As for the inflation rates in China, the Chinese economy needs to raise the interest rates one more time in the three months through September to tame contain the inflation gains. On the other hand, the reserve requirement ratios for large financial institutions currently stand at a record high of 21.5%.

higher inflation is the most pressing problem that facing monetary policy maker in China, where the government is trying to contain the fastest inflation during the next three years without hurting the economic growth, so we can see that the government in embarrassing situation to keep the economic growth on the track.

Moreover, the home price in China will face hardness to accelerate during the next months as the contractors are finding more difficult to get loans from Chinese banks due to monetary policy tightening.