(아주경제 앤드류 이 기자) As multi-million dollar condominiums continue to sell in large marble finished building in the city of Beijing, the developers and consumers have made no pretence of hiding their wealth from the public. However, as these multi-million dollar executives purchase large palatial building in Beijing, their time maybe running out.
As reported by Reuters, the Chinese housing market will change after Beijing's local government in February imposed tight restrictions on people eligible to buy property in the city. The authorities have banned people such as; investors from other cities, newcomers, or third- and fourth-home buyers trying to profit from skyrocketing values.
These steps are the bluntest yet in China's battle against a run-up in real estate prices that some fear is setting the stage for a world-shaking crash.
China's dynamic growth has become a primary engine of the global economic rebound and vital to US businesses that make or export goods in the Pacific.
Last week, China reported that it was growing at 9.7 percent annually in line with a steady path of roughly 10 percent growth in recent years and the fastest among top economies.
However, there is mounting concern here and abroad that the country's economy is overheating and could the advantage as a low-cost exporter.
China's top leaders have cited rising prices as their chief economic concern, wary of the impact higher food and fuel prices can have on social order in the nation.
Over the weekend, China's central bank ordered that Chinese banks increase their cash reserves, aimed at easing some of the upward pressure on prices that happens when loans are widely and cheaply available to businesses and individuals.
However, this step, and similar measures targeting the Chinese financial sector, may only go so far in shifting the Chinese economy as long as Beijing keeps the value of its currency in line with that of the dollar.
The close relationship of those two currencies means that policies that stimulate economic activity in the United States could turbo-charge economic growth in China. It also means China pays more for oil, iron ore and other imported commodities.
Efforts by the Federal Reserve to invigorate the anemic US recovery through an ambitious program of bond buying, for instance, while doing little to spark inflation at home, may fan inflation in China.
Beijing has pledged to let its currency float against the dollar, but the International Monetary Fund and other critics say the Yuan remains substantially undervalued. By contrast, countries that allow their currencies to adjust more freely on the open market can shelter themselves from inflationary pressures emanating in the United States.
The country has tamed property booms before. Nevertheless, the latest 50 percent increase in prices during the past year and a half, has raised concerns about how far speculative real estate investments are spread across the books of banks, corporations and state-run enterprises.
Given China's size and central role in the world economy, a sharp real estate downturn that cascades through the economy, like the housing meltdown in the United States, would cause global shock waves.
As reported by Reuters, the Chinese housing market will change after Beijing's local government in February imposed tight restrictions on people eligible to buy property in the city. The authorities have banned people such as; investors from other cities, newcomers, or third- and fourth-home buyers trying to profit from skyrocketing values.
These steps are the bluntest yet in China's battle against a run-up in real estate prices that some fear is setting the stage for a world-shaking crash.
China's dynamic growth has become a primary engine of the global economic rebound and vital to US businesses that make or export goods in the Pacific.
Last week, China reported that it was growing at 9.7 percent annually in line with a steady path of roughly 10 percent growth in recent years and the fastest among top economies.
However, there is mounting concern here and abroad that the country's economy is overheating and could the advantage as a low-cost exporter.
China's top leaders have cited rising prices as their chief economic concern, wary of the impact higher food and fuel prices can have on social order in the nation.
Over the weekend, China's central bank ordered that Chinese banks increase their cash reserves, aimed at easing some of the upward pressure on prices that happens when loans are widely and cheaply available to businesses and individuals.
However, this step, and similar measures targeting the Chinese financial sector, may only go so far in shifting the Chinese economy as long as Beijing keeps the value of its currency in line with that of the dollar.
The close relationship of those two currencies means that policies that stimulate economic activity in the United States could turbo-charge economic growth in China. It also means China pays more for oil, iron ore and other imported commodities.
Efforts by the Federal Reserve to invigorate the anemic US recovery through an ambitious program of bond buying, for instance, while doing little to spark inflation at home, may fan inflation in China.
Beijing has pledged to let its currency float against the dollar, but the International Monetary Fund and other critics say the Yuan remains substantially undervalued. By contrast, countries that allow their currencies to adjust more freely on the open market can shelter themselves from inflationary pressures emanating in the United States.
The country has tamed property booms before. Nevertheless, the latest 50 percent increase in prices during the past year and a half, has raised concerns about how far speculative real estate investments are spread across the books of banks, corporations and state-run enterprises.
Given China's size and central role in the world economy, a sharp real estate downturn that cascades through the economy, like the housing meltdown in the United States, would cause global shock waves.
Copyright ⓒ Aju Press All rights reserved.