[photopress:jiabao_ap203body_1_2.jpg,full,alignright]Chinese Premier Wen Jiabao said the imbalance in international payments is worsening and the basis for the slowdown in fixed-asset investment (FAI) and credit growth is ‘unstable’. The comments in a statement on the official government website were issued after a State Council meeting today to decide on economic tasks for the fourth quarter of this year.
He also said that priorities for the fourth quarter include ‘controlling the amount of FAI, optimizing the investment structure (and) implementing the property tightening measures in every city’.
Year-on-year growth in urban FAI peaked at 32.7 percent in March, prompting a series of curbs on land and credit approvals to take the heat out of the boom. It has since slowed to 21.5 percentt in August, but Premier Wen Jiabao said the government will still maintain control of access to land and credit for market entrants.
Earlier, the Xinhua news agency cited vice premier Zeng Peiyan as saying that China will continue to rein in the property sector, noting that home prices in some cities are still increasingly ‘too fast’. He was speaking at a cabinet meeting after hearing reports from government inspectors sent to check how local governments are implementing the property curbs.
Zeng Peiyan said, ‘We should steadily adhere to the (real estate control) policies.’ He added that China needs to ‘stabilize housing prices, adjust the structure of supply, and improve the supply of low-cost housing for urban families’.