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His view is that asset prices are likely to rise strongly in China next year and policymakers will have to focus on preventing bubbles.
Wang Yiming said at a forum in Beijing:
"Consumer prices are not going to sky-rocket next year, but asset prices will see a steep upward trend. How to prevent the explosion of asset price bubbles poses an important challenge to macro-economic policymakers."
China’s top leadership declared last month that managing inflation expectations would be a priority next year, but many in the market suspect that they will instead gear monetary policy toward dealing with asset bubbles.
Forbes reported that Wang Yiming said consumer prices, which have been falling for almost the entire year, will rise in 2010 but only moderately. He said, "Industrial over-capacity, spurred by policies favouring investment, will act as a price-stabilising factor."
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