BEIJING, June 6 (CEIS): As said in the monetary policy implementation report for the first quarter of 2006 issued recently, China's central bank has decided to introduce in a primary trader system in foreign exchange trading and also publish the access guide to primary foreign exchange traders with reference to the mature practices of open foreign exchange market operations in developed nations.
This implies that China's interbank spot exchange market will add a new trading system, following the introduction of the market maker system and the OTC trading system not long ago.
The report says primary traders, the other trading party of the central bank, will be financial institutions with sound credit status and committing to timely report information to the central bank.
Introduction of the new system will enable the central bank to have comprehensive learning of market information and anticipated changes and thus is favorable to stability of the foreign exchange market.
Besides, the primary exchange traders' performance of market-making duties is helpful to maintaining market liquidity and enhancing efficiency of the foreign exchange market.
But the central bank stressed that launch of the new system has no relation to the forcefulness and frequency of the central bank's operations and does not mean long-term orientation of the central bank's open market operations in the foreign exchange market.
Meanwhila, Chinese Ministry of Land and Resources recently issued an urgent circular requiring land administrations at all levels to tighten land supply control in a bid to check excessively fast growth of fixed asset investment in some industries and localities.
The circular stresses that all localities should not violate the general plan for land utilisation and the annual land supply plans. It prohibits the use of basic farmland for other purposes by revising the general plan for land utilisation.
Speaking at a press release recently, Wang Shiyuan, vice-minister of Land and Resources, said the state will make greater efforts to investigate into land supply cases in violation of regulations, and those people involved will be punished.
Meanwhile, it is learned that the Ministry of Land and Resources is talking with the Ministry of Finance and the Ministry of Construction on re-distribution of revenues from land transfer. Related policies are expected to come out soon.
The revenue re-distribution scheme is estimated to create more transfer payments to the country's central and western regions, and give greater support to the construction of the countryside and cheap houses.