[photopress:proeprty_being_developed_with_big_flats.jpg,full,alignright]Hu Shaowei, an economist with the State Information Center, discusses the result of the postponement of the release of economic data for the first quarter. It set off a wide range of suppositions.
‘As a result, many expect the macroeconomic readjustment policies will be intensified. Even the possibility of putting a brake on the economy is not being ruled out. These assumptions led to the stock market drop on April 19.
‘However, after reading the data released by the National Bureau of Statistics, I believe the market’s expectation of stronger macroeconomic readjustment went a bit awry.’
After viewing the general scene and being relatively middle-of-the-road about it he wrote:
‘Large apartments are the main targets of the Construction Ministry in its bid to keep down soaring real estate price. Defying the repeated stress to cut down on construction of large apartments, property developers in various localities continued business as usual. In the first quarter, for instance, investment in apartments of 90 square meters or smaller comprised merely 16%.’
A moderate, well-written summary suggesting that the government should continue to control macroeconomic policies. And that real estate developers are not, as yet, following the government’s lead.
Source: China Daily