On August 31, 2014, China Gate reprinted an article from a newspaper from Mainland China, Yangcheng Evening News (ycwb.com). The article explained the real reason behind the high prices of China’s real estate. The same news was then published in several other Chinese newspapers. According to Wu Jinglian, an economist and a researcher at the Development Research Center of the Chinese State Council, these high prices are the consequence of the fact that the government has been printing too much money. The amount of money that China has issued is at 200 percent of China’s GDP. Therefore, the fundamental strategy to solve the problem of high housing prices in China is to stop releasing so much money.
Source: China Gate, August 31, 2014
http://www.wenxuecity.com/news/2014/08/31/3560834.html
http://blog.ifeng.com/article/33939860.html
http://house.ifeng.com/news/view/detail_2014_08/31/38580591_0.shtml