Beijing  - Volkswagen AG said Wednesday that it would hold to its plans for investment and the introduction of new models in China despite the world economic downturn.

The Germany-based carmaker plans to increase its production capacity in its largest foreign market this year by about 5 per cent to 50,000 cars, said Winfried Vahland, head of Volkwagen's operations in China.

Vahland described the carmaker as remaining optimistic on this year's business outlook in China although not as positive as it has been in the past.

Beijing - The World Bank on Wednesday lowered its 2009 growth forecast for China's gross domestic product
(GDP) to 6.5 per cent, citing falling exports and investment and the downgrading of the bank's global growth forecast.

As impact of the global financial crisis has spread, "China's exports have been hit badly, affecting market-based investment and sentiment, notably in the manufacturing sector," the World Bank said in a quarterly report, in which it lowered its GDP forecast from a November estimate of 7.5 per cent.

Hong Kong  - A speech in Hong Kong by a campaigner for Tibetan self-determination was postponed after Beijing officials complained about the event, organizers said Wednesday.

Kate Saunders, communications director of the Washington-based International Campaign for Tibet, was scheduled to speak at Hong Kong's Foreign Correspondents Club Tuesday.

Officials from China's Foreign Ministry in Hong Kong contacted the club to let them know they were "unhappy" about the speech, the South China Morning Post reported.

Beijing - Shares in China's main stock market index leapt by more than 3 per cent on Tuesday, taking its total gains this year to more than 20 per cent.

The key Shanghai Composite Index, which tracks shares traded in local and foreign currencies, gained 3.02 per cent on Tuesday, boosted by continuing speculation over more economic stimulus measures by the government.

The Shanghai index closed at 2,218.33, up 65.04 points, with a similar surge in the smaller Shenzhen Composite Index.

Beijing, Mar. 17: The potentially cancerous toxic chemical, Lentine, has been found in five brands of hair dye in China.

According to a China Daily report, local consumer authorities said in Guangzhou yesterday that while the link between hair dye and cancer is still unproved, the five well-known international brands found with the toxic substance included Revlon Color Silk, Ecosystem No 1 Hair Colorant, Sewame Eshine Colorants, Kangchen 3in1 and Ouwaiya hair dye (natural black).

Beijing  - A small bomb hit a local government compound in the Ganzi Tibetan Autonomous Prefecture of south-western China's Sichuan province, state media reported Tuesday.

The official Xinhua news agency quoted local officials as saying the government compound of Ganzi's Bogexi township was hit just after midnight Monday by a "bomb thrown by terrorists."

No casualties were reported in the attack, which was still under investigation by local police, the agency said.