Adequate liquidity to support property market in 2010

10:09, October 16, 2009      

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Industry insiders including President Ren Zhiqiang of Huayuan Group predicted at the 5th China Real Estate & Finance Annual Forum 2009 that thanks to strong adequate liquidity support, China's housing prices will increase steadily in 2010.

China Minsheng Bank released the 2009 Blue Book of China's Real Estate & Finance at the forum. According to the blue book, the financing conditions for China's real estate companies in 2010 will be loose. It also believes that the real estate industry, with clear profit expectations, will win strong financial support.

Shen Minggao, a senior economist with the Caijing Magazine, said that he expected a 33 percent expansion of credit in 2009 and that new bank loans may exceed 7 trillion yuan next year. "A loose monetary environment is good news for the real estate market."

"Investment growth in 2010 may stay at the current level of 25 to 30 percent, to some extent ensuring a higher economic growth rate," said Shen.

Ren Zhiqiang predicted that the year-on-year growth of China's housing prices would exceed 5 percent this year.

Property tax issue was also a focus at the forum. Minsheng Bank's blue book suggested that the government should speed up tax reform in the real estate sector.

By People's Daily Online
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