Digest

Stock Connect unites HK, Shanghai

Despite a lackluster opening day for the much-anticipated Shanghai Hong Kong Stock Connect program on Nov 17, stock analysts in both cities said investors, especially those in Shanghai, will need time to adjust to the new bourse program.

Though the benchmark indices of Hong Kong and Shanghai both shot up initially, investors' enthusiasm faded as the day wore on. The Shanghai Composite Index lost 0.19 percent to close at 2,474.01 against a lackluster turnover of 199.3 billion yuan ($32.4 billion), down from the average daily turnover of 248.5 billion yuan the previous week.

The performance of the Hong Kong exchange was even more discouraging, with the Hang Seng Index falling 1.21 percent to close at 23,797.08 on turnover of a mere HK$83.02 billion ($10.7 billion).

But stock analysts in Hong Kong remain hopeful, noting that the entire daily quota of 13 billion yuan for the purchase of Shanghai-listed A shares under the program was fully utilized within three hours after opening. That showed the strong appetite of Hong Kong-based institutional investors for A-shares, which are seen as undervalued, analysts said.

Nation to hammer out space program rules

China will speed up legislation covering space program activities to make better use of the nation's assets and boost space-related industries, senior officials say.

"As China puts more and more assets into space, conflicts involving our increasing number of activities, limited resources and space debris have become noticeable," Tian Yulong, secretary-general of the China National Space Administration, told reporters on the sidelines of an international workshop on space law that opened in Beijing on Nov 17.

Officials and experts from more than 30 nations and international organizations are taking part in the four-day event, which was hosted by the United Nations Office for Outer Space Affairs, the Asia-Pacific Space Cooperation Organization and the administration.

"The safety of our assets in space depends largely on the enforcement of international space law and our domestic law that governs space activities," Tian said, adding that the laws also play an important role in managing and fostering space-related industries.

China looks to Mars as rover model debuts

China plans an exploration mission to Mars with preliminary research already underway, a senior space official said.

"We are working to have the government include the Mars exploration project in the country's space agenda," Tian Yulong, secretary-general of the China National Space Administration, said on Nov 17. "We have started the preliminary research for the Mars mission."

His remarks came less than a week after China made public a prototype model of its Mars rover at the 10th China International Aviation and Aerospace Exhibition, which closed on Nov 16 in Zhuhai, Guangdong province.

The probe for China's future Mars exploration project will comprise three devices, the orbiter, lander and rover, said Peng Tao, a space expert with the China Academy of Space Technology, the country's leading developer of spacecraft.

"We plan to conduct the Mars mission around 2020, which will include the probe's orbiting, landing and roaming," he said.

Oil reserve statistics to be published regularly

China will release its oil reserve figures in a more comprehensive and timely manner, President Xi Jinping announced while attending the G20 summit in Brisbane, Australia, on Nov 16.

Xi said China would also contribute to global infrastructure by building the Silk Road Economic Belt, 21st Century Maritime Silk Road, Asian Infrastructure Investment Bank and Silk Road Fund.

Since it is not a member of the International Energy Agency or the Organization for Economic Cooperation and Development, China is not obliged to publish its oil reserves, but the decision to update the numbers on a regular basis has shown the country's willingness to take responsibility as a nation, said Han Xiaoping, chief information officer of Beijing-based China Energy Net Consulting.

China's publishing of its reserves will help to secure the world's oil supply and stabilize international crude prices, Han said.

Lofty goal set for cutting emissions

Chinese policymakers will use ambitious goals for cutting greenhouse gas emissions to put the world's largest energy consumer on track toward a low-carbon economy, said Xie Zhenhua, China's top climate official.

During a two-day summit in Brisbane, Australia, G20 leaders agreed to set out domestic post-2020 targets. They also stressed the importance of how the mitigation of climate change would be financed.

President Xi Jinping said at the summit on Nov 16 that China will gradually cancel subsidies for fossil fuels, while it improves energy efficiency and supports renewable energies.

Xi also said China will establish a South-South Cooperation Fund to help developing countries address climate change.

The new targets unveiled by China and the United States in Beijing last week for action on climate change are expected to serve as catalysts for furthering global climate cooperation.

"If China and the US, the largest developing country and the largest developed country, can reach agreement on this issue, so can the rest of the world," said Xie, vice-chairman of the National Development and Reform Commission.

China will host G20 summit in 2016 for the first time

President Xi Jinping announced that China will host the G20 summit for the first time in 2016.

"As the 2016 host of the G20 summit, China will continue the momentum of economic growth and make a greater contribution to the global economy," Xi said at the ninth G20 summit, held in Brisbane, Australia, on Nov 15.

G20 members take turns hosting the summit. At the 2011 summit in Cannes, France, it was announced that Russia would host the event in 2013, followed by Australia in 2014 and Turkey in 2015, leaving Australia the right to nominate an Asian country as host of the 2016 meeting.

China Daily

(China Daily European Weekly 11/21/2014 page3)