Wen Asks Local Governments to Help Control Property Market
April 09, 2011, 9:19 AM EDTBy Bloomberg News
(Updates with policy measures from fifth paragraph.)
April 9 (Bloomberg) -- Chinese Premier Wen Jiabao asked local governments to take responsibility to keep housing affordable and said stabilizing consumer prices in the country is the top priority.
The central government’s aim to control the property market is “clear” and the determination is “firm,” Wen said during a visit to eastern China’s Zhejiang province, according to a statement on the government’s web site today.
The Chinese government is intensifying efforts to curb speculation in the real-estate market after housing prices gained for 19 consecutive months through December. Consumer prices in February climbed 4.9 percent from a year earlier, exceeding the government’s annual inflation target of 4 percent.
China’s economy is “generally doing well” and the stability of macro-economic policies will be maintained, Wen said. The country will adopt measures including on the reserve ratio, interest rates and the exchange rate to support the real economy, he said.
China raised the one-year deposit rate to 3.25 percent from 3 percent on April 5, the fourth time since October.
The government will also maintain stable growth of foreign trade and optimize the structure of imports and exports, Wen said.
To contact the reporter on this story: Winnie Zhu in Shanghai at wzhu4@bloomberg.net
To contact the editor responsible for this story: Mike Harrison at mharrison5@bloomberg.net
