News » China » Court ruling renews concerns over banks' dominance

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• Court ruling renews concerns over banks' dominance
• Bus drivers union signs collective wage contract
• Water company tapped for including banquet fees in production cost
• Firm acquires wind farm in Australia
• Frankenstein films to be shown as part of arts festival
• China Exclusive: Eurozone crisis' ripple effect felt in China
• China hopes to advance Asia-Pacific cooperation with U.S.
• Chinese navy drills in line with international law: spokesman
• China opposes Vietnam patrol plane provocation
• Chinese defense ministry comments on U.S. Asia-Pacific deployment
• China reaffirms support for political solution in Syria ahead of Geneva meeting
• Eurozone crisis' ripple effect felt in China
• Guangzhou Evergrande prepares huge offer for Kaka
• Chinese military may establish presence in Sansha: defense spokesman
• China to send 12th escort fleet to Somali waters
• China says strengthening military alliances goes against regional peace
• Donations to China Red Cross drop 59 pct in 2011: report
• Chinese military may establish presence in Sansha: DM
• China opposes Vietnam patrol plane provocation
• Military alliances goes against regional peace: DM

Court ruling renews concerns over banks' dominance Posted: 28 Jun 2012 08:40 AM PDT BEIJING - A court ruling that stripped a Chinese investor of millions of yuan gained six years ago from transactions of paper gold with the world's largest bank has triggered a fresh wave of public criticism. Song Ronggui, whose gains of 21 million yuan ($3.33 million) were retrieved by the Industrial and Commercial Bank of China (ICBC), the world's biggest lender by market value, said it would challenge the investor's appeal to the Supreme People's Court. Song said he had lodged an appeal after the Higher People's Court of Shandong province recently issued a final sentence that favored the bank's cancellations of 126 transactions of cash-settled and non-delivery contracts. "I'm very upset (at the ruling)," Song said, vowing to continue the legal proceedings at the Supreme People's Court. In its final judgement, the Higher People's Court of Shandong supported the move by the ICBC branch in the provincial capital of Jinan to call off 126 paper gold transactions between June 29 and July 8, 2006. On the gold exchange platform provided by the ICBC, Song and his investment partner Fan Wenda adopted a stop-loss order strategy to arbitrage on the spread of the bid and ask prices of gold through phone banking. According to the rules on the stop-loss order, investors can buy or sell stock through phone or the Internet once the price of the underlying stock reaches a specified price, known as the stop price. When the stop price is reached, the stop order becomes a market order, meaning the trade will definitely be executed, but not necessarily at or near the stop price, particularly when the order is paced into a fast-changing market, or if there is insufficient liquidity available relative to the size of the order. In their arbitrage dealings, Song and Fan placed most of their bid orders at 145 yuan per gram through phone when the gold price was 160 yuan per gram and resold them at the market price, an operation strategy Song argued was in line with the trading system's floating limit of 20 percent on either side of the market price. However, the ICBC has accused their operations as "evidently hostile" and called their gains from the transactions "unjust enrichment," stating that those transactions could be revoked on the premise of "system malfunction." To Song's fury, the ICBC branch transferred, without notice, from his and Fan's bank accounts the 21 million yuan of profits they earned through the transactions in late July 2006 even before any binding legal ruling was announced. "Such move (by the bank) is sort of pirating," said Sun Qilun, a lawyer representing Song. "It's unconvincing for the bank to ask for the revocation of those transactions on the ground of system malfunction." On China's Twitter-like websites, the case has become one of the heated topics for microbloggers, who have largely sympathized with Song. "Those who make a mistake should pay the price on their own. The system malfunction has nothing to do with customers," read one post. "In China, the banks are always right," said Chen Xing, an Internet commentator. "The court ruling protects the interests of the monopoly industry and ruins market rules," read another post. Internet users compared the case with an ATM malfunction of the HSBC in Hampshire, Britain, last month. About 200 residents cashed in after a HSBC ATM began paying out double in May. But the bank said it would not be asking any customers to return the money as it was not the customers' fault. "The machine was mis-dispensing and we won't be requesting the funds back. It is certainly not the liability of the customers," according to a HSBC spokesman. Chinese banks, however, have long been criticized for making fat profits with numbers charges and fees while treating their customers without respect. Chinese commercial banks posted an increase of 36.34 percent year-on-year in net profits to 1.04 trillion yuan in 2011 while the world's second-largest economy is slowing. Song said he was not optimistic that the verdict would be overturned as the Supreme People's Court in 2008 upheld a five-year jail term meted out by a local court in southern Guangdong province to a young man who was found guilty of "illegally" withdrawing 175,000 yuan from an ATM machine. In that final ruling at the Supreme People's Court, Xu Ting was jailed for five years after he took 175,000 yuan from a faulty ATM machine in Guangdong in April 2006. The ATM only deducted 1 yuan from Xu's account for each 1,000 yuan that he had withdrawn.

Bus drivers union signs collective wage contract Posted: 28 Jun 2012 08:40 AM PDT Updated: 2012-06-28 21:32 By Wu Yong ( chinadaily.com.cn) The Trade Union of Shenyang bus drivers signed the first collective wage contract with a representative of local public traffic companies on Thursday in Shenyang, capital of Liaoning province. The contract, which will benefit about 15,000 bus company workers, set a minimum monthly wage of 1,200 yuan ($188.73) and linked workers'annual pay increases to the company's profits. "It's so great that we can have a say in the decision on salaries. The most important thing is that there is an annual growth," Li Ping, a female bus driver, told China Daily. Statistics from local authorities show the average pay of bus drivers is about 1,100 yuan per month. Their wages have remained relatively stagnant over the past decade. The Shenyang Federation of Trade Unions, the biggest driving force behind the contract, praised the agreement. "Under this contract, bus drivers have more bargaining power to earn a better life," said Duan Yang, vice-chairwoman of the Shenyang Federation of Trade Unions.

Water company tapped for including banquet fees in production cost Posted: 28 Jun 2012 08:40 AM PDT Updated: 2012-06-28 21:15 By Zheng Caixiong ( chinadaily.com.cn) Guangzhou Water Supply Company has come under fire for including the company's expenses for banquets and other reception fees into the production cost of tap water, and shifting the extra costs onto consumers. Local media recently reported that the tap water production costs announced by the company were nearly 17.3 percent higher than the figure ratified by the city's price bureau. That means it collected more than 400 million yuan ($63.5 million) a year extra from local tap water consumers. Han Zhipeng, a member of the Guangzhou Committee of the Chinese People's Political Consultative Conference, said it was understandable that the water supply company would seek to raise its water rates as production costs had grown. "But the company should not shift the extra costs for banquets and receptions onto residents and consumers," he said. He urged the water supply company to make its operations more transparent. The company refused to comment. Starting May 21, the company raised its water rates to 1.98 yuan a cubic meter, up from the 1.32 yuan a cubic meter they had been set at since 2006. The company said it cost 1.716 yuan to supply a cubic meter. According to the account book published on its website, the company is deep in the red. The company had a deficit of 50 million yuan in 2008, which grew to 390 million yuan in 2010. And it now has to pay interest of more than 416 million yuan a year to the bank and is heavily in debt. It is not known how much was spent on banquets and reception fees. Many local residents have also been opposed to a water rate increase.

Firm acquires wind farm in Australia Posted: 28 Jun 2012 08:40 AM PDT Updated: 2012-06-28 21:11 ( chinadaily.com.cn) China Guangdong Nuclear Wind Energy, a subsidiary of China Guangdong Nuclear Power Group, acquired a wind farm in Australia from Goldwind Science and Technology Co, the largest turbine maker in China, according to an online statement on Thursday. The 19.5-megawatt Morton's Lane wind farm consists of 13 1.5-megawatt Goldwind direct-drive turbines and generates 60 million kilowatt hours of electricity annually. CGN chairman Chen Sui said the purchase of the project marked a breakthrough in its strategy to expand overseas. The project was approved to connect to the grid in Nov 2011.

Frankenstein films to be shown as part of arts festival Posted: 28 Jun 2012 08:40 AM PDT Updated: 2012-06-28 21:10 By Mu Qian ( chinadaily.com.cn) As part of the ongoing UK Now festival, two film versions of the play Frankenstein by the National Theater of UK were shown at the Beijing MOMA Broadway Cinema on Friday and Saturday. Based on Mary Shelley's classic novel, this new production of Frankenstein is directed by Danny Boyle and adapted for the stage by Nick Dear, who took part in a pre-show discussion before both shows. The screenings were presented by the KT Wong Foundation, which is devoted to promoting cross-cultural collaborations between China and the West. UK Now is the biggest festival of British arts and creative industries held in China and is holding hundreds of events in 17 Chinese cities between April and November.

China Exclusive: Eurozone crisis' ripple effect felt in China Posted: 28 Jun 2012 06:24 AM PDT A solution to the eurozone's fiscal woes is not expected in the near future, despite a two-day meeting by the leaders of EU members states on Thursday to discuss a solution to the crisis.

China hopes to advance Asia-Pacific cooperation with U.S. Posted: 28 Jun 2012 06:22 AM PDT China on Thursday voiced the hope that it will steadily advance cooperation with the United States in the Asia-Pacific region on the basis of mutual respect and mutual benefit.

Chinese navy drills in line with international law: spokesman Posted: 28 Jun 2012 06:21 AM PDT Chinese navy drills in the west Pacific were in accordance with international laws and practices, a military spokesman said on Thursday.

China opposes Vietnam patrol plane provocation Posted: 28 Jun 2012 06:19 AM PDT A Ministry of Defense spokesman said Thursday that China opposes any military provocation committed by Vietnam as a result of the country's air patrols over China's Nansha Islands.

Chinese defense ministry comments on U.S. Asia-Pacific deployment Posted: 28 Jun 2012 06:17 AM PDT A Defense Ministry spokesman on Thursday said that the United States' reinforcement of military deployment in the Asia-Pacific is not conducive to security and mutual trust in the region.

China reaffirms support for political solution in Syria ahead of Geneva meeting Posted: 28 Jun 2012 06:14 AM PDT China on Thursday reaffirmed its support for a political solution to the Syrian conflict ahead of an international conference on Syria to be held on Saturday in Geneva.

Eurozone crisis' ripple effect felt in China Posted: 28 Jun 2012 05:38 AM PDT A solution to the eurozone's fiscal woes is not expected in the near future, despite a two-day meeting by the leaders of EU members states on Thursday to discuss a solution to the crisis.

Guangzhou Evergrande prepares huge offer for Kaka Posted: 28 Jun 2012 05:38 AM PDT Spanish and Italian newspapers are speculating that Chinese side Guangzhou Evergrande are preparing an offer for Real Madrid's Brazilian midfielder Kaka.

Chinese military may establish presence in Sansha: defense spokesman Posted: 28 Jun 2012 04:13 AM PDT Military authorities are considering establishing a presence in the city of Sansha, a Ministry of Defense spokesman said Thursday.

China to send 12th escort fleet to Somali waters Posted: 28 Jun 2012 03:40 AM PDT The Chinese Navy will send a 12th group of ships to the Gulf of Aden to conduct escort missions next month, a Ministry of Defense spokesman said Thursday.

China says strengthening military alliances goes against regional peace Posted: 28 Jun 2012 03:26 AM PDT A spokesman for China's Defense Ministry said here Thursday that relevant countries intentionally strengthened military alliances by holding joint military exercises, which went against regional peace and stability.

Donations to China Red Cross drop 59 pct in 2011: report Posted: 28 Jun 2012 03:21 AM PDT Donations to the Red Cross Society of China dropped 59.39 percent in 2011, according to an annual report on public donations published Thursday.

Chinese military may establish presence in Sansha: DM Posted: 28 Jun 2012 03:54 AM PDT Military authorities are considering establishing a presence in the city of Sansha, a Ministry of Defense spokesman said Thursday.

China opposes Vietnam patrol plane provocation Posted: 28 Jun 2012 04:41 AM PDT A Ministry of Defense spokesman said Thursday that China opposes any military provocation committed by Vietnam. • Chinese military may establish presence in Sansha: DM

Military alliances goes against regional peace: DM Posted: 28 Jun 2012 03:48 AM PDT A spokesman for China's Defense Ministry said Thursday that relevant countries intentionally strengthened military alliances by holding joint military exercises, which went against regional peace and stability.

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