhuhai and Dongguan.
Some observers have interpreted the government’s move as a response to a potential depreciation of the US dollar in the future. The Beijing News quoted Zhao Xijun, an economist from Renmin University, stating that with America increasing the monetary supply, its currency is facing downward pressure.
Also on the front page is the news about Larry Yung’s resignation from his position as chairman of the state-owned overseas investment company CITIC Pacific yesterday. The newspaper previously reported that Yung (荣智健) and other board members were investigated by Hong Kong’s Securities and Futures Commission in January.
Another widely-reported news item concerns a Ministry of Finance announcment that the government is planning to provide 850 billion yuan in three years to fund medical service reform package proposed by the State Council. 2/3 of the fund will be spent to cover the expenses of the patients and the rest would be used to improve the service quality of the the hospitals.
In non-financial news, seven suspects, including five former officials of the county government of Xishui, Guizhou Province, stood trial yesterday on charges of engaging in sex with minors. The news media previously reported the defendants paid the victims, who were under the age of consent, for sex. According to the article, a China Youth Daily reporter testified that sex trade involving underage girls is rampant in the province.
- Daily Sunshine (Chinese): Yuan Trade Settlement to Start in Five Cities,Larry Yung resigned, Sex offenders on trial
- Earlier on Danwei: Larry Yung investigated by Hong Kong securities regulator, Universal health care for China?