Xinhua is the official news agency of the People's Republic of China (Reuter)

LHASA (Sept. 23) XINHUA - Chinese caterpillar fungus produced in Tibet has become popular on world markets, especially in Japan. It takes the shape of an insect in winter and grass in summer. The fungus is a rare traditional Chinese medical herb, and the one produced in Tibet is believed to be the best because of the highland features of Tibet.

The herb is thought to be good for the lungs and kidneys, and it fights against cancer and aging, and raises the immune functions of the human body.

Traditionally, the fungus has been popular among people of Chinese origin in Hong Kong, Taiwan, Singapore and Malaysia. In recent years Japanese business people have shown more interest in the herb.