"The current loose currency and credit policy can totally support at least eight percent growth of the real economy." Xia Bin, Director of Institute of Finance under the Development Research Center of the State Council told China Securities Journal. "From the second half year to the next year, the central bank should send out a signal to stabilize the currency rather than to tighten it."
"The Chinese economy is rising after reaching the bottom. Consumption-led structure adjustment should be focused in the second half of this year." Xia said.
According to Xia, the operations of the central bank should keep a relatively loose currency policy to ensure the development of the real economy.
As for the real estate, the data from last May suggests that there is an increasing demand in the housing sector. However, it is mainly the result of the growing investment trend rather than the need for accommodation or accommodation improvement. Ironically though, a majority of the demand can be attributed to investment by overseas funds.
For more information, please consult the original report in Chinese at:
http://paper.cs.com.cn/html/2009-07/14/content_15338.htm
(China.org.cn by Li Xiaohua July 14, 2009)
