In response to the recent view that the strict policy control over the real estate market will have adverse effect on the economic growth of the mainland China, Tsinghua University professor of economics, Li Daikui said that it is expected that the government will relax the regulation of the property market before the end of the year.
Mr Li said “if the new government is too eager to cool the property market, the mainland economy will will be affected adversely. The mainland economy is now facing slowdown, in case of rapid decline in the real estate industry, electrical appliances, decoration and other related industries will also be involved, which is detrimental to the macro-economic development.”
Mr Li said, the decision-making is likely to be adjusted this year in three major aspects. First, a reasonable macroeconomic policy to be adopted; Second, a slight increase in the deficit of the central government; Third, to accelerate municipal public projects investment rather than investment in production capacity in selected 5-7 cities.