BUSINESS More control urged for foreign capital in property market

BUSINESS

More control urged for foreign capital in property market

China Daily

12:07, December 29, 2020

Potential homebuyers look at property models in Tongxiang, Zhejiang province. (Photo: China Daily)

Regulators should keep an eye on the foreign capital flowing into the Chinese property market in the following years till 2030, which should be a key aspect regarding the country's capital control policies, said Huang Xiaodong, executive vice-president of the Institute for Advanced Research at Shanghai University of Finance and Economics when making forecasts for China's economic growth in 2021.

The stringent restrictions preventing housing market speculation that China's central regulators have adopted over the past few years have turned out to be quite successful, as proved by the stabilized month-on-month growth rate of the Chinese property market, said Huang.

But loose monetary policies have been quite widely adopted in the world. The US Federal Reserve said that it will hold its benchmark interest rate near zero through 2022 to help the economy recover from the coronavirus crisis. Therefore, Chinese central regulators should take stricter control of capital flowing into the Chinese property market in the following years, while policies regarding capital outflow can be moderately relaxed, he said.

The Institute for Advanced Research of SUFE said in a latest report that China's GDP growth will reach 8.4 percent next year, while the consumer price index will rise 0.2 percent year-on-year in 2021. The value of consumption will increase 10.8 percent from a year earlier, while investment will go up by 5.7 percent. The value of exports will climb by 4.4 percent year-on-year and that of imports up by 8.3 percent. The yuan-to-US dollar exchange rate will oscillate around 6.5 for the next 12 months.

Related Stories

Terms of Service & Privacy Policy

We have updated our privacy policy to comply with the latest laws and regulations. The updated policy explains the mechanism of how we collect and treat your personal data. You can learn more about the rights you have by reading our terms of service. Please read them carefully. By clicking AGREE, you indicate that you have read and agreed to our privacy policies

Agree and continue