Heads of real estate companies, such as Ren Zhiqiang, chairman of Huayuan Group, and Feng Lun, chairman of Vantone Group, have appealed to the government to ‘save the market’ through the media and other channels.
Nie Meisheng, chairman of the China Real Estate Association, said that the government would probably make adjustments to the current real estate control policies. He said, ‘It is not the current problems in the real estate market, but the possible influence on the wider economy brought about by a real estate market downturn, that matters. I believe this time the central government will be very cautious.’
The market-saving suggestions that have been reported to the central government include properly adjusting real estate control policies, and loosening tight credit.
However, Gu Yunchang, vice chairman of the China Real Estate Housing Research Association, another nationwide real estate organization, has strongly opposed the idea of ‘saving the market’.
Gu Yunchang points to the data issued by the National Bureau of Statistics: in July the selling price for newly built housing increased by 9.2% over the same month last year, and is 0.1% up over the previous month.
Source: China Stakes