Latest News:  
Beijing   Cloudy/Overcast    0 / 5   City Forecast

People's Daily Online>>China Business

China to continue home price control

By Kang Shu (The Economic Daily)

14:45, November 29, 2011

Edited and Translated by People's Daily Online

China has made significant progress in regulating its real estate market. According to a report recently issued by the National Bureau of Statistics, housing prices fell in 34 out of 70 large and medium-sized Chinese cities in October, twice as many as in September. Home prices remained unchanged in 20 cities.

Some have suggested that the Chinese government should relax real estate controls. Otherwise declining housing prices will affect the country's financial, economic and social stability. The sales and prices of homes have both dropped, appearing to be a signal that real estate developers are probably under great financial pressure, which may bring risks to domestic commercial banks.

Experts noted that domestic banks had previously reaped massive profits when housing prices were sky-high, and are capable of coping with a modest drop in housing prices. Furthermore, the central bank has raised the reserve requirement ratio six times since the beginning of the year and expanded the coverage of the reserve requirement, which has effectively reduced market liquidity. Due to the limited lending quota, domestic commercial banks have also reduced loans to real estate developers, which reduced the risks from housing market fluctuations to a certain degree.

【1】 【2】


Leave your comment0 comments

  1. Name


Selections for you

  1. First snow falls in Taiyuan, N. China

  2. Chinese shadow puppetry

  3. Way back to normal life from drug addiction

  4. FBI equipment and facilities

Most Popular


  1. Chinese still swarm to hard-hit Wall Street
  2. Durban goals must not crack under pressure
  3. Corporate efforts better than govt ad in selling China
  4. Iceland deal hits local firms with dose of cold water
  5. Are Chinese people truly miserable?
  6. Protecting monetary sovereignty
  7. Think competitively
  8. Public anger hits the roof
  9. Zero-sum mentality should be ditched
  10. US expected to contribute to Asian economy

What's happening in China

Aussie black-belt hosts travel show

  1. Chinese fire dragon dance shown in SW China
  2. New home sales see weekly 12.7% fall
  3. First snow falls in Taiyuan, N. China
  4. Pork industry safe: experts
  5. Sales target likely to be beaten

PD Online Data

  1. The lion dance in Guangzhou
  2. The flower fair in Guangzhou
  3. Lion dances pay New Year calls in Guilin
  4. Jiangsu´s special New Year traditions
  5. Hakka traditions in Spring Festival