1. Nihon Keizai Shimbun (Japan's largest business newspaper): I found a circular at the website www.1931-9-18.org saying that an anti-Japanese march will be held at People's Square at 9 a.m. on April 16. Have the demonstrators applied to the public security department for approval? Has the public security department approved that demonstration? Recently, anti-Japanese marches have been held in other Chinese cities such as Beijing and Guangzhou, together with violent acts. Can you tell me whether or not the Shanghai Municipal government can guarantee the safety of Japanese people and companies in Shanghai?

Jiao Yang: the Shanghai Municipal government has noticed the anti-Japanese parades in certain domestic cities. As we know, some Shanghai residents are also opposing Japan's becoming a permanent member of the United Nations Security Council, and are not satisfied with Japan's recent false attitudes and behaviors towards its own aggressive history. China's Ministry of Foreign Affairs has clarified the attitude of the Chinese government and expects the Japanese side to deal with it carefully and solve the sensitive problems concerning the Chinese people's feelings in a proper way. We also expect the public can express their ideas and desires in a calm, rational, legal and orderly way.
According to the information we acquired from the public security department, there have been no such marches in Shanghai, nor have they received relevant written applications. Currently, the local society is harmonious and stable, and the government is always protecting the legal rights and benefits of companies and institutions investing in the city, and also individuals. No serious incidents have been found to have had a negative impact on the local investment environment or the Japanese companies. Shanghai is capable of ensuring the safety of local expatriates.

2. Shanghai Morning Post: You mentioned that this year's improvements to food safety will adopt a 28-category qualification system so that only the top quality foods can reach the customers. Can you inform us as to which companies are covered in the 28 categories? Second question: the regulations on the management of corporate credit ratings have been introduced today. We know that local credit rating firms are collecting information from individuals, but can you tell me the difference between corporate and personal credit ratings?

Jiao Yang: It would require a long time for me to read the 28 food categories. Officials with the Shanghai Office of Rectification and Standardization of Market Economic Order and the Shanghai Food and Drug Administrative Bureau are also present at today's press conference, so to save time, you can ask them to offer you the name list of the 28 food categories in detail.
As to your second question, many local citizens have no idea about the differences between corporate and personal information ratings. We have consulted the local information rating office, and now I can briefly explain it to you. The differences mainly lie in two aspects: collecting credit information and offering credit ratings.
On collecting credit information, credit rating institutions should collect corporate credit information in a legal way. There is a wide range of ways for credit rating institutions to collect such information, such as through financial records, business status, public administration institutions and other information related to the firms' credit. However, for personal credit rating, collecting information, except for negative information, requires personal approval.
As to offering credit ratings, local companies that want credit information about their business partners can entrust corporate credit rating firms with investigating the partners. After investigating the worthiness of any companies, the credit rating firms will provide credit reports without the permission or authorization of the companies to be checked. However, for personal credit ratings, only the individuals themselves and those authorized can search their credit reports.

3. Shanghai Television Station (STV) News Channel: It was reported in Shanghai that a small cup of jelly choked a girl to death. Will the government impose restrictions on the producers of these small jelly cups?

Jiao Yang: Above all, the Shanghai Municipal government, with a strong sense of responsibility for people's lives and property, will ask local departments to supervise these producers. As to your question about what measures will be taken with the producer whose product was responsible for the girl's death, you can consult the relevant department after the press conference. In a word, the Shanghai Municipal government will strictly implement Chinese laws and regulations and strengthen the supervision of food safety according to the law.

4.  Dow Jones News Agency and Wall Street Journal: The central government has worked out a plan to solve the equity problems. Shanghai government, as one of the main holders of many local state-owned shares, is eligible for what kind of equity separation? What shall it do? Is there a timetable for the move? Last week, British Prime Minister Tony Blair and Chinese Prime Minister Wen Jiabao talked over the phone about the merger between the Shanghai Automotive Industry Group (SAIG) and MG Rover. Is Shanghai government involved in this business?

Jiao Yang: For the first question, I learned it from the media today, just the same as you did. The Shanghai government will stick to the nine-point guidelines released by the State Council last year on reform, opening-up and stable development of the capital market. The guidelines are important to the healthy development of the capital market. Last year, we held a news conference about the local government's understanding about the guidelines. I've noticed that everybody here has the book today about our government's news conferences during the past year, and I think you can find a complete answer to the question in it. Our government has always been keen on building a healthy capital market and providing good service to it. As to the concrete measures we'll take in terms of equity separation of the whole capital market and the securities market, we'll always follow and keep in line with the central government.
The purchase of the UK car maker MG Rover by SAIG depends on the market. It has been learned that SAIG has been in talks with MG Rover since they signed a cooperative agreement of intention last June. Recently, MG Rover has become under trusteeship. I've noticed that SAIG expressed its willingness for further talks and cooperation and the existence of many possibilities.

As to the issue of state-owned companies expanding businesses overseas, our government will offer support as long as their plans keep in line with local policies and do good to core business.

5.  News Times: What's the status of the credit information service development in Shanghai?  What kind of improvements does it need? What are the punishments for malpractice? Will you do anything to put the market straight in terms of the exagerated reports about health products?
Jiao Yang: The Credit information service industry has been developing rapidly here, a city ripe with a market economy and opening-up and reform policy. Gross calculations indicate that there are more than 30 credit information houses in the city and more companies are resorting to credit reports for risk prevention. Some credit information houses report they are dealing with some 6,000 credit information records of companies each month.
Besides these houses, lawyers and accounting companies also provide services to investigate a company's credit performance, but such services are not the staple in the industry.
There are many varieties of the credit information services in the city. It's an open market involving not quite fierce competitions. However, there are still problems. For example, the credit information houses don't behave in a disciplined way. They find difficulty in collecting credit information, and the industry lacks coordination and management. Therefore, our government will administrate the market to solve its problems during this developing period.
As to the punishments for the offenses, we've listed it as a definite rule, the sixth term of which says the companies that fail to provide a backup file of their credit reports, or refuse to provide its annual report, will be punished and if they fail to provide such reports before the deadline, the government will impose a fine up to 10,000 yuan.

6. China Daily:  You said that there are more than 30 corporate credit-rating firms in Shanghai.  Do they include foreign firms?  If so, are the foreign firms subject to the new corporate credit regulations?  Since the new regulations are in effect on a trial basis, when will the government introduce permanent ones?  During its trial implementation period, where will the government pay special attentions?

Jiao Yang: The more than 30 credit-rating firms refer to all the city's firms that are engaged in credit rating services; therefore the figure includes the foreign firms.

Since modern society is a credit-reliant society, inter-company trade is increasingly conducted on credit.  While bringing such positive effects as the expanding social product value and vigorous economic activity, the practice also leads to negative results such as bad loans and delayed loan payments.  This is where the government is directing its attention.  Corporate credit ratings, capable of researching and evaluating credit risks, can give companies references to build their risk-control mechanisms.

In this case, the municipal government, aiming at developing a harmonious society, is drafting the new credit regulations to regulate and promote corporate credit checks.  The rules are meant to ensure open and fair rating practices, and to set up a credit system as well as build a social environment that is favorable to credit.

What's noteworthy is that the regulation is drafted only as general principles because there is no law regarding corporate credit rating in China.  The current credit management practices are still carried out on a trial basis, needing improvement and combining.  In this sense, some parts of the new regulations are for trial and, therefore, the words "trial regulation" are added to the document title to make it more accurate.

7.  Dragon TV:  What are the Shanghai Municipal Government's views on individual cooperation for house building? 
Yesterday, the Shanghai Administration of Industry and Commerce fined a property company for misconduct that upsets the housing market.  The highest penalty is 200,000 yuan, which some people think is not heavy enough.  Will the government raise the penalties? And will the government unveil more housing control policies?

Jiao Yang:  The municipal government's view is "by law". 
According to the 43rd article of the national land management law, by law, any corporate or individual in need of state-owned land for housing construction must apply. 
With the progress in housing reforms, the country has clearly forbidden companies and institutions from using land to build housing projects for employees.  It has also terminated its approval of using urban land for individual  housing projects. 
Because of the country's short supply of land, the government is increasing its planning and management to build a market mechanism in which land is only supplied to construction companies who will develop housing projects and supply homes.  This, being in tune with the principle of intensive and efficient use of land resources, makes for a unified housing market in society. 
In this case, it's not yet possible for individuals to apply to the government for land to build housing projects. 
But the housing development company set up by the individuals is legal.  It must also abide by rules and laws, such as the country's urban real estate industry regulations, to acquire land for housing construction.

As well, the Ministry of Construction enacted the "Economy Housing Regulation" last year.  According to this rule, economy housing is provided by the government as a preferred housing policy, with specific requirements for construction standards, beneficiaries, and prices.
I said at the last press conference that Shanghai's budget housing projects and common housing projects are also economy housing projects, mainly targeted at low-income families.  Thus, individuals cooperating to build homes for their own must also be those who have not yet benefited from welfare housing from their employers or institutions, or families defined by the city government as living in poor conditions.
Therefore, individuals who join to build housing projects must also meet the above regulations.

For the second question.  In order to ensure a healthy and sustainable development of the city's housing sector, we must clamp down on speculative trade and correct the market. The local governments have unveiled a series of measures to form a united force to regulate the housing industry.
On April 6, the Shanghai Land and Resources Administration brought out three measures to regulate housing trade registration practices, and standardized the registration procedures of mortgage transfers in the housing trade.
On April 7, the Shanghai Administration of Industry and Commerce announced 16 measures to tighten up housing market management.
In addition, the Shanghai Pricing Bureau on April 2 announced 14 pricing practices that are illegal, and started formal investigations into 14 complaints for which they were provided with sufficient evidences.
All these above measures will play an active role in cracking down on speculation transactions and will regulate the city housing market.
The relative government departments will continue their close watch of the housing market and prepare sufficient responses to problems.  They will unveil appropriate policies and measures depending on the market.

8. Yomiuri Newspapers Japan: One Japanese was beaten on the night of April 9, which upset the local resident Japanese who are still worried about their security.  However, till now, nothing relating to this issue has been released through press conferences.  So, would you please make some comments on this?  It is said that the person who committed the assault has been detained by the public security administration, but this has not been confirmed.  So, please say something about this issue and provide some personal information of this attacker.   And would you please explain the reason that mainland media is refusing to report any movements in China relating to Japan's bid for a permanent seat on the United Nations (UN) Security Council. 

Jiao Yang: As for the first question, I am aware of the issue you mentioned.  If you want detailed information, I think the spokesperson of the public security administration would be a better representative to make some comments on this issue.  As far as we have been told from the public security administration, on the afternoon of April 11, the police detained that attacker.

After investigation, the police discovered that this is not an issue with a so-called political background as it has been said in some media, but an ordinary case of a breach of public security caused by personal issues between both parties.  The local police will deal with this case by following the law.  The municipal government of Shanghai will protect the legal rights and interests of the local resident foreign institutions, including those from Japan.

You may also find the answer to your second question in my words just now.  The municipal government of the city will deal with this issue adhering to certain laws.  We hope that the Japanese government will treat the concerns and feelings of the Chinese people seriously.  Meanwhile, we also hope the people here will express their wishes in calm, reasonable and legal ways.   The extreme behaviors of a few people were halted in time.

9. Shanghai Securities News: Are any of the 148 local listing security companies on the blacklist of the company credit reference system?  Are they listed in this system by the name of the listed company or by the senior officers of the company?   Is this credit system connected with the systems of the frontier defense, public security bureau and the local courts?

Jiao Yang: Sorry. I am not the official spokesman of specific credit institutions, so I cannot provide you with information about the companies on the blacklist of this system. I can say nothing to your question.

As for your second question, you may refer to the specific administration after the press conference.

10. Real Estate Times: The Xinhua News Agency published a story on the effects of macro-control on the stability of local housing prices.  Please tell me the differences between the opinion of this story and the approaches the local government is taking on this issue.  And are there any new ideas in this story?

Jiao Yang: The municipal government will control the local real estate market during its development by using different levels of power and different measures according to the different situations.  The ultimate target is to maintain a healthy development of the local real estate market, ensure the continuous improvement of the lifestyles of the local public, and sustain a stable market by preventing huge price swings.

11. Jie Fang Daily: It's been over half a month since the central and local governments began to apply controls to housing prices.  What are the changes to local housing prices since then? There are over 30 enterprises listed in the local security company system.  What is the proportion of the number of the listed companies in the over-all local enterprise credit system in the city?

Jiao Yang: There should be a process before any new approach takes effect after being published.  Now the different media have different opinions.  I often read stories both from you and from your newspaper.   As for the real result of this approach, it needs time to have scientific analysis and further observations.  It's really hard to reach a final conclusion.

A local regulation governing company credit ratings (for trial implementation) will be put into practice on May 1.  After its publication, the municipal administration of company credit ratings will make  further analysis and research.

12. Shanghai Financial News: Since the aims of the government's control policies, as you have mentioned, vary at different times, what goals are set by the municipal government for its recent efforts to regulate the local property market? Secondly, during the credit rating process for individuals, it is possible that some people are blacklisted as credit defaulters without their knowledge. By that I mean that they have no idea that their credit scores are low until their credit records are afterwards referred to, which may be several years from now. Moreover, their credit reports may be inaccurate because their identity cards were misused by others. How do we handle these problems?

Jiao Yang: The municipal government has taken a variety of measures recently to regulate the property market. The government's policies on the property market can be described as "the three emphases": give priority to house buying for the purpose of living there; make sure that ordinary residents can afford housing; give priority to the construction of ordinary housing. All kinds of measures (including new laws, financial and taxation policies, and administrative actions) will be used comprehensively to satisfy the needs of residents, to regulate investment and curb speculation, to help maintain the healthy development of the local housing market and its stability.

Your second question is about personal credit ratings. As to your worries about incorrect credit records and improper credit ratings, the local regulations on personal credit ratings (for trial implementation) include specific provisions. According to the regulations, individuals can file complaints to the departments concerned when faced with such situations. Under clause No 20 of the regulations, individuals can file complaints to credit rating agencies and demand corrections if they think their personal data released by the agencies are inaccurate, incomplete, irrelevant or obsolete. They can also complain to the government department in charge of credit rating. Under clause No 18 of the regulations, insititutions and individuals can make complaints to the government department in charge of credit rating if they think rating agencies have broken relevant laws governing credit ratings and have violated their legal rights. Under clause No 19, the relevant authority will set the closing date for rating agencies that violate clause No 6 (agencies that fail to submit their basic information to the authority) and clause No 7 of the regulations (agencies that fail to provide annual reports) to correct their mistakes. The agencies will face a maximum penalty of 10,000 yuan (US$1,200) if they fail to make corrections within the time limit.
 
13. The Associated Press: Will the government allow applications submitted by individual citizens to hold anti-Japanese demonstrations? What factors will the government consider before making a decision?

Jiao Yang: Under the laws and regulations of the People's Republic of China, applications must be submitted to the local bureau of public security before any assemblies and demonstrations can be held. The bureau will decide whether to approve the application according to legal provisions. For further information, you can consult the Spokesman's Office of the bureau or visit the official website of Shanghai Municipal Bureau of Public Security.

14. China Business News: I have noticed that regulating the property market and the service sector were major focuses last year in the government's bid to correct problems and restore order in the economy. This year, however, "property market" is included only in the "prevention of contract fraud", one of the five focal points of the campaign. What's the reason for the change? Secondly, on February 28 a proposal for diversification was put forward at a conference on the reform of local farm credit banks. Is there any progress on the issue?

Jiao Yang: As to your second question, I advise you to consult the banks.

In answer to your first question, the municipal government is making unceasing efforts to regulate local economic activities. Four years has passed since the city waged the campaign to correct problems in the economy. The government has put tireless effort into the campaign, which covers every aspect of local social and economic life. Besides, each year, the government draws a list of tasks that deserve special emphases and launches drives to tackle particular issues, by taking into account the particular situations of the local economy. Therefore, during the campaign to regulate local economic activities, we should tackle the problems by looking into both their root causes and symptoms, while laying stress on the former. We should set up a supervisory mechanism which will have a lasting influence. Both the campaigns to tackle particular issues, which last for very short period of time, and the supervisory mechanism, which exerts an enduring influence, are needed. They are important tasks facing the government.

The local authorities place great importance on the regulation of local economic activities. "The masses regard food as their heaven. Believing that the government must function by the mandate of the people, we must take various measures to ensure local food safety," said Shanghai Party Secretary Chen Liangyu recently. Shanghai Mayor Han Zheng also said: "The government should work for the well-being of the people. We should attach great importance to the task of regulating local economic activities and deal with the problems seriously from beginning to end." So it is obvious that the municipal government is always concerned with the issue.

At present and in the near future, much attention will be required in the following three areas to regulate local economic activities. First, problems that affect the life and health of the people. Secondly, problems that severely damage social and economic developments. Third, problems that cause people great economic loss. These are the problems that ordinary people are particularly concerned with. In order to satisfy local citizens, we will make more efforts to correct problems and restore order in the economy.