Tuesday, April 5, 2011
JP Morgan bullish on China commodities demand, warns on social tension
Tue Apr 5, 2011 4:34am GMT
SINGAPORE, April 5 (Reuters) - Social tension in China remains an investment risk as strong demand for coal, grains and copper pushes up commodity raw material prices, Jin Ulrich, J.P. Morgan China managing director, told a conference on Tuesday.
"Investors are always looking for the potential risks that have not been discounted," Ulrich said.
"One area that we need to pay attention to is social tension. That's why the government is targetting low-income housing and inflation control to try to ease the social tension that exists."
China plans to spend $200 billion over the next five years to build 36 million units of low-income housing units, Ulrich said, citing the country's latest five-year plan. (Editing by Ed Lane)