At the regular press conference on March 25, Shanghai Municipal Government spokesman Jiao Yang introduced the following issues and answered reporters'' questions.
Shanghai will carry out the State Council''s notices of capital market reform and stable development. The city has drafted a general plan for erecting more classic street statues in the downtown areas. Shanghai has also drawn up a plan for encouraging community residents to offer medical help to the poor and those in trouble.

Jiefang Daily: The National Bureau of Statistics indicated that the housing prices in Shanghai have reached 5,118 yuan (US$616.6) per square meter, the highest in the country. Do you have any comments on the situation? What are the shortages in existing local street statues?

Jiao Yang: According to the National Bureau of Statistics, the local housing prices reached an average of 5,118 yuan, the highest nationwide. Shanghai''s housing prices are actually the highest among provinces and autonomous regions, but rank the second among domestic cities. Generally speaking, the local real estate market is growing in a healthy way, and it is normal for housing prices to fluctuate during a period of time. After ten years of development, the local real estate market has developed a mature market mechanism. We have noticed that as of last year, local property prices increased too quickly, and Shanghai Mayor Han Zheng has mentioned it in this year''s government report. Various reasons will cause excessive property price increases, including imbalances between supply and demand, land cost increases and market speculation. Local departments are currently considering measures for adjusting and controlling the local real estate market in a moderate way. One of the main tasks of the Shanghai Municipal government this year is to guarantee the local real estate market growth in a healthy and orderly way.
The second question is very observant. Shanghai presently has shortages of street statues. According to the local planning department, there are four problems: one is that the local street sculptures are dispersed without a uniform design, especially in key public spaces there are no street statues. To solve the problem, the local government has completed a preliminary plan to create more high quality street sculptures consistent with the plan. Second, not enough space is designated for street sculptures. Most of the existing street statues are only minor ones that do not fit well with the surroundings. Third, the current statues lack distinctive characteristics, with fewer able to represent the spirit of the city, and people will hardly be impressed by the city from these statues. In many cities abroad, many sculpture masterpieces, such as the Statue of Liberty in New York, leave deep impressions on people. The fourth problem is that fewer sculptures are considered "excellent pieces", and no symbolic sculptures yet represent Shanghai''s image.

Reuters: I heard that Zhou Zhengyi died recently. Did he commit suicide? Can you tell me his current situation. Is he alive?

Jiao Yang: To date, I haven''t heard that news. As far as I know, Zhou Zhengyi, suspected of committing financial crimes, is currently under investigation for a criminal lawsuit, so the news that Zhou Zhengyi is dead is groundless.

International Financial News: Does Shanghai have any plans to encourage large enterprises to go public, and do you have the list for those key enterprises? How about the listing plan of Shanghai Bailian (Group) Co Ltd? You mentioned that Shanghai would enhance local financial resources integration and establish financial holding groups. Are there any conclusions and which financial groups the city is planning to form? As far as we know, the first group of securities firms has encountered some barriers in bond issuance guarantees. Can you tell me what you plan to do?

Jiao Yang: Bailian''s listing plan is well under way. Improving the quality of listed firms and attracting high-quality ones are keys to success in the capital market. Shanghai will support listed firms to re-raise funds and encourage qualified large enterprises with good prospects to go public. The city will also create a better environment for quality listed firms to register and operate businesses here. Local departments will improve classification restructuring of listed firms, in these four ways:
* Support profitable listed firms to sharpen their competitive edges
* Support controlling shareholders of unprofitable listed firms to replace assets
* Support controlling shareholders to transfer their ownership and introduce new qualified and large shareholders who can restructure the listed firms
* Support several listed firms with the same main businesses to restructure assets to avoid competition in the same trade, and to develop new business platforms
* Support for removing a group of debt-ridden listed firms from the market on the basis of the market mechanisms

During the restructuring, we will solve the problems of those listed firms with difficulties in assets restructuring. Local departments will also urge listed firms to standardize their operations, perfect management structures, enhance management in relationship with investors and focus more on offering returns to investors.

As to your question of establishing financial holding groups, Shanghai has rich financial resources, and local financial institutes have strong comprehensive capabilities. How to give full rein to local financial resources, improve the comprehensive strength of local financial enterprises, and implement the national strategy as an international financial center, is an issue of concern among local professionals and academicians. Financial integration will have a broad influence, so if moves are not made cautiously, negative impacts are likely to take place. Local financial departments will carefully study this work with the guidance of the central supervisory department.

Real Estate Times: As far as we know, urban sculptures cost a lot from design to assembly. Has the government a general budget for this sector? You''ve mentioned a special fund for sculptures. Can you offer more details about it?

Jiao Yang: Of the sculpture fund, 10 million yuan allotted by the financial departments has been collected. And another 50 million yuan will come from the residential construction follow-up fees as planned. Of course, the fund will be mainly put back into projects to improve the quality of street sculptures. For example, invitations for key street sculpture projects and planning for sculpture parks and arts centers will be among the focuses. As much of the portion of the fund that will come from residential construction fees as possible will be raised from non-government bodies. Currently, we will start the plan with the city''s key urban construction projects and residential development projects, asking the builders to raise funds for street sculptures. Meanwhile, we will carry out a pilot program to encourage donations to the fund from companies and organizations. In short, we will gradually establish a sustainable and stable fund for street sculptures.

OTV: It has been said that poor quality street sculptures will be torn down. What are these sculptures? How will they be judged poor? In another matter, recently, Shanghai''s rice price has been rising. Has the municipal government any measures to tackle the problem? Are there preferential policies for local rice growers?

Jiao Yang: The government is being very cautious about the poor quality sculptures that are to be torn down. Shanghai''s urban planning department will organize experts as well as local residents to discuss the matter. Shanghai has adopted a "Four in One" system to prevent poor quality street sculptures. Let me again introduce the three-layer two-level management system in this area. The three-layer refers to three layers of managers. That is, the street sculpture committee is the decision maker, the street sculpture office is the promoter and the sculpture arts committee is the consultant. The搕wo-levels?refers to administration of city and district (county) levels. The street sculpture committee takes charge of the general planning of the city street sculptures, examining the planning, directing and coordinating for key sculpture projects and international exchange projects and the drafting of related policies and regulations. The sculpture office is responsible for the completion of the directives. The Shanghai Urban Construction Planning Bureau launched an administration division for city sculptures and landscaping last September. District and county-level sculpture administrative bodies will soon be formed. The art committee will be comprised of experienced experts from home and abroad. It will evaluate and recommend designs for street sculptures, ensuring good sculptures in content and quality.

Now for the second question. As the reporter has noticed, the city''s rice price has been rising recently. This is a combined result of the price rise in the international market and the five consecutive years of output reduction in the domestic market. The cut in supply has increased the rice price. In the meantime, it''s a seasonal situation. It''s spring now and many areas start storing grain to ensure a supply for cities. The Shanghai Party Committee and the government pay close attention to the issue. Both Party Secretary Chen Liangyu and Mayor Han Zheng have made important directives. Their measures include: First, governments of all levels have intensified leadership to get the work completed. Second, the governments will use state-owned grain enterprises and supermarket chains as the main channels for the supply, processing and distribution of rice. They particularly hope to improve the areas of transport and logistics to ensure an ample rice supply at retail outlets. The national governments have strongly supported transport and logistics for Shanghai''s rice supply. Third, government departments of industrial and commercial administration, pricing and quality supervision have increased their supervision of the market to crack down on illegal practices such as sharp price hikes and cheating on weight. Currently, Shanghai has an ample supply of rice. Rice in reserves and stockpiles exceeds 1.1 million tons. It is sufficient to fully ensure local residents'' consumption needs. The rice price will remain stable and the market is in balance.
To further ensure the grain supply and a stable market, Shanghai will continue to take action to maintain stable grain production in rural areas. The city will offer subsidies for farmers who grow a good quality variety rice, who use green manure and who sell grain to the government for reserves. It will also provide subsidies to grain growers to ensure the city has 1.6 million mu of land for growing grain and a yearly output of 1 million tons. On the other hand, Shanghai will continue to increase grain reserves. It plans to expand the reserve to 1.6 million tons by the year''s end as well as further improve the grain market抯operation mechanism, to intensify market monitoring and supervision, and to ensure ample grain supplies to key institutions such as colleges.

Eastday.com: In early March, Liu Shunxin, ex-general manager of AJ Co Ltd and director of AJ Securities Co was arrested on charges of economic crimes by the public security bureau for investigation. How is the investigation going?

Jiao Yang: In late February, AJ Co Ltd allegedly discovered in its internal investigation that its ex-general manager and director of AJ Securities, Liu Shunxin, had committed economic crimes, and they reported the case to the public security department. The public security bureau arrested him. Currently, the case is under investigation. Progress has been reported in the recovery of some assets. The company is stable now and is operating normally.

Science and Technologies Daily: What does scientific development mean to Shanghai? What new measures will the government introduce to implement the new development theory, for example, in environmental protection?

Jiao Yang: Scientific development theory is an important issue. The theory stresses all-round coordinated and sustainable development, which is essential to Shanghai. The local Party Committee and government require departments to fully consider these development ideas when drafting work and planning. The issue has been raised by the central government, but the scientific development theory is essential for Shanghai to achieve more development. This year, the municipal government has added some indexes for this year''s work and canceled some. For example, in addition to GDP, the government has added a new index for development in environmental protection. It clearly states its environment investment will account for 3 percent of the city''s GDP and sets a definite percentage for input in R&D. Its second-round three-year environmental act is underway. Shanghai must have an environment for sustainable development. It must not achieve development at the expense of the environment.

Shanghai Radio Station: Recently a vice minister of the State Public Security Department said there is emerging a number of "prison lord"—gangster heads in prisons around the nation, and the department will take action on them. So what is the situation in Shanghai, and what measures will the local government take on this issue?
And just now you talked about building more good statues in public places in Shanghai. In fact, many citizens and enterprises are concerned about the issue and willing to make their contributions and donations. So is there a specific channel for these donations for public statues?

Jiao Yang: To take your second question, we warmly welcome the concerns and support from citizens. As public statues help to establish the general image of the city, the participation of citizens is surely necessary for achieving any substantial improvement to the statues. To put forward any suggestions on this issue, please contact the urban statue office of the Shanghai Urban Planning Bureau. Officials from the bureau are present today. They may publicize a phone number or website address for the project.

As for the prison gangster heads, the authorities will firmly bring the law upon them. Moreover, the prison authority is adopting many humane strategies and using management and education in the treatment of prisoners. If you need more information, we may invite the prison authority to speak on the issue later.

Shanghai Security News: The listing of large state-owned enterprises, for instance, the listing of Bailian Group, is presently under way. What is the progress of the listing now? Which companies will be in the first group of listings?

Jiao Yang: Shanghai Electric (Group) Corp. has taken the first step for listing on the security market. Its operating mode is not the only one possible for SOE listing. Other large SOEs might adopt different modes of operation according to their circumstances. The general principal we adopt is to wait until the enterprise is ready for listing, then restructure it to ensure a successful operation, proceeding at a steady pace according to market rules. The restructuring of Bailian Group is progressing.

TVBS: After the Taiwan elections on March 20, we learned that an increasing number of Taiwanese have shown interest in investing on the Mainland. It''s predicted that the election, and the instability of the island, may cause a flood of immigration to Shanghai. What''s your opinion on the issue?
And recently a Taiwanese tourist fell from the Oriental Pearl Towerin Shanghai. Is it a suicide case or was it an accident? How is the government dealing with the case?

Jiao Yang: The immigrant flood has not yet come into reality. We will pay close attention on the changing situation.
As for the tourist falling from the Oriental Pearl Tower, the related departments have paid much attention on it and have quickly dealt with the case. The matters are well handled, and the relatives of that tourist have already returned to Taiwan on March 18.

Shanghai Youth Daily: In Shanghai''s suburbs, trading of live poultry has restarted already, and some venders say they will do their business along the streets and lanes even if trading is not officially allowed. What''s your attitude toward that? Will the government lift its ban on the live poultry trade? When?

Jiao Yang: It''s quite unnecessary for the farmers to do business along streets. The Shanghai government will set up a long-term mechanism to manage live poultry trading. The mechanism should cope with Shanghai''s status as a metropolis, and the sanitary and health needs, and the living and buying habits of its citizens. Shanghai is now learning from the experience of other cities, for instance Hong Kong. The trading of live poultry will re-commence when conditions are ready, yet only live chicken trading is allowed, while live ducks are prohibited now. And the government will work out a strict standard for poultry slaughter and trading, and locate poultry farms and market according the plan.

East Radio: It''s that said oversea investors and group buyers from Wenzhou have cause soaring real estate prices in Shanghai. What do you think of this suggestion? Last year Mayor Han Zheng encouraged overseas investors to put funds into local property markets, and said the investment would bring good benefits. Will the policy continue this year?

Jiao Yang: Shanghai''s property market is market-oriented and transparent. I have spoken in previous press conferences on the policy of the property market. You can also look for it on the Shanghai government website. The high price of local real estate is geared by combined factors, instead of resulting from a single group of people. The rule of supply and demand effects the price. And we still welcome the investment from overseas and other places of China to the local property market.

Juvenile Daily: Recently the central government put out a regulation on student moral principals, involving the role of the society, family and school in children''s education. What''s your attitude on this regulation?

Jiao Yang: Shanghai will firmly put this regulation into practice. Since the family is the first school attended by every child, the parents'' care and education of the child play a key role in the child''s development. And it''s every parent’s responsibility and natural wish to foster a healthy, upright personality in their children. So the youth education departments of the Shanghai government will spend more effort to help parents. The detailed regulations will be published soon.