Welcome to the Beijing Hour, live from the Chinese capital.

Coming up on the program this morning...

Southeast China bracing for Typhoon Soudelor as authorities take measures to protect citizens in coastal areas likely to be affected...

China urging Japan to send a responsible and correct message regarding its wartime responsibility...

And French officials saying the country is ramping up the search for debris of MH370...

In our weekly business review...China's property taxes reported to be coming soonIn Sports... Sun Yang defending his 15-hundered meter freestyle record...

In Entertainment...a new musical set to internationalize music from China's Tibet....

All of that coming up in the next hour, but first, just a reminder there are several ways to reach out to us here on the Beijing Hour.

You can follow us on our weibo account at weibo.com/beijinghourFind us on WeChat by searching "beijinghour."Or email us directly at [email protected].

You can also visit crienglish.com for the latest news and information from China Radio International.

Top NewsSE China braces for Typhoon SoudelorSoutheast China is bracing for Typhoon Soudelor, with authorities ordering the evacuation of residents and ships back to port.

Hundreds of thousands of people in Fujian Province have been evacuated as the typhoon is expected to hit there later this Saturday.

All evacuees have been transferred to safe locations inland.

The provincial government has ordered all fishing boats to return to harbor.

At the same time, authorities in the neighboring province of Guangdong have also ordered vessels and aquatic farm workers to return to shore.

Seaside tourist destinations in the province have been temporarily closed.

The typhoon is expected to disrupt train and air services.

About 120 trains will be canceled over the weekend.

Airports have grounded flights bound for cities in Fujian and Guangdong on Friday and Saturday.

China urges Japan to send "correct" message on wartime responsibilityChina's foreign ministry has issued a new statement, urging Japan to send a "clear and correct" message on its wartime responsibility.

The call comes as Japanese Prime Minister Shinzo Abe is expected to make a statement marking the 70th anniversary of the end of World War II next week.

In a report released as a reference for his upcoming statement, a 16-member panel to Abe mentioned the country's wartime aggression and colonial rule.

But the statement stopped short of saying whether the prime minister should apologize for the atrocities.

Ministry spokesperson Hua Chunying says Japan should reflect deeply upon the war launched by Japanese militarists.

Abe has reiterated that he would follow the Murayama Statement as a whole but would not repeat such words as "heartfelt apology" or "aggression and colonial rule" in his war anniversary statement.

Many Asian countries have expressed concerns that Abe might dilute official apologies made by former Prime Minister Tomiichi Murayama in 1995 in his landmark statement.

China's Draft on Cyber Security Wraps up Soliciting Public OpinionsAnchor:

The draft of China's new cyber security law has just finished soliciting public opinions.

Issues such as how to construct a safer online environment and how to better safeguard the rights and interests of citizens and internet enterprises are the focus of public concerns.

CRI's Niu Honglin has more.

Reporter:

The 68-article draft law looks at the safety, operation, and information of Internet products, services, and network data.

It also stresses the protection of personal information from theft, leakage, or illegal use.

This follows a string of incidents concerning personal information.

Li Yuxiao is the head of Internet Governance and Law Institute at Beijing University of Posts and Telecommunication.

He believes more emphasis should be put in the protection of personal information:

"In terms of the society as a whole, we should consider there are different groups and they have different needs on the issue of cyber security. Some of the groups are more vulnerable than the others, such as teenagers and children."The latest stats suggest the past twelve months have seen a loss of over 80 billion yuan due to information leakage and scams.

The draft law also raised concerns over trans-border data sharing or limiting data flow.

The draft says operators in charge of keeping key data should evaluate security conditions before providing any information overseas.

Du Yuejin, vice-chairman of the security response center of internet giant Alibaba, expresses his concern:

"Now many internet related industries and businesses are booming in China, and some are connected to international businesses. Under this circumstance, cross border date-flow has become ever more significant. If we don't manage it well, Chinese enterprises that potentially may become competitive globally through internet will face bigger challenges."Observers also dismiss concerns that if the draft law is approved, foreign products and services will face restrictions.

Zuo Xiaodong, deputy director of China Electronic Information and Security Institute, says such worry is unnecessary.

The expert notes the need to strengthen such management is necessary, as China has been one of the countries hit most by internet security threats.

"They tried to attack our management system on cyber security which reveals their political motives. They say we restrict people's freedom on the internet. But we know the free flow of information on internet is under the precondition of security and we have to ensure the rights and interests of our country and our people."Over 3-thousand public opinions have been solicited and delivered to China's top legislature.

For CRI, I'm Niu Honglin.

China to Develop a Highly Efficient Transportation SystemAnchor:

China is ready to build a highly efficient and modernized transportation system, so as to meet the requirement of urbanization.

CRI'S Wang Mengzhen reports.

Reporter:

China's top economic planner, the National Development and Reform Commission, has announced that the country's infrastructure operation network has been basically completed.

Meanwhile, China plans to construct an efficient and modern transportation system, in order to realize transport services integration.

Li Guoyong, an official of the NDRC, says China's transportation infrastructure network has been built over the past several years.

"We predict that total railway operating mileage can reach 120-thousand kilometers by the end of this year, second to the United States. At the same time, the operating mileage of the high-speed railway will boast 19-thousand kilometers, surpassing the combined total of the rest of the world."In addition, China has also achieved a breakthrough in the reform of the transportation system, and paid much attention to the development of equipment manufacturing and personnel training.

However, Li admits that China still has a lot of room for improvement on the construction of transportation infrastructure.

"Our transportation system still has many problems; for instance, the network layout is not perfect. Especially in western China, infrastructure there is lagging behind. The construction of an integrated transport hub is still underway. The NDRC has planned the projects on building major transportation hubs for more than 40 cities, but the process is slow, due to the lack of innovation."To solve the dilemma, Li Guoyong says the economic planner is cooperating with the China Railway Corporation and Civil Aviation Administration, aiming to create a modern transportation system and promote the modernization of transportation.

For air traffic, China has more than 200 civilian airports as of now. The airports handled nearly 830-million passenger trips as of the end of 2014. In mega cities of Beijing, Shanghai and Guangzhou, the passenger throughputs rank among the highest in the world.

Hu Huaqing, researcher for the China Civil Aviation Science and Technology Research Institute, has affirmed that the number will increase significantly.

"By 2020, the per capita ratio of taking plane trips is expected to be 0.5 times, which means the passenger throughput of China's airports will reach up to 1.5 billion people. The number of airports nationwide is going to reach 270 from the current 202."Hu Huaqing says that due to market demand, China's civil aviation industry will maintain strong momentum, and the scope of its service will continue to expand accordingly.

Official figures also show the mileage of expressways in China has reached 120,000 kilometers, also ranking the top in the world.

For CRI, I'm Wang Mengzhen.

Chinese Traditional Banks Take Advantage of Internet Finance WaveAnchor:

Traditional banks here in China are moving into "Internet Finance", taking advantage of online resources to speed up reforms.

This comes amid the increasing challenges posed by other financial players.

More from CRI's Wang Wei.

Reporter:

Traditional banking in China is facing a constantly changing operating environment due to China's economic transition and industrial restructuring.

The marketization of interest rates is speeding up, posing threats to banking's traditional profit model, which is gaining the interest spreads of deposit and loan.

Meanwhile modern technologies such as the internet, big data and cloud computing are increasingly employed in various sectors and internet finance is rapidly growing.

Yu Xuejun, head of the National Shareholding Banks Supervision Department under China Banking Regulatory Commission says all these factors also prompt the traditional banking system to seek new growth points.

"Besides the traditional P2P mode, the establishment of WeBank and MyBank is grabbing public attention recently. They're using their online resources and advantages to offer small loans for small and medium enterprises as well as individuals. This sets a good example for the future development of traditional banks."China's largest commercial bank- the Industrial and Commercial Bank of China - is taking measures to find its place in internet finance.

It has already established an internet finance marketing center and a financial center targeting individual credit consumption.

Gao Zhixin with the bank says another internet financing center targeting small business is set to open in September:

"The internet financing center will offer online financing products for individuals and legal personnel. This will meet the need of small businesses."Meanwhile, some problems and hidden risks have cropped up in China's burgeoning peer to peer sector.

New guidelines have been released to tighten the regulation of P2P businesses, through measures including new registration rules, requiring third-party fund trusteeship, and external audits.

Xue Hongjian, who's in charge of product innovation management at ICBC, says the move provides a growth point for banks.

"The guidelines have made it clear that banks should be chosen as fund depository agents for P2P platforms. ICBC is now studying funds trusteeship relevant to P2P and are getting ready to provide businesses concerning trusteeship."Analysts say it is necessary for commercial banks to embrace internet and push forward reforms.

For CRI, I'm Wang Wei.

Son of late US airman rescued by Chinese expresses gratitudeAnchor:

The rescue of a U.S. airman by a Chinese guerrilla in Hong Kong during the Chinese People's War of Resistance against Japanese Aggression has brought families of the two countries together after many years.

CRI's Guo Yan has more.

Report:

In February 1944, Lt. Donald W. Kerr of the U.S. Air Force had his airplane shot down by Japanese troops during an Allies' operation to bombard the Kai Tak airport.

The airport in Hong Kong had been occupied by Japanese troops since 1941.

Lt. Kerr managed to parachute from the airplane and landed in the mountains in Hong Kong's Kowloon.

The Japanese, who were eager to catch a U.S. airman, had deployed thousands of soldiers to look for him.

A guerrilla force formed in south China's Guangdong Province later found and rescued him.

David Kerr, son of Lt. Kerr, talked about the historic moments that his parents had told about him many times.

"When he was in the burning airplane, he got burned. He got bad burns on his leg. His eye was burned. And when he jumped out of the airplane, his shoulder hit the tail of the airplane and he couldn't use his arm. So he had a lot of problems. And these kids, I mean, 12, 13, 14-year-old kids were getting him away from the Japanese."The rescuers are with the Hong Kong-Kowloon brigade of the Chinese guerrilla force, called the Dongjiang Column, formed in 1942 to reinforce China's war efforts against Japanese Aggression in the region.

Kerr said his father told him that a small boy brought him up into the mountains. There he was cared for by the soldiers of the guerrilla and local villagers.

"...And although he was only 12, 13, maybe 14 years old, he had an important job of taking messages for this guerrilla organization from the city of Hong Kong, Kowloon around different islands. And that's why he knew that it was important to rescue my father."Lt. Kerr was later escorted by the East River guerrilla to the U.S. air base in Guilin, south China's Guangxi.

He went on to record his experience with a memoir entitled "I bring you go home now".

After Lt. Kerr's death, his son David Kerr had come to Shenzhen, Guangdong to look for the old soldiers, especially the "small boy" who had been frequently talked about by his father.

The name of the small boy is Li Shi, said Kerr, who finally met him.

"He was in a retirement home. He had a stroke, so he couldn't talk to me. But through an interpreter, I was able to thank him on behalf of our family for the great risks that he took so many years ago. And, that was so important to our family as you might imagine."Kerr said he also visited other soldiers who had escorted his father at different places along the way.

The memoir, with photos and cartoon drawn by Lt. Kerr have been compiled into a book by the Dongjiang Column history research association.

The book was first published in Hong Kong on Aug. 5.

For CRI, I'm Guo Yan.

UN Security Council adopts resolution on Syria chemical weapons probeAnchor:

UN Security Council has adopted a resolution to set up an investigative mechanism to identify the perpetrators of the deadly chlorine gas attacks in Syria.

CRI's Xie Cheng reports.

Reporter:

In a unanimously adopted resolution, the 15-body council " reiterates that no party in Syria should use, develop, produce, acquire, stockpile, retain, or transfer chemical weapons."The council also says that those responsible for any use of chemicals as weapons must be held accountable.

Within 20 days of adoption, the UN chief and the head of the Organization For the Prohibition of Chemical Weapons (OPCW) will submit to the Security Council recommendations for a Joint Investigative Mechanism to identify the perpetrators.

Permanent UN representative of Syria Bashar Ja'afari has called for the investigations to be fair and transparent:

"The government of the Syrian Arab Republic reaffirms that neutrality, transparency, credibility, integrity and removal from politicization. These must be the guiding principles of the activities of the mechanism created by the resolution."US Ambassador to the UN Samantha Power says the adoption of the resolution represents only a modest step forward.

"When the day comes, and it will come someday, that we have an effective accountability mechanism, this evidence gathered by the Joint Investigative Mechanism, the identification of these perpetrators will become very, very important. So this is not a panacea by any means. It is a modest step. It fills a gap in the international system."China's permanent representative to the UN Liu Jieyi reiterates that China's position on the chemical weapons issue is clear and consistent.

"We resolutely oppose anyone to use chemical weapons under any circumstances. We are concerned about the use of chlorine gas as a weapon in Syria as confirmed by OPCW findings. We support fair, objective and professional investigations into these incidents and bring those perpetrators to justice based on concrete evidences."Liu also notes political settlement is the only way out for the Syrian issue.

The UN Security Council passed a resolution in 2013 requiring the verification and destruction of Syria's chemical weapons stockpiles after the war-torn Middle East country agreed to join the Chemical Weapons Convention.

A fact-finding mission of the Hague-based OPCW was established in April 2014 to investigate chlorine attacks in Syria.

It has published three reports saying that toxic chemicals, most likely pulmonary irritating agents such as chlorine, have been used "repeatedly and systematically" as a weapon in the Syria conflict.

The Syrian government and the rebels have accused each other of using chemical agents, including chlorine, in the nearly four-year war that has killed more than 210,000 people.

For CRI, I'm Xie Cheng.

France extends search for MH370 debris in the Island of ReunionFrench officials say the country is ramping up the search for debris of MH370 in and around the Island of Reunion.

Right now, a helicopter and plane have been flying above the remote Indian Ocean island, while a speedboat is searching in the water.

At the same time, the search area has been extended to another 60 thousand square kilometers.

Jacques Luthaud, Senior Commander of the French Army in the Southern Indian Ocean Zone, says weather and available resources are factors needed to consider when deploying additional search measures.

"Engaging a plane will first require technical and personnel availability and mainly weather conditions -- which we must observe that on a day like today, we don't have ideal conditions, even though it was a little better along the coast than over here -- and then it will require, as we say in military jargon, conduct, depending on what the plane sees and doesn't see."Earlier, French authorities said additional debris, including a plane window, were found; but none are confirmed to have come from MH370.

So far, Malaysian authorities only confirmed the wing section found on the island is linkd with the flight disappearing on its way from Kuala Lumpur to Beijing on March 8 of last year.

Dozens dead in suicide attack on police academy in AfghanistanA suicide bomber killed dozens of cadets at a Kabul police academy on Friday and blasts hit an area near the airport in a wave of attacks that began with a huge early morning truck bomb explosion in the Afghan capital.

Local police said the bomber was wearing a police uniform and detonated his explosives among students who had just returned from a break.

A Taliban spokesperson claimed responsibility for the attack on the police academy, in which security sources said at least 50 people had been killed or wounded.

Shortly afterwards, two explosions hit an area north of Kabul airport, close to a US special forces base.

Small arms fire was also reportedly heard.

People await news about the Croatian hostage as deadline loomsFamily and Friends of a Croatian hostage being held by the group calling itself Islamic State are now waiting for news about his condition on Friday.

This comes after Islamic State's Egypt affiliate posted a video online two days ago showing the 30-year-old Croatian hostage Tomislav Salopek kneeling before a masked man.

The so-called Sinai Province of the Islamic State threatened to kill the man in 48 hours if Egyptian authorities do not release "Muslim women" held in prison.

It is also being reported by Egyptian media that the deadline was extended by another 48 hours.

Croatian President Kolinda Grabar-Kitarovic says the country is making every effort to resolve the situation.

"Yes, this is a really ugly, difficult situation. I feel really bad for the family. You will understand that I can't release many details due to the security of this gentleman, but also for the security of our other workers who work in places where there is a danger of abduction."Kitarovic adds that she plans to speak with Egyptian President Abdel-Fattah el-Sissi later.

So far, no updated information has been given about the Croatian hostage.

Norwegian youths reclaim island after massacreFour years after Anders Breivik shot dead 69 people on Utoya island in Norway, about 1,000 Labour Party youth gathered Friday for the first summer camp to be held there since the massacre.

Mani Hussaini, leader of the Norwegian Labour Party's Youth Organization or AUF, addressed the camp as it began.

"This is the place where we have discussed small and large matters, this is the place where we have been a part in changing Norwegian politics. It has been a desire from very many from around the country who have supported us, collected money for us, and said to us that it is important that you do this, and make Ut?ya a political workshop once again."The right-wing extremist killed mainly teenagers in his rampage on July 22, 2011, hunting down participants at a camp of the Labour Party's youth wing on the tiny island in the middle of a lake.

The youngsters including a handful of survivors will hold their annual camp from Friday to Sunday.

Police boats are guarding the waters around Utoya.

North Korea to switch to new time zoneNorth Korea has announced that the country will use a new time zone starting from August 15, the day marking the country's liberation from Japan at the end of World War II.

North Korea is currently in the same time zone with Japan and South Korea, which is nine hours ahead of Coordinated Universal Time, or UTC.

The new time zone, called Pyongyang Time, will see clocks set back by a half an hour compared to the present setting.

The South Korean side has expressed concern that the switch could hamper inter-Korean affairs.

Jeong Joon-hee is spokesperson for South Korea's Unification Ministry.

"There will be a 30 minute time difference between the South and the North. It could bring minor disruption in inter-Korea exchanges including entry to the Kaesong Industrial Complex. In the long term, it could hamper efforts for inter-Korea integration, standard integration and in narrowing differences between the Koreas."Observers believe the move of establishing a new time zone is more of a symbolic meaning.

WeatherBeijing will be cloudy with a high of 32 degrees Celsius.

Cloudy tonight, temperatures should dip down to 23.

Shanghai will see some showers with a high of 31, moderate rain tonight with a low of 27.

Chongqing will also see showers during the daytime with a high of 31, overcast tonight, lows of 27.

Elsewhere in the world, staying here in Asia,Islamabad will see slight rain with a high of 34.

Kabul, cloudy with a high of 28.

Over to North America,New York will be cloudy with a high of 30 degrees.

Washington, cloudy with a high of 31 degrees.

Honolulu, cloudy, 28.

Toronto will have slight rain with a high of 25 degrees.

Finally, on to South America,Buenos Aires will have slight rain with a high of 16.

And Rio de Janeiro will be cloudy with a high of 28 degrees Celsius.

Headline NewsSE China braces for Typhoon SoudelorSoutheast China is bracing for Typhoon Soudelor, with authorities ordering the evacuation of residents and ships back to port.

Hundreds of thousands of people in Fujian Province have been evacuated as the typhoon is expected to hit there later this Saturday.

All evacuees have been transferred to safe locations inland.

The provincial government has ordered all fishing boats to return to harbor.

At the same time, authorities in the neighboring province of Guangdong have also ordered vessels and aquatic farm workers to return to shore.

Seaside tourist destinations in the province have been temporarily closed.

The typhoon is expected to disrupt train and air services.

About 120 trains will be canceled over the weekend.

Airports have grounded flights bound for cities in Fujian and Guangdong on Friday and Saturday.

China urges Japan to send "correct" message on wartime responsibilityChina's foreign ministry has issued a new statement, urging Japan to send a "clear and correct" message on its wartime responsibility.

The call comes as Japanese Prime Minister Shinzo Abe is expected to make a statement marking the 70th anniversary of the end of World War II next week.

In a report released as a reference for his upcoming statement, a 16-member panel to Abe mentioned the country's wartime aggression and colonial rule.

But the statement stopped short of saying whether the prime minister should apologize for the atrocities.

Ministry spokesperson Hua Chunying says Japan should reflect deeply upon the war launched by Japanese militarists.

Abe has reiterated that he would follow the Murayama Statement as a whole but would not repeat such words as "heartfelt apology" or "aggression and colonial rule" in his war anniversary statement.

Many Asian countries have expressed concerns that Abe might dilute official apologies made by former Prime Minister Tomiichi Murayama in 1995 in his landmark statement.

China committed to uphold peace, stability in S. China Sea: FM spokespersonChina has emphasized that it has always been committed to jointly upholding peace and stability in the South China Sea with ASEAN.

The call comes after the release of a joint communique two days after the conclusion of the 48th ASEAN foreign ministers' meeting.

The South China Sea issue is mentioned in the communique.

Foreign Ministry Spokesperson Hua Chunying says China has always been committed to settling South China Sea disputes through consultation and negotiation with countries directly concerned.

The video "killing the world biggest whale shark" in Guangdong is under investigationTwo Chinese fishermen suspected of involving in a viral video called "killing the world's biggest whale shark" are being sought by China's fishery department.

In the video, two men use a long knife to kill a whale shark and cut it into pieces, as they are crowded by screaming people and others who took pictures with the whale.

Weekly Biz RoundupAnchor:

It's time to take a look back at some of the headlines from the business world this past week in our Weekly Business Review.

China's property taxes are reported to be coming soon.

The IMF is to review RMB's special drawing rights qualification by the end of 2015 as planned.

China's supreme court has validated private loans for correct purposes.

Let's catch up on all of that and more with CRI's Wenjie.

Reporter:

China's top legislature has announced plans to review its proposed Property Tax Law by early 2018.

However, no official timetable has been set for when the new property tax law may actually be brought in.

China's property tax aims to rein in Chinese soaring building prices.

Huo Deming, Professor of China Center for Economic Research, Peking University, says the tax rate will decide whether it will curb the soaring property prices.

"Property taxes began being levied in Shanghai and Chongqing on a trial basis in 2011.

However, their extension and expansion has been postponed, mainly due to a lack of legal backing."The International Monetary Fund still plans to formally review the possibility of adding the Chinese currency to its benchmark currency basket by the end of this year.

Senior IMF officials, who asked not to be named, made the remarks in Washington on Tuesday.

Some Western media reported earlier that the IMF may delay the inclusion of the Renminbi in its the special drawing rights (SDR) basket until September 2016.

The IMF stated in a report released on Tuesday that the international use of the RMB "has increased substantially" since the last review of the SDR basket in2010.

Last month, official stats for Chinese Manufacturing activity, a key measure of factory activity, fell slightly from 50.2 to the benchmark 50.

This is the first retreat for manufacturing PMI in 5 months.

Industry observers suggest this is due to fewer new orders and a weaker demand for manufacturing sectors.

In response, Zuo Xiaolei, chief economist at China Galaxy Securities, says there is no need to panic over the seasonal fluctuation.

"During the Summer season, we usually encounter situations like floods, which could pose threats to transportation and normal factory activities. Meanwhile, pork manufacturers have also reduced storage and production due to rising pork prices. However, there is need to over-state these fractional changes in PMI figures."So far, the Chinese government has been conducting a structural reform as well as seeking new growth momentum for the country's slowing manufacturing industry.

The Chinese government is moving to ease concerns about the recent spike in the price of pork, amid concerns it could have implications for its monetary policy.

The Commerce Ministry is describing the price uptick as a normal market correction, saying there will be no shortage of supplies.

The price of pork has risen by more than 20-percent between March 20th and July 17th.

Food prices account for around a third of China's Consumer Price Index, the main gauge of inflation, with pork prices being one of the dominant elements of the food-price basket.

The Commerce Ministry is suggesting it will be taking action to stabilize pork supplies during upcoming public holidays and festivals.

China's Ministry of Commerce announced on Tuesday morning that the country has made solid progress with nations involved in the "One Belt One Road" initiative during the first half of this year.

Shen Danyang, spokesperson of the Ministry of Commerce, says the total foreign investment as well as the number of enterprises that were invested in by relevant countries have both increased.

"In terms of absorbing overseas investment, a total of 948 enterprises were invested in and established by countries involved in 'One Belt One Road' initiative, with a year-on-year increase of 10.62 percent; the total foreign investment stood at 3.67 billion US dollars, a year-on-year increase of 4.15 percent."China has directly invested in 48 countries involved in "One Belt One Road" initiative with total investment volume reaching over 7 billion US dollars, a year-on-year increase of 22 percent.

China Securities Regulatory Commission announced on Monday that it would be keeping a closer eye on programmed, electronic trading by institutional investment firms.

So far, exchanges in both Shanghai and Shenzhen have already restricted 38 accounts in connection with this.

Gao Shang, analyst with Guantong Futures, explains the motivation behind CSRC's move.

"From last month's China stock market trading, we can see market vibration has increased a lot compared to before. so we have seen a lot of fluctuations during the last two months. to some extent, the programmed trading is kind of blamed for this."Program trading usually focuses on a basket of stocks with buy and sell orders executed by a computer program based on predetermined conditions.

Meanwhile, CSRC says it has caught 20 cases of insider trading so far this year.

In making the reveal, the watchdog also vows to enhance punishment on insider trading.

The CSRC says it will first hit information leaks at the source. It will also strike against those who seek inside information.

Leaking information through media, like WeChat, is also going to be investigated.

Chinese companies will be allowed to lend and receive private loans for the sake of production.

The Supreme People's Court gave its explanation on private loans on Thursday.

The judicial explanation clarified that private loan contracts signed by companies for production management should be recognized by courts as long as they do not violate Contract Law, and such financial exchange activities should be protected.

Zeng Gang is the Director of the Institute of Finance and Banking, Chinese Academy of Social Sciences.

"In fact, it gives acknowledgement to private lending. I think this provides a good direction for interest rate liberalization, financial marketization, and increasing financial support for the real economy."Chinese courts closed more than 1 million private loan cases last year, a year-on-year increase of 20 percent.

According to the Supreme People's Court, the law protects the lending activity if the annual interest rate is below 24 percent.

The rules will take effect on Sept 1.

The European Union and Vietnam have reached an agreement in principle for a new free trade agreement after two and a half years of negotiations.

The agreement is the first of its kind that the EU has concluded with a developing country.

EU Trade Commissioner Cecilia Malmstrom is hailing the agreement as a "milestone".

"This agreement sets an EU new model for trade policy in developing countries. Once the agreement is up and running, it will provide significant opportunities for business, investment and for jobs here in Europe and in Vietnam. It will remove nearly all tariffs on goods traded between us. "Two-way trade between the EU and Vietnam has grown three-fold to more than 30 billion US dollars in the last 10 years.

The new deal is expected to take effect in late 2017 or early 2018.

The EU is also holding separate talks with two other ASEAN members, Malaysia and Thailand, to try to secure similar free trade agreements.

Negotiations with China on an investment deal are underway.

However, the EU says free trade talks are "not on the agenda at the moment".

On corporate front,China Southern Airlines has launched a direct flight to Kenya.

The Guangzhou-Nairobi route will operate three flights a week on an Airbus 330.

Guo Jianye, director of marketing committee of China Southern Airlines, says this is a significant air line"This is a significant airline. Firstly, it is an important node of our 'One Belt and One Road' initiatives. Secondly, it has filled in a blank in the air routes between China and the African continent."This is China Southern's second direct air route to Africa.

The first one was launched last year between Shenzhen and Mauritius.

More than 120-thousand people traveled between China and Kenya last year.

The new air route is part of a broader plan to boost trade and economic ties between the two countries.

Chinese e-commerce giant Alibaba has signed exclusive partnerships with more than 20 different clothing brands, including Zara and Timberland.

Alibaba's Tmall.com is set to become the 3rd online retailer in China to carry international clothing brands.

Financial details haven't been disclosed.

This comes after Alibaba's main rival, JD.com, recently announced plans to sell U.S. products such as Converse, Samsonite and other major apparel brands to Chinese customers through a new store on its site.

SportsFINA: Sun Yang Competes in 1500m Freestyle, U.S. Women Win Waterpolo GoldTaking a look at upcoming aquatic sports action coming up later today at the FINA World Championships in Kazan, Russia:

In swimming:

Chinese swimming star and Olympic champion, Sun Yang, splashes into action in the men's 1500-meter freestyle heats takes place at around 3:45 p.m., Beijing time.

Sun Yang holds the current world record in the 1500-meter freestyle at 14 minutes, 31.02 seconds, which he set at the London Olympics in 2012.

Sun already won his third-straight world title in the 400-meter freestyle last week.

In action already in the books:

The United States women's water polo team are world champions after defeating the Netherlands 5-4 in the gold medal battle.

Lazio and Juventus Clash in Shanghai for Supercoppa ItalianaIn football:

Shanghai will be the setting for another battlefield between two Serie A heavies, after hosting the Milan Derby last month.

Tonight, Lazio will have a chance to avenge their Coppa Italia loss to Juventus when the two tango in the Supercoppa Italiana.

Lazio coach Stefano Pioli says, although Juve have lost some of their top players, his squad can't sleep on the Serie A winners:

Juventus did have changes, but they are not changing and becoming weaker. Their players have good understanding and that's one of the strengths of Juventus. Their players have very good communication. We will see who will be the best after tomorrow's match."Lazio are in a favourable situation for this Super Cup match, as it has one more week rest and the team is not much bothered with players' injuries.

This is the fourth time for this Italian soccer event to be staged in China since 2009. Beijing hosted the three prior matches.

Football: Champions League Draw to be Announced TodayIn more football news:

Some of Europe's biggest teams will be nervously awaiting the draw for the play off round of the Champions League later today, with millions of pounds at stake if they make it through to the group stages.

The draw will be split into two sections, with 10 teams who won their domestic leagues in one pot, and 10 who qualify by finishing between second and fourth in their domestic leagues in the other.

The biggest names are in the latter pot, where Manchester United, Valencia, Bayer Leverkusen, Shakhtar Donetsk and Sporting Lisbon among the seeds.

Unseeded teams include CSKA Moscow, Lazio, Club Brugge, Monaco and Rapid Vienna.

The "champions route" also has five seeds - Basel, Celtic, APOEL, BATE Borisov (Belarus) and Dinamo Zagreb.

Football: CONCACAF Head Latest Person Axed in FIFA ScandalIn off-pitch football news:

The head of North American soccer's governing body, CONCACAF, has been fired following the FBI investigation into corruption allegations at FIFA.

"Enrique Sanz was terminated from his employment with CONCACAF this week," a source close to the confederation said.

Sanz's lawyer, Joseph DeMaria, confirmed Colombia-born Sanz had been dismissed.

Sanz is the second CONCACAF general secretary to depart after the FIFA corruption scandal. His predecessor, Chuck Blazer, who held the position from 1990 until 2011, was banned for life by FIFA last month after he was indicted and pleaded guilty to charges including accepting bribes and kickbacks.

Through a 2013 U.S. plea agreement, Blazer became a cooperating witness in the U.S. investigation.

Rugby: Australia, New Zealand Prepare to Clash Before World CupIn Rugby:

The importance of Saturday's test between Australia and New Zealand, which will both decide the Rugby Championship and fine tune World Cup preparations, has been reflected in bold selections.

The teams are tied with nine points after two rounds of the Rugby Championship and Saturday's winner will take out the four-nation tournament, boosting its World Cup confidence.

Australia will have to beat New Zealand in Sydney for the first time in four years to become champions and to halt New Zealand's run of three-straight titles.

All Blacks captain, Richie McGaw, says the match will be intense, since the Kiwis want to keep the trophy as bad as the Aussies want to win it back:

"I still remember back how much it meant to the guys to win it back when they didn't have it. If you put yourself in the Wallabies' shoes, they will be desperate to get their hands on it and that's what makes it a great occasion. That it means so much for both teams."The teams will meet again, outside the Rugby Championship, but for the Bledisloe Cup, in Auckland next weekend in their last major match ahead of the World Cup.

Golf: WGC Bridgestone Invitational UpdateIn Golf:

Going on right now, it's round 2 of the PGA Tour's World Golf Championships-Bridgestone Invitational in Akron, Ohio.

Tennis: Citi Open UpdateIn tennis:

Japan's Kei Nishikori played nearly mistake-free tennis to move into his 11th ATP quarterfinal of the season by beating 16th-seeded Leonardo Mayer of Argentina 6-4, 6-4 at the Citi Open in Washington DC, USA on Thursday.

Nishikori meets Sam Groth for a berth in the semifinals.

Groth delivered 20 aces in a 6-3, 6-4 victory over seventh-seeded Feliciano Lopez.

U.S. Open champion Marin Cilic overcame a very game Sam Querrey 7-6 (2), 7-6 (3) to reach the quarter finals.

Jack Sock came back to beat No. 4 Richard Gasquet of France 6-7 (4), 7-6 (5), 6-4;while Steve Johnson got past No. 6 Grigor Dimitrov of Bulgaria 6-3, 1-6, 6-3.

And in women's action at the Citi Open:

American Sloane Stevens took out compatriot Louisa Chirico 6-4, 6-4.

No. 2 Ausie Samantha Stosur came out on top of her match against Monica Niculescu after the Romanian retired in the first set.

Russia's Anastasia Pavlyuchenkova beat American Christina McHale 2-6, 6-1, 7-6.

And top-seeded Ekaterina Makarova got the best of no. 6 Romanian Irina Begu 6-4, 2-6, 6-1.

NHL: Blackhawks Star Patrick Kane Investigated for Alleged RapeIn news from the National Hockey League:

Police in upstate New York confirmed on Friday that they are investigating an alleged sexual assault incident that occurred at the home of Blackhawks forward Patrick Kane.

The Buffalo News reported on Thursday that the incident involved　rape allegations against Kane, citing two law enforcement sources.

Kane, 26, has an off-season home in the Buffalo suburb of Hamburg, New York. According to the newspaper, a woman has accused the four-time NHL All-Star of sexual assault.

EntertainmentMusical "Dream" to Internationalize Tibetan MusicHollywood composer Klaus Badelt has been working on the musical "Dream", with an aim of internationalizing Tibetan music by mixing folk melody with symphony.

The composer says this work was inspired by the original music from Lhasa, capital of southwest China's Tibet Autonomous Region.

The musical is based on a true story about a photographer repaid the Tibetans who had saved his life from a snowstorm by helping a Tibetan girl seek medical care inland.

Klaus Badelt is Renowned for film scores Pirates of the Caribbean and Pearl Harbor, and as the only western composer in the Beijing Olympics closing ceremony.

The Royal Philharmonic Orchestra has been invited to play in the musical, and twenty-one untrained dancers from Lhasa are selected to dance in the musical.

"Dream" will be staged in Beijing's National Centre for the Performing Arts this October.

Singer Lu Han to Release New Album "Reloaded"Chinese singer and actor Lu Han has announced his new album "Reloaded" is under production and will be released soon.

Lu Han is the former Chinese member of popular K-pop boy band EXO.

"Reloaded" will be his first solo album since he bailed out on the band last year.

The 25-year-old singer has previously released several singles, including the theme song for the romance-comedy "Miss Granny" and one of the bidding songs for the 2022 Beijing Winter Olympic Games.

Meanwhile, his newest film "The Witness" in which starred alongside popular actress Yang Mi is scheduled to be released in China on October 30th.

Lu Han has filed a lawsuit against his former South Korean talent agency SM Entertainment last year, aiming to have his contract with the company nullified.

Taylor Swift Suffers Unexpected Attack during 1989 World Tour in CanadaThe US superstar Taylor Swift suffered unexpected attack by a fan as she staged her "1989 World Tour" in Edmonton Alberta, Canada.

When performing the hit song "Bad Blood", a crazy male fan burst out of the audience, got onto the stage, and grabbed Taylor's ankle.

After being shocked by this act for a while, the 26-year-old singer managed to continue the performance as a professional.

She wisely strutted back down the catwalk as her security guards took the matter into their own hands.

Being one of most popular singer in the world, Taylor Swift's fifth studio album "1989" has become the best-selling album of 2014 in the U.S., and sold over 8.6 million copies worldwide by the end of July.

Taylor Swift now kicks off her massive world with a stop scheduled in Shanghai on November 10th to 12th.

Vin Diesel Promotes "The Last Witch Hunter"The US actor and producer Vin Diesel is promoting his latest film "The Last Witch Hunter", which is expected to be released this fall.

The film seems to be a new try for the 48-year-old actor as he starts touching the fantasy genre to play a new and original immortal character that can travel through time.

Vin Diesel says he took on this role because he likes a challenge.

"This was interesting because it was an immortal character. Everyone knows I love challenges, who else would play a three monosyllabic word character like 'Groot' and like the challenge of that? And I guess the challenge of this was being able to play an immortal character that crosses in and out of various centuries and generations that he has. And that felt like an interesting challenge as an actor.""The Last Witch Hunter" has just released a trailer, and a sequel is now under production.

Vin Diesel has been give the title the third highest-paid actor in the world by Forbes Magazine recently.

He is also set to star in sequels to his highly successful franchises including "Furious 8" and "Guardians of the Galaxy".

"The Last Witch Hunter" will hit the big screens in the United States on October 23.

Spice Girls' Member Denies the Group's ComebackSome news for you Spice Girls fans,Former member Emma Bunton has denied that the group will reunite without Victoria Beckham.

This follows the British Newspaper The Sun claiming that the remaining four members Geri Halliwell, Bunton, Mel C and Mel B are in preparation for a world tour next year.

Regarded as the most successful girl group in history, the Spice Girls were reportedly working on events to mark the 20th anniversary of their band's debut single Wannabe next year.

Bunton indicates she is unaware of the rumored comeback, and the reunion is not in the works.

She also says if there are any substantial plans for the group's comeback, they will let the fans know.

After the release of the debut album 'Spice', the group has been marked as the fastest-selling British act since the Beatles.

The Spice Girls was formed in 1994 and dissolved in 2001.

They went on a reunion world tour in 2007.

WeatherBeijing will be cloudy with a high of 32 degrees Celsius.

Cloudy tonight, temperatures should dip down to 23.

Shanghai will see some showers with a high of 31, moderate rain tonight with a low of 27.

Chongqing will also see showers during the daytime with a high of 31, overcast tonight, lows of 27.

Elsewhere in the world, staying here in Asia,Islamabad will see slight rain with a high of 34.

Kabul, cloudy with a high of 28.

Over to North America,New York will be cloudy with a high of 30 degrees.

Washington, cloudy with a high of 31 degrees.

Honolulu, cloudy, 28.

Toronto will have slight rain with a high of 25 degrees.

Finally, on to South America,Buenos Aires will have slight rain with a high of 16.

And Rio de Janeiro will be cloudy with a high of 28 degrees Celsius.

That’s it for this weekend edition of the Beijing Hour.

A recap of your headlines:

Southeast China bracing for Typhoon Soudelor as authorities take measures to protect citizens in coastal areas likely to be affected...

China urging Japan to send a responsible and correct message regarding its wartime responsibility...

And French officials saying the country is ramping up the search for debris of MH370...

In our weekly buisness review...China's property taxes reported to be coming soon...

On behalf of the Beijing Hour staffers: I'm Spencer Musick in Beijing hoping you'll join us for our next edition of the Beijing Hour, to open a window to the world together.