Housing policy vital to fair and stable society

Rocked by the subprime crisis in the United States and its threats to the financial markets across the country, many economies in the West have come close to stagflation, seeing both slow economic growth and highflying inflation.

Many analysts thought the emerging economies might not suffer as remarkable shocks from that for they are relatively less involved in the subprime market. However, this opinion has just been challenged by the recent financial woes in Vietnam.

Compared with Vietnam, China has obvious merits in the size of its economy, the amount of its foreign exchange reserve and its capacity to control the economy. But these merits do not free the country from the potential threat to its economic soundness as well as to the financial market.