Please take a look at the second article in the link below:
http://www.morganstanley.com/views/gef/index.html
This article summerizes some key messages of the current Central Economic Work Conference. I bold some interesting points which have something to do with our class:
1. Focus on carrying out existing public investment projects while tightening approval of new projects;
2. Push ahead with energy conservation and retrenchment of over-production capacity;
These two points clearly state that the central government is determinant to deal with the over capacity problem.
But I am particularly interested in the following statement:
3. Accelerate urbanization by easing the controls imposed by the current household registration system over rural-urban labor mobility;
This is to say, the Chinese stylized “HUKOU” system may change to some extent and with a more flexible labor mobility, we can carefully predict a more difficult situation for the government to stablize the housing prices.
Please refer to the analysis of Morgan Stanley following the key messages and see whether you have new ideas about the signal sent by the conference.
By Minxiao
Agreed. Item 3 does make the stabilization of the housing prices a pressing issue.