On the earnings press conference held in Hong Kong, where the company became listed on stock exchange in 2007, Zhang remarked that Beijing put out the economic stimulus package to stimulate investment, reduce unemployment and stabilize the society.
However, she said, under the situation of subduing consumer spending, the plan could backfire and worsen overproduction. Zhang estimated all industries in China, including raw materials and property, will see overproduction in the next 3 to 5 years.
Zhang took the real estate market as example and said the package, which includes a plan to provide 9.9 million units of welfare housing in the next 3 years, will cause a large surplus in housing.
Zhang also said the impact of the financial storm on the economy and the real estate sector is still expanding, and thus, uncertainty of China’s real estate market still exists. However, she added, now medium ranged and high-end properties have become more affordable for enterprises that have cash on hand.
