China, Russia to hold largest-ever joint naval drills

BEIJING – China will join Russia later this week for its largest-ever naval drills with a foreign partner, underscoring deepening ties between the former Cold War rivals along with Beijing’s desire for closer links with regional militaries.

China has long been a key customer for Russian military hardware, but only in the last decade have their militaries begun taking part in joint exercises.

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The Associated Press via CHINA US Focus http://feedproxy.google.com/~r/ChinaUsFocus/~3/YGkF8DPnkq8/

Loan Practices of China’s Banks Raising Concern

SHANGHAI — Text message solicitations began arriving on the mobile phones of many of China’s wealthy last month, promising access to lucrative wealth management products with yields far above the government’s benchmark savings rate.

One message read: “China Merchants Bank will issue a high interest financing product starting from June 28th to 30th. The product will be 90 days with a 5.5% interest rate. Please call us now.”

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David Barboza, The New York Times via CHINA US Focus http://feedproxy.google.com/~r/ChinaUsFocus/~3/ZYhED-x332Q/

China and South Korea urge North Korea to resume nuclear talks

The leaders of China and South Korea called for North Korea to resume negotiations on its nuclear disarmament after a meeting in which they discussed ways to draw their isolated and erratic neighbourback into dialogue with the outside world.

The summit in Beijing marked the beginning of a four-day visit by South Korea’s new president, Park Geun-hye. It also came at a time when China, Pyongyang’s biggest ally and longtime benefactor, has signalled unusual displeasure with the North after it recently carried out a missile launch and nuclear test and issued a barrage of provocative rhetoric despite Beijing’s protests.

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William Wan, The Washington Post via CHINA US Focus http://feedproxy.google.com/~r/ChinaUsFocus/~3/rZ6xUQKEj9Y/

China cash crunch not sign of a banking crisis, says large Chinese fund

(Reuters) – China’s financial system is more “robust” than widely thought and the recent cash crunch does not signal any systemic risk, according to a senior investment executive of one of the largest asset managers in the mainland.

Until Beijing pledged last week to ensure adequate funding, borrowing costs in the mainland spiked to record highs and stocks tanked, raising fears of a banking crisis that could compare with the 2008 one in the United States.

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Clement Tan, Reuters via CHINA US Focus http://feedproxy.google.com/~r/ChinaUsFocus/~3/NvG_-RYuDcE/

China Pushes Back on Philippine Spratlys Charge

China is pushing back against Philippine charges that Beijing is increasing its military activity in the South China Sea area and threatening peace and stability in the region.

During the foreign minister’s meeting of the Association of Southeast Asian Nations (ASEAN) in Brunei, Philippine Foreign Secretary Albert Del Rosario released a statement Sunday saying there is a “massive presence of Chinese military and paramilitary ships” at the Huangyan Islands and the Ren’ai Reef, also known as the Second Thomas Shoal.

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VOA News Staff via CHINA US Focus http://feedproxy.google.com/~r/ChinaUsFocus/~3/b_pxPWSvyHE/

Rebound in inflation forecast

China’s inflation is likely to have seen a modest rebound in June, according to forecasts by research agencies ahead of the official announcement of the figure next week, but economists said Monday there will not be further inflationary pressure amid a cooling economy.

The consumer price index (CPI), a main gauge of inflation, is expected to rise to 2.6 percent for June, driven by rising pork prices and a low base of comparison last year, Tang Jianwei, a senior macroeconomic analyst at Bank of Communications, told the Global Times Monday.

In May, the CPI reading rose by 2.1 percent compared to a year earlier, according to data from the National Bureau of Statistics (NBS).

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Li Qiaoyi via CHINA US Focus http://feedproxy.google.com/~r/ChinaUsFocus/~3/bXzWTsuDHeY/

China boosts financial support to small firms, rural areas

The People’s Bank of China (PBOC) said Monday that it has arranged a 12 billion-yuan (about 1.94 billion dollars) re-lending quota to boost financial support for small and micro-businesses and rural areas.

Re-lending is a monetary tool used by the PBOC, the country’s central bank, to increase financial institutions’ liquidity and guide credit flows.

The central bank requires that funds from the quota be credited to small and micro-businesses, as well as the agricultural sector, rural areas and farmers.

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English.news.cn via CHINA US Focus http://feedproxy.google.com/~r/ChinaUsFocus/~3/PLI8-ZyB4F0/