Tel interview: Property market drives economy?

For more analysis of the just concluded Central Economic Work Conference, we are joined by Professor Liu Baocheng, from the University of International Business and Economics.

Hello Professor Liu,

Q1.) Before the conference, the market was anticipating that China would continue implementing the proactive fiscal policy and moderately easy monetary policy in the coming year. In 2009 alone, we've seen one trillion yuan in new loans enter the economy. Does this mean we're going to see a fast monetary expansion, followed by unchecked inflation?

Q2.) The conference agreed that the government would focus more on economic structure adjustments and improving the quality and efficiency of economic growth in 2010. What should China do to achieve that goal?

Q3.) The conference also highlighted the importance of boosting domestic demand. What are the most effective ways to pump up domestic consumption?

Q4.) Some Analysts say it's unlikely that China will aggressively tighten up the property sector, because the housing price surges are widely looked at as a promising substitute to ease State Owned Enterprises' reliance on fixed asset investments to power the economy. Do you also believe that housing prices will continue to go up in the coming year?