1. Shanghai Television Station Comprehensive News Channel: First question: after the compulsory premarital medical checks were abandoned, by how much did the proportion of those taking the checks decline? Have birth defects shown an increase, and if so by how much? Second question: we have just heard that applications for housing provident fund loans have declined. Does this mean that property loans have declined in the first half of the year? Have commercial loans declined as well? Will the increase in the upper-limit of loans provided by the fund boost the real estate market?

Jiao Yang: Your first question is a general one which applies nationally. We have recently noticed reports on this from other provinces and cities. Shanghai has a similar situation. Since the compulsory premarital medical checks were abandoned nationally in October 2003, as elsewhere Shanghai has seen a sharp decline in the proportion of new couples taking the checks from more than 98 percent to around three percent last year.
All the city and district-level governments have paid much attention to this issue and offered premarital health-care services. At present, the six districts of Luwan, Qingpu, Jiading, Zhabei, Fengxian and Pudong are conducting cost-free premarital health consultations and check-ups. Zhabei District has provided a one-stop service of premarital health consultation, marriage registration and premarital medical check, driving-up the take-up rate to 55 percent. Other districts have also seen their rates increase. Shanghai's measures to encourage the checks were applauded by the investigation team of the State Council, with the checking rate increasing from 3 percent last year to more than 25 percent on average now. Not all the districts have provided the service, as each district has different circumstances. For example, after approval by the public health and civil affairs bureaus, marriage-registration offices should offer facilities for health consultation and a space of at least 30 square meters for health checks, with one-stop services on offer. Temporarily, some districts and counties cannot meet these requirements. Today's information is very important to families with members of a marriageable age. With all these measures taking effect, I believe the take-up rate in Shanghai will continue to increase.

Your second question is on the upper-limit of housing provident fund loans. Will the increase in the upper-limit aim to boost the real estate market? According to the new policy, only local employees who have paid into the fund, and are buying homes for residential purposes for the first time, are qualified. The new policy will help improve the home purchasing capabilities of these local employees and lower their housing costs. It is also a measure to restructure local property sales and boost the real estate market in a healthy way. For employees buying homes for the first time, the measure should be seen as an encouragement. However, increasing the upper-limit will not drive up the gross figure for property loans. For instance, take a local employee and first-time buyer at a cost of 600,000 yuan (US$74,000). According to the previous policy, he or she could only get a loan to a maximum of 100,000 yuan, with the rest coming from his own savings and commercial loans. According to the new policy, if they have additional money in the fund, they can get a maximum of 300,000 yuan in loans. However, not the gross amount of loan-funds, but the proportion between housing fund and commercial loans, will change. Therefore, the new policy will not affect the gross amount of property loans in the city. The new policy can also help curb property speculation.

2. Phoenix Satellite Television: Guangdong Province is facing fuel shortages. I visited several gas stations in downtown Shanghai the day before yesterday and found that gas supplies are also tight here. Is Shanghai short of fuel? What's the reason for the shortage? My second question: it was suggested by the central bank, in a financial report, that pre-sales of uncompleted homes and apartments should be banned. Is this feasible in Shanghai, and what is the reasoning behind it?

Jiao Yang: I'd like to answer your second question first. I've also noticed the central bank report, that according to the reporter the central bank has given some advice. It's not proper for me to respond, however, because policies are all drafted by the central administrations. I'm afraid I can't give you a satisfactory answer.
As to the oil supply, I've seen a lot of media coverage about the situation in Shanghai and many other provinces and cities. Reporters are questioning the oil supply in Shanghai, wondering how the government guarantees the supply. Basically, we manage an ample supply of gasoline. After the price changes, the Party commission and the government were greatly concerned with maintaining stability in the public transport and taxi sectors so as to maintain good social order. Following the municipal government's directions, relative departments have tried their best to coordinate and ensure a stable supply.

Then why did the drivers and the media find it a problem to get No. 90 gasoline during some periods at some gas stations? As far as we're concerned, there are four reasons.
Firstly, there are obvious contradictions between supply and demand. According to the authority, in the first half of this year, China’s gasoline and diesel oil outputs registered slower growth than market demand increase. In addition, in summer, fuel demands for auto air-conditioning and diesel generating have increased by more than 20 percent from usual, escalating the disparity between supply and demand.
Secondly, time limitations for dangerous product transport.  Since it is a hot summer, time limitations for road transport of dangerous products are strictly controlled: transport is completely suspended between 10 am and 4 pm everyday.  That has resulted in shortages when oil sales rise sharply.  Supplemental oil supplies are unable to be delivered because of security concerns.  It has caused inconvenience for drivers.
Thirdly, some of the gas stations affiliated with the Sinopec Shanghai have increased their supplies to adapt to the market changes.  With the increase in the number of private autos, instead of 90 octane, other high-octane gases  (93, 97 and  98) have become hot-selling items in the local gasoline retail section.   Therefore, to meet the soaring demand of the market for these high-octane gases, Sinopec Shanghai has gradually adjusted supplies and the number of gas stations that provide 90 octane.
(However, to stabilize local oil supplies, these adjustments have now been halted.)
Fourthly, some gas stations have special locations and some are small. For smaller stations, it is impossible for them each to have all the six varieties of gas because they are small and they are either located at the traffic conjunctions or at the residential centers. In addition, some of these gas stations had intentionally adjusted their fuel supply to reduce the number of their customers so as to alleviate traffic jams.
Currently, the government has taken three measures. Let me explain it.
Firstly, to seek more oil product resources. The municipal economic commission and the development and reform commission have increased communications with the state development and reform commission, Sinopec and CNPC to ask for more oil products. As of July 29, Sinopec received the grant from the state commission to increase the oil products quota of Shanghai, granting 25,000 tons of oil products in addition. The sales deparment of the CNPC in charge of the eastern China regions also made adjustments after they received the central government's notice, adding supply to Shanghai. The public transport sector mainly consumes diesel oil, whose total storage of about 40,000 tons here is ample for current supply and demand. Taxis mainly consume the No. 90 gasoline. The city has an ample storage of the No. 90 gasoline to meet the current demand of all the taxis in the city now. More supply is coming.
Secondly, to stabilize oil supply market in summer. With support from Sinopec and CNPC, we are further improving our distribution to ensure an ample supply at the gas stations. First of all, we change our consignment time from 5am to 1am in the morning. Second, we dispatch more vehicles for the consignment, especially those heading for the downtown gas stations. Third, our supply fleet will work longer hours everyday, accomplish an early set-off and a late return, and we'll ask our contracted transportation companies to prolong work hours during the night. We'll also ensure all the fleet safety in hot summer. Fourth, we'll increase night shift staff at the gas stations to ensure late night work safety. Fifth, we'll subsidize the staff at the oil depot, of the supply fleet and at the gas stations for overwork.
Thirdly, to improve oil suppliers' services. To make sure that all the taxi drivers can get No. 90 gasoline, the municipal economic commission ordered the traffic administration to dispatch 450,000 handbooks to taxi drivers, each taxi having one at hand. The handbooks record the locations of all the designated gas stations of Sinopec and CNPC that provide No. 90 gasoline supply for the taxis. At the same time, oil product suppliers, especially Sinopec and CNPC, prolonged night work hours to satisfy the great demand at night when the taxi drivers handover shifts, in addition to their efforts on the management on oil product purchases, sales, transportation and storage, and their dispatch link with the gas stations.

In addition, Shanghai has set up a daily reporting system to closely monitor fuel use in the public sector.  To gather information on oil-product supplies, on July 23 the Shanghai Economic Commission initiated a system to track local oil-product sales and also the daily sales and stock fluctuations of manufacturing enterprises.  The focus is on oil-product supplies and fuel use -- particularly of No. 90 oil-- in public areas such as transport, taxies and hospitals.  We can say in full confidence that Shanghai's oil-product market works in orderly fashion and supplies are adequate.

3. Jiefang Daily: Can you define the term "buyers of a first home for their own use"?  My question is, do those who have bought homes without using provident-fund mortgage loans fall in this category.  Does "the first home" refer to an individual of couple or to the entire extended family?

Jiao Yang: Your question is very particular.  Officials of the Shanghai Provident Fund Management Commission are here.  You may consult them for details.

4.  Shanghai Morning Post: My question is about township insurance. So far, how many people in Shanghai have benefited from the aid package?  Has the municipal government considered any other policies to help needy people, and if so can you elaborate?

Jiao Yang: Let me first introduce the township insurance system. In 1993, its first year, 7,000 people benefited from the aid package.  By the end of this July, the number of beneficiaries had reached 380,000. 
It is expected that a further 30,000 city-wide will benefit from this enhancement of the minimum sustenance allowance standard, which will surely help improve the lot of more needy families with senior, ill and handicapped members.

In addition, in an attempt to perfect the social aid system, the city will roll out separate aid moves to help those in need.  The families referred to here involve those whose per-capita income is under 450 yuan per month.  The aid will be dependent on their situations, or in other words, they will be supplied with what they are in need of.
For example, a family with a member suffering from serious illness will be entitled to medical subsidies in accordance with the relevant aid policies.

These separate aid measures are designed for the purpose of helping the needy population attain the level set by the government.  They will improve the previous untenable situation that saw families falling below the poverty-line getting full benefit from the insurance system, while those slightly above the line were getting nothing at all. 
These measures, to focus on education and medical care, will also help upgrade the city's social aid system to being a multi-level structure.  The details are still being studied, and we will inform you of them as soon as the time is right.

5. Xinmin Evening News: Despite the government's inducements, what if soon-to-be-wed couples are still unwilling to undergo premarital health checks?  Will the voluntary approach be as effective as the previously compulsory system?

Jiao Yang: When couples refuse premarital health checks, the issue should be approached from two sides.
On the part of the administrative government, the city, by offering free-of-charge premarital health checks, advocates and encourages that both parties of the couple  volunteer for the checks, while paying full respect to their own wishes.

As for the couples, both partners have the right to be informed about the other's health condition via the premarital checks and consultations.  Also, according to the law, they should respect the medical outcome of the checks. The verdict may ban or delay their marriage, or state that they are not suitable partners. It may also suggest that the couple not have babies. 
This is for the purpose of ensuring the happiness of a family as well as securing the public-good.  As it states in the Notice of Rights and Responsibilities for the Parties Registering a Marriage, "A marriage is invalid, if either, or both, party, is in a state of  health that prohibits marriage on medical grounds; or, after registration, has not recovered from any medical condition that marks them as unsuitable for marriage."

As to the question of whether this free-of-charge service, or guidance-oriented system as the reporter described, will match up with the effectiveness of the previously compulsory system, I think it all depends.

First of all, we should resolutely apply and abide by the nation's laws and regulations.  It is due to its support for law-advocated scientific lifestyles, marriage values and family values that the city government has shouldered so many public service responsibilities and pushed ahead with this service.
As mentioned, the free service has been provided in six districts and will be spread to more districts and counties.
In the first half-year, the proportion of 'new couples' who received the checks saw a large increase, proof of the success of the government's work.  With the promotion of public awareness as well as the refinement of the service, it will become increasingly effective.

6. South China Morning Post:  The two people in Suzhou infected with the human strain of pig disease  have died.  Are there any primary or imported cases of pig disease now in Shanghai? And has the city taken any measures to protect people?

Jiao Yang: Till now, no case of pig disease has been reported here.  But this doesn't mean that the city is absolutely safe from this disease.  The municipality has required all  relevant departments to fulfill their responsibilities and reinforce the local inspection system.  All the prevention and control measures the city has been taking, however, are not intended as a response to one particular situation in one particular city.

The Government requires that epidemic prevention work be undertaken in a united effort by all district and county-level administrations.  The city has established an effective long-term epidemic prevention and control system. 
We are reinforcing quarantine supervision of pigs and checks at the designated road stations through which pigs from outside the city enter Shanghai. Officials have applied monitoring measures and the Center for Disease Control has dispatched a special monitoring taskforce. They are in close contact with the national health ministry as well as Sichuan's health departments to get up-to-the-minute information about the situation on the ground.
We are working to eliminate hidden hazards, prevent epidemics and ensure food security and the health of citizens. 

We are improving collaboration and communication between agricultural and health departments, and establishing a regular communication and reporting system.  Under the guidance of the municipal government, departments should not only fulfill their own responsibilities but also join forces in matters that impact both. 
In addition to controlling pig disease, we will resolutely prevent human infection by closely monitoring events and supplying all necessary technical and material assistance when needs be.

7. Dragon TV:  The Shanghai Urban Transport Bureau recently issued a regulation concerning the administration of the auctions for local license plate numbers.  This regulation aims to curb speculation and foil price-manipulation by auto dealers during the auction.  As far as we know, the new quota to be auctioned this week will hit a record.  Have you taken any measures to put this regulation into effect?  Thank you.

Jiao Yang: You took notice of a working document from the municipal transport bureau. 
Up to now, the auction system for local license plate quotas has on the whole been smooth and efficient. The results of either public or private plate auctions basically reflect demand in the market.  Stable transaction prices, to some extent, contribute to the smooth-running of the market-mechanism and help meet the increasing demand for licenses as well.

However, with heated competition in the local auto and second-hand car market, there is increasingly irregular behavior occurring in the license plate auction market. These speculations often result in a soaring of the successful bidding prices for private license plates.
Accordingly, the Urban Transport Bureau, the Development and Reform Commission, the Economic Commission and the Industry and Commerce Administration Bureau will unite and reinforce their powers in cracking down on illegal behavior in the market, so as to ensure a balanced and healthy environment for local people.

8. China Business News:  The city is to raise the maximum loan a local worker can obtain from the provident fund for their first house purchase.  By how much do you think the total amount loaned will increase? And I'd like to confirm two reports: that the city is going to build a Disney Resort in 2008 and also to cancel the auction of license plate numbers as of this October 1.  Thank you.

Jiao Yang: In terms of your first question, the fund has been of a size adequate for this purpose since the beginning of this policy.  So I think now is the right time to do it.

I haven't been informed that a Disney Resort would be built here in Shanghai.

Neither do I have any information on the cancellation of auctions for license plate numbers.

9. Shanghai Afternoon Post:  I have two questions.  The city is now promoting free premarital health checks.  How much is the municipal budget for this service?  And my second question is about low-priced property and housing designated for relocated residents.  What kind of encouragement will the government give to real estate developers of this kind of property in terms of land-provision?  And what is the probable share of this type of land in the overall scheme of things?  Thank you.

Jiao Yang:  The municipality and each district government will ensure the roll-out of the premarital health check service.  The detailed means of financing will be the same as that for the existing financial support relations between the municipality and each district government.  So the financing of the service is definitely guaranteed.

As for your second question, the government also guarantees the land slated for low-cost property and housing for relocated residents.  The land for these two purposes this year has been determined.  I don't think there is any puzzle on this issue.

10. Agence France-Press (AFP): Rumor has it that local taxi drivers are planning strike action, amid speculation that the price of oil products will rise again, even after the government announced it would be offering them subsidies. Could you confirm the rumor?

Jiao Yang: Rumors cannot be confirmed. The government can only authenticate things that have already happened. I think hearsay is hearsay. As we have seen, local taxi firms are working to implement the government's subsidy plan. Both the government and taxi firms are adopting a positive attitude and are eager to face their responsibilities after the price of oil products was raised. The taxi industry remains stable. The top two priorities for us now are to carry out the subsidy plan and to develop a mechanism which pegs transport costs to oil prices.

11. Shanghai Financial News: I noticed in the last paragraph of the local regulation of land use an article which allows the municipal government to increase the supply of land for non-residential use (for example, to develop commercial buildings, office buildings and tourist resorts). Is the policy consistent with the central government's monetary policy relating to home loans? Thank you.

Jiao Yang: Shanghai continues to regulate the supply of land and improve the composition of commercial land supply. In effect, the municipal government will adhere to the official document titled "Some proposals for stabilizing housing prices", which was jointly issued by the seven departments under China's State Council. You can't say the municipal government is introducing a new measure. All the policies adopted by both the city and departments of the central government comply with the requirements of the State Council. 

12. Shanghai Business: You mentioned a formal notification which informs marriage partners of their rights and duties. An article of the notification lists the circumstances where a marriage is not officially acceptable. Can we say, in other words, that physicians are entitled to declare whether a marriage is valid according to the article when offering premarital health checks? Secondly, you said the proportion of local people taking the check-up had risen from 3 percent to 38 percent. Does this figure apply to the whole city? What is the local rate for birth defects?

Jiao Yang: I don't have statistics for birth defects. You can obtain the data from other government departments. I must point out that no doctor has the right to rule whether a marriage is valid. Chinese law lists six points for consideration. 1.Immediate relatives or blood-relatives within three generations are forbidden to marry. 2. People suffering from severe mental retardation or mental illness are not suitable to wed. 3. Sufferers from prescribed infectious diseases or mental illnessess should postpone their marriage until their condition has stablilised. 4. People with severe inherited diseases or visceral diseases are advised against procreation. 5. People who have other diseases should follow medical advice. 6. A premarital check-up is recommended. The country has particular stipulations which list the circumstances where people are not suitable to wed or where marriage-postponement is advised. It is for the sake of the new couples that we introduced the regulations, which not only help reduce in-bred defects and deformity, but also help ensure happy marriages. The six points are also written into the notification to new couples. We should adhere to the country's rules and regulations in this area.

13. Oriental Morning Post: I have two questions. The first one is about the premarital health check. Six districts in the city have been providing a free service. When will the city offer free check-ups to all? It is said that the couples can receive the check at qualified medical institutions. Will the medical institutions near our homes offer the service, or must we go to marriage registration centers to receive it? My second question is about mortgage loans backed by the urban housing provident fund. The number of local applicants for home loans backed by the fund is falling. Did the decline occur suddenly this year, or has it happened over the last one or two years? What is the cause of the decline? Is it related to macro-economic policies?

Jiao Yang: All the medical institutions approved by the government can provide the health check. It is for the convenience of new couples that we provide rooms for it at marriage registration centers. Our intention is to shorten the journey-time for new couples and encourage them to take the check. As to health-check locations, you can go to any medical institutions qualified to offer the service.
  
In answer to your second question, the decline in the number of loan applications has been gradual as opposed to sudden. The measure I have announced (which raises the maximum loan you can obtain from the provident fund) was adopted after the fund was of a size adequate for the purpose. We took time in order to ensure things will go smoothly after implementation. If the fund were insufficient, the plan to raise the maximum loan could have caused problems, and that would have been imprudent. I was just giving an example when mentioning the decline in applications in the first seven months of this year. In fact, the decline began before then. As to whether the drop is related to macro-economic policies, various factors affect supply and demand in the property market. The new measure will remain fixed and will not be revised any time soon.