Economy

PBoC is calling for restriction on mortgage on houses, on the meeting hold yesterday. It said the investigation on the qualification of mortgage requests has to be very careful. To examine the citizens' downpayment check and enhance the check on income testification. PBoC also asked for local banks to change asset structuure and ensure the structural reform on supplyy-side demand.
October, Geraci participated in 2016 China-UK Financial talent education advanced training course. Geraci discussed how the existence of the euro is taking away flexibility from the individual countries to adjust the monetary policy according to their needs. October, Geraci participated in 2016 China-UK Financial talent education advanced training course. Geraci discussed how the existence of the euro is taking away flexibility from the individual countries to adjust the monetary policy according to their needs REPEAT.
According to Citigroup report, in Sep, Tianjin, Foshan, Changzhou, and Changsha is exceeding 100% of house voluume turnover. Citigroup said although Chinese real estate industry is in a huge bubble, but the international economy is also facing the same bubble. Current city governments' restriction on real estate is a positive signal that government is trying to change this situation. Jianlin Wang of Wanda said the biggest problem now is the fast growing in 1st and 2nd tier cities but decreasing price in small cities. The rate of houing vacancy is to high.
Geraci on CCTV Dialogue calls for a European Union to stick to economic cooperation only and to re-think grand plans for momentary and political integration. That is break up of the Euro. He also hopes that Angela Merkel loses elections next year. Today,Pope Francesco proclaimed the International Day of Peace and Geraci reminded CCTV audience that the life of an Italian, a German, a Chinese are all equally worthy regardless of religion, colour and nationalitynglish language.
When Michele Geraci was interviewed by CRI, he showed great appreciation for the “Innovation growth model”, which is proposed in G20, at Hangzhou, China. “The introduction of innovation in the agenda of G20 is a very positive thing, and it is the first time that we put it in the foreground of the G20, and also, it is very important that this time the G20 is held in China. It is China that is taking the lead at this meeting, and it is China that needs to change its development model and base it more on innovation.
Michele Geraci was invited to participate in China Global Enterprises Forum, which was hosted mainly by Ningbo Government and Center for China and Globalization (CCG). He discussed the role of finance in contributing to China’s sustainable growth. He said: “Finance is like a tiger: once it is out of the cage, it cannot be tamed again. For China: Reforms should slow down. China is good at manufactory and that why I am shoot about made in china 2025.”
Hangzhou is following Xiamen and Suzhou' policy on restriction of non-local residents purchasing houses. Non-local residnets is becoming the main force of house purchasing since 2016. After G20, the oursiders purchase rate accounts for 39.3%, and among them, 25.4% purchase two houses. Economist claims that in a short period, purchasing house is contributing to decrease inventory policy, but in a long period, it will drive up house price. Surrounding cities' house price may also increase because of Hangzhou's policy.
Geraci was interviewed by Agi China 24 Radio. He said the city of Hangzhou was undergoing a major infrastructure work during the G20. It has penalized the citizens in the short terms with many factories and retail shops being closed, sometimes with very little compensation for the owners. This is the negative impact in the short term. But in the long term, the infrastructure of the city has been improved. The citizens could start to enjoy better connectivity and better underground lines. The area around the west lake also has been further embellished. So overall, the G20 brought the city of Hangzhou short term pains but long term gains. Click to listen the full Radio (Italian).

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