[Abstract] Cross-border trade settlement is an important way of promoting RMB internationalization and thus, the following recommendations are made to set polices and measures which will further promote
[Abstract] There are three problems in the current real estate market. First of all, lack of flexibility in the system of housing land supply. Secondly, inadequate supply of affordable housing; last but not the least
[Abstract] Problem in the real estate market has now become the focus of macro economy and people’s livelihood. There are six major stakeholders in the real estate market, namely:the central government,
[Abstract] Accelerating the development of strategic new industries is an important strategic choice we have made based on the current situation and future trend. In the process of implementing national
[Abstract] In the 1st quarter of 2010, the staple commodity prices in the international market experienced fluctuation at a high level on a rising trend. In Particular, the prices of major industrial products
[Abstract] The lack of pricing power is an important reason why China has been contained frequently in the area of energy resources. Along with the global economic recovery, prices of crude oil, natural gas, iron ore and other energy resources in the international market all have gone up, putting heavy pressure on China’s recovering economy. We suggest striving for pricing power in international trade by building a coalition bargaining mechanism, obtaining pricing power through acquisition, expanding strategic energy reserves, strengthening international energy cooperation, constructing a modern energy market system and other means to endeavor to get out of the predicament of rising international prices of energy resources.
[Abstract] The research findings indicate that economic operation of China’s key industries is still beset by a series of problems that can not be ignored. Macroeconomic control for the next step shall focus on: formulating industry development plans and determining priorities for development of industries; maintaining the continuity and stability of economic policies; carrying out policy adjustment and cultivating new industry growth points; promoting the consolidation and restructuring of enterprises in related industries; bringing into play the role of industry associations.
[Abstract] China's economic operation made a good start in the first quarter of 2010. We conducted a research on the economic operation of 12 key industries in the national economy and existing problems. We think that China’s key industries will continue to maintain a good momentum in the second quarter and may experience fast growth in the first half of the year and slow growth in the second half, but overcapacity of some industries, strong expectations for raw material price increases, uncertain policy environment and weak capacity for independent innovation remain to be the major problems restricting the economic development of industries.
[Abstract] Although economic operation in the first quarter of 2010 continued to carry a good momentum towards recovery, we must attach great importance to a number of potential systemic risks in economic operation such as inflationary pressure, real estate bubble, and unreasonable pattern of income distribution, local financial risks, trade frictions and pressure on RMB appreciation. To appropriately handle the next phase of the economic work, we shall focus on strengthening and improving macroeconomic control and eliminate potential systemic risks; transform the mode of economic development and adjust and optimize the economic structure; advance various reforms conducive to transformation of the mode of economic development in scope and depth.
[Abstract] Based on the SMIM model, the Peterson Institute for International Economics concluded that RMB is undervalued by 41%. This finding by Peterson has had significant impact on the current Sino-US
[Abstract] In the late 80’s of the 20th century, Japan, Germany and other countries appreciated their exchange rate substantially, nonetheless, the outcomes were very different due to the adoption of different economic policies. The following experiences and lessons should be taken into account when adjusting the exchange rate of RMB: exchange rate should not be appreciated too fast;
[Abstract] At present, the United States accused China of manipulating the RMB exchange rate, however, such accusation lacks of the following legal basis: the standard was not clear defined; the subjective elements is hard to prove; the evidences is rather weak; and the logic of the accusation is defective
[Abstract] China’s urbanization faces severe domestic and international challenges and seriously lags behind economic development, especially the urbanization investment and financing system contains great financial risks. There is an urgent need to solve existing problems through reform. We suggest using equity funds to innovate the organizational form of China's urbanization.
[Abstract] The central government deepened the Reform of Rural Credit Cooperatives in 2003 by promulgating the Pilot Program raised the curtain on reform of rural credit cooperatives and has achieved initial results. But problems such as excessive dispersion of stock ownership and "insider" control in corporate governance structure still exist. The second phase of the reform of rural credit cooperatives is imperative. In this round of reform, the central government shall focus on strengthening the symmetry between local governments' rights and responsibilities to regulate and reform rural credit cooperatives, and at the same time introduce appropriate reward and punishment mechanisms in the process of policy support.
[Abstract] As it is difficult to change the U.S. dollar-based international monetary system in the short term, to get rid of a series of troubles including the pressure on RMB appreciation brought about by large-scale flow of international hot money, we must resort to the method of combining guiding and blocking. On the one hand, we shall take effective preventive measures, monitor all kinds of hot money, strengthen the control of inflows, set up plans for preventing outflows and cooperate closely with Hong Kong; on the other hand, we shall attach importance to the role of guidance, increase the flexibility of exchange rate, manage inflation expectations, inhibit the expansion of bubbles, attract medium and long-term international capital, and prevent and restrict the overflow of short-term capital.
[Abstract] At present, it is very difficult to accurately calculate the scale of hot money, the path of hot money influx is still difficult to verify and the purposes of influx and the ways to make profits are not yet clear, so the scale of hot money may not as big as we have estimated and imagined. For some time to come, so far as the situation of short-term international capital flows faced by China is concerned, there is limited room for hot money speculation in China, conditions are not yet ripe for large-scale continuous inflow in the short term and moderate inflow may become a long-term trend.
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