Latest News:  
Beijing   Sunny    29 / 17 ℃  City Forecast

English>>China Business

Staying on Target (6)

(Beijing Review)

14:03, August 22, 2012

Expanding domestic demand should be the focus to promote economic growth in the second half, said Zhang. The government should improve the policies of stimulating consumption, such as subsidies to energy-saving products, and supporting new energy products to be applied by public facilities and households. The government has arranged more than 26 billion yuan ($4.11 billion) to subsidize sale of energy-saving home appliances.

A report by Anbound, a Beijing-based independent consulting firm, warned the government of a rebound of housing prices in the second half, which could affect sound economic development. In June, a blowout of transaction volume and slight housing price hikes in major cities intensified such worries.

Yi Xianrong, a researcher at the Institute of Finance and Banking of the Chinese Academy of Social Sciences, said housing prices in major cities stopped dropping in June. This is not because of so-called "rigid demand" of home purchases, but that a series of measures to stabilize growth has changed expectations on the real estate market.

If China's housing market sees a simultaneous increase of transaction volume and prices, macro-control measures on the market implemented two years ago will ultimately fail, said Yi.

"If the central bank further relaxes the monetary policy in the second half, the already big real estate bubbles will continue to expand, while risks brought by the bubbles will be much larger than the benefits brought by stabilizing economic growth," Yi said.

【1】 【2】 【3】 【4】 【5】 【6】



News we recommend:
Prices fly for Angry Birds' merchandise Wine imports give Chinese firms a hangover Spirited into the world of e-commerce
E-shopping fuels domestic consumption China's firms bigger but not necessarily better China's beauty industry profits from a makeover
Taxing times for China's tax reformers  Experts divided on yuan’s future [Audio]Soccer in China Part III: The Business Side

Email|Print|Comments(Editor:李倩、厉振羽)

Related Reading

Leave your comment0 comments

  1. Name

  

Selections for you


  1. Air-landing drill in desert

  2. Uncover the secret of gold bars production

  3. Right move in VAT direction

  4. Dancing competition held in E. China

  5. 24 Of The Hottest Body Paint

  6. How to marry a billionaire

Most Popular

Opinions

  1. More representative delegates
  2. Do ratings agencies buoy Italy's optimism?
  3. Right move in VAT direction
  4. EU, China extend hands of friendship
  5. Editorial: Rules for stock market
  6. U.S.-S. Korea drills harmful to regional stability
  7. Wake-up call for industry
  8. Is Romney trounced, or has more tricks?
  9. Commentary: Meet the new consumers
  10. Medicare row escalates with Romney's VP pick

What's happening in China

Shanghai exposes professional beggars

  1. Real estate financier held on fraud charges
  2. Chinese continue to seek residency overseas
  3. Controversial Hunan fine policy may be scrapped
  4. Army worm outbreak brought under control
  5. Rainstorms batter southern China, killing 2

China Features

  1. Classic routes for domestic self-driving tours
  2. Billionaires' marriage-seeking attracts women
  3. Top three nourishing foods in autumn
  4. Experts divided on yuan's future
  5. Unforgettable records of London Olympic Games

PD Online Data

  1. Spring Festival
  2. Chinese ethnic odyssey
  3. Yangge in Shaanxi
  4. Gaoqiao in Northern China
  5. The drum dance in Ansai