The Academy of Macro-economic Research with the National Development and Reform Commission proposed in its latest report a looser credit control and a tighter rein on the property market.

It argues that the upward movement of broad money supply and narrow money supply at a pace of 13.9 percent and 10.6 percent by the end of February this year is slower than that at the end of last year and well below the target set by the central bank for this year. It is noticeable that it is even slower than that during the inflation.

Industrial production lines running on higher capacity expected this year and the mild inflation at present with an even lower expectation, the report concludes, thus underlie an easier access to credit.

Yet it recognizes the investment is still too hot. It highlights intensified adjustment measures on the real estate market to avoid major risks on the macro-economy and financial system.

Besides interest rates manoeuvre, it thinks the supply of economy housing and stricter tax policy for transactions of second hand houses will help curb the speculative investment.

By People's Daily Online