"I Won't Invest in China's Real Estate"——Can Behavioral Economics Save the Capital Bubble?

"I cannot see clearly when the real estate bubble in China will burst.However, there is certainty that housing prices willswiftly fall, and China can learn the lesson from the 1980s' real estate market in Japan" said Professor Robert.J.Shiller, "I don't want to put my judgment as a foreigner on the Chinese people,however, the housing price is obviously too high in some big cities.     

Adjusted Period for Real Estate

The Chinese real estate market has seen sustained prosperity for the last 10 years, but the climbing price of housing has made everyone begin to question whether this industry is overheated or if there is a bubble ready to burst. Recent figures from the National Development and Reform Commission and the National Bureau of Statistics show that, in September 2007 alone, the housing purchase price     

Go up or down?——Look into the Real Estate Price After the Olympics

2008 Beijing Olympic Games to the Chinese is not only a unique event, but also will influence many aspects of China. To the real estate industry, the effect of the Olympic Games will play an important role in a short period. How about the effect to Beijing＇s housing price？ Does it continue to go up or turn down？ This is the main concern for majority of those in this industry and consumers.     

Changing Prices in a Weak Housing Market

Since November 2007,the trade volume of commercial housing has witnessed a drop across China.With the downturn of real estate,there have been numerous reports that housing prices are headed down.Headlines in newspapers have read＂House Prices Falling Faster in Shenzhen＂or＂Are Housing Prices in Guangzhou Reaching the Inflection Point？＂It is even reported that a guest on CCTV＇s Half-Hour Economy declared a 20 percent drop in housing prices in Guangzhou.     

The potential competition in Moving China

In the past three decades, China＇s reform and opening-up brought great miracle to the world, and now China is facing new challenges such as the downturn of domestic and international economy of 2008. There are a lot of uncertainty factors existing in many industries such as the U.S subprime crises, the domestic stock market slump, the bubble of real estate, and the crisis of confidence for the enterprises production safety, and so on. We＇d better consider that after Olympic Games and the big turn of 2008, how China could keep its developing, how the enterprises especially the small and medium-sized ones could survive, what suggestions the economists shall propose to respond to the challenge.     

Prof. Wu Xiaoqiu： China Is Striving for the World＇s Most Developed Capital Market

China＇s capital market is a hot issue in the new year. The best strategy to develop the Chinese capital market in the coming 15 to 20 years was discussed in the China Capital Market Forum, which was held in China at Renmin University on January 13. Government officials, scholars, and entrepreneurs commented that by 2020, the Chinese capital market will develop into one of the best capital markets in the world, not only in terms of size, but also asset quality, liquidity and dynamic trade. Is this a realistic goal？ What steps should we take to pursue this target？ With these questions in mind, after the forum, China＇s Foreign Trade interviewed Prof. Wu Xiaoqiu, Vice President of Renmin University of China, and the Director of the Finance ＆ Securities Institute of Renmin University.     

Doing Real Estate Business Overseas

When we saw the amount of foreign capital currently being invested in China's real estate market, we realized that much like its foreign counterparts, China has been very active overseas as well. With encouragement from the "walking out" strategy, more and more Chinese investors have begun to focus on overseas real estate developments. There have been a variety of investments.     

＂Made in China＂ at the Crossroads in 2009

In the short run, China＇s export is a usable weather vane for the health of the global economy and the strength of consumer demand. A slump in export to some extent means economic depression elsewhere. Besides, the development direction choices of manufacturer will be pivotal to China＇s upgrade from export-oriented economy to a more well-rounded economy. The immediate threat to this upgrade is from the global slowdown that Chinese exports declined in November last year heralds tough times in 2009.     

Coca-Cola＇s Acquisition Over Huiyuan Juice

China＇s Anti-Monopoly Law, the foundation stone of the market economy, started to be implemented since August 1st 2008. After half a year of investigation, Coca Cola＇s acquisition of Huiyuan Juice was put to a stop by Ministry of Commerce on March 18th 2009. It became the first abortive case since the implementation of the Anti-Monopoly Law and caused strong repercussions home and abroad. While the nationalists applauded for the decision, overseas media generally took a skeptical attitude, considering it as a case of trade protectionism. This phenomenon requires a rational interpretation and guidance for the domestic and international media. On the one hand, acquisition by foreign capital may bring advanced technology and management experience and promote economic development; on the other hand, it may lead to the monopoly of relevant market, hamper competition and cause some domestic brands to disappear. We should look at Coca Cola＇s acquisition of Huiyuan Juice from two aspects. There are both advantages and disadvantages in acquisition. Anti-monopoly law enforcement agency should not only pay attention to the damage to competition brought about by acquisition, but also to its positive role in promoting economic development. It should balance the pros and cons so that it can reach a rational conclusion and maintain the authority of law. Chinese society is better to take a balanced attitude to acquisition by foreign capital, and prevent nationalism to go spread unchecked. At the meantime, the international media should not overreact to this case, which could become the excuse for other countries to practice trade protectionism. The Chinese government simply made a misleading yet not wrong decision at a wrong place in a wrong time.     

Bubble of Real Estate Does Not Appear in Beijing

The report newly issued by Citigroup enables the people in Beijing to feel consoling that Beijing does not appear bubble in real estate. But the bubble of real estate has appeared only in Shanghai, Tianjin, Shenyang and Ningbo.     

Bubble of Real Estate Does Not Appear in Beijing

The report newly issued by Citigroup enables the people in Beijing to feel consoling that Beijing does not appear bubble in real estate. But the bubble of real estate has appeared only in Shanghai, Tianjin,Shenyang and Ningbo.     

Innovation,key for＂Made in China＂ to out of crisis

China＇s foreign trade and export enterprises have encountered unprecedented pressure during the global financial crisis - but analysts say they believe innovation is the way out for the ＂Made in China＂ brand.
The Quanzhou Baofeng Shoes Company, one of China＇s leading producer of slippers, is precisely the type of exporter that should be on its knees. Headquartered in Quanzhou, a coastal city in southeastern Fujian Province, Baofeng used to export 90 percent of its annual output to the United States.     

Olympics Are Opening up China—— Interview with Charles Lagrange,Representative from the EUCCC

＂Recent deals are demonstrating China＇s willingness to invest in overseas markets instead of passively receiving FDI. This is potentially a winwin scenario; a great amount of Chinese companies are not satisfied with selling their products only in China So in that sense, I believe the greatest benefit of hosting the Olympics is showing that China wants to become a big player on the international scene.＂     

Soaring Grain Prices Raise Global Concerns

Grain prices often dominate all other product prices,and an increase in their price is usually considered as a prelude to inflation.The three fairly serious inflations,in 1985,1988-1989,and 1993-1995 respectively,were all preceded by grain price hikes.Furthermore,the money supply surged in the preceding year or during the same year in which these inflations occurred.This year has witnessed the same symptoms. High grain prices,which still have a possibility to go up further,have attracted wide attention across the world,including in China.As early as the end of last year,the State Council issued a circular that mandated the stabilization of grain prices in order to strictly crack down on illegal actions such as dishonest merchants driving up grain prices.One time,five State-level Departments led by National Development and Reform Commission,released an urgent announcement in order to safeguard the stability of grain prices in the domestic market.Wu Xiaoling,Vice Governor of the People's Bank of China,said that the negative influences exerted on other product prices by the rise in global grain price should not be ignored.According to Wu,the People's Bank of China will continue to closely watch the price changes. From a global and comprehensive viewpoint,the article analyzes the features of the recent grain price hike and the reasons for its dramatic rise,as well as,the impact it will have on the global economy.     

Be Fully Prepared for A Currency War

By launching a currency war against China, the U.S. aims to prompt a diversion in global wealth allocation. With RMB in the center of the global currency war, Chinas economy is dancing on the rope in striving to strike an internal and external balance. If China＇s monetary policy is ＂kidnapped＂ by America, the consequences will be unimaginably disastrous. Low interest rate in the longrun will probably result in the same bubble economy as Japan had after the Plaza Accord, which can even be stabbed, Thus, it is necessary to have a systematic long-term strategy as to how to look after both partial and overall interests.     

Spirit of a Centurial Aged Man

Yuan Geng, who created the Shekou Mode, is a pioneer in 30 years＇ history of China opening to the foreign, and a practicer of the policy by Deng Xiaoping of ＂Shenzhen Special Zone should break a way for China＂. The success of Shekou Mode provided a vane to the rapid development of economic zones and development zones in China, and the ＂growing up＂ of China. Referring to Yuan Geng, some say he is a capitalist, some say he is pioneer, and some say he is a star of reform, and so on. To carve a real picture let＇s go near to him and share the valuable memories.     

To Bette Understand Chinese Economy： CPI or PPI？

Puzzles in Chinese economy
Theoretically, CPI is the consumer price index and a measure of the level of inflation, reflecting the price change that consumers paid for goods and services. PPI is the producer price index, reflecting the price level of production. PPI is generally referred to the price indices of industrial products in China. Under normal circumstances, PPI is a leading indicator of CPI and has an important part in transmission of CPI; the current trend of the PPI will decide the general direction of CPI.     

Changes in China＇s Trade Policy？

＂We will steadily develop foreign trade. The main issues are to exploit new markets, adjust the trade structure and promote trade balance＂, Chinese Premier Wen Jiabao delivered a government work report at the opening meeting of the annual full session of the National People＇s Congress （NPC）, China＇s top legislature, which started in Beijing on March 5, declaring a new development path of Chinese foreign trade in 2010. As one of the biggest trading powers in the world, this will bring great influence on world trade situation and the trade relationship between China and its main trade fellows such as the USA and the EU.     

＂Consumption Degrading＂ Era,Really Coming？

Global financial crisis sourced in subloan crisis in USA leads to the downturn in world economy, and also has a deep impact on people＇s hie and consumption, no matter where they are. There is no doubt that the crisis is changing people＇s idea and attitude of consuming. This article will have an insight in the change of consuming behaviors and how the companies should respond to the changes.     

Fresh Air in Real Estate Policies

Recently, due to the international financial crisis, the decline in domestic economic growth and in the real estate market, the central and local governments have issued a series of policies and measures designed to stimulate the real estate industry. On the one hand, the central government starts stimulating the real estate market by tax relief, relaxation of credit and security housing construction. On the other hand, with the support of the central government, more and more local governments have implemented their own new real estate policies in order to promote the recovery of the local market.