Bloomberg News

‘Deep Correction’ in China Property Is Inevitable, Andy Xie Says

November 13, 2011

Nov. 11 (Bloomberg) -- A “deep correction” in China’s property market is inevitable and will benefit ordinary people, Andy Xie, former Morgan Stanley chief Asia-Pacific economist, said in Beijing.

The correction will help the economy by boosting consumption as a decline in property prices is equivalent to a tax cut, Xie, now an independent analyst based in Shanghai, said at a financial forum today.

The government should maintain its property curbs for the next six months and while there may be large-scale closures in the property industry, the government shouldn’t reverse its policies, he said.

To contact the editor responsible for this story: Nerys Avery at navery2@bloomberg.net


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