New policy stresses Hukou

11:15, February 21, 2011      

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Pedestrians pass by a real-estate agent in Beijing, capital of China, Feb. 14, 2011. (Xinhua File Photo)

In another chapter of China's battle against the sky-rocketing prices of real estate nationwide, many Chinese cities are taking up arms by implementing their own policies to limit property buying.

However, these opening salvos were met by harsh criticism by those who view the forced residence registration approach as squeezing out non-locals from the property ladder.

Authorities in about 10 cities, including Shanghai and Guangzhou, will prohibit locally registered citizens who already own two or more homes, or those without a local residence permit, or hukou, who have owned at least one home, from buying more houses, the Xinhua News Agency reported Saturday.

Additionally, non-local registered families who cannot produce documents certifying they have paid for social security or income taxes in these cities for one year are banned from buying property.

Nanjing and Harbin joined Chengdu, Qingdao, Changchun, Nanning and Guiyang over the weekend in releasing similar policies.

Beijing issued even tougher policies Wednesday by banning home purchases for those who cannot show social security or income tax payments in the capital for five straight years.

Last December, the same rules were applied in Beijing to determine whether non-locals could apply to own license plates for new cars.

Wang Zhenyu, a deputy director of the Public Decision-making Research Center with China University of Political Science and Law (CUS), told the Global Times that the moves indicate a huge reversal in reform of the hukou system.

"The new home-purchase policies will only inflate the value of hukou and will breed fraud. There is a possibility for more non-locals to enter bogus marriages with local people and then get divorced to evade policy restrictions," he said.

Wang sent a proposal Friday to the Legislative Affairs Office of the State Council, China's cabinet, requesting changes to the new housing and car purchase restrictions.

"The cities impose stricter access to people without local hukou, which is discriminative and against the Constitution that stipulates that all are equal the law," he said.

Source:Globla Times

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