Economy

Impact of property policies on China's economy

(China Daily)
Updated: 2010-07-22 10:24

 

Chen Xingdong, chief economist of BNP Paribas Peregrine Securities Limited

At present, only a few cities have implemented their property tightening policies, showing that local governments have failed to play a positive role in the central government's property regulation policy. Since several rounds of policies in the past did not achieve the results desired by the public, the government may lose the trust of the people if the property regulation policies this time still don't work. The ideal situation would be for home prices to decline to affordable levels as soon as possible and for the authorities to adjust land, lending and taxation policies to get the property market onto a normal track of development.

To prevent excessive damage to the Chinese economy by property regulation policies, some other regulatory policies, including cleaning up the local financial platform and implementing energy conservation and emission reduction measures, can be temporarily relaxed.