With mainland market rescue measures in place, buildings can stop collapsing and stabilize |

The main reason for the downward pressure on the mainland economy is the overdevelopment of real estate, which has led to a misallocation of resources and captured a lot of capital.

Faced with this situation, the government should implement a loose monetary policy, first do macro-control, and then take special corrective measures according to the real estate situation. Unfortunately, the Federal Reserve raised interest rates suddenly and continuously, putting pressure on the RMB exchange rate, forcing the country to wait until the macro environment is suitable before setting policies. launched.

Months ago, US interest rates began to fall, giving China the conditions to gradually reduce the economy and launch a series of targeted real estate policies. As this policy cycle hits the mark, market confidence is gradually recovering. Especially in the first tier cities, during the National Day Golden Week, transactions were very fast and property prices were expected to stop falling and stabilise.

At first, such specific corrective measures would take time to take effect, but this time the market responded faster than usual. The reason is that the market believes that the central government’s diagnosis of the disease is correct and that the order is correct. Therefore, once the policy was announced, the market responded immediately.

The basic reason that the real estate market on the mainland is thriving this time is that it has been overdeveloped, and as a result supply far exceeds the real needs of society, as a result of there, a lot of money previously invested by developers and banks is tied up, and the real economy has become unclear.

In response to this situation, the Chinese government made corrections by “strictly controlling the increase.” ” In over-inventory cities (cities where the investment digestibility period is longer than three years), the government no longer provides land for new development until the inventory- help owner to be digested as soon as possible. In addition, the government also plans to issue bonds and establish a special fund to acquire land reserves from developers.

In this way, the government can not only take back the land previously wasted by local governments, but also allow developers on the white list to withdraw funds to help them with to fulfill their social responsibilities to ensure the delivery of properties.

In addition, the government has launched a policy to “make the best stock”, issuing bonds to acquire suitable stock housing and convert it into affordable housing. This can not only keep the stock tightly controlled (not building new affordable housing), but also make good use of the stock housing and reduce the waste of empty stock housing.

In addition, the government is also asking banks to reduce mortgage interest rates for existing housing stock to reduce the housing payment burden on small property owners, allowing them to borrow more money. have for more consumption and investment. In this way, it can not only increase domestic demand and investment activity in society, but also reduce the downward pressure on the economy.

To this end, the government has also lifted a series of outdated purchase restrictions, sales restrictions and price restrictions, allowing non-locals to buy houses in first-tier cities and the allow local people to buy second homes the first home, and it only needs 15%. In this way, the government can use private funds to help the real estate market stop falling and stabilize it.

China is a country with the strongest saving capacity of the people in the world locked up in real estate projects The money above can be released. Since the Political Bureau of the CPC Central Committee has expressed its opinion on encouraging the real estate market to stop falling and stabilize it, it is believed that more private money will enter the real estate market in the period future, and the drag on the Chinese economy from the real estate market should be gradually reduced.