I'm going to tell you about report I've listened to. It is about one of the most important problem in Chinese economy - bubbles in property market.
The Premier opened The National Congress in China by congratulations Chinese people by having a merge first in global downturn. There is warning about that Chinese economy can become a runaway train. The Premier said that a good reason to celebrate is sparkling growing figures, but on the other hand Chinese economy can be brought to boom.
The government of China faced to problem of controlling the inflation. The Central Bank is twice moved to reduce bank landing.
A leading economist in China warns about a bubbles in its property market. According to Wang Jianmao, professor from china Europe International Business School in Shanghai, prices in Chinese property market are raised too high if to talk about measure of difference between property prices and the rental. It will take half a century to recover one's investment, which means that investing can become unreasonable.
He also calls the policy of the government a "shotgun", which kills all "birds": good "birds" and bad "birds". It hurts all sectors of Chinese economy. Professor proposed to introduce capital gains taxes, which should be paid by people who want to sell their houses. A lot of people will be get a benefit from it.
In conclusion, Chinese economy is becoming bigger and bigger owing to household's savings and national reserves.
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