[Chinese Premier Wen Jiabao]: I have said before, China’s economy is the most difficult before. Difficulties in the international and domestic unpredictable factors, therefore the decision-making difficulties.
Rates acid morning and discussed the issue, I will according to their own ideas to her lectures on the current situation and stresses may be the trend of prices, look at their own unreasonable 1,10. To consider buy a house, started a good time to properly consider it.
I just guess, huh. Assessment of the economy good or bad or in the troika as a standard place, investment, consumption, foreign trade. If an economic downturn, then investment and consumption should decline.
Because of the appreciation of the renminbi formidable, and the new labor law came into effect, the PRD has a large number of labor-intensive enterprises capital. There is the release of a number of product categories trade restrictions on the technology content of the export of products with less done some restrictions, foreign trade has been shrinking is inevitable.
So, right now should be on economic performance in investment and consumption. CPI rising price level Gao Pan, will be the people’s desire to inhibit consumption, consumption will be in the doldrums. Consumer direct role in the downturn and corporate profits decline, to be used for investment to expand production funds it less.
Coupled with the bank interest rate increase has been restricted the money supply through interest rate increase, raising the deposit reserve ratio, as well as issuing central bank bills, and other means to curb market currency in circulation. Can be used for investment in the funds less. Direct role in the real estate industry is the availability of fewer loans, the funds comparatively narrow enterprises, will be at the bottom.
Suites with the second mortgage raising the threshold, speculation on prices for a number of restrictions, the real estate market, the enterprise funds because of tension, there will be selling of existing homes cash-on-hand. And to buy a house, it does not acknowledge it. Chibi wait-and-see in the majority, a conflict between supply and demand, there is more availability can not be sold, developers should be selling prices, the prices down.
when the 2008 Olympic Games end, not a gimmick price speculation, the real estate market to further worse.