Amazon, drones and low returns: James Saft

Jeff Bezos' plan to deliver Amazon.com packages by drone isn't just an idea which skirts the line between satire and reality.It is also a neat little illustration of how technological innovation may be lowering overall investment returns.The online retailer is testing delivery by unmanned flying vehicle, Bezos, Amazon.com (AMZN.O) founder and CEO, told CBS TV show 60 Minutes on Sunday. Drones, heretofore best known for their military uses, could be useful for packages up to 5 lbs in weight, a segment which comprises 86 percent of Amazon.com deliveries, he said.The goal, according to Amazon, is to have a system in place by 2015 which can make residential deliveries in under a half an hour by drone.Putting aside the fact that drone use is currently strictly controlled, not to mention issues of cost, it seems that in coming years when you see a drone in the sky you'll think "my house" and "extra virgin olive oil" rather than "high explosives" and "Taliban".That in itself could be accounted progress in human terms, but this project raises some investment issues, ones which are not new to Amazon.com shareholders.Using drones is best seen as a logical extension of Bezos' business philosophy, which keeps prices low and customer friction at a minimum, almost without reference to expense. His fanatical dedication to building customer loyalty, and scale, comes at a price. Profits at the company, famously, have failed to materialize, even as revenue soars. In the last quarter Amazon.com revenue was $17 billion, up 24 percent, but resulting in a loss of 9 cents per share. That's because Amazon.com invests, plowing revenues into new warehouse fulfillment centers with ever-better technology.

Both the low prices and the imperative to invest in what may be low-yielding technological improvements may well be a hallmark of the modern economy. You cannot put the genie of Internet price transparency back into the bottle, nor can you afford to skimp on technology, as the Obama administration has found in the healthcare arena.So far, Amazon.com investors have done marvelously in capital appreciation terms, with the stock soaring despite the lack of profits. Investors may well be reading this correctly; the new economy is a winner-take-most economy, with disproportionate rewards to those who lead. Better to be Amazon than your local (now likely vanished) bookstore, but profits in retail overall are now harder to find.Even if Amazon profits do come through, the question becomes, in an age of huge technological turnover, how sustainable are they? And, almost more importantly, how much ongoing profit, in investment terms, will this new world generate?William Bernstein, of investment advisory firm Efficient Frontier Advisors, wrote a piece recently describing what he called the "Paradox of Wealth," a tendency for economic growth to give rise to low returns.Bernstein argues that this happens for a combination of factors: because richer people defer consumption more willingly, leading to a surfeit of capital; because these low returns themselves tend to encourage speculation (hello, Amazon.com investors?); and because technological innovation speeds up.This last point is the one which Amazon so well illustrates.New technology, be it drones or automated warehouses, don't just denote improvements in service or productivity. They also represent the obsolescence of all sorts of technologies and investments in which companies have sunk costs. Companies must invest or die, and to invest they issue shares, diluting their existing investors. One study found share dilution of 30 percent per year in fast-growing Asian nations."As technology makes the world ever more wealthy, the returns on both riskless and risky assets will of necessity fall. Pray that the naysayers are wrong, and that both processes continue," Bernstein writes.
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Capital Safety launch tower climb devices

The Nano-Lok Edge self-retracting lifeline will be launched at the A+A trade fair in Dusseldorf on 5-8 November.The company claims that it is the only product of its type to be tested to such extremes, with others only being trialled with edges with a Leather Luggage Tagradius of 0.5mm.In order to reduce tripping hazards, the line retracts when not in use and its internal brake mechanism can stop a fall while limiting fall distance to a shorter length.The product is produced in single or twin leg, and with web or cable lifeline.Additionally, the company launched its DBI-SALA power climb assist. This is designed to be used in conjunction with a ladder safety system.The device automatically senses motion so there is no need to use a remote control to start and Custom Paper Coasterstop. Operators clip onto a loop cable, which means there is no need to wait for the cable to descend before the next user can start to climb.Capital will also introduce its new DBI-SALA EZ-Stop fall arrest lanyards that use a Mobius loop of energy absorbing webbing. This removes the need for a backing strap, allowing the lanyard to be lighter and more compact than previous models increasing user comfort.


Putting love aside, this device has the potential to serve many functions. It could be used as an activity tracker, a game controller, a smart alarm, etc. Wearable tech is huge right now, and Tap Tap is getting into the market at the right time. They’ve already integrated with Runkeeper and Fitbit and are currently working on their software development kit so that Soft Rubber Luggage Tagthird-party developers can increase Tap Tap’s functionality.The team is also in the beginning research stages of IFTTT integration. This would allow different gestures to have certain outcomes. For example, a certain gesture or pattern of taps could allow you to “like” something on Facebook or send location data to your partner. The possibilities are really exciting.So how does it work? Tap Tap is a wristband—basically a hypoallergenic silicone slap-bracelet. A plastic module inside the wristband contains a capacitive sensor and an accelerometer which senses your taps. A gentle tap will send a light vibration to your partner, whereas a harder tap will send out a stronger vibration.
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Tokyo stocks end lower on pause of yen's falling

Tokyo stocks ended lower Wednesday as the yen's depreciation paused and triggered investors' sentiment to lock in gains in the recent buoyant sessions.The Tokyo markets surged sharply due to the yen's slide as the 225-issue Nikkei Stock Average surged about 11 percent from its closing on Nov. 8 to Monday's 15,619.13, six-month finishing high, and triggered cash-in on recent sharply gains.The momentum lost ground on Tuesday and continued to drop Wednesday, with Nikkei ended the day down 65.61 points, or 0.42 percent, from Tuesday at 15,449.63.The broader Topix index of all First Section issues on the Tokyo Stock Exchange finished 5.94 points, or 0.47 percent, lower at 1,247.08.The U.S. dollar hovered at mid-101 zone by Wednesday afternoon, compared with its six-month high in the upper 101 yen range on Monday, while the euro traded at mid 137 yen level Wednesday afternoon.Investors' confidence in export-oriented issues was weakened by dollar's advance, which nearly hit 102 yen on Monday.Brokers here said that they believed that if dollar rises again to upper 101 yen level or breaks the 102 yen threshold, Nikkei would keep increase.Analysts also said that as the Nikkei holding firm at around 15, 400, investors are tend to catch opportunity to buy in dips.

The decliners on Wednesday were led by information and communication, consumer finance and metal companies, while gainers included oil and real estate companies.Declining issues outpaced the advancing 1,071 to 552 on the First Section, while 134 shares remain unchanged when the market closed.Softbank, recent major gainer, fell 240 yen, or 2.8 percent, to 8,310 yen and Fast Retailing was also down 50 yen, or 0.1 percent, to 37,650 yen.Fujikura Rubber shed 31 yen, or 6.6 percent, to 440 yen after announcing its plan to raise as much as 1.6 billion yen through a public offering and other steps.By contrast, Panasonic surged to a year-to-date high as media reported that it is in talks to sell off three semiconductor plants in Japan to Israeli chipmaker TowerJazz, making investors take the news as a signal that the company's restructuring efforts are accelerating. The stock closed up 39 yen, or 3.5 percent, at 1, 167 yen.On the Jasdaq market for start-up firms, Rakuten jumped 92 yen, or 6.4 percent, to 1,527 yen as the Tokyo Stock Exchange said Tuesday that the Japanese e-commerce company will be promoted to the bourse's First Section on Dec. 3.Buying was also spurred by Rakuten's announcement that it will pay a special dividend to commemorate the market shift and the Tohoku Rakuten Eagles' first Japan Series professional baseball championship title.Trading volume on the main section came to 2,167.09 million shares, down from Tuesday's 2,485.96 million shares.The turnover was about 1,926.3 billion yen (about 18.99 billion U.S. dollars).
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Canada's main stock index suffers biggest drop since mid-September

Dragged down sharply by mining and energy shares, Canada's main stock index dropped more than 120 points Tuesday, the biggest drop in a single trading day since Sept. 13.The S&P/TSX composite index stumbled 123.39 points to close at 13,348.83 following the biggest falling record of 124.37 points in a single trading day on Sept. 12 this year.The energy sector, altogether with seven other sectors of the index, almost shaded losses except health care sector, which inched slightly higher only by 0.04 percent.Shares of mining, financial and energy led the fall. The mining sector decreased most sharply by 1.55 percent to 744.85 points. And Teck Resources Limited, Canada's largest diversified resources company, was down 2.11 percent to 25.52 Canadian dollars (24.24 U. S. dollars) per share.The index was mostly weighted by the international oil price. On Tuesday morning, the January contract on the New York Mercantile Exchange moved 12 cents lower to 93.97 U.S dollars a barrel. The energy sector shed 0.77 percent and Imperial Oil was down 72 cents to 45 Canadian dollars.

The data from Statistics Canada on Tuesday showed that the operating profits in Canadian enterprises' financial sector edged down 0.4 percent to 24.1 billion Canadian dollars in the third quarter. Most of the decline came from life, health and medical insurance carriers.Shares of financial companies fell, with Toronto-Dominion Bank slipping 1.17 percent to 96.71 Canadian dollars and Royal Bank of Canada down 1.38 percent to 70.51 Canadian dollars apiece.The index's gold-mining sector has lost close to half its value this year, with Goldcorp Inc. decreasing 2.89 percent to 23.51 Canadian dollars per share.In company news, according to industry sources, Sears Canada Inc., the famous Canadian retailer, was letting go almost 800 employees as the ailing retailer works to improve its operations, raise cash and sell off assets.Canada dollar edged slightly higher on Tuesday following the recent depreciation days. It ended at 94.96 U.S. cents in Toronto at 5 p.m. local time (2200 GMT), compared with Monday's close of 94.87 U.S. cents.
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Wal-Mart announces new CEO. Protesting employees hope for change

Mr. McMillon has also been elected to the company’s board of directors, effective immediately. Following tradition, Mr. Duke will stay on as an advisor to McMillon for one year. McMillon will be the fifth CEO of the company in its 63-year history.McMillon is a seasoned Wal-Mart veteran. The Arkansas native began his 29-year relationship with the company as a teenager unpacking trucks at a distribution center in 1984. He returned to the company in 1990 as a buyer trainee and has climbed the executive ranks ever since.“He has broad experience – with successful senior leadership roles in all of Wal-Mart’s business segments – and a deep understanding of the economic, social and technological trends shaping our world,” Rob Walton, chairman of Wal-Mart’s board of directors said in a statement announcing McMillon’s appointment. McMillon has held multiple merchandising positions, served as CEO of the Wal-Mart-owned wholesale chain Sam’s Club, and currently serves as president of Wal-Mart International managing more than 6,300 stores and 800,000 employees.The leadership change comes at a turbulent time for the company. Wal-Mart has reported declining sales for three consecutive quarters and faces growing scrutiny over employee wages and benefits. The company is also under investigation by the Securities Exchange Council for alleged bribery cases in Mexico and other countries.The retailer's employees have expressed support of McMillon's appointment.

“At first everyone was surprised but that immediately went from surprised to ‘it’s about time,’” Wal-Mart associate Barbara Hertz said in a phone interview. Ms. Hertz received news of the appointment while at work this morning. “We needed change.”For the past year, Wal-Mart has faced a series of escalating worker protests demanding higher wages. Black Friday demonstrations are planned at Wal-Mart stores across the country for the second year in a row. Employees at Walmart stores in Minneapolis and Miami walked off the job Monday morning, demanding higher wages. Wal-Mart employees and supporters have scheduled 1,500 protests nationwide this Friday, OUR Wal-Mart announced last week."We're happy to see Mr. McMillon acknowledge the hard work of associates in his statement this morning, and we hope that this appreciation translates into improving jobs for Walmart workers," Walmart associate Tiffany Beroid said in an OUR Walmart statement e-mailed out morning. "We sincerely hope that Mr. McMillon will answer the country's calls for Walmart to publicly commit to paying $25,000 a year, providing full-time work and ending its illegal retaliation against its own employees."Wal-Mart shares rose 37 cents Monday morning following the announcement, and analysts praised the choice. "It’s a terrific move,”Craig Johnson of the market advisory firm Customer Growth Partners, told MarketWatch. “He will provide Wal-Mart with much needed innovation. He’s an ideal candidate. He’s born and bred in Wal-Mart. He’s checked all the boxes. He’s innovative and tries new things.”
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UK regulator requires power distributors to cut costs for consumers

British energy regulator has challenged five out of six electricity distribution companies to cut costs for consumers as it rejected the five companies plans for failing to demonstrate value for consumers sufficiently on Friday.Western Power Distribution (WPD) is the only company of the six electricity suppliers having its business plan agreed.The Office of Gas and Electricity Markets (Ofgem), the government regulator for electricity and gas markets, said that WPD's plan provided "good value for consumers and its price control could be agreed early."It said that its price regulation would see distribution costs cut 11.6 percent for the nearly eight million households in WPD's areas from April 2015.The business plan worked out by WPD, which serves customers in south Wales, the Midlands and the southwest of England, includes around 7 billion pounds (11.3 U.S. dollars) of total expenditure of which around 3 billion pounds for investment to upgrade and maintain WPD's network."We understand that energy costs are a big concern for consumers and we set a high target for demonstrating value for money," said Hannah Nixon, Senior Partner for Distribution."We are pleased that nearly all companies have pledged to cut bills, but we feel that most companies can go further in cutting their costs and expect to see further improvements when they resubmit their plans in March," said Nixon.

The distribution element accounts for 19 percent of the average annual electricity bill, Ofgem said.Britain now has about 14 regional energy distributors, including WPD, SSE, Iberdrola's SP Energy Networks, Electricity North West, Northern Powergrid and UK Power Networks.Ofgem said the six companies had made over two billion pounds of cost reductions since their initial forecasts in 2012.It is estimated that during the price control period, which runs between April 1, 2015 and March 31, 2023, total expenditure will be 27 billion pounds across all companies, of which around 13 billion pounds is for network investment.According to Ofgem, companies responded positively to the regulator's call to deliver investment efficiently.The improved plans demonstrated that Ofgem's price control efforts have been successful in driving down costs, promoting innovation and stakeholder engagement.However, even with the reductions and good initiatives in the business plans, Ofgem believes there is scope for further improvement."We would expect costs to be reduced further," Ofgem said.Since privatization, Ofgem's price controls have delivered a 25-percent improvement in network reliability and seen the electricity distribution network grow by 10 percent.
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Jury orders Samsung to pay Apple $290 million

A Silicon Valley jury on Thursday added $290 million more to the damages Samsung Electronics owes Apple for copying vital iPhone and iPad features, bringing the total amount the South Korean technology titan is on the hook for to $930 million.The verdict covers 13 older Samsung devices that a previous jury found were among 26 Samsung products that infringed Apple patents.The previous jury awarded Apple $1.05 billion. But U.S. District Judge Lucy Koh reduced the damages to $640 million after ruling that jury miscalculated the amount owed on 13 devices and ordered a new trial.Apple had asked for $380 million, arguing Samsung’s copying cost it a significant amount of sales. Samsung countered that it owed only $52 million because the features at issue weren’t the reasons most consumers chose to buy Samsung’s devices instead of Apple’s.“For Apple, this case has always been about more than patents and money,” Apple spokeswoman Kristin Huguet said. “While it’s impossible to put a price tag on those values, we are grateful to the jury for showing Samsung that copying has a cost.”A third trial is scheduled for March to consider Apple’s claims that Samsung’s newest devices such as the popular Galaxy S III on the market also copied Apple’s technology.Apple and Samsung are the world’s two biggest smartphone makers. The bitter rivals have been waging a global battle for supremacy of the $300 billion worldwide market. The size of the award didn’t faze Wall Street or harm or help either company’s financial fortunes in any significant way.Samsung reported it had $47 billion in cash at the end of September and racked up $247.5 billion in revenue last year. Apple has $147 billion of cash on hand and took in $170.9 billion in revenue last year.

“We understood that the money wasn’t really an issue,” said juror Barry Goldman-Hall. “This was about the integrity of the patent process.”Goldman-Hall, 60, of San Jose was one of two men and six women on the jury, which was tasked only with determining damages.Apple has argued in courts, government tribunals and regulatory agencies around the world that Samsung’s Android-based phones copy vital iPhone features. Samsung is fighting back with its own complaints that some key Apple patents are invalid and Apple has copied Samsung’s technology.Samsung lawyer William Price argued Apple is misconstruing the breadth of its patents to include such things as basic rectangle shape of most smartphones.“Apple doesn’t own beautiful and sexy,” Price told the San Jose jury.Apple attorney William Lee told the jury that Samsung used Apple’s technology to lift it from an also-ran in the smartphone market three years ago to the world’s biggest seller of them today.“Apple can never get back to where it should have been in 2010,” Lee told the jury Tuesday at the conclusion of the weeklong trial.The fight in San Jose is particularly contentious. The courtroom is a 15-minute drive from Apple’s Cupertino headquarters, and several prospective jurors were dismissed because of their ties to the company.The three jurors who discussed the verdict outside court said Apple’s proximity made no difference in their deliberations.“Although Apple is down the street, it’s a global company just like Samsung,” jury forewoman Colleen Allen said. “I have a Samsung television and refrigerator and an Apple computer. I like both companies.”Allen, 36, of Aromas, is an emergency room nurse who served nearly eight years in the Navy, including a posting in Afghanistan.“If we didn’t award Apple much, we’re saying it’s OK to infringe patents,” Allen said.The South Korea-based Samsung has twice sought to stop the trial, accusing Apple on Tuesday of unfairly trying to inflame patriotic passions by urging jurors to help protect American companies from overseas competitors. The judge denied Samsung’s request for a mistrial, but did reread an instruction ordering jurors to put aside their dislikes and biases in deciding the case.On Wednesday, Samsung again demanded a halt to the trial after the U.S. Patent and Trademark Office told Apple it was planning to invalidate a patent protecting the “pinch-to-zoom” feature at issue in the jury’s deliberation. The judge ordered more briefing while declining to stop the trial.Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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Nokia shareholders approve Microsoft deal

Nokia shareholders approved the sale of its mobile phone business to Microsoft at an extraordinary general meeting held in the Finnish capital Helsinki on Tuesday.About 5,000 shareholders of Nokia participated in the meeting, including the members of Board of Directors and the Executive Board of the company, as well as former CEO Stephen Elop.The meeting lasted for about six hours and ended with 99.5 percent of votes supporting the sale.After speeches given by the top officials, the shareholders began to raise tough questions, mainly concerning Elop's role in the company's decline, the price of the deal and the product portfolio in the future.Risto Siilasmaa, Nokia Board Chairman and interim CEO, said that Elop worked diligently and he had never seen anyone working so hard for so long as Elop did.On the price of the sale, Siilasmaa believed that Nokia got a good price, as the deal was based on market competition and no better price was given than Microsoft's offer.

Information security is a hot topic around the world recently. According to Siilasmaa, information security is precisely the opportunity for Finland, Nokia has already put it into its product portfolio.Nokia's portfolio in the future will include network infrastructure, mapping technology and patents, in addition to information security."This is a significant step forward for Nokia. We are delighted that shareholders have given us overwhelmingly strong support to proceed with this transformative agreement," said Siilasmaa when concluding the meeting."Today's vote brings us closer to completing a transaction which will mark the beginning of the next chapter in Nokia's near 150-year history, offering the potential of greater value for shareholders," he said.The transaction is expected to be completed in the first quarter of 2014. After that, Nokia's net cash position will be boosted to nearly 8 billion euros (about 10.8 billion U.S. dollars) from around 2 billion euros in the third quarter this year.Nokia announced on Sept. 3 to sell its devices and services business and license its patents to Microsoft for 5.44 billion euros, after failing to recover from its continuous losses in the past two years.Since the announcement of the deal, the company's share price has more than doubled and its market value has risen to 10 billion euros. (1 euro = 1.35 U.S. dollars)
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Apple vs. Samsung: Federal jury begins deliberating high-stakes feud

A federal jury on Tuesday was handed a $327 million difference of opinion between Apple and Samsung in the latest legal showdown in their global patent feud.And while that amount may be trivial for the two tech titans and their multibillion-dollar war chests, lawyers for Apple and Samsung made it clear to the jurors that the outcome nevertheless has much broader implications for their ongoing courtroom collision over smartphone and tablet technology rights. And that collision centers on Apple's claims that Samsung should pay a steep price for copying iPhone and iPad technology.
FILE-In this Friday, April 22, 2011, file photo, Samsung Electronics' Galaxy S, left, and Apple's iPhone 4 are displayed at the headquarters of South Korean mobile carrier KT in Seoul, South Korea, Friday. "This is an important case," Apple attorney Harold McElhinny told the jury in his closing argument. "This is not about punishment. This is not about pitchforks. This is not about getting even. If juries take the profit out of patent infringement, then patent infringement will stop."Samsung, while conceding it "crossed the line" with some of its smartphones and tablets, told the jury that Apple is inflating the value of its patents -- and ignoring the fact many consumers choose Samsung for reasons such as lower cost and the Android operating system, not Apple's patented features."These patents are very narrow," Samsung attorney Bill Price told jurors. "Apple doesn't own beautiful and sexy."The eight-member jury is expected to resume deliberating Wednesday in the retrial of the damages phase of Apple's case against Samsung; it is being asked to determine how much Samsung owes for violating five patents on the iPhone and iPad in 13 Samsung products, such as Apple's bounce-back feature. The jury forewoman is a Monterey emergency room nurse who spent eight years as a combat medic in the military.

A jury last year awarded Apple $1 billion in damages for more than two dozen Samsung smartphones and tablets, but that amount was reduced by about $450 million on 13 of those products, prompting the retrial. The jury must now decide how much to restore to Apple, and the two companies have very different views of the amount.Apple has urged the jury to award nearly $380 million in damages in the current trial, while Samsung argues that no more than $52 million is at stake.To Apple, sales of the infringing Samsung products, such as the Infuse 4G and Droid Charge, came directly from iPhone and iPad sales. Apple told the jury that the $380 million, a compilation of lost Apple profits, Samsung profits and royalties, is still a fraction of Samsung's more than $3 billion in revenue from sales of those products.But Samsung counters Apple is exaggerating the importance of the patents to consumer choice, as well as overstating Samsung's profits. Price told the jury Samsung even lost money on some of the smartphones.After closing arguments, Samsung moved for a mistrial because of McElhinny's comment to the jury that American companies long ago were squeezed out of the television manufacturing market because they didn't protect their patent rights, his attempt to highlight the importance of Apple's need to protect its technology.Samsung, which in jury selection asked about bias against foreign companies, argued the remark could taint the jury against the South Korea-based tech giant.U.S. District Judge Lucy Koh denied the request, but summoned the jury back into the courtroom to warn them not to be influenced by views about either company.The issue is likely to be one of dozens raised when the case is appealed. Samsung is expected to appeal the entire case, including last year's verdict, once the damages trial ends.Apple and Samsung are also set to start another trial in the spring in a similar case that Apple has pressed over patent claims on newer smartphone and tablet product lines.
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Home prices continue to rise amid market-based reform hopes

Home prices in major Chinese cities continued to rise in October despite the government's persistent efforts to cool the property market, official data showed on Monday.Of a statistical pool of 70 major Chinese cities, 65 saw month-on-month rises in new home prices in October, and 62 reported price gains in existing and second-hand homes, the National Bureau of Statistics (NBS) announced in an online statement.The pace of growth in new home prices averaged 0.7 percent on a monthly basis, slowing 0.2 percentage points compared with that in September as developers ramped up supplies to meet growing demand during the traditional sales season and the government tightened price regulations, said senior NBS statistician Liu Jianwei."Some cities have tightened price approvals on certain projects, which helped contain the month-on-month rises," Liu said in a statement.On a yearly basis, all the cities except Wenzhou reported gains in new home prices.First-tier cities continued to lead rises last month, with the prices of new homes in Beijing and Shanghai surging over 20 percent from a year ago, while prices in most second- and third-tier cities expanded at a more tempered pace, according to the NBS, which attributed the drastic growth partly to a low comparison base.Driven by rapid urbanization and speculation, China's property market has taken off in recent years and become a major headache for the authorities as more people are priced out of the market.

The traditional Chinese mindset of viewing home ownership as a precondition for forming a family has guaranteed that demand in cities such as Beijing and Shanghai, which attract thousands of newcomers each year, will keep climbing.With other investment channels, such as the stock market, proving disappointing, houses in those cities have become a popular investment choice for the country's wealthy, further squeezing the already tight supplies.Over the years, in response to growing public complaints, the central government has tried to rein in prices by creating purchase restrictions and experimenting with property taxes, resulting in short-lived cooling of the market. After a while, prices have generally rebounded.Friday's data came amid hopes that the government may seek a more market-oriented mechanism to build a healthy property market following the reform decision publicized last week by the Communist Party of China Central Committee.China will step up legislation of property tax, build a unified market for urban and rural construction land to increase supply, and set up a housing database, according to the decision, which vowed decisive results by 2020."Although the decision has not directly mentioned home prices, the problem will be gradually resolved as the market-based reforms mentioned in the decision filter through," said Zhu Zhongyi, vice president of the China Real Estate Industry Association.However, Zhu also cautioned of challenges ahead, although the reform direction is clear, as the property markets in cities such as Beijing and Shanghai are very complicated."The key is to secure a proper transition from the current control measures to the proposed long-term mechanism while taking regional differences into consideration," he said.
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