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NBS: New economic tightening measures unlikely

(XFN-ASIA)
Updated: 2006-09-25 15:44

'Due to the country's limited land resources and growing demand for housing, property prices in China are bound not to be cheap,' the newspaper quoted him as saying.

Qiu added that low levels of domestic consumption have resulted in unbalanced development, while foreign capital flooding into China has made the growing trade imbalance worse.

'We welcome foreign investors to tap into the mainland's rapidly growing economy, but we have been put on high alert as regards foreign speculative or short-term investment,' he said.

China's foreign exchange reserves stood at US$970 billion at the end of August.

On China's currency, Qiu told the newspaper that a free-floating yuan will ultimately happen, but he said that the current pace of appreciation is appropriate and it will be a 'long time' before it becomes fully convertible.

China revalued the yuan against the US dollar on July 21 last year, scrapping a decade-old dollar peg and allowing the currency to float within managed bands.

domestic consumption have resulted in unbalanced development, while foreign capital flooding into China has made the growing trade imbalance worse.

'We welcome foreign investors to tap into the mainland's rapidly growing economy, but we have been put on high alert as regards foreign speculative or short-term investment,' he said.

China's foreign exchange reserves stood at US$970 billion at the end of August.

On China's currency, Qiu told the newspaper that a free-floating yuan will ultimately happen, but he said that the current pace of appreciation is appropriate and it will be a 'long time' before it becomes fully convertible.

China revalued the yuan against the US dollar on July 21 last year, scrapping a decade-old dollar peg and allowing the currency to float within managed bands.


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