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China’s magnetic force loses its pull

South Asian nations are more likely to support America as long as it supports peace and free trade.China has announced a 20% increase in import from Asian countries, however, the outcome was not promising. With the transform from manufacturing to consumption country of China, Asian countries are unlikely to sell their raw materials easily like before. Additionally, with devaluing RMB and tightening capital policy, Chinese import is restricted. Therefore, they still prefer America as long as it sustains its policy and trade.

Is real estate only contributing 8% to China’s GDP?

According to National Statistical Bureau, from Jan to Sep, the contribution of real estate to GDP is 8%. However,according to CICC research team, in third quarter, property related service accounted for 3.8% of real GDP growth, and 12.3% to norminal GDP. However, this figure is calculated only by construction GDP. It does not include the property related industries. While construction related raw material industry accounted for 5%, furniture and house decoration was 5%, and property finance is 2%.

How to measure the success of AIIB?

Former World Bank Chinese Director Yuchuan Huang said he thought the final way of measuring the success of AIIB is not thought AIIB itself, but through other organizations’ response. Whether current organizations have changed their policy and become more efficient in leanding and financing is a main measurement for AIIB.

It is the turning point of monetary policy?

Chinese political Bureau of the Central Committee has confirmed that central of monetary policy will shift from a stable growth to depress bubbles. Increase in real estate prices is threatening financial market. Recent policy will focus on depress real estate and lower the financial leverage.

Chinese economy has reached bottom

Over the first three quarters in 2016, Chinese economy continuously increase at the rate of 6.7%. Head of Chinese economy of State Council Liqun Zhang said when determining whether economy has reached bottom, a very important indicator is investment. Infrastructure increased 19.4% over the 9 months and this investment can stablize total investments.