Verbatim

“Macro-control measures should be strengthened and enhanced in grain-related sectors this year to ensure stable supplies for the food and cooking oil market.”

Nie Zhenbang, chief of the State Grain Administration said at the national conference of grain administration chiefs held January 3–4, 2007. At the same time, reform should be deepened in the grain distribution system and State-owned grain enterprises so that the interests and confidence of farmers can be protected and national grain safety be guaranteed.

“It is very possible that the renminbi will revaluate by another 10 percent

in 2008.”

Yu Yongding, director of Institute of World Economics and Politics, Chinese Academy of Social Sciences, said in an interview with the 21st Century Business Herald. He said that about 60 percent of China’s economic growth stemmed from foreign trade during the past two years, which is risky. Accelerating the pace of renminbi appreciation could ease China’s dependence on foreign trade. And it will induce more pressure favouring enterprise upgrading.

 “A tighter monetary policy will have limited effect on capital markets in 2008.”

Wu Xiaoqiu, director of the Finance Securities Institute at the People’s University of China, said during a lecture sponsored by a fund company. Wu based his conclusion on the fact that there is no direct link between the money to be tightened by the monetary policy and the currency on China’s capital market due to China’s control over the channel of investment.

“When the price of a certain product increases sharply, measures should be taken immediately to curb its effects. Rising price margins should be strictly controlled, especially when they exceed increases in costs."

Bi Jingquan, deputy minister of NDRC, spoke at a national meeting on price supervision held on December 28 in Guangzhou, capital of South China's Guangdong Province. Bi said that price supervision by market regulatory authorities will require a major effort if market price stability is to be ensured. He said this should be underscored in 2008 to rein in inflation. He also urged local price regulatory authorities to stay vigilant for market signs and trends that might trigger price hikes.