The first Lujiazui forum was held in Shanghai in from May 9th to 10th.

On the afternoon of 9, the theme of the fifth session of the forum is "RMB exchange rate reform and convertibility under the capital account". The following is a guest speech: "Yu Yongding": China is now facing a severe test without doubt, that is, the test of inflation.

Inflation is caused by excessive demand in China. The GDP growth rate in China is now 11.9%. Taking into account the possibility of low reporting by local governments, I think it may exceed 12%, and now it may be even higher.

Some potential growth rate, I think absolutely can not reach more than 12%, so you are now growing faster than the potential growth rate, so inflation is inevitable.

[Yu Yongding] some people think this is a piglet phenomenon.

I think this analysis method is totally wrong.

We can think of real estate prices rising and what is the scale of the real estate industry?

I agree with Mr. Stephen Hroch in the last meeting.