Mstyslav Chernov
During a joint working meeting in Wuhan (Central China), representatives of the People's Bank of China, the Ministry of Housing, Urban and Rural Construction and the Ministry of Land and Natural Resources of China commented that short-term tasks to be implemented in the real estate sector were announced, CCTV reported.
There is almost a two-year boom in the housing market in China. This gave the economy a significant boost, but caused fears about the emergence of bubbles, writes Reuters. The government has been taking drastic measures since the end of 2016 to reduce speculative purchases.
Despite the efforts of the Chinese authorities to curb speculation in the housing market, property prices keep growing, albeit at a slower pace. Prices for new homes rose slightly faster in October, after the previous month's growth remained stable.
The regulators said that China would prevent illegal transfer of funds to the real estate market and ensure a balanced distribution of capital between real estate and other sectors.
Three structures of the central government also instructed the provinces to take measures to tighten control, to be consistent in politics and warned them against weak regulation that could lead to significant market fluctuations and increased financial risks.
"(We) should not allow any thoughts about the fact that we can sit back," - said the regulators, quoted by CCTV.
China also intends to improve the management of the land market and prevent cases of overstatement of land prices, which push up prices for real estate, CCTV reports.
In September, S&P lowered China's long-term sovereign credit rating for the first time since 1999, pointing to the risks of growing debt burden, and revised the forecast from "negative" to "stable."
"The transfer of the credit-boosted growth line in recent years to households also has many obvious risks," such as a correction in the real estate market, analysts of S&P said last month.
China seeks to limit the excessive use of borrowed funds, while maintaining the pace of economic growth, which largely depends on the growth of lending.
source: reuters.com
There is almost a two-year boom in the housing market in China. This gave the economy a significant boost, but caused fears about the emergence of bubbles, writes Reuters. The government has been taking drastic measures since the end of 2016 to reduce speculative purchases.
Despite the efforts of the Chinese authorities to curb speculation in the housing market, property prices keep growing, albeit at a slower pace. Prices for new homes rose slightly faster in October, after the previous month's growth remained stable.
The regulators said that China would prevent illegal transfer of funds to the real estate market and ensure a balanced distribution of capital between real estate and other sectors.
Three structures of the central government also instructed the provinces to take measures to tighten control, to be consistent in politics and warned them against weak regulation that could lead to significant market fluctuations and increased financial risks.
"(We) should not allow any thoughts about the fact that we can sit back," - said the regulators, quoted by CCTV.
China also intends to improve the management of the land market and prevent cases of overstatement of land prices, which push up prices for real estate, CCTV reports.
In September, S&P lowered China's long-term sovereign credit rating for the first time since 1999, pointing to the risks of growing debt burden, and revised the forecast from "negative" to "stable."
"The transfer of the credit-boosted growth line in recent years to households also has many obvious risks," such as a correction in the real estate market, analysts of S&P said last month.
China seeks to limit the excessive use of borrowed funds, while maintaining the pace of economic growth, which largely depends on the growth of lending.
source: reuters.com
