China and the European Union have launched the biggest capacity building project on the mainland promoting the Clean Development Mechanism.

But it has also aroused concerns the country is making money through the arrangement.

And the country's banking industry has entered a new era of development.

Are there tough challenges ahead?

Hello and welcome to  Biz China. I'm Tu Yun in Beijing. China's banking sector has been undergoing rapid changes as many banks have finished shareholding

reforms and listed on the stock market. But public listing is said to be only the beginning of Chinese banks' long march in an increasingly open, competitive and globalized market environment. Analysts from leading financial firm Ernst & Young will join us to discuss the issue later on in the show. But first…

Under heavy pressure to cut energy consumption, China's top legislature is revising the country's "Law on Conserving Energy".

Lawmakers have recently reviewed a draft amendment to the law, which is aimed at improving energy efficiency and promoting China as an energy-saving country.
Shen Ting has the story.

In another effort to strike a balance between economic growth and environmental protection, the country has launched a project jointly with the European Union to promote the Clean Development Mechanism, also known as the CDM. The China-EU CDM Facilitation Project has so far been the largest of its type carried out on the mainland. Wu Jia has the details.

The latest news about the reassignment of a senior central bank official has attracted widespread attention throughout the country. Xiang Junbo, deputy governor of the People's Bank of China, has been named president of the Agricultural Bank of China. It's seen as a signal that the central government is speeding up the shareholding reform of the Agricultural Bank of China, the last of the country's major four state-owned lenders to be transformed into joint stock companies before it goes public. How have the already-listed banks been doing? What challenges are coming up next? Our reporter Dandan finds out.

For a further look at what's been taking place in China's banking sector, Biz China interviewed financial experts from Ernst & Young. They've studied 11 listed mainland banks and released a report on the 2006 review and outlook of these lenders, including the three state-owned banks and the other commercial banks, such as the Bank of Communications, Citic Bank and the China Merchants Bank. Mike Shi is with the company's global financial services. Q&A with Mike Shi.

Before we go, we leave you witha brief  news review.

And with that, we conclude this edition of Biz China. If you have anything to say about the show, please feel free to contact us. Our email address is crieng@crifm.com. Or send a mail by post to: English Service, China Radio International, Beijing, China, postcode 100040. The transcript and the audio link for the show are available online. You can log on to www.crienglish.com and click on "Radio Programs" under "Webcast" to view more. From Beijing, this is Tu Yun saying thank you for listening. Until next week, take care!