1. Shanghai Morning Post: First question, what will the local measures to ease traffic congestion focus on this year? Second question, you have mentioned the government will improve the local auction policy for car license plates. What are the deficiencies of the existing policy? What are the measures to restrict local cars from having out-of-town license plates? Third, it is said that Shanghai is studying a plan to allow local companies to create their own work schedules as part of a government move to ease local traffic jams. When will the plan be implemented? Last question, according to the government blueprint, this year, the city will provide 10 million square meters of properties for those relocated due to urban construction projects and 10 million square meters of mid- and low-priced housing for local citizens. Are these property lands ready now? How can you ensure that the prices of the low- and mid-end properties are lower than those of the other properties? During the previous press conference, you said that other residents will likely be allowed to buy homes slated for the relocated. When will such housing access be given to other citizens and what are the requirements for the qualifiers?

Jiao Yang: For your first question, to ease local traffic congestion this year is still tough. In the near future, the local demand for transportation facilities will continue to rise. By 2010, a rail transportation network in the city center is expected to be expanded rapidly, with more transportation facilities available, but the supply of facilities will hardly satisfy the increasing demand at certain periods. It will take a long time to improve the city's traffic patterns, and the key point to ease local traffic currently and for the coming period of time is to not only establish more transportation facilities, but also to improve local transportation management and give the limited transportation resources full use. All the measures released this year are related to that key point, with the work shared by all the related departments. All departments will try hard to implement the measures in the light of their work schedules. As to your second question, Shanghai is continuing to improve the local auction policy for car license plates. Third question: the local department is studying a plan to allow local companies to have their own work schedules. Last question: to ensure the supply of two 10 million square meters of properties for local residents is an important goal of both the Shanghai Municipal Committee of CPC and the Shanghai Municipal government and it must be realized. The city and district-level governments and related departments are doing the work, including the land preparations and relocations. Currently, allowing more residents to buy homes previously slated for the relocated is being done on a trial basis, and with more experience gained, the move will be expanded across the city.

2. Wall Street Journal: Has the Chinese central government issued detailed circulars to the Shanghai government to put a lid on the soaring property prices in the city? Are there any measures from the CPC Shanghai Municipal Committee and Shanghai Municipal government to curb the increasing housing prices? Are the senior local officials, such as the Party Secretary and Mayor, responsible for the soaring property prices?

Jiao Yang: Recently, Shanghai has issued a series of policies to curb the excessive increases of local property prices, and all of them are based on the central government's macro-control policies. The policies are also an embodiment of the city's efforts to establish a scientific view of development and to maintain a coordinated society. There are many such policies which have been described in the previous press conference. Around March 7, Shanghai successively issued a series of policies to maintain a healthy development in the local real estate market, and they are available at the city government website. Moreover, some financial and tax policies were also issued which can be offered to you after the press conference. Shanghai Party Secretary Mr. Chen Liangyu and Mayor Mr. Han Zheng are both paying careful attention to the healthy development of the local real estate market, and all these policies have been worked out based on their concerns and recognitions. The government efforts did not just start now. As of the mid 1990s, the Shanghai government has been adjusting policies in the light of the different circumstances in the local property market and new problems arising at different periods of time. The directions, intensity and focuses of the adjustment policies are based on different situations. Market adjustment for the city's real estate market did not start now nor will it end now.

3. China Daily: I'd like to ask the spokesperson if there is any other way to ensure the city power supply? Is there any effect on foreign investment from the power shortages?

Jiao Yang: Power demand continues to grow with the city's fast but sustainable economic development. The government and the Party commission have paid special attention to power projects. We have introduced the policy of "one insist, three ensures" (insist on limiting rather than cutting the power supply, ensure enough power supply for people's daily life, for key industries, and ensure industrial order and the order of daily life), and try to keep industrial policies in line with energy policies. On the whole, we balanced power supply and demand last year.
This year, we'll face strict challenges for the power supply. We are expecting a peak demand of 18.5 million to 19 million kilowatts. However, increased electricity transmitted from other cities is likely to help manage a balance.
We have taken four measures to get ourselves well prepared for the peaks during this summer. First to increase power supply, second to remove low value-added businesses that consume great amounts of energy and produce huge pollution, third to get people to work and rest in shifts, and fourth to step up power conservation.
To get people to work and rest in shifts is a tentative approach to make Shanghai into a harmonious city, regarding both the similar practices of other cities in the world and our local situation in terms of production, climate and energy supply.
Moreover, we'll also improve our management of power distribution to avoid peaks and match other industrial policies. We expect a better control this year than last.
The city government and Party commission expect that all citizens will pay attention to the issue of energy conservation. Individuals saving electricity on their own will help to build a city that is thrifty in resource consumption, and to fuel harmonized economic and social developments.

4. STV news channel: Although the improvements to the public transport system have been given top priority this year, the new route introduced by Bus Line 46 is very inefficient. Could you explain why? Are there any new projects and policies related to the construction of new lanes for buses? What are the 31 existing one-way roads in the city? I'm not quite familiar with SCATS system, could you explain it to us? Will recent home sales policies curb local home price increases and reduce market demand?
Jiao Yang: We've also noticed that the new route of Bus Line 46 has failed to transport sufficient passengers to ease the pressure on the Metro Line One, which goes in the same direction but under the ground. In fact, I learnt the news from the TV. Since the route was introduced just recently, I think it may improve after a certain period of time.
Both our traffic white book, and general traffic planning require us to give top priority to improvements in the public transport system, or to make public transport more attractive to passengers. To achieve this goal and attract more people who used to drive automobiles to use public transport means we plan to raise our service level, to implement what was demanded in our planning, to improve the roads and the road network, to reform the ticketing system and to work out more favorable policies. Actually, this can be regarded as our city's key traffic strategy.

As for the concrete measures to be implemented this year in public transport, let me give you a brief description.
1.  Speed up the bus-only traffic lane construction, including the sections of Siping Rd to Zhongshan Rd. E (Tianshui Rd to the Nanpu Bridge), the ground lanes under the Inner Ring Rd (Nonglin Rd to Anshun Rd) and the Zhaojiabang Rd.  These lanes will run for over 20 kilometers.  Meanwhile, to improve the efficiency of the lanes, some bus routes will be readjusted and improved.
2.  Readjust the city's entire bus network, particularly the routes in key downtown areas.  We will carry out bus regional administration on a trial basis to have a single bus company operate all bus routes on one important road; re-chart the routes of buses that have stops shared with other routes to spread out the passenger flows; remove the 36 inappropriately located stops; draft a bus network adjustment plan, catering to the traffic in the Middle Ring Rd area and the C-shaped Metro No. 4 line; As well, we will construct follow-up bus networks for new communities which are home to over 5,000 residents.
3.  Carry out a series of bus infrastructure projects, including the transit hubs along the Middle Ring Rd, and vehicle upgrading.  To further reduce accidents, 2,000 buses will be updated, mostly to compressed natural gas buses, and 3,000 taxies will be replaced.  Another 650 taxi stops and pick-up points will be added.
4.  Increase public transport capacity, particularly rail lines capacity.  As planned, the wait between the trains will be shortened to 9 minutes on the northern extension of Metro No. 1 during the peak hours and 3.2 minutes on Metro No. 2.  The wait on Metro No. 5 will be cut to 6.5 minutes and service will be extended by half an hour.  While preparing for the start of Metro No. 4, we will complete the facelift of the signal and traffic information systems on Metro No. 2 and 3.  We will also realize a unified ticketing network between the rail lines.
5.  Carry on studies of public transport reforms.
We will use the above measures to expand this year's public transport priority policy.
As to the term SCATS, I remember another reporter raised the same question at a press conference last year on traffic measures.  So, let me give a brief description. 
Shanghai currently uses The Sydney Coordinated Adaptive Traffic System (SCATS) to control its traffic signals.  Based on the information of traffic flow trends indicated by vehicle detectors, the computer system will automatically make real-time adjustments to the traffic signal times and the green light times.  It can coordinate the management of a group of intersections in a control area or along a key road.  Currently, many big cities across the world use this automatically adaptive control system.  In Shanghai, most traffic-signal-controlled intersections within the Inner Ring Rd and the 1,071 intersections on key traffic roads out of the Inner Ring Rd use this SCATS.
For the question referring to policies to reduce the housing demand, many policies are rolled out separately from the two viewpoints of the suppliers and purchasers.  The series of policies the central government has recently published were probably drafted out of this concern.

5. Phoenix TV:  The central and Shanghai governments have recently introduced a series of housing policies.  In response, are there changes in Shanghai's housing market?  And will more policies come out?

Jiao Yang: We need the public's attention, analyses and judgments for the changes to the housing market.  Since it takes time for a series of polices to take effect, we need to make constant observations and conclusions.  Based on these observations and conclusions, we will make more adjustments.  Therefore, more new housing policies will come out at an appropriate time, based on studies to meet the city government's  "three-centered" housing control targets.

6. Dragon TV Shanghai: You mentioned just now that the municipality will ensure the supply of two properties for local residents, each one 10 million square meters.  However, the newly-begun constructions of middle- and low-priced houses, or the lands being developed for these houses, are too far from the downtown areas for local residents to enjoy their daily life.  So, what's the next approach the city will take to further improve housing security?  And, will the municipality implement any new policies to standardize the local real estate market?

Jiao Yang: As a matter of fact, the real estate market obeys its own values and rules.  The local municipality has developed an overall plan for developing property, paying close attention to all situations including the location of housing and transportation.

The improvement of the housing security system is quite a significant issue.  The municipality and the local government have established policies aimed at ordinary residents with middle- and low-income, who are the main foundation of our city. The policies intend to create better living and develop their environments, allowing them to enjoy the achievements of the reform.   People with living difficulties are always a top concern of the Party and the government.  This is not only the basis of government work, but also a comprehensive embodiment of the requirements for building a harmonious society and keeping social justice and equity.

The following four points are the main concerns to date for improving the housing security system:
1. To create a low-rent housing system.  With the help of the government's improved capability in housing security, the city will further expand the coverage of low-rent houses, so that by the end of 2005, over 18,000 families will benefit from this system.  This figure in 2004 was 13,500.  Thus, the basic living requirements for families with the lowest incomes can be met.  The level of the security allowance and the qualifications of the participants will be established adhering to the city's real economic development situation.
2. To build a new policy for housing leases.  Home lease is a way out that is as important as house purchase for troubled families.  The supply of two properties, each of 10 million square meters, promoted by the local municipality is aimed at those low- to mid-income families.   It's a concept of economical properties.  When perfecting the low-rent home system and the policy for house release, the governments at the city and district levels will promote some properties with favorable prices for the relocated suffering from financial troubles. 
3. To continue the favorable policy towards owners of publicly-owned housing.  For-sale publicly-owned homes are still available for lease with a low rent.  Qualified families with living difficulties can live in these houses with lower or zero rents.  More old properties are to be renovated to encourage their renters a chance to enjoy this favorable policy in the sale of publicly-owned houses.
4. To speed up the renovation pace for old properties.  The city will put more effort into the comprehensive renovations of some old residential areas and will increase the re-construction of flat roofs to sloped ones to improve residents' living environment and quality.  By 2005, 40 residential areas will take on a new look with sloped roofs and 8,000,000 to 10,000,000 square-meter of houses will be renovated.

In a word, the related local administrations will further detail and perfect the housing security system to improve the living environment and quality of life for the local people in a real way.

As for standardizing the local real estate market, the municipal government is always studying its healthy and balanced development.  In recent years, the administrations of local real estate have been continuously increasing both its supervision of property trades, and its management of the market.

First, we will regulate property investment and curb speculative buying in the housing market. While persevering in adopting market friendly policies, we will take all kinds of measures (including new rules and laws, financial and taxation policies, and administrative action) to regulate and guide the property market. Secondly, we will further improve the information system for tracking housing deals. Meanwhile, we will urge property developers and real estate brokers to be honest in conducting housing sales. Anyone caught producing artificial home sale contracts or inflating property prices will be severely punished.
Third, the online transaction system which provides information about developer projects for sale (including the number of available apartments, their prices and locations) will be further improved. We will provide better service, optimize the handling of affairs and promote operational efficiency. Fourth, we will make more information available to local residents besides improving the information system of the local property market. Housing information should be classified according to location and prices. Local residents should be given information about apartments for low- and medium-income residents, and homes for families relocated by urban renewal projects. Fifth, stricter supervision and regulation will be exercised over housing sales, especially the sales of houses still under construction. Malfeasance in housing sales will be detected and curbed in time. The government will keep a close watch on important residential projects. A work group will be formed to supervise the market order of housing sales and impose penalties on illegal practices in accordance with law.     

The reporter has just asked how we will punish those who have violated market order. I will explain it in detail now. In order to regulate the local property market, the Shanghai Housing and Land Administrative Bureau have recently launched a campaign against illegal practices in housing sales (e.g. The cancellation rates of home sale contracts are relatively high in some high-end residential projects; Property developers are accused of seeking to corner the market by executing bogus home sale contracts; Property developers and estate brokers are colluding with each other to drive up housing prices). The measures taken by the bureau include stricter supervision over the withdrawal of home sale contracts, more careful examination during the issuance process of presale permits, stricter supervision over the agencies where housing departments are on sale, and heavier penalties for malfeasance.  

Three local developers were punished for malfeasance last year. Since March 1 this year, the bureau has paid more attention to cracking down on bogus home sales contracts and other illegal practices. Seven residential projects have been ordered to suspend operations this year. The bureau has conducted investigations into the top three residential projects that have the highest withdrawal rates of home sale contracts. In a word, under no circumstance will the municipal government be indulgent towards illegal practices (e.g. contract fraud, cornering the market, inflating housing prices, violating market order). Anyone who is caught cheating in housing sales will be punished. This is the government's attitude towards the issue.

7. China Business News: Could you explain the concept of "traffic impact analysis" ? There are reports that the city is a little hasty in its preparations for MotoGP. How can Shanghai complete the preliminary work for MotoGP in one month? What is the progress in the promotion of the event? Have you assessed the impacts of sports events on related industries?

Jiao Yang: I'll answer your last question first. Big sports events will certainly spur the development of related industries. You can consult the department concerned for detailed information.
Since a steering committee has been established for MotoGP, you can ask the committee to answer questions concerning MotoGP.  The development of the local sports industry is stimulated by government and also adheres to the principle of the market economy. Not every sports event is held by the municipal government. Enterprises and the whole society are encouraged to take part in the organization of the events. Therefore, I don't think it is necessary for a government spokesperson to explain how to promote sports events.
As an important and newly-introduced concept, "Traffic Impact Analysis(TIA)" means a study that assesses the impacts of proposed projects on transportation. The department concerned will carry a scientific and quantitative evaluation for reference of the feasibility study of the project. At present, the application of "Traffic Impact Analysis" is still in the trial period in local projects. We will sum up experience from the trials and try to resolve existing problems. TIA will be widely carried out in local projects when the time is ripe.