According to the news report from the Chongqing Morning Post, famous investor George Soros, founder of Soros Fund Management, said before attending the Boao Forum for Asia 2013 Annual Meeting that China had made a great contribution to the world economy in the past few years, the biggest challenge right now will facing China is the transformation of economic development mode, and he is confidence in the successful transformation of the Chinese economy.
The stock market is generally seen as a barometer of a country’s macroeconomic, but according to Soros, it is not the case in China. Soros believes that this is not surprising because the actual profits of Chinese enterprises is not high, most of the profits are running into the field of investment and exports. After 5 to 10 years, if the success of China’s economic growth mode transformation is obtained bringing corporate profits growth, some companies will be good choices for people to invest.
Soros believes that China’s real estate market has is a big problem, some people have purchased multiple sets of real estate as an investment, resulting in a large number of vacant housing. Thus the market investment will bear a significant risk. He suggests that the property tax is an effective way to solve the high prices, but it must be gradual in order to avoid market crash.