China can’t rely on real estate to stimulate growth: People’s Daily
Analyst advises other actions, including the vigorous development of the leasing market and strengthening control of financial policies to prevent speculation
China’s current real estate regulations are unlikely to relax this year, as the housing market is expected to remain stable, according to a commentary on the People’s Daily Overseas Edition, citing several insiders.
Cong Yi, a professor of the School of Economics at Tianjin University of Finance and Economics, thinks real estate policy in 2019 should be exerted via two directions.
First, continuing to vigorously develop the leasing market. Second, to strengthen control of financial policies so as to prevent large amounts of funds from housing market speculation.
Through this process, local governments must assume the main responsibility for steady development of the local real estate market, Cong said.
Zhao Xiuchi, a professor at Capital University of Economics and Business, also pointed out that local governments must develop a pillar industry in accordance with the resources they own, form a new growth momentum and avoid returning to the old path of relying on real estate to drive the economy.