Real Estate: Overheated industries
Updated: 2006-04-26 14:45
Xie Guozhong, chief economist of Morgan Stanley in Asia, recently pointed out
that foreign capital plays the role of adding to China's real estate bubble. Xie
said that foreign investors do not spend their own money to invest in the
Chinese real estate industry, but collect the capital of overseas clients and
draw in some commission fees for their investment services. (Chinanews.cn)
The Chinese Government has announced plans to curb new real estate projects
and other overheated sectors by cutting credit in an effort to cool an economy
that boomed at 10.2 percent in the first quarter. "First we must strengthen
adjustments in fixed asset investments and tighten the throttle on land and
credit," the National Development and Reform Commission (NDRC) said in a policy
paper on its Web site. (Shenzhen Daily)
China's housing price growth is expected to slow this year as the government
will continue rolling out more policies to encourage construction of budget
homes, the Chinese Academy of Social Sciences said in a blue paper published
yesterday. The annual blue paper summarizes last year's real estate industry
developments and provides a forecast for this year. The paper said land supply
will be sufficient this year to suppress a big rise in property prices.
(Shanghai Daily)
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