At a press conference on November 19, Shanghai Municipal Government spokesman Jiao Yang introduced the following issues and answered reporters' questions.

Shanghai will set up medical insurance service outlets in all the local sub-districts (towns) by the end of this year; Shanghai will adopt five measures to standardize market orders and rectify food production and operation; the progress of local women and children is in line with economic and social progress; the local environmental quality has further improved, bridging the gap with developed countries.

News Channel: Many media reported that speculators from Jiangsu and Zhejiang Province are withdrawing from the Shanghai real estate market, and that local property prices will go down. Is it true? Shanghai is looking at plans to increase the amount of money families can borrow in low-interest loans from its housing accumulation fund. Is it true?

Jiao Yang: As to your first question, it is not accurate to call them speculators, and the media report that they are withdrawing from the local real estate market hasn't been confirmed by authorities. The news media can make their analyses, but they should also seek confirmation from local authorities.

We should have an overall understanding of the second question. With the local housing system reforms and real estate market development, borrowing low-interest loans from the housing accumulation fund has played a more important role in the purchasing of properties. To date, more than 670,000 local families have bought housing by borrowing such loans. The issue of high concerned is that the current ceiling of 100,000 yuan that a family is allowed to borrow from the fund cannot match the soaring property prices. It is very complicated to increase the amount of money families can borrow from the housing accumulation fund, and we should ensure the new policy sustains a sufficient supply of money in the accumulation fund. The local department is currently considering whether it is desirable to raise the maximum amount of loans from the fund to relieve the pressure on mid and low-income home buyers.

Shanghai Radio 990: Shanghai will develop fixed medical insurance service outlets covering all the local sub-districts by the end of the year, but there are not enough drugstores included in the local medical insurance system to satisfy the local demand. Does the Shanghai government have any long-term plans and purposes? Please inform us about the roles that such drugstores are playing in the city.

Jiao Yang: The local medical insurance system is an enormous project. The Shanghai government held a conference on drugstores covered in the medical insurance system, and to date, the number of such drugstores has reached 110 in the city, with an average of five to six in each district and county. At the beginning of the year, 100 drugstores were planned to be included in the system, but the number reached 110 by November. Such drugstores are very convenient for residents and prevent them from waiting in queues in hospitals. According to statistics, 4.1 million local residents have purchased drugs in such stores this year, up 600,000 from the previous year, with combined expenditures of 200 million yuan (US$24 million), up 50 million yuan from a year before. What we should do now is to increase the number of such drugstores and enhance their management. Chief pharmacists should be offered at such drugstores, and they should provide proper guidance and consultations to assist patients to buy drugs, in a bid to ensure the safety of local drug-use. Moreover, we should improve the credit standing, service quality and management of such drugstores.

Eastday.com: Have you included in your special task forces the issue of cracking down on the excessive fees imposed on primary and middle school students? What are the excessive fees tracked so far this year?

Jiao Yang: Yes. Primary and middle school tuition is an issue of household concern. Our regulating and enforcement efforts on the illegal charges tracked this year have proven effective so far. With a definite guideline and healthy working framework, we've fundamentally accomplished this year's objectives. We've further intensified our ruling that when the high schools recruit individual students for their parents' sponsorship fees, they should restrict the score, the student volume and the pay amount. The decrease in sponsorship-motivated recruitment helps regulate the whole tuition system. We now receive fewer complaints, but more commendations from the public for the schools' quality services. Educational administration released a total volume of 72.4 million yuan in excessive charges for the past year, with 23.68 million yuan returned. Compared with the number of violations reported by the public last year (6.4%), this year's (4%) is much lower. 82 percent of the public say they are satisfied with the tuition this year, five percentage points higher than last year. Our government website at www.sh.gov.cn will help you learn more.

BBC: Many people have noticed that after the government changed the policy on the beggars and started to register them in the social service system, the number of beggars in big cities, such as Shanghai, has increased. What's your opinion? I've heard that if they raise the home resettlement issue incurred by the great number of urban restructuring constructions, the law has been adjusted to limit the total number of people who can petition the government to 5. Is it true? Would you tell us briefly the legal process of a citizen's petition to the government?

Jiao Yang: May I answer your second question first? Time and again, I've announced our stance on the petition issue, that in order to protect their legal rights and interests, all the local residents have the right to report to the government. The cap of 5 you mentioned right now is a misunderstanding. The limitation is not new, but already existed there in the state regulation and local rule on residents' visits and letters to the government. They rule that if a hundred, two hundred or five hundred people are reporting the same issue, they should select five representatives at most for the official visit and dialogue. The government is obliged to protect the legal rights and interests of many social groups affected by our urban reconstruction projects, such as the families to be relocated and the land developers. All the things we do will be based on the law.

For the first question, my colleague Jiang Lan has talked about it before, introducing to the media the administrative rules issued by the State Council to deal with the begging issue in big cities and how to help them. Yes, I am also meeting a growing number of beggars in the streets. But a recent union has been organized in the city by the civil administration and the public security bureau since the rules were effective. It educated and directed the beggars through escort and help and their efforts are paying off. The beggar boom is mainly due to the regional economic differences and the gulf between urban and rural living standards. The principle of our assistance programs for the beggars is free will, or that we can't force beggars who turn down our offer. As citizens and visitors are responding strongly to the beggars who are working in groups and by force, we decided that we should take concrete measures to implement the central rule: intensify urban management to ensure a good city image, social stability and public interest. Relative departments are busy studying the issue to work out a resolution soon.

News& Entertainment Channel: Have you made any effective arrangements for next year's recruitment program for university graduates, which has already started now?

Jiao Yang: We've devoted a special news conference for the job issue for the university graduates before, stressing the government's policy support to help the graduates start their own businesses. About 90 percent of this year's graduates have found jobs so far, meaning that the market is healthy and balanced. We've taken active measures to ease the tension of the graduates and all the unemployed in the society. We've created more job vacancies, encouraged the graduates to work in the remoter regions, persuaded them to lower career expectations to start from simple jobs, and supported a few well-prepared graduates to set up own companies. Our officials for education and graduate recruitment may help you with more details.

Dragon TV: You said the government will adopt five measures in areas to control the food sector and that some policies are already in effect. What's the rationale to take these measures?

Jiao Yang: I've noted in the previous press announcement that the general characteristics of market correction are long-term, complexity and repetitiveness. If we don't sustain the measures for long, some people, driven by economic benefits, would return to illegal operations. Secondly, since Shanghai is on its way to becoming an international metropolis, its urban and social administration should maintain the same goal. In fact, to control the economy is an essential aspect of improving the investment environment. Therefore, as Shanghai becomes an international metropolis, higher requirements for a stable and regulated market economy are established. Currently, there are some areas where our management is weak and we should realize them. Because of that, we will intensify the regulations and significantly protect citizens' legal rights. Since touching upon this topic, I want to add one more thing: where our weaknesses lie. One place is in the boundary areas where market supervision is loose. Some fake product makers repeatedly sell their illegal products at the border of townships to avoid supervision of market watchdogs on each side. Another is the meeting places of the immigrant population where illegal food processing and fake product making frequently occur. In these areas, most of the population are migrant workers who have little resistance to fake products and substandard food. Few of them would report these illegal makers. This is a key area of market supervision and administration for us. The third is industrial, residential houses and warehouses on the boundary areas between the urban and suburban areas. Unlicensed businesses, fake products and materials are often stored in these areas. Some illegal people take advantage of the government's loophole in market management in these areas to conduct illegal businesses. All of the above situations are not beneficial to Shanghai's status of an international metropolis and are incompatible with the city's economic development. They are in conflict with the government's responsibility to ensure people a happy, safe and healthy life. We must crack down on it, intensify the market rectification and try to achieve results.

Shanghai Evening Post: According to Shanghai's newly launched birth forecast system, the local population will reach a peak in 2006. Has the government taken measures to slow down the population growth?

Jiao Yang: I've noticed that report. Officials in charge of the department released information in this area. I've also noticed the officials have pointed out intensifying of the birth forecast system to help local people know about the situation and choose to give birth at an appropriate time in a bid to adjust the population changes. I introduced Shanghai's urban planning not long ago. This isn't merely planning covering the city's urban construction but also its social development, which includes the population. The planning has been publicized. Reporters can easily find it.

Taiwan Zhongtian TV: My question is about the beggars in Shanghai. Has the local municipal government noticed the problem and is it drafting some related regulations to tackle it? Can you give a detailed introduction to the regulations? What's more, how many beggars are there now in Shanghai? It's said some criminal groups control these beggars. Has the government noticed that?

Jiao Yang: The municipal government has already noticed the problem and is drafting related regulations to govern it. When drafting the rules, we have to take all factors into account. We should abide by China's law and base our approach on the country's conditions as well as Shanghai's status as a densely populated city. We should examine solutions from other countries, as well as referring to the conditions of China and Shanghai. Since the regulations are not yet publicized, I can't give a detailed introduction to them. I'm really sorry. As for the number of beggars, we can hardly provide the data based on the number of beggars receiving aid at the local aid centers, because many of the beggars aren't willing to go there for help. On the other hand, beggars are usually moving around and often seen in the busy areas and subways as well as crowded public venues.

East Radio: Among the five measures you mentioned just now, there is one about an attack on the sale of illegal food and medicine production. We notice there have developed several illegal food poisoning cases in neighboring provinces; some of the foods are also popular in local markets. So, when attacking illegal vendors, what measures will the city government take to prevent harmful foods coming from outside?

Jiao Yang: A basic principle is to take action according to the law. The city government will abide by the law to protect its citizen's health and safety. Therefore, the related organs of the government are taking measures within their responsibility to ban the illegal products coming from outside Shanghai. As for the production and sale in the neighboring area, it's not an isolated problem; instead, it there are some similarities. We've noticed that the related national departments have issued restrictions in the area. The State Council vows to focus on the ban of illegal food and medicine, as well as rat poison, so each province will also strengthen its measure on these issues.

Oriental Morning Post: You just mentioned that the illegal food distribution is a repetitive problem generated by business interests. So is there any loophole in the policy we take to prevent it? And you said the illegally run businesses may be confiscated. Will the punishment be increased?

Another question is about the real estate. Statistics show that in the first nine months this year, real estate demand in the city surpassed supply, but in October the supply exceeded the demand. What's your opinion of this issue?

Jiao Yang: The fives measures I mentioned just now are exactly for preventing the repetitive illegal food distribution. There is no doubt that we will strengthen the force of our attack to guarantee the safety of food and medicine. As for the responsibility, the district and county government all have their duty on this matter. So we'll make each regional government shoulder its responsibilities, which is already the experience of Shanghai. The municipal government will organize investigations and spot-checks on a regular or irregular basis. In case any problem is revealed in the check, the related organs will receive criticism or punishment. Especially for those problems that emerge repetitively without being solved, and those causing concerns among citizens, we will get to the root of the problem and look into who shall take responsibility for the matter. Supervision from the mass media is also important. The Shanghai Morning Most published a story on uncertified meat on November 3, which caught the attention of all levels and administrators, the case is soon dealt with and the situation has improved.

As for the question of real estate, the report you mentioned also caught my attention. The situation emerged only recently, and I suppose it's a changing situation. Currently, the real estate market in Shanghai is disciplined; property price is controlled by the market rule instead of by the government. But the government will create a good market climate and use initiatives to guide the market. We will keep our eyes on this issue.

China Economic Times: Recently our newspaper held a forum jointly with the Shanghai government. On the forum it was mentioned there is foam in Shanghai's real estate market. Also the Oriental Morning Post reported there is hot money in the local property market. What do you think of the problem?

Jiao Yang: Scholars can have various opinions on this issue, and I have noticed the report. But I still consider the local property market is well disciplined.

Wen Wei Po(Hong Kong): Shanghai has taken much effort in recent years to tackle the problem of water pollution. We also notice the practice of establishing industry clusters within a same water area. So considering the Yangtze River Delta development, will the Shanghai government move forward in this direction?

Jiao Yang: As you have said, Shanghai and its neighboring provinces belong to the same water region; therefore we shall build an industrial center here. Yet this issue is related to our neighboring provinces, so I'm not so sure about it.

You must have noticed that a forum was held in Shanghai on the economic cooperation and development of the Yangtze River Delta. Within our network, the three provinces/city in the region are all concerned about strengthening cooperation, and have achieved satisfactory results in fields of transportation facilities, tourism, environmental protection, information sharing, talent exchange and natural gas pipeline construction. The ecological environment improvement is part of our cooperation. I think the common prosperity of the three provinces/city is of the interest to the people here. Therefore the relevant governments of these areas will surely be concerned with what the people there are concerned about. Problems in this area will soon be solved.