China to step up property market regulation

22/11/2017 07:20 AST

China will step up financial regulation and crack down on speculation in the property market to stabilise prices and fend off bubble risks, state television CCTV reported on Tuesday, signalling renewed efforts to rein in risks from a rapid build-up in debt in the economy.

The remarks from regulators at the People’s Bank of China (PBOC), the Ministry of Housing and Urban-Rural Development (MHURD) and the Ministry of Land and Resources (MLR) during a joint work meeting in central China’s Wuhan laid out short-term tasks to be achieved in real estate, CCTV said.

China’s housing market has seen a near two-year boom, giving the economy a major boost but stirring fears of a property bubble, with the government taking strong measures since late 2016 to curtail speculative purchases.

Despite efforts by Chinese authorities to curb speculation in the housing market, property prices have continued to climb although at a slower pace. New home prices rose at a slightly faster pace in October after gains had held steady the previous month.

The regulators said China would prevent funds from being illegally channelled into the property market, and ensure capital allocation between real estate and other industries was balanced.

The three central government entities also told provinces to stick to their tightening measures and be consistent in policy, warning against lax regulation that could lead to big fluctuations in the market and a build-up in financial risks.

“(We) must not tolerate any thinking that we can sit back and relax,” the regulators said, according to CCTV.

China will also improve its management of the land market and prevent cases of high land prices pushing up property prices, CCTV said.

China will raise foreign ownership limits in financial firms in a step granting access to a tantalizing multi-trillion dollar financial services market, as the world’s second-biggest economy seeks to position itself as a major global finance hub.

The Gulf Today