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© Reuters. File picture: Chinese Vice Premier Han Zheng attends the closing ceremony of the Chinese People’s Political Consultative Conference at the Great Hall of the People in Beijing, China, on May 27, 2020. REUTERS/Thomas Peter/Pool
BEIJING (Reuters)-State TV on Thursday quoted Vice Premier Han Zheng as saying that China will not use the real estate market as a tool for short-term economic stimulus, affirming its current position.
Han said at the real estate market conference that local governments should strictly control the financing of real estate developers, including bank loans, and improve the land pricing mechanism.
Han said that China aims to solve the housing problem in large cities, establish a sound rental pricing mechanism, and accelerate the development of affordable housing in accordance with urban conditions.
The Chinese real estate market rebounded rapidly from the impact of COVID-19, raising concerns about financial risks and overheating. At the end of last year, the authorities began to tighten restrictions on the industry, including restrictions on debt accumulation.
As the government’s measures to cool the real estate market further restrained economic growth, the price increase of new houses in June was the lowest since April, and the growth of real estate investment was the lowest this year.
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