Global incremental currency pushes inflation expectations

Investors wary of bubbles again according to Xinhua news when Chinese government officials and academics are still talking about whether the economy has bottomed out, inflation expectations triggered by the dollar's devaluation are becoming a concern for more and more economic people, and ordinary investors are also opting to invest in property and gold for hedging.　　Factors driving inflation expectations include rising stock markets, rapid commodity price rises, a rebound in the property market and soaring gold and gold prices. "While demand for commodities is gradually recovering, it has not yet reached a robust level." Zhangjian, senior economist at the Asian Development Bank's China representative office, stressed that while the price rebound has much to do with speculative speculation, it is rooted in the dollar's decline. "Investors ' fear of the world economy is fading. The dollar, once a hedge tool, has fallen faster. Excess liquidity is pushing up global inflation expectations.　　"he said. "Once the US economy has bottomed out, the confidence of commercial banks will be restored, and then it is likely inflation."　　Zhu Qing, a professor at the School of Finance and Finance at Renmin University, says U.S. inflation could be exported to countries around the world, including China. China's investors have taken some measures to avoid the risk of inflation, real estate has become the new favorite, not only buyers wait and see the atmosphere has been diluted, developers confidence recovery, and even began to rob the land.　　"The recent land-use behavior of the developers does not explain that real estate investment and development confidence has fully recovered, and they are more motivated by inflation expectations," said Ha Jiming, chief economist at CICC. Zhangjian that the stock market's continued sharp rise and rising house prices, lack of sufficient support from both the macro and the real economy, are "not superfluous" in the asset bubble. In a recent report, CICC called for vigilance against a resurgence of asset bubbles. Experts warn that only the stability of price indices and the rise in financial assets and real estate prices are likely to lead to a loosening of monetary policy.　　If the central bank fails to recover huge amounts of liquidity in time for the recovery, it could put a further risk of asset bubbles and inflation, when the international hot money will surely turn again. There are already signs that the Chinese stock market and real estate industry eye-catching performance behind the "Hot money" hype. Zhangjian stressed: "' hot money ' in emerging markets, including China, to become active again, should remain vigilant." ”