Asset bubble more risky
Source: Xinhua |
March 22, 2010, Monday
|
Print Edition
Print Edition
THE threat of inflation to China's economy is less worrisome compared with an asset bubble, economists said on Saturday at the China Development Forum 2010.
China's economy is facing a new round of growth in the coming two years, but the risks of inflation and asset bubble remain, according to Fan Gang, secretary general of the China Reform Foundation.
Compared with inflation, tackling asset bubble is of greater importance because asset bubble, as one of the causes of the global financial crisis, is more dangerous, Fan said. He estimated the country's economy to grow 8 to 9 percent this year in a "normal growth."
Growth in China's property prices is accelerating and approaching an alarming level, said Japan's Nomura Holdings Inc Chairman Junichi Ujiie.
Despite government measures to curb property prices, China's property market grew at its fastest pace in 20 months in February, with housing prices in 70 major cities rising 10.7 percent from a year ago.
The issue of soaring housing prices, if not properly solved, was likely to cause social instability in China, said Zheng Yongnian, director of the East Asia Institute of the National University of Singapore.
During an online chat with Internet users last month, Premier Wen Jibao said he was determined to tame the "wild-horse" housing market and to keep prices at a reasonable level during his term.
China targets a rise in inflation of 3 percent this year, Wen said at the National People's Congress on March 5.
China's economy is facing a new round of growth in the coming two years, but the risks of inflation and asset bubble remain, according to Fan Gang, secretary general of the China Reform Foundation.
Compared with inflation, tackling asset bubble is of greater importance because asset bubble, as one of the causes of the global financial crisis, is more dangerous, Fan said. He estimated the country's economy to grow 8 to 9 percent this year in a "normal growth."
Growth in China's property prices is accelerating and approaching an alarming level, said Japan's Nomura Holdings Inc Chairman Junichi Ujiie.
Despite government measures to curb property prices, China's property market grew at its fastest pace in 20 months in February, with housing prices in 70 major cities rising 10.7 percent from a year ago.
The issue of soaring housing prices, if not properly solved, was likely to cause social instability in China, said Zheng Yongnian, director of the East Asia Institute of the National University of Singapore.
During an online chat with Internet users last month, Premier Wen Jibao said he was determined to tame the "wild-horse" housing market and to keep prices at a reasonable level during his term.
China targets a rise in inflation of 3 percent this year, Wen said at the National People's Congress on March 5.
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